AN ECONOMIC ANALYSIS OF PRODUCTION AND MARKETING OF SAPOTA IN JUNAGADH DISTRICT OF SAURASHTRA REGION 2918
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Date
2019-08
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JAU, JUNAGADH
Abstract
The present investigation was undertaken with a view to study the cost and
returns, marketing cost and margin, price spread and constraints in production and
marketing of sapota in Junagadh district of Gujarat state. The Junagadh district was
purposively selected, as it has the largest share in sapota cultivation in the Saurashtra
region. A total sample of 120 respondents was selected for the study. For studying
price spread, 20 merchants from each of the Vanthali and Junagadh regulated market
were select as sample. The major analytical tools employed for the study were tabular
analysis, cost concept, price spread and constraints analysis.
On an average, the total investment per hectare was found to be Rs. 36.15 lakh
in Junagadh district. The data revealed that on an average, the total annual cost
incurred per hectare was Rs. 66578, which comprised of Rs. 5471 as amortized cost
and Rs. 61107 as maintenance cost. The average yield per annum was 17365 kg/ha,
which generate net return of Rs. 56735/ha. The Cost C2 (total cost) per annum at pre bearing, early bearing and mature bearing was Rs. 56651, Rs. 81018 and Rs. 101356
per hectare, respectively. Gross income was Rs. 94630 and Rs. 151996 at early
bearing and mature bearing stage, respectively. Farm business income was Rs. 58996
and Rs. 110310 at early bearing and mature bearing stage, respectively. Family labour
income was Rs. 41276 and Rs. 85091 at early bearing and mature bearing stage,
respectively. Farm investment income was Rs. 20977 and Rs. 59854 at early bearing
and mature bearing stage, respectively.
It is evident from the resulted that under situation of normal cost and return,
the net present value (NPV) was found positive (Rs. 11000/ha) at 10 per cent rate of
discount indicating the financial soundness of the investment on sapota orchard. The
value of benefit cost ratio (BCR) was found near to unity (1.01) indicating that the
investment is worthwhile but critical. The value of internal rate of return (IRR) was found 10.36 per cent. The payback period (PBP) was found to be 19.15 years. The
results concluded that the investment on sapota orchard was a profitable proposition
in Saurashtra region.
The marketable surplus was 95.04 per cent of total sapota production. In
Junagadh district, marketing channel for sapota was observed as farmers ----
wholesaler ---- retailer ---- consumer. The total marketing cost incurred by the sapota
growers was Rs. 124.00 per quintal, Rs. 130.50 per quintal at wholesaler level and
Rs. 125.35 per quintal at retailer level. The net margin was Rs. 229.50 per quintal at
wholesaler level and Rs. 414.65 per quintal at retailer level. The percent of price
spread in consumer’s price was to the extent of 46.15 per cent. The marketing
efficiency was 3.52, 7.62 and 1.17 by using the Conventional, Shepherd’s and
Acharya’s method, respectively. Marketing efficiency is greater than unity.
High rate of commission and lack of processing plant were major marketing
problem faced by the sapota growers. Bird damage followed by lack of irrigation
facility were major problems faced by the farmers in raising the sapota orchard.
As the sapota cultivation is profitable, it should be encouraged in potential
areas. In cost minimization efforts, more emphasis should be given on efficient use of
labour and development of sapota harvesting mechanism and Government must take
consideration to promote drip irrigation by discussing benefits of drip irrigation
system to the farmers and proving subsidy at proper time period