International Journal of Agriculture Extension and Social Development
2025, Vol. 8, Issue 5, Part D
Financial appraisal of turmeric value addition in Maharashtra
GG Joshi, Dr. DJ Sanap, Dr. SB Sapkal and Kharat SR
The present study conducts an economic evaluation of Kohinoor Turmeric Mill, located in Wai, Satara, for the financial year 2022-23, with a focus on its operational performance and supply chain efficiency. Primary data were collected from the General Manager, encompassing cost structures, returns, and critical financial indicators including the Benefit-Cost Ratio (BCR), Net Present Value (NPV), Internal Rate of Return (IRR), Break-Even Quantity (BEQ), Payback Period (PBP), and various marketing metrics such as cost, margin, price spread, and efficiency. The unit employed a total of 41 workers (24 males and 17 female), reflecting a gender-inclusive workforce. Capital investment was strategically allocated toward land, building, and essential machinery, including polish drums, weighing, and packaging equipment. The unit achieved a substantial production volume of 1337.30 tons of turmeric powder, generating gross returns of ?2808.33 lakhs against a total cost of ?1451.47 lakhs, thereby realizing a net profit of ?1356.86 lakhs. The calculated BCR was 1.94, NPV stood at ?115.765 lakh, IRR was 28.19%, and the payback period was estimated at 3 years and 2 months. Production exceeded the break-even quantity, indicating economic viability. Comparative analysis of marketing channels revealed higher efficiency in Channel-II over Channel-I. The findings underscore the potential of agro-processing units to drive rural economic development. Policymakers are encouraged to support such enterprises through access to affordable finance, skill development, and improved market infrastructure. Strengthening supply chain linkages and promoting efficient marketing strategies can significantly enhance profitability and sustainability in the agro-processing sector.
GG Joshi, Dr. DJ Sanap, Dr. SB Sapkal, Kharat SR. Financial appraisal of turmeric value addition in Maharashtra. Int J Agric Extension Social Dev 2025;8(5):270-276. DOI: 10.33545/26180723.2025.v8.i5d.1898