Financial Analysis of Commercial Honey Production in Uttara Kannada District

Abstract

Beekeeping enterprise is highly profitable but less aware enterprise among Indian farmers. The present study was focused to investigate the cost and returns involved honey production in Uttara Kannada district. The 120 sample beekeepers and 20 market intermediaries were selected in multistage random sampling method and used as sample beekeepers for the study. The results reveled that the two methods was found in commercial honey production in study area namely, Stationary and migratory honey production and the total fixed cost (TFC) was ₹5,722.26 and ₹6274.12, with total variable coat (TVC) of ₹1,371.18 and ₹1,559.77 respectively. The financial analysis reveled that the NPV was ₹ 20,712.58 and ₹42,363.03, BCR of 3.61 and 6.75, IRR of 62 per cent and 112 per cent and PBP of 11 months and 7 months and 10 days respectively at 12 per cent discount rate for 10 years time period. It indicates that the either methods of honey production found to be financially feasible and migratory method was much more feasible than stationary method.