Ecology, Environment and Conservation Paper

Vol 21, Issue 1, 2015; Page No.(555-560)

ECONOMIC APPRAISAL OF INVESTMENT ON LIME (CITRUS AURANTIFOLIA) ORCHARD IN MIDDLE GUJARAT

R.R. Christian and Y.C. Zala

Abstract

The analysis of financial viability of long-term investment in lime (Citrus aurantifolia) orchards in Middle Gujarat was carried out during agricultural year 2010-11 to generate valuable information for lime growers, market traders and policy makers to enhance investment in lime orchards. The lime production starts at 4th year age of lime orchard and stabilises in the 8th year and it reaches maximum level during 15th year and thereafter it starts to decline. The economic productive life of lime orchards in Middle Gujarat was found to be 25 years. It has been found that a lime orchard involves high investment. Based on information collected from the lime growers, economic parameters viz. NPV, BCR, IRR and PBP were estimated at 10 per cent discount rate. Net present value (NPV) of Rs. 6,01,215 per hectare was estimated for a sample as a whole, which indicates that the lime cultivation fetches higher returns, whereas benefit cost ratio (BCR) was found to be reasonably high (2.20). The internal rate of return (IRR) was found more (35.56 per cent) than normal bank rate of interest. The payback period (PBP) showed that total cost was covered in 6 years and 10 months. Under varying cost and return situations, values of all these economic parameters have satisfied the acceptance rules for the investment proposition. It has confirmed the economic viability, stability and certainty of investment on lime orchard.

Enter your contact information below to receive full paper.
Your Name :
Email:
Phone:
City:
Cost of Full Paper: Rs.75 for Indian Nationals or $20 (USD) for international subscribers.
By clicking on Request Paper you Agree to pay the above mentioned cost per paper.