Financial Feasibility Analysis of Vermicompost in Yavatmal District, India

Abstract

The study assessed the financial feasibility and marketing efficiency of vermicompost production in Yavatmal district, Maharashtra. Primary data for 2025–2026 were obtained from 60 vermicompost producers selected from six villages in two tehsils, while additional marketing information was collected from wholesalers, commission agents and village traders. Financial feasibility was evaluated using the payback period, net present value, benefit-cost ratio and profitability index, whereas marketing performance was assessed through marketing cost, market margin, price spread and the producer's share in the consumer's rupee. The reported payback period was 0.44 years, indicating relatively rapid recovery of the initial investment. The net present value was Rs. 16,645.82 and the benefit-cost ratio was 1.84, while the profitability index was reported as 5.87. Three marketing channels were identified. Channel I, comprising direct sales from producer to consumer, recorded the lowest price spread of Rs. 655.64 per tonne and the highest producer's share in the consumer's rupee at 93.46 per cent. The producer's share declined to 78.05 per cent in Channel II and 72.43 per cent in Channel III. Under the surveyed conditions, the findings indicate that vermicompost production had favourable financial indicators and that shorter marketing channels may improve producer returns by reducing intermediary costs and margins.