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    Mathew Varghese

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    profitability. 53.7 Cost of cultivation of Gerbera under different sizes of polyhouse units ‘The profitability of any enterprise depends upon cost and returns. Usually, in any economic study, the total costs are — two heads, viz, variable costs and ‘The fixed costs include. assets, interest on fixed capital, land revenue, rental value of owned land eic. Variable costs include expenses on labour employed to perform different cultural practices, expenses incurred on material inputs such as planting material, manures, fertilizers, plant protection chemicals, interest on working capital, etc. Fixed and variable costs were worked out for cultivation of Gerbera under different sizes and for pooled polyhouse units. THE data is fornished in Table 5.14 From Table 5.14, it is observed that average cost of cultivation of Gerbera for small, medium and large size polyhouse units worked out to be Rs. 6,71,755.50 (Rs.499.20/Sqm), Rs.10,32,51840 (Rs.515.30/Sqm) and __Rs.18,67.262.40 (Rs 466 82/Sq m) respectively. The same for pooled poly house unit was Rs.11,77,697.00 (Rs.492.80/Sq.m). The average cost of cultivation of Gerbera per Sq.m found to be high in medium size poly house units followed by small and large size polyhouse units, Among the total costs, the variable costs for small, medium. large and pooled polyhouse units were Rs.5,76,247 30, Rs 8,65,826.00, Rs.15,39,313.30 and Rs 9,83,241.30 respectively oo oe ee SNo. | Cost items ‘Smailunit | Medium unit | Large unit | Pooled unit 2000 | 000-4000 | 4000 : Sqm) Sqm) | Sam) ‘Average unit size | 1345.70 | 2003.80 4000.00 7389.60 1 [aha 1 | Human labour 13853640 | 29315720 | 1,70,16730 | (13.42) (03.70) 04.45) 2 | Machine power 1598.40 2,715.20 | 1,810.70 (0.15) (0.15) (0.15) 3 | Soil 21,304.20 | 40,047.80 | 24,466.10 2.07) 14) 2.08) = Pianting matenal’?] 38,601.50 wisi to 46,467.90 B74) 4.24) B95) 3 _| Pesticides T,99,680.00 | 3,39,739.10 | 2,18,533.30 (19.34) (17.66) (18.56) 6 | Manures 10,496.30 |” 17,833.50 | 11,605.30 : (1.02) (0.96) (0.99) 7 | Fertilizers 724,640.00 [735634780 | 245,466.70 176) (19.08) 2084) | 8 | Chemicals for soil 2,656.70 4,903.50 3,035.00 | drenching 126) (0.26) [9°] Transportation 66,887.00 | 42,910.00 I | (3.58) 3.64) 10 | Packing | 3119,930.40 | 2,03,050.00 | | 4 07.13) 17.16) Ti | Interest on inf 13896.50 | 2850650 || 16,728.50 working (1.35) 153) (1.42) capital 12% Sub-total of 8,65,826.00 | 15,39,313.30 Variable costs () 386) | zag) | | sayy | | 94,393.00 ]1,85,519.60 | /1,10,036.10 436.50 | 6.56) 20,000.00 (1.07) (1.00) 0.00 ‘Sub-total of fixed | 95,508.20 | 1,66,692.40 costs (IT) ds (16.14) Total cost of 671 0 | 10,32.518.40 ” 18.67,262.40 cultivation I+ (100) (109) (100) i C.O.CRs Sqm) 499.20 a 466.80 492.80 ‘The variable costs accounted for 85.78 per cent, £3.86 per cent, 82.44 per cent and 83.49 ‘per cent of total costs for small, medium, large and pooled polyhouse units respectively. ‘The variable costs found to increase with increase in size of polyhouse units. ‘On the other hand. fixed costs for small medium. large and pooled polyhouse ‘units worked out to be Rs.95,508.20, Rs.1,66,692.40, Rs 3,27,949.10 and Rs.1.94,.456.50 respectively. The fixed costs constiute for 14.22 per cent, 16.14 per cent, 17.56 per cent and 16.51 pert for small, medifim, large and pooled polyhouse units and found to increase ‘with increase in size of the polyhouse unit. Among the variable costs in case of small size polyhouse unit, the expenditure incurred on fertilizers found to be high accounting for 23.33 per cent (Rs.1.56.705.90) of total costs followed by pesticides (18 39%), packing (17.75%), labor (14.41%), planting material (3.77%), transportation (3.56%), soil (1.85%), interest on working capital (1.36%), manures (0.96%) and machine power (0.17%). Out of the fixed costs, depreciation worked outto be Rs. 53,920.60 (8.03%), followed by interest on fixed capital (5.30%) and rental value of owned land (0.89%). gan Similar wend was observed in{saedanaa = expenditure incurred on fertilizers (Rs, 2:28,640 009" accounted for maximum share (21.76%) of total costs, followed by pesticides (16 34%), packing (17.04%, labour (13.42%), planting material (3.74%), transportation (3.71%), manures (0.96%) and machine power (0.15%). Out of the fixed size polyhouse units, where the soil (2.07%), interest on working capital (1.35% costs depreciation accounted for maximum share of 9.14 per cent ( Rs, 94,393.00), followed by interest on fixed capital (6.03%) and rental value of owned land (0.97%) manures unted for ‘Thus, it can be inferred that the total cost increased with increase in size of unit. ‘The variable costs accounted more than 80 per cent of the total cost and found to decrease ‘ith increase in size of polyhouse unit, while fixed costs found to increase with increase in size of polyhouse unit. The expenditure on fertilizers, pesticides and packing accounted for more than 50 per cent of total cost in all sizes of poly house units. [COST OF CULTIVATIO: 2aoaoon00 sgonsoa.00 rcoooavo 8 1400.000.00 © s2oaomoo = eee = sonsonso ; Gn (i ‘.2a00000 | tC +2,00,000.00 ‘ ‘ il co ol 1 Sra Medi lege Pooled UNITSIZE Variable costs) mFixedcosts (tm Toaleostofcutveron +1) | || Figure 5.6 Cost of cultivation of Gerbera under different sizes of polyhouse units $3.8 Cost of cultivation of Gerbera in different sizes of polyhouse units according to cost concepts rere izes of polyhouse units Was d by CACP viz., Cost Al, Cost A2, cultivation of Table red on 5.14 that cont AL was higher for large size poyhinise unit (es 17.24 4 10), compasses to median (its 9,60,219.00) and sanall size polyhonce units (hs 6,10,161 90) Vox powed polyhouse unit cost Al worked ont to be Kes 10,953,214 90. ‘The cost A2 is equal to Al for small, medium and laiye size polyhouse units as all the selected polyhouse farmers cultivated the crop on then own land ‘Table 5.15 Cost of cultivation of Gerbera according to Cost concepts (Ks/unit size) 177482310 [105 z TDA B23.10 3 | Cost Br T8A7239.50 4 | Cost Bz 18,67,259.50 3 [Cos cr 19,20 548.90 19,50,548. 90 6 | Cos Cz ea Cost CO haat [zeae The cost BI was higher for large size polybouse unit (Rs.18,47.259.50) compared to medium (Rs,10,22,518 40) and small size polyhouse unit (Rs 6,65,755.50). The cost B2 for small, medium and large size polyhouse units was worked out to be Rs6,71,755 50, Rs 10,32,518.40 and Rs 18,67, for pooled polyhouse units were Rs, 11,65,897.00 and Rs.11,77,697.00 respecusel Thus, costs B1 & BS were found to be higher for large size polyhouse units followed by 50 respectively. The cost BI and B2 medium and small size polyhouse units. g the di polyhouse units incurred by large size polyhouse units compared to medium and small units. 5.3.9 Cost and Returns from under different sizes of polyhouse units Retums from Gerbera de medium, large size and pooled polyhouse units were worked and Table 5.16. From Table 5.16, it can be observed that the yield from small, medium and large size polyhouse units was 41,788.20 bunches, 62,764.80 bunches and 112,695.70 bunches respectively with an average yield of 71,562.70 bunclles for pooled poly house units. The average price per bunch worked out to be Rs. 22.50. The cost of production per bunch in small, medium, large and pooled polyhouse units worked out to be Rs.19.00, Rs 19.30, Rs.19.10 and 19.20 respectively. Gross returns from small, medium and large size polyhouse units were Rs 9,40,235.30, Rs. 14,12,208.00 and Rs. 25,35,652.20 respectively. The gross retums for pooled polyhouse units were Rs.16,10,160,00. The net retums were computed by deducting the cost C3 from the gross returns, The net retums for small, medium and large 4440 (Rs.109.80'Sqm), Rs.1,98,995.60 9,486 80 (Rs 94 90 Sq m) respectively. Net retums for pooled size polyhouse’ unit farmers were Rs.1.4 (Rs 99.30 Sqm) and Ri polyhouse Rs? 440.40 (Rs98.50'Sqm) These results are in accordance with SenthilKumar et al. (2018 Table £.16 Cost and Returns from Gerbera cultivat $$ nrlsthanse units (Re nnit sized Table 5.16 Cost and Returns from Gerbera cultivation under different sizes of polyhouse units (Rs/unit size) SNo. | Particulars ‘Small unit | Medium ‘unit | Pooled unit («2000 unit ‘4000 Sqm) | (2000-4000 | Sqm) ‘Average unit size | 1345.70 2003.80 4000.00, 2389.60 1 | Cost C3. 792,490.90 | 12,13,212.40 | 21,56,165.40 | 13,74,719.60| 2 [Cost C3RsSqm) | 588.90 605.47 530.00 375.30 ‘3 | Average yield 41,788.20 | 62,764.80 [112,695.70 | 71,562.70 (Bunches) F | Costor 19.00 1930 19.10 1930 ‘production bunch 3 _| Average price’ 2230 2250 2250 2250 ‘bunch © | Gross returns | 9,40,235.30 | 14,12 208.00 | 35,35 652.20 | 16,10, 160.00 7 | Net returns 1A7, 744.40 | 198,995.60 |"3,79,486.80 | 2,35,440.40 [~S_[ Net 109.80, | "99.30 ‘94.90 ‘98.50 returns(Rs/Sq.m) ia i Ang S37" Thus, it can be inferred that bottrerdss and met fétims were found to be in high in large size polyhouse unit compared to medium and small size polyhouse unit. Gross and net returns found to increase with increase in the size of polyhouse unit. But, net returns per Sq m were high in small size polyhouse units followed by medium and large size poly hhouse units 54 Economic viability of selected poly houses sability is evaluation of various ecor effects particular project. This assessment will help foject 1s feasible of not 5.4.1 Economic viability of small size polyhouse units (< 2000 Sq.m) ‘The economic viability of small size poly house units was worked out and the details are presented in Table 5.17. a From Table 5.17, it is observed that Pay Back Period for small size polyhouse units was 2.49 years with subsidy and 6.58% subsidy. Benefit Cost Ratio worked ‘out to be 1.26:1 for the units with for units without subsidy. Net Present Value for small size polyhouse units worked out to bes 13.31 lakhs with subsidy ‘and Rs 5.76 lakhs without subsidy. Intemal Rate of Return found te be 73 per cent for units wath subsidy and 25 per cent without subsidy. Table §.17. Economic viability of small size poly house units (< 2000 Sq.m) | Particulars Se assis | Unie [With | Without) subsidy | subsidy | Pay Back Period (PBP) TYears 1349 2 | Benefit Cost Ratio (BCR) 1136 Lakh Rs. B | Net Present Per cent that small size polvhouse unit farmer ided wath subsidy compa 54.2 Economic viability of medium size polyhouse units (2000-4000 Sq.m) The economic viability of medium size polyhouse units was worked out and the etails are presented in Table 5.18. From Table 5.18, it can be observed that Pay Back Period for medium size polyhouse units was 2.89 years with subsidy and 8 02 years without subsidy. Benefit Cost Ratio was worked out to be 1.22 for units with subsidy and 1.05 without subsidy. Net present Value for medium size polyhouse units was worked out to be Rs.17.45 lakhs with subsidy and Rs.4.57 lakhs without subsidy. Internal Rate of Return was found to be 56 per cent for units with subsidy and 18 per cent without subsidy. The above results clearly indicate that medium size polyhouse unit farmers can recover initial cost of investment in shorter period when provided subsidy compared to farmers without subsidy. BCR, NPV and IRR found to cas for medium size polyhouse units with cht subsidy compared to units without subsidy Bey af Gan be inferred that investment in medium size polyhouse units is more perl provided with subsidy from the Government Table 5.18 Economic viability of medium size polyhouse units (2000-4000 Sq.m) S.No, | Particulars [Unit With subsidy” With-our subsidy Pay Back Period (PBP! Years $4.3 Economic viability of large size polyhouse units (>4000 Sqm) out and the ‘Table 5.21. Economic viability of different sizes of polyhouse units with and without subsidy Sizeof | PBP (Years) | BCR (Ratio) | NPV (Lakhs) the unit W.OS|WS |W.0.5/W.S |W.0.S 1 2 K 3 [Large [390 [965 [121102 [29.79] 238 4 | Pooled 2.84 | 7.96 1.24 | 105 passe 7S” -With subsidy *W.O'S-Without subsidy B| S| &) ity Among

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