Financial feasibility and profitability of carnation cut flowers under protected cultivation

Abstract

In Maharashtra carnation is one of the major commercial flower crops cultivated in polyhouses. It is very important to evaluate financial feasibility and profitability of carnation cultivation in polyhouses as a commercial cut flower crop in long run. Hence, the present study was conducted to estimate costs and returns, financial feasibility and profitability of carnation cultivation under protected condition. For the present study a sample of 60 rose cut flowers growers was drawn from Pune and Satara districts. The primary data required for the analysis were collected through pre tested questionnaire by personnel interview of respondents pertained to the agriculture year 2018-19. The budgeting technique was followed for estimating various costs and returns. This paper examined benefit cost ratio, internal rate of return and net present value of carnation cut flower cultivation under protected condition for the evaluation of financial feasibility of investment. The results revealed that, capital investment on construction of carnation polyhouse was ₹36.95 lakhs and the cost of production, gross and net returns per acre for carnation cut flowers were estimated to be ₹46,06,516, ₹77,30,028 and ₹31,23,512. The per cent share of frame work cost (37.02%) in the total capital investment of carnation poly house construction was more. In the cost of cultivation, the share of fixed cost in the total cost was 52.75 per cent and the variable cost was 47.25 per cent. The benefit cost ratio (1.67) of carnation polyhouses was more than unity and the internal rate of return (39.00%) was more than the opportunity cost of capital indicated that, investment on carnation polyhouses is financially feasible and carnation cultivation in polyhouses is profitable agribusiness.