MSc

This study entitled "Economics! of production and marketing of
,
coconut in central region of Kerala" was conducted in the Ernakulam, Thrissur
and Palakkaddistricts of central region of Kerala. The objectives were to
estimate cost of production of coconut, to study the marketing details of the
sample farmers and the general problems encountered by the coconut growers.
Multistage random sampling technique was adopted. A total sample
of 216 farmers was selected having palms of different age groups. The groups
based on age were, farmers having-one year old, 2 to 3 year old, 4 to 7 year old,
8 to 14 year old, 15 to 40 years old and greater than 40 years old coconut
gardens. Two farmers each from the first four categories and five farmers each
from the last four categories were selected for the study.
Most of the farmers procured seedlings from their own farm. All the
ssample farmers were found to apply organic manure in their farms.
Considering the nutrients N,P,K together, it was observed that the nutrient
application was lower than the recommendation of Package of Practices of
Kerala Agricultural University. Husk burial was a very rare practice in the
study area.
The cost of establishment of coconut for seven years was worked out
to Rs.l4126.32 for C-I (one year old), Rs. 13436.35 for C-II (2 to 3 years old)
and Rs. 14432.99 for C-III (4 to 7 years old) for one hectare of coconut garden.
On an aggregate cost of maintenance for yielding categories was worked out to
Rs. 18896.74 per hectare. The cost of maintenance worked out for C-IV (8 to
14 years old) was Rs. 19058.82, for C-V (15 to 40 years old) Rs. 19599.24 and
for C- VI (greater than 40 years old) Rs. 17811.84 per hectare. Labour
utilization pattern showed that more hired labour (60.64%) was used compared
to family labour (39.36%) in the coconut gardens of central region of Kerala.

On an aggregate, productivity of 52.68 nuts per palm per year was estimated in
the central region.
The cost of production was worked to Rs.3.54 per nut for the central
region of Kerala. Capital productivity analysis revealed a pay back period of 13
years, net present value of Rs. 1946.38 at 14 per cent opportunity cost of
capital. Benefit cost ratio was just 1.02 while internal rate of return (14.29%)
was just above the opportunity cost of capital. The project worth measures
indicate a bankable project. But the project worth measures are just above the
critical decision level and hence are very much sensitive even to a slight fall in
returns or spurt in cost of the farmers indicating that coconut cultivation as such
is not a much promising _enterprise.
Majority of the farmers was selling unhusked nuts constituting 51.40
per cent of the total sample farmers. The major marketing channel identified
was producer-copra maker-oil miller-wholesaler-retailer-consumer. The share
of producer in consumers' rupee came to 60.58 per cent. Price spread was
estimated as 39.42 per cent of consumers' rupee.
The main constraints ranked by the farmers in the study region is
that of low and abnormally fluctuating market price of coconut followed by
pest and disease incidence. Mainly ignorance of the recommended practices and
their advantages as well' as inherited time tested knowledge that made farmer
understand the best method for their particular region resulted in incomplete
adoption or non adoption of the recommended scientific practices by the Kerala
Agricultural University. The need of the day is to implement new ideas and
concepts in the cultivation to marketing and processing aspects, which will be
cost effective, competitive and viable in this era of stiff competition of products
and its substitutes.