Topics: Costs, Net present value, Variable cost Pages: 13 (5571 words) Published: August 24, 2013
Karnataka J. Agric. Sci.,24 (2) : (164-169) 2011

Investment pattern and maintenance cost in pomegranate orchards : An economic analysis* K. T. RAVIKUMAR, S. B. HOSAMANI, N. R. MAMLE DESAI, SURESH D. EKBOTE AND K. V. ASHALATHA Department of Agricultural Economics, University of Agricultural Sciences, Dharwad - 580 005, India Email: mamle2desai @rediffmail.com (Received: November, 2009) Abstract: The Investigation was carried out in the year 2008 - 2009 to study the investment pattern in pomegranate orchard and to compute the costs and returns in pomegranate cultivation in Chitradurga district revealed that, the cost of establishment per ha was found to be `1,90,888.41 and `1,89,644.33 of which material cost constituted 56.87 and 58.15 per cent and maintenance cost 43.13 and 41.85 per cent in Challakere and Hiriyur taluks respectively. The average per ha maintenance cost incurred by respondents in Challakere taluk was ` 82,320.70 during the first three years. The labour, material and fixed costs accounted for 53.73, 24.59, and 21.68 per cent, respectively, it was ` 79,368.02 in Hiriyur taluk where labour, material and fixed cost accounted for about 56.16, 21.74 and 22.10 per cent, respectively.The average per ha maintenance cost incurred in Challakere taluk was ` 23,148.67 during the 4th year onwards of which, labour material and fixed cost accounted for 43.65, 20.32 and 36.02 per cent to the total maintenance cost. The average per ha yield in Challakere taluk was 4.68 tonnes and the net returns obtained were `1, 40,588.18. Similarly the average yield of Hiriyur taluk was 4.60 tonnes per ha, and the net returns were `1, 37,352.27. The financial feasibility analysis revealed that on an average the investment in pomegranate orchards can be recovered within six years in both the taluks. The net present values were positive and of higher magnitude indicating worthwhileness of investment. The returns per rupee of investment in these orchards were capable of generating nearly three rupees which was highly profitable venture. The internal rate of return was found to be in the range of 57-59 per cent which was much higher compared to the cost of capital (9.5 percent) and hence highly profitable. Overall, the proposition of growing pomegranate crop was highly profitable as revealed by the financial feasibility tests. Key words : Investment pattern, cost, returns, pomegranate


per cent of the total area under pomegranate in the district. Hence, Challakere and Hiriyur taluk was specifically selected for the study. The top villages having larger area under pomegranate cultivation were selected. The information on area under pomegranate crop and number of pomegranate growers from the selected villages was obtained from the respective village accountants (Talati). A proportionate sample of ten per cent of the population from each village was selected randomly. Thus, the total size of the sample selected for the study was 120. The average age of the sample farmers in both taluk was found to be 44 years and more than 50% farmers depended mainly on agriculture as their primary occupation. Around 25% of farmers in the selected taluks completed their primary education were as the per cent of illiterate farmer in the selected taluks ranged from 12 to 15%. So far as size of family was concerned, it was found to be 7 members in family in both taluks. The average size of holding of sample farmers was 2.30 and 2.89 ha and the average size of the pomegranate orchards was 1.58 and 1.47 ha in Challakere and Hiriyur taluks respectively. The varieties of pomegranate grown in the study area were Ganesh or Bhagwa type. The range of age of bearing orchards was 4 to 15 years. The expected productive life span of pomegranate orchard as estimated by the respondents was 25 years. On an average plant population per ha was 375. For analyzing the data collected during the study, tabular analysis and financial analysis were employed. The...

References: Anonymous, 2003, Horticultural crop statistics of Karnataka at a glance, Directorate of Horticulture, Lalbagh, Bangalore, pp. 1-45. Koujalagi, C. B,. 1990, An economic analysis of production and marketing of pomegranate in Bijapur district, Karnataka. M. Sc. (Agri.) Thesis, Univ. Agric. Sci., Dharwad (India). Patil, H. N., 1989, Marketing of alphonso mangoes in Maharashtra. J. Maharashtra Agric. Univ., 14 : 244-245. Raikar, N. A., 1990, Investment in production and marketing of cashew in Karnataka. M. Sc. (Agri.) Thesis, Univ. Agric. Sci., Dharwad (India).
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Kite Runner Pomegranate Tree Essay
  • Essay about Fruit and Pomegranate
  • Health benefits of pomegranate Essay
  • Pomegranate investement Essay
  • Essay about Pomegranates: Nature’s Big Red Pill
  • Pomegranate Industry Profile in the Philippines Essay
  • UF Pomegranate Essay
  • Pomegranate Essay

Become a StudyMode Member

Sign Up - It's Free