Economic analysis of production, marketing and price behaviour of cocoa in Kerala (Record no. 289678)

000 -LEADER
fixed length control field 07424nam a22001937a 4500
082 ## - DEWEY DECIMAL CLASSIFICATION NUMBER
Classification number 630.33
Item number ANI/EC PG
100 ## - MAIN ENTRY--PERSONAL NAME
Personal name Anila V S
245 ## - TITLE STATEMENT
Title Economic analysis of production, marketing and price behaviour of cocoa in Kerala
260 ## - PUBLICATION, DISTRIBUTION, ETC. (IMPRINT)
Place of publication, distribution, etc Vellanikkara
Name of publisher, distributor, etc Department of Agricultural Economics, College of Agriculture
Date of publication, distribution, etc 2021
300 ## - PHYSICAL DESCRIPTION
Extent 121p.
502 ## - DISSERTATION NOTE
Dissertation note MSc
520 ## - SUMMARY, ETC.
Abstract Cocoa (Theobroma cacao) is one of the important plantation crops which is
widely cultivated for its delicious beans. In India, cocoa is cultivated intensively in
Andhra Pradesh, Karnataka, Kerala and Tamil Nadu. The demand of cocoa is growing
at 15 per cent every year but there is no corresponding increase in production. The
present study entitled ‘Economic analysis of production, marketing and price behaviour
of cocoa in Kerala’ analysed the major trends in area, production and productivity of
cocoa in India and Kerala; examined the price behaviour of cocoa; estimated the
economics of cocoa production; calculated the efficiency of marketing channels and
identified the major constraints in production and marketing of cocoa.
The study was based on both primary and secondary data. Idukki and Ernakulam
districts were purposively selected for the study as these districts accounted for about
90 per cent and 10 per cent respectively of the area under cocoa in Kerala during 2018-
19. From Idukki district, 108 samples were selected and 12 samples were selected from
Ernakulam district based on proportionate sampling, thus making the total sample size
of 120. The data was also collected from 20 village traders, five wholesalers and three
processors.
The area under cocoa cultivation in India progressively increased from 11,900
ha in 1993-94 to 98,000 ha in 2019-20, resulting in a concomitant increase in production
from 6,700 tonnes to 26,000 tonnes even with a decline in productivity from 0.6 t/ha to
0.4t/ha during the study period. In Kerala, the area increased from 10,500 ha in 1978-
79 to 13,891 ha in 2018-19, whereas the production increased from 500 tonnes to
13,400 tonnes during the same period. The productivity of cocoa in Kerala improved
from 0.047 tonnes per ha in 1978-79 to 0.96 tonnes per ha in 2018-19. The development
plans for cocoa implemented in 2005 under the National Horticultural Mission and the
subsequent area expansion schemes implemented in Kerala, Karnataka, Tamil Nadu
and Andhra Pradesh during 2005-06 could be the major factors responsible for the
increase in area under cocoa in India. The adoption of superior hybrids released by
Central Plantation Crops Research Institute (CPCRI) and Kerala Agricultural
University (KAU) by the farmers as well as the training programmes under Mission for
Integrated Development of Horticulture (MIDH) in 2014 has resulted in improvement
in production and productivity of cocoa in India.
ii
The trend analysis indicated that the prices of cocoa have witnessed a sustained
increase in international markets during the period from 1980-81 to 2018-19. The
analysis of the seasonal variations showed that the international prices remained
comparatively low during the months of April and May and, the peak price was
observed during September. The prices of cocoa in all the major markets of Kerala
showed similarly increasing trend during the period from 2005-06 to 2021-22. The
prices in Kerala were found to be the lowest during the months from August to October,
while were highest during the months of April and May. The cyclical and irregular
variations in prices of cocoa in international as well as Kerala markets were found to
be insignificant.
The establishment cost of cocoa was worked as ₹1,78,022 per hectare and
₹2,10,150 per hectare in Idukki and Ernakulam districts respectively. The weighted
average establishment cost for cocoa was estimated as ₹1,80,813 per ha. The costs
incurred during the early bearing, yield stabilising and yield declining phases were
₹50,904, ₹80,916 and ₹56,925 per ha per year in Idukki and, ₹36,925, ₹52,525 and
₹8,400 per ha per year in Ernakulam respectively. The aggregate maintenance cost for
cocoa cultivation was worked out as ₹67,365. The total cost of cultivation for cocoa
was estimated as ₹86,649 per ha. The cost of production for wet cocoa beans was found
to be ₹70 per kg, while the cost of production for dry cocoa beans was estimated as
₹225 per kg.
The efficiency of cocoa cultivation was analysed using the Cobb Douglas
production function analysis and the cost incurred on plant protection chemicals, cost
incurred on manures and age of the tree were found significantly influencing the returns
from cocoa at one per cent level of significance. The ratio of MVP to price for manure
was found to be 66.74, whereas for plant protection chemicals it was found to be 0.73
and this indicated that the plant protection chemicals were overutilised, whereas manure
was underutilised in cocoa cultivation.
Nearly 70 per cent of the farmers in the study area sold cocoa to the village
traders, while 20 per cent of the respondents marketed the produce directly to the
exporters. Eight major marketing channels were identified in the study area. The highest
producer’s price of ₹180 was found in channel V and VII, whereas the lowest
producer’s price of ₹35 was observed in channels II, III and VI. The marketing
iii
efficiency in all the channels under study were found to be very low due to high
marketing costs incurred, increased marketing margins extracted by the intermediaries
and the involvement of large number of intermediaries in the marketing of cocoa. The
price spread was found to be the least while marketing cocoa as dry beans as compared
to marketing as other processed cocoa products. The producer’s share in consumer’s
rupee was found to be the highest in channel V and channel VII as compared to other
channels, in which farmers were selling cocoa as dry beans.
The high incidence of phytophthora was found to be the most serious constraint
affecting the yield and returns from cocoa. The other major constraints included the
damage caused by tea mosquito bug, attack of rodent and mammalian pests, yield
decline due to climate change, difficulty involved in spraying operations and low price
of the product.
Provision of proper training for cocoa farmers; directing farmers to apply plant
protection chemicals, manures and fertilizers as per recommended doses; arranging
common drying facilities for farmers and setting up standards for grading and pricing
are recommended to address the constraints faced by farmers. Also, if government
procurement is done and MSP is announced, it will definitely help the farmers to earn
stable and remunerative prices, which will in turn motivate the farmers to expand the
area under cocoa cultivation. Farmers should be encouraged to form Farmer Producer
Organisations (FPOs) so that the operations like spraying of plant protection chemicals,
drying and processing can be carried out collectively and thereby help in lowering the
cost.
650 ## - SUBJECT ADDED ENTRY--TOPICAL TERM
Topical term or geographic name as entry element Agricultural Economics
650 ## - SUBJECT ADDED ENTRY--TOPICAL TERM
Topical term or geographic name as entry element Cocoa
650 ## - SUBJECT ADDED ENTRY--TOPICAL TERM
Topical term or geographic name as entry element Theobroma cacao
700 ## - ADDED ENTRY--PERSONAL NAME
Personal name Anil Kuruvila (Guide)
856 ## - ELECTRONIC LOCATION AND ACCESS
Uniform Resource Identifier https://krishikosh.egranth.ac.in/handle/1/5810192043
942 ## - ADDED ENTRY ELEMENTS (KOHA)
Source of classification or shelving scheme
Item type Theses
Holdings
Not for loan Collection code Permanent location Current location Shelving location Date acquired Full call number Barcode Date last seen Koha item type
Not For Loan Reference Book KAU Central Library, Thrissur KAU Central Library, Thrissur Theses 2022-07-12 630.33 ANI/EC PG 175348 2022-07-12 Theses
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