Prakash Kumar Karan
Orchid And Anthurium Industry In Kerala -A Stuidy Of Homescale Unitsn - Vellanikkara Department of Agricultural Economics, College of Horticulture 1999
Orchid and anthurium are identified as the most important flowers
with commercial potential suitable for the state. Present study was aimed
to investigate the economics of commercial production and marketing of
orchid and anthurium in Kerala and to identify the constraints and
analyze future prospects of these two crops in the State. The study was
conducted with a sample of 80 growers for each crop. Percentage analysis
and capital productivity analysis were used to analyze the data.
Orchid and anthurium growing units have been studied across
three scales of operation, viz., small (upto 500 plants: G-I), medium (500
to 1000 plants: G-II) and large (above 1000 plants: G-I1I) for a standard of
100 plants in each categories.
1. Orchid
Total cost of cultivation for five years was estimated to be Rs.
17,471 of which about 57.28 per cent was the establishment cost. Per
unit cost of cultivation is found increasing towards smaller scale of
operation. The total return realized over crop life is found to be about Rs.
36,088. Higher returns were realized from larger scale of operation -
varying from Rs. 33,240 to Rs. 40,060.
The estimated project worth parameters were well above
acceptance level in all the groups. On an average, pay back period was
estimated as three years, net present value as Rs. 9,345, benefit cost
ratio as 1.61 and the internal rate of return as 39 per cent.
2. Anthurium.
Per unit cost of cultivation of anthurium was little higher than that
of orchid and showed similar cost structure and increasing pattern
towards smaller groups. Total cost of cultivation for five years was
estimated to be Rs. 19,153, about 57.28 per cent of which was the
establishment cost. The total return realized over crop life was found to
be Rs. 46,236. It varied from Rs. 43,474 to Rs. 53,037 in different scales
of operation.
The pay back period of anthurium enterprise was also estimated to
be between two and three years, net present worth as Rs. 13,767, benefit
. cost ratio as 1.82 and internal rate of return as 43 per cent.
Capital productivity analysis of orchid and anthurium showed both
the enterprises to be profitable at all the levels (scale of operation),
however, larger units were seen comparatively more efficient and
profitable than smaller ones.
In both orchid and anthurium, on an average, female labour force
contributed about two-third of the tota1labour use. Proportions of female
labour as well as family labour were found higher towards smaller scale
of operation.
Sensitivity analysis revealed that orchid and anthurium farming
are capable of remaining profitable even if the costs increase by 20 per
cent. A decline of 20 per cent in benefits turned the smallest sized group
(G-I) of orchid uneconomic, though all other groups in both flower crops
performed well. A decline in benefit is observed to have more adverse
influence on project worthiness of both the crops than increase in costs
by same percentage.
Marketing of both the flowers was almost similar as they were
usually sold together. Out of four marketing channels identified, the most
important one was "Producer ---+ Local florist ---+ Consumers", through
which bulk of the produce moved.
The most significant problem faced by orchid and anthurium
growers, especially smaller sized units, was irregular market for their
products. High level of intra-farm varietal diversity resulted in non-
uniform flowers which are in inadequate quantity.
Effective production planning and marketing management are the
key sectors of development.
630.33 / PRA/OR
Orchid And Anthurium Industry In Kerala -A Stuidy Of Homescale Unitsn - Vellanikkara Department of Agricultural Economics, College of Horticulture 1999
Orchid and anthurium are identified as the most important flowers
with commercial potential suitable for the state. Present study was aimed
to investigate the economics of commercial production and marketing of
orchid and anthurium in Kerala and to identify the constraints and
analyze future prospects of these two crops in the State. The study was
conducted with a sample of 80 growers for each crop. Percentage analysis
and capital productivity analysis were used to analyze the data.
Orchid and anthurium growing units have been studied across
three scales of operation, viz., small (upto 500 plants: G-I), medium (500
to 1000 plants: G-II) and large (above 1000 plants: G-I1I) for a standard of
100 plants in each categories.
1. Orchid
Total cost of cultivation for five years was estimated to be Rs.
17,471 of which about 57.28 per cent was the establishment cost. Per
unit cost of cultivation is found increasing towards smaller scale of
operation. The total return realized over crop life is found to be about Rs.
36,088. Higher returns were realized from larger scale of operation -
varying from Rs. 33,240 to Rs. 40,060.
The estimated project worth parameters were well above
acceptance level in all the groups. On an average, pay back period was
estimated as three years, net present value as Rs. 9,345, benefit cost
ratio as 1.61 and the internal rate of return as 39 per cent.
2. Anthurium.
Per unit cost of cultivation of anthurium was little higher than that
of orchid and showed similar cost structure and increasing pattern
towards smaller groups. Total cost of cultivation for five years was
estimated to be Rs. 19,153, about 57.28 per cent of which was the
establishment cost. The total return realized over crop life was found to
be Rs. 46,236. It varied from Rs. 43,474 to Rs. 53,037 in different scales
of operation.
The pay back period of anthurium enterprise was also estimated to
be between two and three years, net present worth as Rs. 13,767, benefit
. cost ratio as 1.82 and internal rate of return as 43 per cent.
Capital productivity analysis of orchid and anthurium showed both
the enterprises to be profitable at all the levels (scale of operation),
however, larger units were seen comparatively more efficient and
profitable than smaller ones.
In both orchid and anthurium, on an average, female labour force
contributed about two-third of the tota1labour use. Proportions of female
labour as well as family labour were found higher towards smaller scale
of operation.
Sensitivity analysis revealed that orchid and anthurium farming
are capable of remaining profitable even if the costs increase by 20 per
cent. A decline of 20 per cent in benefits turned the smallest sized group
(G-I) of orchid uneconomic, though all other groups in both flower crops
performed well. A decline in benefit is observed to have more adverse
influence on project worthiness of both the crops than increase in costs
by same percentage.
Marketing of both the flowers was almost similar as they were
usually sold together. Out of four marketing channels identified, the most
important one was "Producer ---+ Local florist ---+ Consumers", through
which bulk of the produce moved.
The most significant problem faced by orchid and anthurium
growers, especially smaller sized units, was irregular market for their
products. High level of intra-farm varietal diversity resulted in non-
uniform flowers which are in inadequate quantity.
Effective production planning and marketing management are the
key sectors of development.
630.33 / PRA/OR