A study on estimating fair value of future income from fruits harvested from standing fruit trees as affecting the income security of farmers.
Chhavi Mittal, Sharma B. B.
Author Affiliation: Rajdhani College, University of Delhi, New Delhi, India.
Agricultural Situation in India 69 : 123-132
Abstract : This paper examines the basic principles and methods used by the states of Punjab, Himachal Pradesh, Uttar Pradesh and Haryana for the valuation of future income from fruits harvested from standing trees of Indian jujube (budded, Ziziphus mauritiana), guavas (layered, Psidium guajava), mangoes (grafted, Mangifera indica) and lemons (air layered, Citrus limon). It is noted that there are wide differences in the estimates and methodologies that have been used regarding costs and annual incomes from fruits harvested from trees. Further, the income from fruits from standing trees has been kept constant with no provision for escalation due to rise in market prices of fruits. The aggregate income over the remaining bearing life of a tree is also discounted (to obtain the net present value) in a questionable way, resulting in underestimation of annual income from standing trees.