ECONOMIC VIABILITY OF INVESTMENT IN CASHEW ORCHARDS (M.S.)

摘要

Financial feasibility analysis of capital investment in cashew orchard in South Konkan region (M. S.) revealed profitability of enterprise. The per hectare capital investment for establishing HYV cashew orchard for the period first five years was Rs.116829.93. The annual per hectare cost of cultivation (Cost 'C') for local variety worked out to Rs. 28012.89 The annual per hectare cost of cultivation (Cost 'C') for HYV worked out to Rs. 46908. Regarding local variety of cashew, profit at Cost 'C wasRs. 16339.11 and for HYV, was Rs. 43977.89. In both varieties benefit cost ratio were 1.56 and 1.94 respectively. The analysis of investment in cashew orchard showed that, the investment made in local variety and HYV plantation is economically viable with Benefit Cost Ratio (BCR) greater than unity (1.30 and 1.75), Net Present Value (NPV) was positive (Rs. 22956.8 and Rs. 84524.79) and Internal Rate of Return (IRR) was higher (20.84% and 31.51%) respectively, than prevailing rate of interest (15 per cent). The payback period is also desirable in both local (8 years) and HYV (7 years) considering the total economic life of cashew orchard (40 years). In comparison with local variety and HYV cashew orchards, regarding financial feasibility analysis revealed that, the NPV, BCR and IRR was considerable higher in HYV cashew orchard.