PRODUCTIVITY POTENTIAL AND PROFITABILITY OF OIL PALM CULTIVATION (A CASE STUDY OF  KRISHNA DISTRICT, ANDHRA PRADESH)

Prof.T.Uma Maheswara Rao; Dr. N.Bindu Madhavi

Volume : V, Issue : VI, June - 2015

PRODUCTIVITY POTENTIAL AND PROFITABILITY OF OIL PALM CULTIVATION (A CASE STUDY OF KRISHNA DISTRICT, ANDHRA PRADESH)

Prof. T. Uma Maheswara Rao, Dr. N. Bindu Madhavi

Abstract :

Palm oil is the world’s highest yielding oil crop, with an output 5–10 times greater per hectare than other leading vegetable oils. Combined with historically low prices, relative shelf stability, and reported nutritional benefits, palm oil leverages natural advantages that position it as a likely long–term staple of the global diet. Rapidly expanding population and changing consumption patterns, as well as increasing demand from the bio energy and oleo chemicals industries, have resulted in sustained high prices for crude palm oil. These market forces have driven enormous growth of the palm oil industry in recent decades. The present paper investigates the economic profitability and incentives for Oil Palm Cultivators to invest in oil palm in Krishna district of Andhra Pradesh. Data was obtained by conducting a questionnaire survey of 200 farmers who cultivate oil palm. The financial viability of oil palm cultivation for farmers was assessed by calculating three financial indicators NPV, BCR and IRR.