Economics of Grape Cultivation: An Empirical Analysis from Maharashtra

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Economics of Grape Cultivation: An Empirical Analysis from Maharashtra

Author Info

Deepak Shah (Gokhale Institute of Politics & Economics, B.M.C.C. Road, Deccan Gymkhana, Pune 411004, Maharashtra, India)

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Deepak Shah

Abstract

The results obtained in respect of annual maintenance cost and returns for various categories of grape orchardists are in conformity with the financial analysis. The gross returns from grape orchards during various stages of production are noticed to be twice the cost of production for various categories of orchardists. The results of financial analysis also show a B-C ratio in grape cultivation in the range of 1.86 and 2.15 for various categories of orchardists with an average of 2.07. Among various categories, the medium and large categories of orchardists not only show quicker payback period but they also show higher NPV and B-C ratio as compared to marginal and small categories of orchardists. The large and medium categories of orchardists are, therefore, noticed to manage their grape gardens more efficiently as compared to small and marginal categories of orchardists. However, in general, the cultivation of grapes is noticed to be a lucrative proposition for all the categories of orchardists because of substantially high element of profit involved in the cultivation of this high value crop. Due to high element of profit, the onus of technological efforts have been more favourably inclined and concentrated behind the cultivation of grapes in the state of Maharashtra. Another important aspect of this high value crop is its international competitiveness. Among various fruits and vegetables, Indian grapes are highly competitive in the world market. Efforts should, therefore, be made to boost the export trade of this valued crop by enhancing its production volume.

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Paper provided by EconWPA in its series Others with number 0512007.

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Length: 14 pages
Date of creation: 07 Dec 2005
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Handle: RePEc:wpa:wuwpot:0512007

Note: Type of Document - doc; pages: 14
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Find related papers by JEL classification:
P - Economic Systems
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
Z - Other Special Topics

This paper has been announced in the following NEP Reports:

NEP-ALL-2005-12-14 (All new papers)

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