Financial Analysis of Commercial Cultivation of Selected Medicinal Plants in Uttarakhand - a Case Study of Uttarkashi District

Abstract

Agro-technologies for cultivation of a number of medicinal plants have been developed but large scale cultivation of medicinal plants on farm lands in Uttarakhand is yet to begin. Among other causes for this gap, lack of reasonable correct information on economics of cultivation of medicinal plants is one important cause. The economics of cultivation of six medicinal plant species viz; Kutki, Kuth, Atees, Meetha, Chirayata and Buchh was studied on farmer's field in Uttarkashi District. The net benefits calculated for each species were subjected to cost effectiveness at 9% discount rate in relation to fall in prices by 20%, 30% and 40%, increase in wage rate by 20%, 30% and 40%, and increase in rental value (opportunity cost) of land by 20%, 30% and 40%. The net benefit calculated for each species were also analysed to sensitivity analysis in relation to increase in wage rate by 20 % and increase in rental value (opportunity cost) of land by 20%. The results showed that maximum net benefits of Rs. 1240, Rs. 427 and Rs. 153 could be received at 9% discount rate by Atees, Kutki and Chirayata respectively.