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Indian Journal of Economics and Development
Year : 2019, Volume : 15, Issue : 2
First page : ( 274) Last page : ( 281)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2019.00033.7

Economic Viability of the Commercial Cultivars of Apple in Jammu Province

Ali Jahangir1,*, Kachroo Jyoti1, Bhat Deep Ji2

1Division of Agricultural Economics and ABM, Sher-e-Kashmir University of Agricultural Sciences and Technology Jammu, Chatha-180009

2Division of Fruit Science, Sher-e-Kashmir University of Agricultural Sciences and Technology Jammu, Chatha-180009

*Corresponding author's email: jahangirdar64@gmail.com

JEL Codes C81, C83, D61, M21, Q12.

Online published on 4 July, 2019.

Abstract

The present study was conducted in the temperate zone of Jammu province covering three mountainous districts viz. Doda, Kishtwar and Ramban based on the highest area and production under apple cultivation. Both primary, as well as secondary data were used as per the requirements of the study. A multistage sampling technique was used. Three apple producing development blocks from each district were chosen on the basis of the highest area and production under apple cultivation. Two villages were selected from every single block randomly and consisted of a total of 18 villages. The total of 180 (10 from each village) ultimate samples of apple growers was undertaken randomly after taking a list of the selected villages. Financial feasibility analysis showed that cash flow projections for a one-acre apple farm for a fifteen year production period indicated that the apple farm was worth 68758.43 per acre for marginal farmers, 292279.07 per acre for the small farmers and 326061.93 per acre for the medium farmers at 12 per cent discount factor. The benefit-cost ratio was found to be 1.84, 4.40 and 4.63, respectively for the marginal, small and medium farmers, respectively. The IRR for marginal, small and medium farmers was found to be 29.07, 52.08 and 56.00 per cent respectively. The pay-back period computed for the investment in apple cultivation indicated that the apple farmers could have their investment back within a period of 6.4, 5.4 and 5.2 years for the marginal farmers, small farmers and medium farmers, respectively. Thus, all four measures of economic viability revealed that the investment made in apple farming was a feasible proposition, implying that with initial support, many farmers could venture into this enterprise.

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Keywords

Costs, cultivars, economic viability, production, returns.

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