Cost and Returns of Grapes Cultivation in Tamil Nadu
Keywords:
Grapes, Economics, Viability, Capital BudgetingAbstract
Agriculture remains a dominating sector for providing employment opportunities to the Indians which records to about 58%. Also, India stands second largest producer of fruits. However, farming activities are facing many crises due to natural and cost problems causing unviable and unprofitable for farmers who cultivate cash crops. Due to the favorable climatic condition, Tamil Nadu plays as an important state leading in the production of grapes, but in recent times it had witnessed a drastic drop in the grapes cultivation. Therefore, a study about the cost and returns of grapes cultivation is most important for facilitating the farmers and policymakers to bring required changes in production, marketing strategy, and policy changes. To examine the cost and returns of grapes cultivation in the study area the BCR, NPV, IRR and payback period is used. The results indicated favorable economic feasibility of production and a good return for all class of farmers.
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