An appraisal of financial feasibility of investment in mango scion blocks.
Hegde P. D. V., Patil B. L.
Author Affiliation: Department of Agril. Economics, University of Agricultural Sciences, Dharwad - 580 005, India.
Karnataka Journal of Agricultural Sciences 18 : 1126-1128
Abstract : This study was conducted to determine the cost and return as well as the feasibility of establishing mango scion blocks for mango production. A multi-stage random sampling method was used to collect primary data from 60 sample nurserymen of Bangalore and Dharwad districts, Karnataka, India, during 2002-03. The net present value, cost benefit ratio, internal rate of return and payback period were recorded to know the financial viability of the enterprise. Results showed that the returns per acre were marginally higher in Dharwad scion blocks (Rs. 5404.29) than that of Bangalore scion blocks (Rs. 5202.90). Returns increased from first year to third year in both districts. The net present value of Dharwad scion blocks was higher than that of Bangalore scion blocks, Rs. 82?777 and 69?958.05 per acre, respectively. The cost benefit ratio for Dharwad scion blocks was higher (2.13), than that of Bangalore (2.01). The payback period for Bangalore scion block was 7 years and 6.11 years for Dharwad scion blocks. Based on the results, it is concluded that investing on mango scion blocks is economically feasible and financially viable, irrespective of region of production.