Cost-Benefit Analysis of Cotton Based Handloom Industry in Peshawar Valley

This study was conducted in 2016 to investigate the net returns of the handloom business in district Charsadda of Peshawar Valley. A total of 51 respondents from the three villages namely Utmanzai, Rajjar and Matta-Mughal-Khel were randomly selected. A comparative analysis of chadar and suit cloth was done regarding sale in Charsadda market and other cities of the country. In Charsadda market, 3/4 producing units sold their products, while 1/4 of the producers were involved in marketing of these products to other cities of the country. Profit per month of Chadar and Suit cloth in the local market was found Rs. 7,800/- and Rs 6,552/-, respectively. While selling these products in other cities per month profit was Rs. 13,650/- and Rs. 12,636/-, respectively. The overall profit in the business is low. Profit is higher for those producers who sold their products in other cities. In local market the profit margins of Chadar and Suit was 17% and 14% respectively. The profit margin of Chadar and Suit was 26% and 23% respectively when sold in other cities. The study concluded that due to low profit, handloom business in district Charsadda is on downfall. The study recommends that financial support, marketing management, access to technology, training and international exhibitions can play a pivotal role in making the business more profitable by expanding marketing of their products to other cities and countries.