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Vermicelli production: A profitable rural Agro-Based industry

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  • Sowmya,H S
  • Patil, Kiran Kumar R
  • Chinnappa, B

Abstract

The present study was carried out in Suruhonne village of Davangere district to assess the economics of vermicelli production and marketing. Five vermicelli production units were randomly selected. Budgeting technique, discounted cash flow measures and marketing efficiency measures were used to draw meaningful inferences. The economics of vermicelli production indicated that to produce one kg of vermicelli, manufacturer incurred cost of Rs. 28.63 and realized net returns of Rs.1.61. The positive and substantial NPW (Rs. 5779537), BCR more than unity (1.06) and IRR more than interest rate on long term loan (121.8 percent) revealed its economic viability. Vermicelli unit could be regarded as an efficient rural agro based industry as it provides employment opportunity for women folk (2145) round the year and sustains their livelihood.

Suggested Citation

  • Sowmya,H S & Patil, Kiran Kumar R & Chinnappa, B, 2018. "Vermicelli production: A profitable rural Agro-Based industry," Indian Journal of Agricultural Marketing, Indian Society of Agricultural Marketing, vol. 32(2).
    • Handle: RePEc:ags:injagm:399575
    DOI: 10.22004/ag.econ.399575
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    File URL: https://ageconsearch.umn.edu/record/399575/files/Journal%20-%20IJAM%2032%20%282%29%20_%20final%20-%20Sept%2011th%20%28%2068%20pages%29-pages-47-53.pdf
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