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Value chain analysis of mentha cultivation and processing cluster in Punjab

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Karanvir Singh and Taptej Singh

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Abstract

Indian Journal of Economics and Development
Year : 2014, Volume : 10, Issue : 1a
First page : ( 150) Last page : ( 154)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/j.2322-0430.10.1a.035

Value chain analysis of mentha cultivation and processing cluster in Punjab

Gill Karanvir1,*, Singh Taptej2,**
1Teaching Assistant, Department of Food Science and Technology, Punjab Agricultural University, Ludhiana-141004

2Research Fellow, Technology Marketing and IPR Cell, Punjab Agricultural University, Ludhiana-141004

*Email: karanvir.karan@gmail.com

**taptej_forever19@yahoo.com

JEL Classification: D22, D42, P22, Q13, Q18

Online published on 26 February, 2014.

Abstract
Mentha oil is an important ingredient used in various products of pharmaceuticals and cosmetic industries. The present investigation envisage to analyse entire value chain of mentha farming and Processing Cluster and to undertake the benefit-cost analysis of mentha and competing crops. The study was based on primary and secondary data sources. The results of the study brought out that the margin between variable cost and gross returns was 79.08 per cent per acre in mentha crop while margin in input and output in wheat, potato, paddy and maize is 59.55, 55.90, 55.38 and 51.38 per cent, respectively. The benefit-cost ratio also supports the results with higher BC Ratio on mentha cultivation (4.78) as compared to wheat (2.47), potato (2.26), paddy (2.24) and maize (2.05) cultivation.