Financial Viability of Persimmon Cultivation In Kullu District of Himachal Pradesh

Abstract The agriculture sector is backbone of the Indian economy and major portion of rural India's livelihood. The return per unit area of fruit crops increases, which makes more important in farm diversification. Persimmon is well suited to this change in the state of Himachal Pradesh where mid-hill areas are suitable for cultivation and the area under orchards has increased steadily during the last decade. This present work "Economic Analysis of Persimmon Cultivation in Kullu district, Himachal Pradesh" was conducted in the Kullu district, the state's top producer, using data from 128 farmers chosen through multi-stage random sampling. Costs were analysed from establishment to harvest in the non-bearing years (1–5) and over three bearing categories: 6–12, 13–20, and greater than 20 years. The cost of establishing an orchard was Rs. 1,23,315.11 per hectare. Bearing cost varied from Rs. 1,68,678.14 to Rs. 1,72,597.14 per hectare. The orchards of 13–20 years old age performed best with 129.18 quintals per hectare and gross returns were 6,45,898.44, which decreased significantly behind the 20-year trend. The farmers' average yield stood at 123.21 quintals per hectare along with total gross returns for all age groups are 6,16,041.67. A BCR of 2.19 means each rupee invested returned Rs. 2.19. NPV came to Rs. IRR was 17,42,403.62 per hectare, recovery period was 7.8 years and IRR was 29 per cent. Sensitivity analysis confirmed that persimmon cultivation remains profitable even under moderate cost increases or return reductions. This makes it an economically rewarding and financially resilient enterprise in Kullu district.