Economic Analysis of Litchi Production in Muzaffarpur District of Bihar Kumar Sandeep1, Swami Sargam1, Kumari Meera1,*, Kumari Anita2, Panda C.K.3 1Department of Agricultural Economics, Bihar Agricultural University, Sabour, Bhagalpur, Bihar, India 2SMS, Krishi Vigyan Kendra, Sabour, Bihar, India 3Department of Extension Education, Bihar Agricultural University, Sabour, Bhagalpur, Bihar, India *Correspondence author: meera.bausabour@gmail.com (ORCID ID: 0000-0003-3422-7249)
Online Published on 25 October, 2023. Abstract The Study was carried out with an objective to estimate cost and returns of Litchi under different size of sample farms in Muzaffarpur District of Bihar. The empirical data were gathered from agriculture year 2018-19 during production period of litchi through survey of litchi growers’. The multistage sampling techniques were used to select the location/ area where abundantly litchi orchard occupied and their respondents’ for required information. Thus, a total 90 litchi growers (8 marginal, 18 small, 46 semimedium and 18 medium) were selected with equal chance or opportunity of all farms categories in groups from 2 blocks from six selected villages of the Muzffarpur district of Bihar. The gross value of the litchi production on overall farms was estimated on an average in 2.95 lakhs per hectare against cost C as well as annual maintenance costs was in 65.93 thousand per hectare. The costs of production of litchi on overall farms was accounted on an average to be in 941.52 per quintal litchi, which were varies from 1197.58 per quintal litchi and estimated higher on marginal farms, followed by 1045.77 per quintal on small farms, 898.75 per quintal on semi-medium farm, and 872.97 per quintal on medium farms. Result revealed that cost of production of litchi decreased with increase in land owner farm groups. The establishment (first to fifth year’s i.e. juvenile stage) costs of litchi orchard on overall farms were estimated to be 2.56 lakhs and further estimated amortized costs on an average was 1329.37 per hectare. The establishment and annual maintenance cost both were included fixed costs increases with increase in land possession of farms groups, but variable cost include in total costs (fixed and variable cost) were reduced with increase in land holding farms groups. The NPV of overall farms were on an average in 6.21 lakh, benefit-cost ratio (BCR) in 2.77 against one rupee spend. Internal rate of returns (IRR) value was obtained 25.64 percent greater than chosen discount rate as 15 and 20 per cent to make the decision about reinvestment opportunity to prioritize the area of reinvestment by litchi growers.Highlights The costs of production of litchi on overall farms was accounted on an average to be in 941.52 per quintal litchi, and estimated higher on marginal farms.Cost of production of litchi decreased with increase in land owner farm group.
Top Keywords Litchi, Cost, Return, IRR, Benefit cost Ratio. Top |