Economic Feasibility Analysis Of Major Cutflower Crops In Tamil Nadu

Abstract

This study explored economic feasibility analysis cutflower in Tamil Nadu, using, net present value, benefit cost ratio and internal rate of return. Descriptive statistics were used for analyzing the problems and prospect of floriculture industry in the state. Variable cost for important cutflower crops such as carnation, gerbera, lilium, chrysanthemum and rose were estimated. It ranges between 4.5 lakh/10000 m² area. The Net Present Value (NPV) of different cutflower crops was positive and ranges between 44-54 lakhs. Benefit cost ratio (BCR) was estimated to be 2.34, 2.01, 4.34, 43.00, 2.00, 2.36 and 3.96 for carnation, gerbera, lilium, chrysanthemum and rose, respectively. Internal Rate of Return of all cutflowers was found to be high i.e. more than 70 per cent in case of every cutflower crop studied. Sensitivity analysis of different cutflower crops indicated that benefit cost ratio was more than unity and value of Internal Rate of Return was found to be more than 80 per cent which proves that investment in cutflower crops is financially feasible. Lack of training and technical know-how, problems related to post-harvest management of cutflower, non-­availability of cold storage facilities, unavailability of local market, and high transportation, cost were among problems faced by sample of cut flower farmers.