Indian Journal of Economics and Development

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An Economic Analysis of Acid Lime Production in Vijayapura District of Karnataka


Affiliations
1 Department of Fruit Science, College of Horticulture, Bengaluru, India
2 Department of Social and Allied Sciences, College of Horticulture, UHS Campus, Bagalkot, Karnataka-587104, India
3 Department of Crop Improvement and Biotechnology, Kittur Rani Channamma College of Horticulture, Arabhavi, University of Horticultural Sciences, Bagalkot, Karnataka-587104, India
 

Objectives: Acid lime is one of the remunerative crops, which is grown on commercial scale in Vijayapura district of Karnataka. Even though there is a gradual increase in both area and production of Acid lime in this district over the years, but still the growers are facing several problems leading to non-economic viability of crop hence, there is good scope for making comprehensive study help the farmers and policy makers to have firsthand prior knowledge on scientific cultivation.

Methods: The nature and sources of data were collected by adopting representative random sampling procedure through personnel interview. For the purpose of evaluating the objectives of the study, based on the nature and extent of data, the analytical techniques like tabular analysis, financial feasibility of investment standard tests viz. a) Net present worth, b) Benefit: cost ratio, c) Payback period and d) Internal rate of return were estimated by using the discounted cash flow techniques and the data were processing to draw meaningful results and conclusions.

Findings: The results shown that per ha establishment cost of lime was estimated at ₹366463.82 and ₹418158.40 in Indi and Sindagi taluks, respectively. The maintenance cost during gestation and bearing periods were worked out to be ₹181617.46 and ₹65068.73 in Indi taluk; ₹211798.87 and ₹102024.33 in Sindagi taluk, respectively. Financial analysis revealed that at 12 per cent discount rate, the NPV were ₹14,27,910 and ₹10,49,247; B:C Ratios were 2.83 and 2.09; PBP were 5.17 and 5.21 years and IRR were 28 per cent and 23 per cent in Indi and Sindagi taluks, respectively.

Application: As indicated by the financial measurements, the investment in Kagzi lime orchard was found to be financially feasible and as there is higher initial investment in Kagzi lime orchards, the farmers who wish to establish the orchards may be provided with the financial assistance by the institutional agencies.


Keywords

Acid Lime, Financial Feasibility, Cost, Vijayapura.
User
Notifications

  • District wise area, production and yield of horticultural crops in Karnataka state. Directorate of Horticulture, Karnataka State, Lalbagh (Bengaluru), India. 2015.

  • Indian Horticulture Data Base 2014. http://nhb.gov.in/area pro/Indian%20Horticulture%202013.pdf. Date accessed: 02/2014.

  • B. Anil, K. Jyoti, K. Dileep. Economic evaluation of production and marketing of lemon in Kathua district of Jammu and Kashmir. Economic Affairs. 2011; 56(4), 431-436.

  • K.V. Subramanyam. Profitable lime cultivation in Andhra Pradesh. Indian Journal of Horticulture. 1986; 31(4), 5-6.

  • R.R. Christian, Y.C. Zala. Cost and returns of citrus in Middle Gujarat. International Research Journal of Agricultural Economics and Statistics. 2014; 5(1), 23-26.

  • G.M. Hiremath. Economics of production and marketing of lime in Bijapur district, Karnataka. Dharwad, Karnataka (India). 1993.

  • R. Thejeswini, C.P. Gracy, M.Y. Teggi, V.R. Kiresur. Marketing and seasonal price variation of acid lime in Vijayapura district. Indian Journal of Economic and Development. 2016; 12(1a), 43-46.

  • L.S. Gangwar, S.M. Ilyas, S. Dinesh, Sandeep Kumar. An economic evaluation of kinnow mandarin cultivation in Punjab. Agriculture Economic Research and Review. 2005; 18(1), 71-80.


Abstract Views: 284

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  • An Economic Analysis of Acid Lime Production in Vijayapura District of Karnataka

Abstract Views: 284  |  PDF Views: 136

Authors

K. Abhilash
Department of Fruit Science, College of Horticulture, Bengaluru, India
M. G. Kerutagi
Department of Social and Allied Sciences, College of Horticulture, UHS Campus, Bagalkot, Karnataka-587104, India
D. Satish
Department of Crop Improvement and Biotechnology, Kittur Rani Channamma College of Horticulture, Arabhavi, University of Horticultural Sciences, Bagalkot, Karnataka-587104, India

Abstract


Objectives: Acid lime is one of the remunerative crops, which is grown on commercial scale in Vijayapura district of Karnataka. Even though there is a gradual increase in both area and production of Acid lime in this district over the years, but still the growers are facing several problems leading to non-economic viability of crop hence, there is good scope for making comprehensive study help the farmers and policy makers to have firsthand prior knowledge on scientific cultivation.

Methods: The nature and sources of data were collected by adopting representative random sampling procedure through personnel interview. For the purpose of evaluating the objectives of the study, based on the nature and extent of data, the analytical techniques like tabular analysis, financial feasibility of investment standard tests viz. a) Net present worth, b) Benefit: cost ratio, c) Payback period and d) Internal rate of return were estimated by using the discounted cash flow techniques and the data were processing to draw meaningful results and conclusions.

Findings: The results shown that per ha establishment cost of lime was estimated at ₹366463.82 and ₹418158.40 in Indi and Sindagi taluks, respectively. The maintenance cost during gestation and bearing periods were worked out to be ₹181617.46 and ₹65068.73 in Indi taluk; ₹211798.87 and ₹102024.33 in Sindagi taluk, respectively. Financial analysis revealed that at 12 per cent discount rate, the NPV were ₹14,27,910 and ₹10,49,247; B:C Ratios were 2.83 and 2.09; PBP were 5.17 and 5.21 years and IRR were 28 per cent and 23 per cent in Indi and Sindagi taluks, respectively.

Application: As indicated by the financial measurements, the investment in Kagzi lime orchard was found to be financially feasible and as there is higher initial investment in Kagzi lime orchards, the farmers who wish to establish the orchards may be provided with the financial assistance by the institutional agencies.


Keywords


Acid Lime, Financial Feasibility, Cost, Vijayapura.

References