Economic analysis of cashew processing in Karnataka
2010
Harish Kumar, K. | Chinnappa, B.
The study to investigate the processing aspects of cashew nut in Kamataka is based on primary data collected from 30 cashew processing units spread over Udupi and Dakshina Kannada Districts of Kamataka. The datawere analysed using descriptive statistics, investment measures and break even analysis. Investment feasibility of cashew processing units was done using discounted cash flow techniques such as Net Present Value, Benefit Cost Ratio and Internal Rate of Return. The study indicated that variable cost of processing of cashew nut worked out to Rs. 48,844 per tone of which the cost ofraw materials constituted major item with 81.01 percent. The marketing costs and fixed costs were in the order ofRs. 3862 per tonne and Rs. 2289 per tonne, respectively. The total cost of processing inclusive of variable cost, marketing cost and fixed cost came to Rs. 54,433 per tonne. Processing units realized net returns of Rs.3,880, Rs.3,537 and Rs.3,009 per tonne in large, medium and small size units, respectively. Business ratios indicated that the medium and large size units were more efficient compared to the small size units. Investment on cashew processing was economically viable as indicated by results of Net Present Value, Benefit Cost Ratio and Internal Rate ofReturns. Further, scope for increasing the efficiency and reducing the cost of small processing units was observed.
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