Economic Analysis Of Production And Marketing Of Jasmine .
Int.J.Curr.Microbiol.App.Sci (2017) 6(9): 1702-1711International Journal of Current Microbiology and Applied SciencesISSN: 2319-7706 Volume 6 Number 9 (2017) pp. 1702-1711Journal homepage: http://www.ijcmas.comCase conomic Analysis of Production and Marketing of Jasmine in HyderabadKarnataka Region: A Case in Koppal District, IndiaN. Ashoka1*, G.B. Shrinivasulu2, G. Anupama3, M. Harshavardhan4 and K.N. Kattimani51Department of Agricultural Economics, College of Horticulture, Munirabad,Koppal, Karnataka-583233, India2Department of Floriculture and Landscape Architecture, College of Horticulture,Munirabad, Koppal, Karnataka-583233, India3Horticulture Training Centre, Munirabad, Koppal, Karnataka-583233, India4Department of Floriculture and Landscape Architecture, College of Horticulture,Sirsi, Karnataka-581402, India5Department of Medicinal and Aromatic crops, College of Horticulture, UHS,Bagalkot Karnataka-587104, India*Corresponding authorABSTRACTKeywordsCommission agent,Establishment cost,Jasmine andMarketing cost.Article InfoAccepted:21 July 2017Available Online:10 September 2017Jasmine is one of the major commercial flower crops of south India. In Karnataka, jasminehas been cultivated in all most all districts. Hence, the study have been taken up by toexamine the cost and returns structure of jasmine cultivation, identifying the marketingchannels, assessing the marketing cost and to document the problems of production andmarketing of jasmine in Koppal district. Thus, the data have been collected from 120jasmine growers, 10 commission cum wholesale agent and 10 from retailers with the helpof pretested well designed questionnaire. The collected data were subjected to variousfinancial analysis viz., discounted and undiscounted techniques. The results revealed thatduring 2011-12, Rs. 28,252.75 was required for establishment of jasmine garden in oneacre out of which labour was to the tune of 43.67per cent and material cost was accounted56.33 per cent. The gross and net returns were increasing from initial year ofestablishment. The financial analysis viz., NPV, BCR, IRR and NPV revealed thatestablishment and maintenance of jasmine garden was economically viable. The flowersare marketed through farmers -commission cum wholesalers –retailers and consumers. Thehigh rate of commission charge, pest incidence and lack of producer organization were themajor problems of jasmine production and marketing.IntroductionJasmine is considered the queen of flowersand is called the “Belle of India” or the"Queen of fragrance" as it is exquisitelyscented to soothe and refresh. Jasmine hastheir own importance since ancient times andis being used for decoration worshiping aswell as in satisfying the aesthetic feelings.Several species of jasmine are grown inKarnataka. The term jasmine is derived froman Arabic word “Jessamine” and in Persianlanguage it is called as “Yasmin” or yasmyn”which means fragrance. As many as 901702
Int.J.Curr.Microbiol.App.Sci (2017) 6(9): 1702-1711species of jasmine are grown in India, out ofthese 20 species are cultivated in south India.The most commonly cultivated Jasminespecies are Jasminum multiform (kakada),Jasminum samabac (gundumallige) Jasminumgrandiflorum (Jaji Mallige) and Jasminumauriculatum (Soojimallige).It is mainly used for extraction of scented oil.India exports thisoil mainly to England,United States of America, Holland, Sweden,Japan, Norway and European Union. Jasmineflowers are highly perishable and hencerequire careful handling and speedy disposaland hence the market remains localized.Location apart, perishability makes the flowertrade complex and risky. In addition, thedemand for flowers is not uniform and steady.Factors like location, season and socioreligious festivals affect the demand – supplyrelationship in the flower marketing. InKarnataka the jasmine flower cultivation hasbeen taken up in almost all districts. Thus, astudy has been designed to assess the cost andreturns structure of jasmine cultivation,identifying the marketing channel and toascertain the problems in production andmarketing of jasmine Koppal district.each villages. Thus, a total of 120 farmerswere selected and data collected with the helpof pre-tested questionnaire. To study themarketing cost, margin and channels ofmarketing, 10 intermediaries were selectedeach from commission agents, wholesalersand retailer. The technique of financialanalysis is the most important tool forevaluating the economic performance of anycrop. It brings out the efficiency of capital usein production. The tabular representation andproject analysis techniques used for financialanalysis were viz., Net Present Value (NPV),Benefit Cost ratio (B: C Ratio), Internal Rateof Return (IRR) and Pay Back Period (PBP).Net present valueThe Net Present Value represents thediscounted value of the net cash inflows to theproject. In the present study, a discount factorof 12 per cent was used to discount the netcash inflows representing the opportunity costof capital. It can be represented bynNPV Σ Yi (1 r)-i - Ii 1Materials and MethodsWhere,Koppal is one of the major jasmine growingdistricts in Karnataka. The jasmine crop isgrown extensively by the farmers in theregion. Therefore, Koppal district waspurposively selected for the study. Based onthe highest area under the jasmine crop in theyear 2015-16, the villages were selectedrandomly for the study. The data on villagewise information relating to area underjasmine was obtained from the office of theAssistant Director of Horticulture of theKoppal taluk. The top four villages having thehighest area under jasmine were selected fromKoppal taluk (i.e., Hiligi, Hitnal, Shivapuraand Kampasagara) for the purpose of thestudy. Thirty respondents were selected fromYi Net cash at the end of the year „i‟r discount ratei time period (i 1, 2, 3 n years)I- Initial investmentThe project would be considered viable, ifNPV is positive.Benefit cost ratioIt is the ratio between the discounted cashinflows and discounted cash outflows and theratio must be unity or more for an investmentto be considered worthwhile. The benefit costratio (BCR) was worked out by using thefollowing formula.1703
Int.J.Curr.Microbiol.App.Sci (2017) 6(9): 1702-1711nNPV Σ Yi (1 r)-i / Ii 1Results and DiscussionWhere,The establishment cost per acre of the jasminegarden was estimated for the year 2011-12, byconsidering the quantity of inputs and labourused at current market prices and age ofgardens prevailed in the study area. Thelabour and material costs constitute mainitems of the establishment cost of the jasminegarden (Table 1). It could be observed fromthe table that the average per acreestablishment cost incurred by the jasminefarmers was Rs. 28,252.75. Out of this, thelabour and material costs accounted for 43.67and 56.33 per cent, respectively. The averagelabour and bullock pairs used per acre were109.58 man days and 3.23 bullock pair daysrespectively. The share of material cost in thetotal cost was 56.33 percent. In whichmaximum of 24.12 percent of cost incurredtowards planting material followed by 13.44percent of neem cake and FYM, 11.20 percenton plant protection chemicals, 10.61 percenton weeding, and 8.51 percent on landpreparation.Establishment cost of jasmine gardenYi Net cash at the end of the year „i‟r discount ratei time period (i 1, 2, 3 n years)I- Initial investmentThe project would be considered viable, ifNPV is positive.Pay back periodThe Pay Back Period (PBP) is the duration oftime in years taken to liquidate theinvestment.The payback period was estimated bysumming up all the undiscounted net benefitsover the years to make up the initialinvestment incurred for establishment.Initial investmentPBP ---------------------------------Average annual net returnsInternal rate of returnThe rate at which the NPV of project is equalto zero is nothing but Internal Rate of Return(IRR). The net cash inflows were discountedto determine the present worth following theinterpolation technique as mentioned under;IRR Lower discount rate Differencebetween the two discount rate XNet present worth of the cash flowsAt lower discount rateAbsolute difference betweenPresent worth cash flows streamAt the two discount ratesSince jasmine is a perennial flower cropwhich continues to bear flowers upto 15years. The total cost incurred for growingjasmine in the first year till its time of bearingconstitutes the establishment cost. The initialinvestment/establishment cost of jasmineorchard (Rs. 28252.75/acre) which seems tobe lower compared to the return from theinvestment. The same was apportioned amongthe number of years of economic yielding toestimate the annual cost of cultivation. Theresults were in confirmative with Kumar etal., (2013) and Vanishree (2003) on jasminein Chitradurga district. The cost of plantingmaterial accounted for 24.12 per cent of thetotal establishment cost. Study conducted byGuledgudda (1995) on jasmine also estimatedplant material cost as 20.22 per cent of the1704
Int.J.Curr.Microbiol.App.Sci (2017) 6(9): 1702-1711total establishment cost which supported thefindings of the present study. This is due tobuying of planting material from far-awayplaces like Huvinahadagali and Vijayapuraled to high transportation cost. Further, thecost of FYM and neem cake was the secondimportant cost component and formed 13.44per cent of the total cost since jasminerequires lot of neem cake and FYM duringinitial stage of establishment. The major itemof labour cost was on weeding Rs. 2310.75(10.61%). This was mainly due to the fact thatweeding operation was done more than fivetimes during the year of establishment.Cost of cultivation of jasmine in differentage group of gardensThe cost of cultivation includes all the costs,which were included in the annualmaintenance costs and the interest on workingcapital and fixed costs as indicated in table 2.The average cost of cultivation per acre ofjasmine flowers per acre was Rs.136365.10per year, which included variable cost andfixed costs. These costs amounted to Rs.108444.30 (79.52%), and Rs.27920.87(20.84) respectively. The variable costincluded annual maintenance cost and intereston working capital. The variable cost ofcultivation of jasmine varied fromRs.64982.71 per acre in second year agegroup to Rs. 151163.54 in the case of morethan five years age group. In the overallaverage cost of cultivation of jasmine, theproportion of total variable and fixed costswere 79.52 percent and 20.84 percentrespectively. Further, the variable costincreased from 73.19 percent to 81.35 percentin second year age group to more than fiveyears age group of plants accordingly. Thefixed cost includes rental value of land,apportioned establishment cost, interest onfixed capital, land revenue and depreciation.The fixed cost accounted for Rs. 23797.87 peracre in two years age group to Rs. 34647.87in more than five years age group. However,fixed cost noticed nominal increase indifferent age group gardens. The apportionedestablishment cost Rs.1883.52 and landrevenue Rs. 50.00 was the same for all agegroup gardens.This increase in the total cost as the age of theplants advanced was due to the combinedeffect of increased use of labour and materialinputs. However, the fixed costs remainedmore or less the same among the different agegroup of plants. For an average garden, thecost of harvesting was the major item ofvariable cost which amounted to Rs. 75000.50per acre This was due to the fact that the wagerate of labour for harvesting was relativelyhigh in the study area because of scarcity oflabour and the harvesting charges were paidin relation to the quantity of flowersharvested. The findings of the present studywhich identified the harvesting activity as animportant item of the labour cost were on linewith the findings of the study of Kumar(2013). The rental value of land had the majorshare in the total fixed cost which amountedto Rs. 23800 per acre for an average garden.This was mainly due to the higher rental valueof Thungabhadra command area and theywere located very close to city.Costs and returns structure for jasmine indifferent age group plantsThe costs, and returns structure of jasmine indifferent age plants have been presented intable 3. The total cost including variable costand fixed cost accounted to an average of Rs.136365.13 i.e., from second year onwards thetotal cost ranges from Rs. 88780.57 to Rs.185811.41 in more than five years age groupof the plants The jasmine flower yields insecond year was 2295.65 kg per acre and itincreased to 3956.23 kg per acre in more thanfive year age group plants. The average netreturns accounted to Rs. 80056.74 the same1705
Int.J.Curr.Microbiol.App.Sci (2017) 6(9): 1702-1711was ranges from Rs. 37480.18 to Rs.91124.69 from second year to more than fiveyears age group garden. The cost ofproduction ranged from Rs. 38.86 per kg in3rd year age group plants to 46.06 in morethan five year age group of plants whichaccounted to an average of Rs. 40.55 per kg.The cost of production had an increasingtrend from 2nd to more than five year age ofthe plant.It was interesting to note that the gross returnover a period of time was found to beincreasing from second year onwards till theend of fifth year. The similar phenomenonwas observed in case of total returns also. Thestudy conducted by Shreedevi (2012) alsorevealed the similar pattern of behaviour ofreturns. This was mainly attributed to the factthat the yield of flowers increased up to fiveyears due to the increased use of inputs. Asfar as cost incurred per kg of flowerproduction was concerned, it was observedthat the cost nominally increased up to the ageof five years from the establishment.Financial feasibilityjasmine gardensofinvestmentinTo evaluate the feasibility of investment injasmine orchard, the criteria such as netpresent value, benefit cost ratio, paybackperiod and internal rate
relationship in the flower marketing. In Karnataka the jasmine flower cultivation has been taken up in almost all districts. Thus, a study has been designed to assess the cost and returns structure of jasmine cultivation, identifying the marketing channel and to ascertain the problems in production and
Traditional, Command, Market 3. The former Soviet Union was an example of what kind of economic system? Command 4. Which economic system allows for the most individual freedom? Market 5. In which economic system does the government have the most control? Command 6. In which economic system do individuals do things based on customs & beliefs .File Size: 3MBPage Count: 55Explore furthertypes of economic systems worksheet answer key pdflaspalmasbr.comTypes Of Economic Systems Worksheet Pdf - worksheetnovenalunasolitaria.blogspot.c Types of Economic Systems Worksheet PDF Economic .www.scribd.comCommand, traditional, and market economiesdsfepf2015.weebly.comTypes of Economic Systems Worksheet.pdf - Name: Date .www.coursehero.comRecommended to you b
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