Assess the Financial Viability of Sapota Orchard in South Gujarat Region

Abstract

Agriculture sector “continues to be the mainstay of our economy as it occupies the central place in rural life. The contribution of agriculture towards national income was about 22.1 percent in 2003-04 besides 64 per cent of population still depending on it. Financial analysis revealed that of 12 per cent discount rate, the sapota enterprises has maximum NPV (Rs. 324309.00 and Rs. 340183.78), BCR (6.18 per cent and 6.49 percent), PBP (6.4 and 6.1 years) and IRR (34 per cent and 37 percent) in Valsad and Navsari district respectively. As sapota is a market oriented crop, on an average about 99 percent of production was marketed, while negligible portion was utilized for other purposes. Majority of farmers about 65 percent of sapota was disposed to co -operative society. The producer to co-operative society to wholesaler - cum-commission agent to retailer to consumer was the major marketing channel as more than 65 per cent of sapota moved through this route. ”The total marketing cost incurred by sapota growers amounted to Rs. 93.25 per quintal in which transportation cost ranked first Rs. 20.00, followed by, Loading and Unloading Charges cost Rs. 5.00, commission charge Rs. 58.25 Weighing Cost Rs. 2.50”. The total expenses incurred by co -operative society, post harvest contractor, wholesaler -cum-commission agent and retailer were Rs. 121.00, Rs. 174.95, Rs. 133.90 and Rs. 130.35 per quintal of sapota, respectively. The producer's share in consumer's rupee was 21.72 percent in sapota. Price spread 78. 23 percent in” sapota.