ECONOMIC ANALYSIS OF PRODUCTION AND PROCESSING OF TURMERIC IN CHAMARAJANAGAR DISTRICT OF KARNATAKA
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Date
2023-02-16
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University of Agricultural Sciences, Bangalore
Abstract
Turmeric is an important spice and cash crop. Under ODOP, there is a scope for providing the framework for value chain development and alignment of support infrastructure of turmeric in Chamarajanagar district. Hence, the study conducted helped
in analyzing the economic aspects of turmeric production and processing in Chamarajanagar district of Karnataka. The primary data was collected from 60 turmeric growers, 30 consumers and 2 processing units whereas the secondary data on area, production, productivity and prices of turmeric were collected for a period of 20 years. Techniques such as CAGR analysis, economic viability analysis, discounted capital budgeting technique, sensitivity analysis and conjoint analysis were employed. The area and production of turmeric showed a significant positive growth rate of 3.40 and 2.70 per cent, respectively, whereas the productivity decreased at 0.75 per cent (2001-02 to 2020- 21). The result revealed that the total cost incurred in turmeric production without and with primary processing was ₹86424 and ₹99439 per acre, respectively, obtaining 1.21 and 1.25 as returns per rupee of investment, respectively, indicating that the production of turmeric was remunerative for growers in the study area. Financial feasibility analysis of setting up a turmeric processing unit showed positive NPV, BCR greater than one and IRR higher
than the bank’s commercial lending rate. The study concluded that establishing a turmeric processing unit was an economically viable and financially feasible entrepreneurial activity. The conjoint analysis revealed that the consumers preferred turmeric powder with light-yellow colour, fine texture, 50g quantity, organic origin and longer shelf-life.