Economic analysis of horticulture nursery enterprises in Koppal district of Karnataka

Abstract

Nursery is a place where plants are grown, nurtured and sold out. In current scenario nursery raising is the mostbenefited sector, because it needs small area and short time to generate more income. The Koppal district was purposelyselected as it occupies prime place in the nursery raising of horticultural crop in the region. The primary data was collectedfrom 30 nursery owners in the study area. The present study aims to analyze the costs and returns of nursery enterprisesin Koppal district of Karnataka state. The findings of the study revealed that, the costs involved in the production ofseedlings was `2,64,840.43 and `6,20,071.01 in small and large sized shade net house, respectively. Of which, variablecost and fixed costs constituted `2,42,111.04 and `22,729.39 in small sized and `5,69,347 and `50,724.01 in large sizedshade net house, respectively. The financial feasibility analysis indicated net present worth of `1,73,128 and `2,87,789with a discounted benefit cost ratio of 2.29 and 2.40 and payback period was estimated to be 1.05 and 1.07 years and theIRR generated in the nursery enterprise was found to be 28 and 30 percent for small and large nurserieswhich is higher thanthe prevailing interest rate. According to the study, the ratio of variable costs has a higher share compared to that of fixed costsand also this business has vast potentials of generating employment and income of the owners in rural areas of Koppal district