Year: 2022 | Month: September | Volume 67 | Issue 4

Economic Analysis of Cherry Cultivation in Shimla District of Himachal Pradesh

Diksha Bali Ravinder Sharma Parul


A study aiming of working out the economics of cherry cultivation in Shimla district of Himachal Pradesh was carried out in three purposively selected tehsils i.e. Kumarsain, Nankhari, and Kotkhai, by taking a representative sample of 50 farmers. Economic worth indicators, namely Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return, Payback period, and Benefit cost (BC) Ratio, were estimated. Analysis of the results showed that the average cost of establishment of cherry orchards per hundred plants was ` 1,29,438.26 and the average maintenance costs were ` 44,650.19,` 49,664.57 and ` 54,477.83 during early, main and late bearing stages, respectively. The net return was found to vary between ` 24,603.78, ` 1,65,094.40 and ` 99,109.13 during different bearing stages of cherry, and investment in cherry was found to be economically feasible. The payback period was 11 years, NPV varied between ` 4,15,661 to ` 8,62,528 at 6.25 to 10 percent discount rates when calculated using the present value method. The benefit-cost ratio was also found to be greater than one varying between 2.03 to 2.59; IRR was found to vary between 20 to 24 percent among different categories. The investment in cherry proved to be stable towards cost and yield variations; when there was 5 to 10 percent increase in cost and a decrease in returns, the economic measures were well in the range, overall benefit-cost ratio ranged between 1.95 to 2.60 and IRR varied between 20.24 percent to 22.24 percent in a sensitivity analysis.


  • Cherry cultivation proved to be economically feasible during all bearing stages.
  • Investment in cherry is stable towards cost and yield variations as shown by the sensitivity analysis.

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