Economic Evaluation of Red Chilli Farming in District Mirpurkhas, Sindh, Pakistan

Abstract

Sindh province also produces red chilli in large quantities in Pakistan with 80-88 percent national production. Mirpurkhas ranks among the largest districts producing chilli in the Province of Sindh because it is well endowed with climatic conditions as well as long experience in farming. The current research paper under consideration focuses on the economic performance of production of red chilli in the District of Mirpurkhas, Sindh. The data collection methods were random sampling and a structured questionnaire, and primary data were collected from 60 red chilli growers. The findings showed that the crop was producing on average 75.00 Mds per acre, and the gross income per acre was Rs. 160,000 and cost of production was Rs. 71,550 that provided a net income of 88, 450 per acre. It was found that the input-output ratio was 1: 2.24 which meant that each rupee invested generated 2.24 in gross returns. The ratio cost to benefits was found to be 1:1.24 that validates the fact that the red chilli production is a lucrative venture in the study area.