An Economic Analysis of Kinnow Cultivation and Marketing in Fazilka District of Punjab

Abstract

The recent re-emergence of agrarian crises in Punjab has again drawn the attention of policy makers towards the viability of alternative crops. In this context, the study attempts production and marketing of one of the alternative and viable crops (i.e kinnow) considered for the farmers in the state. The study has been carried out in a newly carved Fazilka district of Punjab with a sample of 100 farmers selected equally from four villages in two tehsils of the district. The study points that kinnow is profitable crop as benefit-cost ratio, net present value and internal rate of return at 10 per cent rate of discount were worked out to be 2.04, `302289.78 and 40 per cent respectively. The study also reveals that the channel with least number of intermediaries was most efficient as compared with the channels with more number of middlemen. However, the farmers faced various problems such as inefficient marketing process, fluctuations in price, low price, lack of storage facility, etc. The study suggested that in order to realize the benefits of such new crops, there is need to regulated markets with better marketing facilities so that farmers are not only able to reduce their transportation costs but they will also be realize better prices for their produce. Besides, linking the fresh produce with agro-processing industries can go a long way in ensuring the returns from this crop.