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Economics of Crop Cultivation in Himachal Pradesh: Facts from Cost of Cultivation Data


Sandeep Kumar



Indian Journal of Economics and Development
Year : 2017, Volume : 13, Issue : 2
First page : ( 295) Last page : ( 304)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2017.00179.2

Economics of Crop Cultivation in Himachal Pradesh: Facts from Cost of Cultivation Data

Kumar Sandeep*

Department of Economics, H. P. University Regional Centre, Khanyara, Dharamshala-176 218 (Himachal Pradesh)

*Corresponding author’s email:

JELCodes: Q10, Q11, Q12, Q15

Online published on 20 June, 2017.


Agricultural economy plays a significant role in the rural livelihood of Himachal Pradesh as about 90 per cent the population of the state resides in rural areas (highest in country in terms of (percentages) and nearly 70 per cent of the working population directly or indirectly depends on it to eke out its livelihood. Keeping in view the preponderance of agriculture in the state economy, the present study also provide a detailed economic analysis of costs, returns and profitability of principal crops namely, Maize, Paddy, Wheat and Potato by using the cost of cultivation data for the period 2012–13 through different cost concepts developed by the CACP. The result shows that different crop systems studied in this research vary with the magnitude of inputs (land, labor, bullock labor, seed etc.) and crop output. The study highlights that family labour has predominant role in the accomplishment of various crop operations. In respect of net returns and profitability, only paddy and potato crops are bearing positive returns over cost C and in terms of net profit per quintal, all crops are bearing profits though it is too low. The production of these crops are not viable at least from farmers ’point of view. In order to make agriculture a viable and sustainable occupation, an integrated development strategy encompassing effective modern extension services, transfer of production technology & technical know-how to the farmers, use of modern inputs (certified seeds, balanced fertilizer (N+ P +K), insecticides & pesticides, improved agricultural implements and machinery), access to institutional credit, development of adequate storage and warehousing facilities, watershed management, livestock policy, linking of MSP to the costs of cultivation, creation of irrigation potential and its optimum utilization is of primary importance.

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