Resource use efficiency and marketing analysis of apple crop in Shimla district of Himachal Pradesh

Apple crop accounts for 50 per cent of the world's deciduous fruit tree production. This temperate crop has become a gainful cash crop for the people in northwestern Himalayas. It accounts for an economy of around Rs 3500 crores constituting 10 per cent of the gross domestic product of Himachal Pradesh. Apple is grown mainly in the districts of Shimla, Kinnaur, Kullu, Mandi, Chamba and some parts of Sirmour and Lahaul-Spiti. The analysis was based on data collected from 50 households of Shimla district of Himachal Pradesh in 2014 providing a deep insight into the resource use efficiency and marketing channels of apple. Various factors like use of labour, pesticides, FYM, fertilizers and area under apple cultivation were regressed through Cobb-Douglas production function and the results showed that all these factors directly affected apple yield. Input of labour and fertilizers was moderately affecting the apple yield. Increase in the pesticides input and area under apple cultivation by 1 per cent augmented the apple yield by 0.552 and 0.438 per cent respectively. Highest share of produce was traded through channel D (60%) followed by channel C (29%) which implies that channel D was more efficient in apple transactions to the consumers. Apple production is a profitable enterprise and is in its mature state in Himachal Pradesh as depicted by positive and increasing returns to scale respectively.