A. SUDHEER VARMA, V. TULASI DAS, I. BHAVANI DEVI AND G. MOHAN NAIDU

Institute of Agribusiness Management, S.V Agricultural College, ANGRAU, Tirupati-517502, Chittoor Dt.

Andhra Pradesh, India

ABSTRACT

The commercial cost of cultivation incurred to raise one hectare of oil palm during its life span of 25 years stood at Rs.2799460.24. The gross income realized by the oil palm orchardists, during its lifespan amounted to Rs. 3916960 per hectare. The respective net income received by the farmers stood at Rs.1117499.76. The net present value was as high as Rs. 386046 at 12 per cent and Rs.9889.73 at 28 per cent discount rates. The benefit- cost ratio was 1.04 even at higher discount rate of 28 per cent. The IRR was calculated at 29.30 per cent. All the measures indicated that oil palm cultivation is a profitable proposition.

KEY WORDS: Oil Palm, economic viability