Payoffs to Investment in Floriculture Research: The Case of Arka Savi Rose Variety#


Published On: 2026-03-09 16:48:11

Price: ₹ 500



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)

Keywords: Arka Savi, economic surplus, floriculture, investment, R&D.

JEL Codes: D24, G31, O30, Q16.


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. 



Description

Indian J Econ Dev, 2026, 22(1), 174-181
https://doi.org/10.35716/IJED-25496

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