Economic Affairs, Vol. 68, No. 02, pp. 1153-1162, June 2023 DOI: 10.46852/0424-2513.2.2023.22 How to cite this article: Kumar, S., Swami, S., Kumari, M., Kumari, A. and Panda, C.K. (2023). Economic Analysis of Litchi Production in Muzaffarpur District of Bihar. Econ. Aff., 68(02): 1153-1162. Source of Support: None; Conflict of Interest: None Research Paper Economic Analysis of Litchi Production in Muzaffarpur District of Bihar Sandeep Kumar 1 , Sargam Swami 1 , Meera Kumari 1 *, Anita Kumari 2 and C.K. Panda 3 1 Department of Agricultural Economics, Bihar Agricultural University, Sabour, Bhagalpur, Bihar, India 2 SMS, Krishi Vigyan Kendra, Sabour, Bihar, India 3 Department of Extension Education, Bihar Agricultural University, Sabour, Bhagalpur, Bihar, India *Correspondence author: meera.bausabour@gmail.com (ORCID ID: 0000-0003-3422-7249) Received: 09-02-2023 Revised: 19-05-2023 Accepted: 01-06-2023 ABSTRACT The Study was carried out with an objective to estimate cost and returns of Litchi under diferent size of sample farms in Muzafarpur District of Bihar. The empirical data were gathered from agriculture year 2018- 19 during production period of litchi through survey of litchi growers’. The multistage sampling techniques were used to select the location/ area where abundantly litchi orchard occupied and their respondents’ for required information. Thus, a total 90 litchi growers (8 marginal, 18 small, 46 semi- medium and 18 medium) were selected with equal chance or opportunity of all farms categories in groups from 2 blocks from six selected villages of the Muzfarpur district of Bihar. The gross value of the litchi production on overall farms was estimated on an average in ` 2.95 lakhs per hectare against cost C as well as annual maintenance costs was in ` 65.93 thousand per hectare. The costs of production of litchi on overall farms was accounted on an average to be in ` 941.52 per quintal litchi, which were varies from ` 1197.58 per quintal litchi and estimated higher on marginal farms, followed by ` 1045.77 per quintal on small farms, ` 898.75 per quintal on semi-medium farm, and ` 872.97 per quintal on medium farms. Result revealed that cost of production of litchi decreased with increase in land owner farm groups. The establishment (frst to ffth year’s i.e. juvenile stage) costs of litchi orchard on overall farms were estimated to be ` 2.56 lakhs and further estimated amortized costs on an average was ` 1329.37 per hectare. The establishment and annual maintenance cost both were included fxed costs increases with increase in land possession of farms groups, but variable cost include in total costs (fxed and variable cost) were reduced with increase in land holding farms groups. The NPV of overall farms were on an average in ` 6.21 lakh, beneft-cost ratio (BCR) in ` 2.77 against one rupee spend. Internal rate of returns (IRR) value was obtained 25.64 percent greater than chosen discount rate as 15 and 20 per cent to make the decision about reinvestment opportunity to prioritize the area of reinvestment by litchi growers. HIGHLIGHTS m The costs of production of litchi on overall farms was accounted on an average to be in ` 941.52 per quintal litchi, and estimated higher on marginal farms. m Cost of production of litchi decreased with increase in land owner farm group. Keywords: Litchi, Cost, Return, IRR, Beneft cost Ratio Litchi (Litchi chinensis Sonn; family Sapindaceae,) is an important perennial subtropical plant found in India. Although they have numerous varieties found and place of origin from China. This fruit have attractive deep pink or red colours and fragrant aril. Litchi is rich source of vitamin B1, riboflavin and vitamin C apart from proteins (0.7%), fats (0.3%), carbohydrates (9.4%), minerals (0.7%), fibrous matter (2.25%), calcium (0.21%),