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Niyati Thakur

Unveiling margin of safety and break-even point of open vis-à-vis protected capsicum cultivation in the northwestern Himalayan state - P 479-484

In the context of mitigating climate change with investment in advanced production technology, the study
was conducted in 2022–23 to ascertain the impacts of
open versus protected cultivation of capsicum in the
northwestern Himalayan state of Himachal Pradesh.
Capsicum is a high-value commercial crop, and it has a
lot of scope to augment farm income. Although the initial cost for polyhouses is higher, protected cultivation
delivers far better technical and economic results. The
yields and net income increased by 200% and 258%
respectively, compared to open field conditions. Output–input ratios (3.30 and 2.55) for protected and open
are also highly prospective. A higher value of breakeven point and a larger margin of safety in protected
cultivation implies enhanced feasibility of additional
financial involvement and resilience against production risks (yield and profitability), which could help
mitigate the climatic risks. Since the return part of the
technology is ascertained, the policymakers, researchers
and practitioners can leverage these insights to promote these sustainable agricultural strategies among
the resource-poor cultivators amidst climate uncertainties. Technical and financial support may encourage the adoption of protected cultivation, which can
enhance food security and farmers’ income and foster
agricultural sustainability in the regions. Future research will explore the scope of diversification of crops
to validate the scaling-up of the benefits of protected
cultivation at macro level.

Subjects--Facted Index Terms:
Break-even analysis
protected vis-à-vis open cultivation
profitability
margin of safety
capsicum,