Year: 2022 | Month: September | Volume 67 | Issue 4
Financial Feasibility Analysis of Ghritkumari (Aloe vera) Cultivation as Farm Business Enterprise- Findings from Churu District of Rajasthan
Rakesh Rathore
DOI:10.46852/0424-2513.4.2022.20
Abstract:
The present study was carried out with a view to compute the cost of cultivation of Ghritkumari on basis of cost concept and measuring financial feasibility of the cultivation. Total 80 Ghritkumari cultivating farmers were selected using multistage sampling and to obtain results cost concepts were employed. The result of the study revealed that the cost A1 and cost A2 was found to be similar because the farmers cultivate Ghritkumari crop on their own land. The net present value (NPV) at 15 per cent discount rate was found to be ` 55317.16 for overall farm size. The net present value (NPV) calculated at 10 per cent and was found ` 67213.64 overall farm. The internal rate of return (IRR) was found 36 per cent on overall farm. The benefit cost ratio was found 1.17 at 15 per cent discount rate and 1.19 at 10 per cent discount rate on overall farm. Farm business income, family labor income and farm investment income was found to be ` 83143.24, ` 73909.69, ` 78589.59 highest during 3rd year of Ghritkumari cultivation, respectively. Hence more emphasis should be given to increase Ghritkumari cultivation. The government support helps in better production and marketing of Ghritkumari crop.
Highlights
- The production cost found increase during first year of aloe vera cultivation
- The farm business income, family labor income and farm investment income was found negative during first year
- Benefit cost ratio was found positive
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