Economics and Marketing of Olive in Punjab, Pakistan

Abstract

The recent re-emergence of agrarian crises in Punjab has again drawn the attention of policymakers towards the viability of alternative crops. In this context, the study attempts production and marketing of one of the alternatives and viable crops (i.e., Olive) considered for the farmers in Punjab, Pakistan. The study was carried out in the Pothwar region of Punjab, and a total of 100 farmers were interviewed from four districts of Pothwar. The study results revealed that olive is a profitable crop since the benefit-cost ratio, net present value, and internal rate of return at a 10% rate of discount were 2.20, Rs. 263,338.00, and 31%, respectively. The findings also revealed that the channel with the least number of intermediaries was more efficient than the channels with more intermediaries. The study suggested that to take advantage of this new crop, controlled marketplaces with improved marketing facilities are needed to allow farmers to minimize their transport costs and achieve better prices for their products. Besides, linking fresh produce with agro-processing industries can go a long way in ensuring the returns from this crop.