Payoffs to Investment in Floriculture Research: The Case of Arka Savi Rose Variety: 24596
Price: ₹ 1000
https://doi.org/10.35716/IJED-25469
Author: HarishKumar H.V., Raju R., D. Sreenivasa Murthy, Atheequlla G.A. and Tejaswini P.
Author Address: ICAR-Indian Institute of Horticultural Research, Bengaluru-560089 (India)
Abstract
This study
evaluated the economic feasibility and monetary benefits of Arka Savi,
an IIHR rose variety, compared with Merabul, using primary data from
farmers and stakeholders. It examined input use, establishment and maintenance
costs, diffusion patterns, and stakeholder concerns. Arka Savi incurred
higher establishment costs due to planting materials, organic manures, and
plant protection chemicals, and its maintenance required more nutrients and
plant protection inputs, resulting in higher annual costs than Merabul.
Despite this, it delivered superior net returns of ?1,27,186 per acre. Economic
indicators confirmed its viability, with an NPV of ?36,24,663, an IRR of 242
per cent, and a benefit–cost ratio of 1.76. Andhra Pradesh (15.86 per cent)
leads its cultivation, followed by Telangana, Tamil Nadu, and Karnataka,
totalling 795.4 acres (0.79 per cent of India’s rose area). Major constraints included
the high cost of planting material, low farmer awareness, climate-related yield
instability, and the presence of counterfeit planting material in the market. Arka
Savi’s quality and price advantages supported its expansion, with a total
economic surplus of ?86.70 crore, reinforcing the importance of continued
investments in floriculture R&D.
Keywords: Arka Savi, economic
surplus, floriculture, investment, R&D
JEL Codes: D24, G31, O30, Q16.