Vol. 13 No. 1
Economic analysis of commercial tomato nurseries
Author(s): K. R PATIL, N. ADIVAPPAR, B. CHINNAPPA AND 1G. R. MANJUNATHA
Abstract: The present study attempts to estimate the demand potential of tomato seedlings in Karnataka and economic viability of establishing commercial nurseries in poly-house condition. To accomplish these objectives, 10 nurseries each were selected from Southern Transitional Zone, Northern Transitional Zone and Central Dry zone of Karnataka. The study indicated the existence of annual demand of 62.10 crores of tomato seedlings in Karnataka. To meet this demand, establishment of commercial nursery is inevitable. In this regard, investigation on capital investment and its profitability was assessed employing capital budgeting techniques. The result indicated that entrepreneurs have invested Rs. 10,66,705 towards setting up of nursery in an area of 1000m2 poly-house. The economic analysis revealed that entrepreneurs have realized gross returns of Rs. 1,65,528 and net returns of Rs. 50,438 per time. In a year, tomato nursery was raised for eight times considering demand for seedlings and the associated gross returns and net returns were Rs. 13, 24,224 and Rs. 4, 03,504, respectively. The capital investment on commercial nursery was found to be economically viable in terms of positive Net Present Worth (Rs. 2121346), Discounted Benefit Cost Ratio of more than unity (1.22) and Internal Rate of Return of 103 per cent.
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