A Comprehensive Economic Analysis of Aloe Vera Crop Cultivation in Bilaspur District, Chhattisgarh, India

Abstract

This research delves into the economic dynamics surrounding the cultivation of medicinal and aromatic plants (MAPs) within the Bilaspur district of Chhattisgarh, India. Employing a meticulous multistage random sampling approach, respondents were carefully selected for data collection. This region enjoys a climatic advantage conducive to the growth of diverse MAPs. The study scrutinizes the cost and return structure specific to Aloe vera cultivation. Operational costs encompass a gamut of expenses, including labor, materials, seeds, fertilizers, and machinery, while overhead costs encompass fixed capital expenses such as land rental, depreciation, and interest. Notably, Aloe vera yielded 257.32 qtl/ha in small farms, 291.73 qtl/ha in medium-sized ones, and 294.17 qtl/ha in larger farms. The overall gross returns were calculated at ` 140,536.67 per hectare, with medium-sized farms reaping the highest net returns at ` 64,708.12 per hectare. Unpacking the operational expenses for Aloe vera cultivation, material costs emerged as the predominant component, closely followed by labor and seed expenses. The operational cost per hectare spanned from ` 53,380.64 for small farmers to ` 60,204.89 for their larger counterparts. Interestingly, overhead costs, including land revenue, depreciation, and interest, remained lower than operational costs across all farm sizes. The research demonstrates a direct correlation between MAP yield and gross returns, underlining the profitability of Aloe vera cultivation, as evidenced by a favorable benefit-cost ratio. These findings serve as a valuable compass for policymakers, farmers, and stakeholders, offering insights that can inform decisions pertaining to MAP cultivation, processing, and marketing. Ultimately, this study has the potential to enhance the economic viability of MAP production in the region.