Table 1 outlines the profile of 300 ginger growers in Sirmour district, which includes 138 marginal, 96 small and 66 semi-medium farmers. Landholding sizes increase from marginal (0.51 ha) to semi-medium (2.07 ha), reflecting the fragmented land structure in Himalayan agriculture
(Birthal et al., 2020). Semi-medium farmers achieved the highest average yield (122.59 q/farm), with an overall average yield of 116.61 q/farm, highlighting ginger’s productivity under mid-hill conditions
(Chand et al., 2022). Marketable surplus also followed a similar trend, with semi-medium farmers reporting the highest surplus (115.82 q/farm), compared to small (102.67 q/farm) and marginal farmers (105.65 q/farm). Marginal farmers, despite lower production, maintained a high marketable surplus, underscoring ginger’s importance as a cash crop for smallholders (
Tiwari and Joshi, 2021). Himachal Local was the dominant cultivar across all groups, while small farmers also adopted ‘Himgiri,’ indicating some varietal diversification. This preference for Himachal Local aligns with findings that farmers choose regionally adapted varieties for their suitability and stable market demand (
Nair, 2013;
Oudhia and Tripathi, 2021).
Table 2 presents the detailed cost structure of green ginger cultivation across different farm-size groups in Sirmour district. The cost pattern reveals considerable variation in both paid-out and imputed cost components, reflecting differences in input intensity, labour dependence and scale of operations, typical features of Himalayan smallholder agriculture
(Birthal et al., 2020). Seed emerged as the dominant cost component across all categories, accounting for nearly two-thirds of Cost A1. This finding aligns with earlier studies that report seed rhizomes constitute the largest share of total variable costs in ginger production due to high planting material requirements (
Nair, 2013;
Chand et al., 2022). Seed expenditure ranged from ₹ 92,253/ha among marginal farmers to nearly ₹ 98,456/ha among medium farmers, indicating limited variation because most growers rely on similar locally available planting material.
Organic manure constituted the second major cost component, with relatively higher investments among small and semi-medium farmers. This pattern is consistent with studies on ginger production systems in hill regions where organic inputs and planting materials account for a major share of variable costs
(Mathew et al., 2018; Singh and Dhillon, 2015). Expenditure on hired labour increased with farm size, indicating a gradual shift from family labour to hired labour as operational holdings expand. Similar labour-use patterns have been documented in hill farming systems, where larger farms demonstrate higher dependence on market labour
(Birthal et al., 2019).
Small farmers face the highest Cost B2 due to higher fixed-capital intensity per unit area, a trend seen in small-scale hill farms
(Birthal et al., 2020). Family labour significantly adds to production costs, particularly for marginal farmers (₹ 62,358/ha), who rely on household labour due to limited finances for hiring. This aligns with studies showing that smallholders in the Himalayas use family labour to reduce cash expenses (
Tiwari and Joshi, 2021). Marginal farmers incur higher per-hectare costs due to limited economies of scale and greater imputed costs, as noted in ginger production studies
(Chand et al., 2022). Consequently, their total costs are higher because of reliance on family labour and limited distribution of fixed costs, while semi-medium and medium farmers benefit from better scale efficiency, achieving lower Cost C2 and C3 values.
Table 3 shows that the yield and profitability of green ginger increase with farm size. Semi-medium farms recorded the highest yield (153.71 q/ha) and net returns (₹ 430,681.54/ha), while marginal farms had lower yields (120.62 q/ha) and net returns (₹ 267,922.17/ha). Although total cultivation costs were comparable across categories, the cost of production per quintal declined sharply with farm size from ₹ 2,146.57 on marginal farms to ₹ 1,565.87 on semi-medium farms, indicating economies of scale and greater cost efficiency on larger holdings. Overall, ginger cultivation was profitable across all farm size categories; however, semi-medium farmers benefited the most from higher yields and lower per-unit costs.
Table 4 indicates that farm profitability in ginger cultivation improves consistently with farm size. Semi-medium farms achieved the highest yield (153.71 q/ha) and gross returns (₹ 603,345.57/ha), resulting in superior farm business income (₹ 447,266.01/ha), family labour income (₹ 419,558.57/ha) and net farm income (₹ 362,655.65/ha). In contrast, marginal farms recorded comparatively lower income measures, reflecting scale-related inefficiencies. The output-input ratio increased from 1.83 on marginal farms to 2.51 on semi-medium farms, indicating higher economic efficiency on larger holdings. The results indicate a clear improvement in profitability and economic efficiency of ginger cultivation with increasing farm size. Similar evidence has been reported in studies on high-value crops, where larger operational holdings tend to achieve better economic performance due to improved input utilisation and economies of scale
(Yadav et al., 2022). Higher yields and income measures observed on semi-medium farms are consistent with earlier studies that document economies of scale in ginger production, particularly through more efficient use of labour and planting material
(Kandiannan et al., 2012; Nair, 2013). Larger holdings are better able to manage high initial input costs and adopt timely agronomic practices, resulting in lower unit costs and higher net returns. The superior farm business income, family labour income and net farm income recorded on semi-medium farms also align with the findings of
Tiwari and Joshi (2021), who reported that improved labour management and access to capital significantly enhance returns from ginger cultivation. Similarly,
Chand et al., (2022) noted that smallholders often face cost disadvantages due to limited scale and higher dependence on family labour, which constrains profitability. The rising output-input ratio with farm size corroborates evidence from spice-based farming systems, where better market access and resource-use efficiency contribute to higher economic performance (
Hegde and Zaman, 2018). Overall, the results reinforce existing literature and highlight the need for scale-neutral interventions, such as collective input procurement, shared post-harvest infrastructure and cluster-based marketing under ODOP, to improve profitability for small and marginal ginger farmers, reflecting stronger profitability driven by higher outputs and economies of scale (
ICAR-NRCSS, 2021;
Hegde and Zaman, 2018).
Table 5 summarises the key variables used in the econometric analysis of ginger farm income. The mean net farm income of ¹ 295,393.84 indicates that ginger cultivation is economically viable in the study area; however, the large dispersion around the mean highlight’s substantial heterogeneity in income outcomes. Such variability is typical of high-value, input-intensive crops grown under hill conditions, where differences in scale, cost exposure and market engagement strongly influence returns (
Singh and Dhillon, 2015;
Chand et al., 2022). Input-use patterns reveal that seed cost is the most dominant and variable cost component, underscoring the capital-intensive nature of ginger cultivation. Similar findings have been reported in earlier studies, which identify seed rhizomes as the primary driver of cost escalation and income risk in ginger production systems
(Shinde et al., 2020). In contrast, relatively lower expenditure on fertilisers and chemicals reflects the continued reliance on organic or low-input practices in hill agriculture. The average hired labour use confirms the labour-intensive character of ginger cultivation, consistent with terrain-induced mechanisation constraints in mountain regions
(Chand et al., 2022). Farm structure indicators show that ginger occupies a substantial share of operational holdings, reinforcing its role as a principal commercial crop rather than a subsidiary enterprise. Varietal choice is clearly skewed toward the Himachal Local variety, indicating farmer preference for locally adapted cultivars with stable yields and better market acceptance. This preference aligns with evidence suggesting that traditional varieties often offer lower production risk and superior price realisation in hill environments (
Singh and Dhillon, 2015). Market access indicators point to structural constraints faced by ginger growers. While most farmers reported access to price information, ownership of transportation and storage facilities remains limited. Such asymmetries are likely to affect marketing flexibility and price realisation, particularly during peak harvest periods, as observed in smallholder market participation studies
(Birthal et al., 2014). Overall, the summary statistics reveal pronounced heterogeneity in resource endowment, input intensity and market access among ginger farmers, providing a strong empirical basis for examining the determinants of farm income through econometric analysis. Regression analysis identified key determinants of net farm income among ginger growers in Sirmour. A log-linear model revealed that household size and hired labour were the most significant income predictors, with cost and acreage variables enhancing explanatory power.
Table 6 presents the estimates of the ordinary least squares (OLS) model explaining variations in net farm income from ginger cultivation. The model demonstrates satisfactory explanatory power, with an R² of 0.503 and an adjusted R² of 0.490, indicating that nearly half of the variation in farm income is explained by the included socio-economic, production and market-related variables. Such goodness-of-fit is comparable to earlier empirical studies on farm income determinants in high-value horticultural crops
(Birthal et al., 2014; Chand et al., 2022). Household size has a positive and statistically significant influence on net farm income (p<0.01), suggesting that the availability of family labour contributes to improved operational efficiency in labour-intensive ginger cultivation. This finding is consistent with evidence from smallholder production systems where family labour plays a critical role in income generation
(Birthal et al., 2014; Singh and Dhillon, 2015). Hired labour expenditure also shows a positive and significant effect (p<0.05), reflecting the labour-intensive nature of ginger cultivation in hill regions with limited mechanisation
(Chand et al., 2022).
Seed cost is negatively and significantly associated with net farm income (p<0.05), indicating that higher expenditure on seed rhizomes reduces profitability. Given the substantial share of seed cost in total cultivation expenditure, inefficiencies in seed use or high seed prices can markedly erode net returns. This result corroborates earlier findings highlighting seed cost as a key driver of income variability in ginger cultivation
(Shinde et al., 2020). Expenditure on fertilisers and chemicals is weakly significant and negative (p<0.10), suggesting diminishing marginal returns to chemical inputs under the prevailing production conditions, while organic manure expenditure does not exert a significant effect on income. The area under ginger cultivation exerts a positive and statistically significant effect on net farm income (p<0.05), underscoring the importance of crop-specific scale in enhancing income outcomes. In contrast, total landholdings are not significant, implying that income gains are driven more by allocation toward ginger rather than overall farm size. Market-related variables, including access to price information, ownership of transport and availability of storage facilities, do not show statistically significant effects, indicating that production-side factors currently dominate income determination at the farm level despite policy emphasis on market linkage under the ODOP framework. The limited influence of market-related variables on farm income aligns with findings from studies on hill agriculture and spice-based farming systems, which highlight persistent structural constraints in marketing, despite policy initiatives and improvements in production technology
(Prasath et al., 2017; Oudhia and Tripathi, 2021;
Sharma and Rana, 2021;
Spices Board India, 2022, 2023;
National Horticulture Board, 2023;
OECD-FAO, 2021). Similarly, varietal choice does not significantly influence income once other factors are controlled for, suggesting limited income differentiation between the commonly cultivated varieties. The observed income variability, positive scale effects of ginger cultivation and the dominant role of input costs-particularly seed and labour are consistent with earlier empirical evidence on ginger and spice crop economics reported across different regions of India and neighbouring countries
(Gaikwad et al., 1998; Rahman and Rahman, 2014;
Reddy and Devi, 2019;
Shinde et al., 2020; Tiwari and Joshi, 2020). Overall, the results highlight that labour availability, scale of ginger cultivation and cost efficiency particularly seed cost are the primary determinants of net farm income, while market infrastructure and information variables play a relatively limited role in the present context. This underscores the need for policy interventions under ODOP to complement market-linkage efforts with measures aimed at reducing input costs and improving production efficiency.
To ensure the robustness of these findings, standard diagnostic checks were conducted. Multicollinearity among explanatory variables was examined using variance inflation factors, which were within acceptable limits. Residual diagnostics indicated no serious violations of normality or homoscedasticity assumptions. Overall, the diagnostic results support the reliability of the estimated coefficients and the validity of the inferences drawn from the OLS model.
Policy implications
The results indicate that production efficiency, scale of ginger cultivation and seed cost are the primary determinants of net farm income in Sirmour district. ODOP interventions should therefore prioritise reducing seed rhizome costs through local seed multiplication, certified planting material and targeted input support for small and marginal farmers, as high seed expenditure significantly erodes profitability. The positive effect of area under ginger cultivation, coupled with the insignificance of total landholdings, suggests that income gains depend more on enterprise-level specialisation than farm size. Policies should encourage optimal land allocation to ginger within existing holdings through technical guidance, risk mitigation and crop planning support rather than promoting land expansion. The significant role of labour availability highlights the urgent need to promote labour-efficient practices, including appropriate mechanisation, development of crop-specific farm tools, and establishment of custom hiring centres for access to high-cost machinery during peak operations. Skill development and organised labour arrangements should complement these interventions to enhance operational efficiency. Strengthening last-mile implementation, particularly in price discovery and aggregation, is therefore essential. Overall, the findings suggest that ODOP strategies should adopt a production-focused approach, complemented by targeted market interventions, to achieve sustained income enhancement for ginger growers in hill regions.
