Economic analysis of orchid cultivation in Kerala

Orchid is a major cut flower grown in Kerala. The present study is an attempt to assess the cost of cultivation and economic viability of orchid cultivation based on the data collected from a sample of 20 growers of Thiruvananthapuram and Ernakulam districts of Kerala. Cost of cultivation using A B C cost concepts showed that cost A or total paid out cost was Rs. 1,25,585. Considering all variable and fixed costs, cost C3 came to Rs. 1,53,868. The average annual returns obtained from a unit of 1000 orchid plants was Rs. 1,06,789. Based on pay-back period, benefit cost ratio, net present worth and internal rate of return, orchid cultivation practiced by growers in the study area was found to be an economically viable proposition.