“ECONOMIC ANALYSIS OF PIGEON PEA WITH REFERENCE TO JYOTI AGRI SEEDS” 2449
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Date
2017-07
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JAU,JUNAGADH
Abstract
Key words:Economic analysis, pigeon pea seeds, working capital management
Seed is a basic input in crop production and this input alone would increase productivity per unit area if quality is assured. Good seed contributor for increased yield to an extent of 15-20 per cent. India is second most populated country and the population is increasing, creating a huge demand of food-grains to feed the ever increasing number of mouths. The study was undertaken to study the economic analysis of pigeon pea with reference toJyotiAgri Seeds. The primary data for processing cost of various items like raw materials, labour, storage cost etc. was collected from processing unit. The secondary data related to cotton oil sales, current assets, current liabilities, liquid assets, debtors etcwas collected through directly from the company’s annual reports.Economic analysis of pigeon pea was calculated by tabular analysis. Efficiency of working capital management practices was examined by ratio analysis, correlation and regression was also applied to test whether different accounting ratios have any significant impact on return on assets and net profit margin,Garrett’s ranking technique. Processing cost of pigeon pea seeds was Rs. 2, 88,50,549 with the net return of Rs. 37,68,146. The benefit cost ratio observed to the 1.13 per cent. So, there was good relationship between cost and benefit and indicated benefit cost ratio show that project was viable. In the Growth rate observed in value term it was 26.99 per cent. The different in growth rate was due to change in price of pigeon pea seeds.There is highly positive correlation between Liquid ratio (0.56) and Working capital turnover ratio (0.51), these are statistically significant at 5 and 10 percent level in Return on assets ratioand net profit margin ratio. The coefficients for two variables, Liquid ratioand working capital turnover ratio, were statistically significant with respect to return on assets ratio. The also coefficients for two variables, Current ratio andLiquid ratio, were statistically significant with respect to net profit margin ratio.Garrett’s ranking technique was used the first and for most problem face by production is fixing price of seeds at farm level in seeds companies.