An Economic Impact of Eucalyptus Plantation on Farmers' Sustainability in Gujarat

Abstract

The economic analysis of eucalyptus was carried out in Middle Gujarat during 2018-19. The average gross return per hectare was 222391, and net return over total cost was 85291. On an average, in normal cost and return situation at ten percent rate of discount the net present value (NPV) was found to be positive ( 47563.15), B: C ratio was found more than unity (1.40), and internal rate of return (IRR) was more (35.00 percent) than the standard bank rate. The results also indicated that three marketing channels were found for the marketing of the eucalyptus tree. Out of the three channels, Channel-I (Producer–Wholesaler–Retailer–Consumer) dominated as 88.33 percent of respondents were selling eucalyptus tree through this channel. The net price received by farmer per quintal and producer share in consumer rupee was maximum in Channel-I. Overall it was observed that the investment on eucalyptus plantation was a profitable and economically viable option under Gujarat conditions.