Economic Viability and Financial Feasibility of Secondary Processing Unit of Turmeric in Chamarajanagar District of Karnataka, India

Navyashree, B. M.

Department of Agricultural Economics, College of Agriculture, UAS, GKVK, Bengaluru-560065, India.

K. B. Vedamurthy

Department of Dairy Business Management, Dairy Science College, KVAFSU, Hebbal Campus, Bengaluru-560065, India.

Vaishnavi *

Department of Agricultural Economics, College of Agriculture, UAS, GKVK, Bengaluru-560065, India.

Venkataramana, M. N.

Department of Agricultural Economics, College of Agriculture, UAS, GKVK, Bengaluru-560065, India.

Ujjwal, B.

Department of Dairy Business Management, Dairy Science College, KVAFSU, Hebbal Campus, Bengaluru-560065, India.

*Author to whom correspondence should be addressed.


Abstract

Turmeric is an important commercial crop with both domestic and international demand facing challenges due to the absence of organized processing units at production centres. Addressing this gap requires a thorough analysis of the economic viability and financial feasibility of establishing turmeric processing units to empower stakeholders and foster agricultural advancement in the study area. The study was conducted in Chamarajanagar district of Karnataka, by collecting primary data on establishment and annual processing costs and secondary data on market prices of turmeric rhizome and powder. Financial feasibility analysis revealed positive Net Present Value (NPV) of ₹1,714.36 lakh and ₹623.56 lakh, Benefit Cost Ratio (BCR) of 2.37 and 1.76, Internal Rate of Returns (IRR) of 76 and 57 per cent at current and constant market prices, respectively. The findings showed that the establishment of turmeric processing units are both economically viable and financially feasible. Emphasizing this potential through extension systems can empower farmers to maximize benefits through mechanized value addition. These insights provide valuable guidance for entrepreneurs, Farmers Producers Organizations, Self Help Groups and cooperatives facilitating informed decisions on establishing small-scale turmeric processing units.

Keywords: Financial feasibility, NPV, BCR, IRR, sensitivity analysis


How to Cite

Navyashree, B. M., Vedamurthy , K. B., Vaishnavi, Venkataramana, M. N., & Ujjwal, B. (2024). Economic Viability and Financial Feasibility of Secondary Processing Unit of Turmeric in Chamarajanagar District of Karnataka, India. Journal of Scientific Research and Reports, 30(6), 59–66. https://doi.org/10.9734/jsrr/2024/v30i62021

Downloads

Download data is not yet available.

References

Ghosh S, Banerjee S, Sil PC. The beneficial role of curcumin on inflammation, diabetes and neurodegenerative disease: A recent update. Food and Chemical Toxicology. 2015;83:111-124.

Patil MR, Borse MK, Patil SD, Poonam K. Economic aspects of production, processing and marketing of turmeric in western Maharashtra. International Journal of Agricultural Sciences. 2009;5(1):60-63.

Choudhary AK, Rahi S. Organic cultivation of high yielding turmeric (Curcuma longa L.) cultivars: A viable alternative to enhance rhizome productivity, profitability, quality and resource-use efficiency in monkey–menace areas of north-western Himalayas. Industrial Crops and Products. 2018;124:495-504.

Jaiswal R, Chandrakar MR, Gauraha AK, Sahu Y, Sahu T. An economic analysis of production, processing and marketing of turmeric: A case study of Sambhav farmer producer organization, Raigarh district of Chhattisgarh. Seed. 2021; 4(6067):3-6.

Anonymous. National Horticulture Board, Ministry of Agriculture & Farmers Welfare, Government of India; 2021.

Available:https://www.nhb.gov.in/

Viraja CV, Thumar VM, Tandel VB. Cost structure and profitability of turmeric cultivation in Navsari district of South Gujarat. International Journal of Chemical Studies. 2018;6(5):1486-1488.

Walisinghe B, Gunaratne L. Consumer preferences for quality attributes of rice: A conjoint analysis. Sri Lankan J. Agric. Econ. 2012;10:19–30.

Wilkinson J, Rocha R. The agro-processing sector: Empirical overview, recent trends and development impacts. Global Agro-Industries Forum. 2008;1-59.

Kaja P, Gellaboina KK. A study on turmeric in Telangana with emphasis on Value chain Analysis. Directorate of Arecanut & Spices Development, Ministry of Agriculture and Farmers Welfare, Calicut, Government of India; 2017.

Chompu-inwai R, Suwanacheep P, Thaiupathump T. Conjoint analysis and clustering techniques in ready-to-cook dried pork product development. In 2019 6th International Conference on Frontiers of Industrial Engineering. 2019; 94-98.

Devi priya B, Thyagarajan M. An investigation on production and productivity export performance of significant spices in the Country India. Indian J. Sci. Technol. 2020;13(48):4699-4707.

Devi G. Marketing of turmeric production in middle Gujarat. Gujarat Journal of Extension Education. 2020;31(2):36-41.

Israel KS, Murthy C, Patil BL, Hosamani RM. Value addition of tamarind products in Karnataka. Journal of Pharmacognosy and Phytochemistry. 2019;8(6):726-730.

Agbas NS, Ceballos RF. On the conjoint analysis of consumer’s preferences on quality attributes of rice. Advances and Applications in Statistics. 2019;58(1):45-55.

Anantha VPB, Sidana BK. Growth performance of Indian spice trade. J. Agric. Dev. Pol. 2019;29(1):88-95.

Berning J, Campbell BL. Market simulations of consumer preferences for the introduction of GM tomatoes. Int. Food Agribusiness Manag. Rev. 2021;24:71-88.

Submitter GATR, Jitkuekul P, Khamtanet S. A conjoint analysis of consumer preferences for chili products: A case study on chili sauce. Journals and Jitkuekul. 2020;226-233.

Sulistyawati I, Dekker D, Verkerk R, Steenbekkers B. Consumer preference for dried mango attributes: A conjoint study among Dutch, Chinese, and Indonesian consumers. J. Food Sci. 2020;85(10): 3527-3535.

Abeynayaka AASL, Bandara AMKR, Lankapura AIY, Idamekorala PR. Economics of turmeric production in Sri Lanka: An empirical analysis in major turmeric growing districts. Asian Journal of Agricultural and Horticultural Research. 2020;6(4):10-17.

Kumar R, Dixit AK, Kumar A, Singh S. Agro processing industries in Haryana: Status, problems and prospects. Economic Affairs. 2016;61(4):707-715.

Manuraj D, Gharge KS, Pise AT. A review on post processing of turmeric rhizome. International Research Journal of Engineering and Technology. 2020;7(3): 4800-4803.

Situmorang ROP, Panjaitan BP, Antoine M, Takagi C. Conjoint analysis to evaluate consumer preference on certified agricultural products in the Central Taiwan. In E3S Web of Conferences. 2021;332(3): 05003.

Ashwini M, Hiremath GM, Satihal DG. Economic viability of turmeric cultivation in north-eastern transitional zone of Karnataka. Asian Journal of Agricultural Extension, Economics, and Sociology. 2022;40(7):96-102.

Sharma KD, Pathania MS, Lal H. Value chain analysis and financial viability of agro-processing industries in Himachal Pradesh. Agricultural Economics Research Review. 2010;23:515-522.

Karthik V, Amarnath JS. An economic analysis of turmeric production in Tamil Nadu, India. Direct Research Journal of Agriculture and Food Science. 2014;2(6): 66-76.

Varalakshmi K. An economic analysis of chicken nuggets processing unit. Allied Research Journal. 2016;2(1):507-516.