Economic Feasibility Analysis of Processing of Sesame (Edible Oil) in Northern Telangana Zone

Abstract

Sesame is an ancient crop and is often called as Queen of seeds. Sesame oil is consumed from ancient times for its extensive health benefits. The study was aimed to analyze financial feasibility of processing of sesame to sesame edible oil in Northern Telangana Zone of Telangana state where sesame is produced extensively. The data was collected from three districts from NTZ where sesame is grown extensively. Random sampling method is used to select the sesame processors in the study area. The data has been collected from 30 sesame processors from three districts through pre schedules. The data was analysed by using discounted cash flow techniques involving Internal Rate of Return (IRR), Net Present Worth (NPW), Benefit cost Ratio (BCR) were employed. Result: The Net Present Worth of the processing units in the study area was positive and the results revealed that the sesame processing units higher IRR (30.33) and BCR (1.60) greater than one. The study showed that sesame processing units in the study area are financially feasible and profitable. The study suggests to increase awareness about the consumption and health benefits of using sesame oil in the study area.