The present study attempted to analyze the cost and returns of open field capsicum cultivation in the Solan District of Himachal Pradesh. A total of 80 farmers were selected randomly from two developmental blocks, namely Solan and Kandaghat. Findings revealed that the overall cost of capsicum cultivation was ` 134896.38 per hectare, which was ` 137509.09, 132978.89, 130986.75, and 136858.50 in the marginal, small, semi-medium, and medium farm categories. The return analysis revealed that among all the four categories, the highest per hectare-average returns were observed in the marginal farm category, i.e., ` 216609.74 and the lowest average returns were recorded in the medium farm category, i.e., ` 152319.63. The cost of production varied between ` 718.38 per quintal in the marginal farm category to ` 875.54 per quintal in medium farm category. The input-output ratio on an overall level concluded that at an investment of ` 1 on capsicum cultivation, the farmers in the study area were getting ` 2.39 as returns.

Highlights

• The study area represented an overall cropping intensity of 184.97 %.
• The highest per hectare cost of cultivation of ` 137509.09 in the marginal farm category revealed a high investment on the factors of production.
• The net farm income was found to be the highest in the case of the marginal farm category, i.e., ` 216609.74, which indicated an overall good performance in capsicum cultivation.
• The overall input-output ratio of 2.39 indicated a great potential of capsicum cultivation under open field conditions in the study area