Economic viability, technical efficiency, and risk assessment of organic ginger and turmeric farming in Sikkim

The full organic state, Sikkim, is endowed with rich natural resources and a suitable agro-climate to produce a diverse range of spices. The present study was carried out during the period from 2019-20 to 2023-24 to assess economic viability, technical efficiency, and associated risk in organic ginger and turmeric cultivation and to analyze the constraints faced therein during the period of transitions at Sikkim. The study was conducted using a mixed method of data collection, and a total of 100 organic farmers cultivating both ginger and turmeric were purposively selected from the identified villages. The findings of the study reveal that ginger and turmeric showed marked improvements over the study period, with benefit-cost ratio increasing from 0.87 to 1.83 and from 0.82 to 1.33, respectively, while net returns increased from −₹34,902 to ₹321,817 ha⁻¹ for ginger and from −₹30,980 ha⁻¹ to ₹88,658 ha⁻¹ for turmeric. Data Envelopment Analysis (DEA) technique was employed for measuring the relative technical efficiencies and scale efficiencies of the farms. The mean pure technical efficiency score for organic ginger was improved from 59.00 per cent in 2019–2020 to 81.00 per cent in 2023–2024, while that of organic turmeric increased from 49.00 per cent to 74.00 per cent during the same period. The finding of the study supports the hypotheses that the benefits of organic cultivation need to be examined in the long run, considering its impact beyond yield. The findings of the Minimization of Total Absolute Deviations (MOTAD) Model revealed a significant reduction in income variability and production risk in organic ginger and turmeric cultivation from 2019 to 2020 to 2023–2024 in Sikkim. Organic turmeric cultivation was comparatively more vulnerable than ginger, as evidenced by its higher income variability and lower efficiency level. The findings from this study will help policymakers to take appropriate measures for promoting and upscaling organic farming in other northeastern states and hilly areas, as well as in spice growing areas.