AN ANALYSIS OF FINANCIAL FEASIBILITY OF ESTABLISHING CUSTOM HIRING CENTRES-A CASE STUDY IN COIMBATORE DISTRICT OF TAMIL NADU

V. KOWSALYA¹*, K. MAHENDRAN², S. HEMALATHA³, S. MOGHANA LAVANYA^4
1Department of Agriculture and Rural Management, Tamil Nadu Agricultural University, Coimbatore, 641003, Tamil Nadu, India
²Department of Agriculture and Rural Management, Tamil Nadu Agricultural University, Coimbatore, 641003, Tamil Nadu, India
³Department of Agriculture and Rural Management, Tamil Nadu Agricultural University, Coimbatore, 641003, Tamil Nadu, India
⁴Department of Agriculture and Rural Management, Tamil Nadu Agricultural University, Coimbatore, 641003, Tamil Nadu, India
* Corresponding Author : vkowsalya6797@gmail.com

Received : 01-01-2021     Accepted : 26-01-2021     Published : 30-01-2021
Volume : 13     Issue : 1       Pages : 10563 - 10565
Int J Agr Sci 13.1 (2021):10563-10565

Keywords : Mechanization, Financial Viability, Custom Hiring Centre (CHC) and Break-even Point (BEP)
Academic Editor : Dr Vipul N Kapadia
Conflict of Interest : None declared
Acknowledgements/Funding : Authors are thankful to Department of Agriculture and Rural Management, Tamil Nadu Agricultural University, Coimbatore, 641003, Tamil Nadu, India
Author Contribution : All authors equally contributed

The custom hiring centre (CHC) plays a useful role in providing machineries to small and marginal farmers to carry out farming operations in shorter period. This study is confined to a CHC in Thondamuthur block of Coimbatore district. Primary data was collected from CHC using structured questionnaire and breakeven analysis was used to assess the financial viability of CHC. The results indicated that the CHC was financially viable. The BEP analysis revealed that rotavator followed by tractor and reversible plough generated maximum profit to the CHC. The cultivator did not generate sufficient revenue to cover the cost of initial investment. It was observed that the return on investment from machinery and implements depended on the machinery’s annual usage rather than its initial cost. CHC should provide machinery and implement based on the nature of crops prevailing in the region. The results also indicated that the subsidy provided by the government plays a critical role in generating sufficient returns on investment

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