Economic analysis of banana cultivation in Thiruvananthapuram district

Abstract

Banana (Musa spp.) is a major global fruit crop, widely cultivated for its adaptability and nutritional richness. It plays a crucial role in ensuring food and nutritional security in many developing countries. In Kerala, banana production reached 4,11,876.74 tonnes in 2023-24, with Thiruvananthapuram district alone contributing to 17.46 per cent of production from an area of 7,814.15 ha, and recording an average productivity of 9.20 tonnes per ha. Among the major varieties cultivated in the region, Red banana (locally known as Chenkadali) and Njalipoovan hold particular cultural and economic importance in southern Kerala. In this context, the present study entitled “Economic analysis of banana cultivation in Thiruvananthapuram district” was undertaken to evaluate the economics of cultivation of these two varieties, examine their marketing systems, estimate pre- and post-harvest losses, analyse the determinants of crop insurance adoption, and identify the major constraints faced by banana farmers. The study was carried out in four panchayats of Thiruvananthapuram district- Kalliyoor, Maranalloor, Kunnathukal, and Kollayil. Primary data were collected from 160 farmers (80 farmers cultivating each variety) and 50 marketing intermediaries using a well-structured and pre-tested interview schedule. Data pertaining to the agricultural year 2024-25 were used for the analysis. The socioeconomic characteristics revealed that most of the farmers belonged to the age group of 56-65 years and depended on agriculture as their major occupation. The majority operated on marginal landholdings of less than one hectare, with more than 20 years of farming experience, and education upto SSLC level. Njalipoovan growers mainly cultivated on owned land (63.75%), whereas 42.5 per cent of Red banana farmers relied on leased in land for cultivation. The cost of cultivation was analysed using CACP cost concepts. The total cost of cultivation of Red banana was ₹6,80,520 per ha, with operational costs accounting for 77.25 per cent. Labour and material inputs contributed 55.20 per cent and 39.13 per cent of operational costs, respectively. For Njalipoovan, the total cost of cultivation was ₹5,64,334 per hectare, of which 74.19 per cent comprised operational costs. Within operational costs, labour (57.26%) and material inputs (39.31%) constituted the highest i share. The estimated BC ratio was 1.61 for Red banana and 1.87 for Njalipoovan, indicating that both varieties were profitable in the study area. Resource use efficiency was analysed using the Cobb-Douglas production function. The results indicated that while suckers were underutilised in both the varieties, human labour was overutilised in Red banana cultivation. Weather conditions exerted a negative and significant influence on returns in both the crops. Moreover, plant protection chemicals negatively affected the yield of Red banana. Five marketing channels were identified, among which Channel V (Producer → Retailer → Consumer) recorded the highest producer’s share in consumer’s rupee with 83.69 per cent for Red banana and 82.83 per cent for Njalipoovan. Also, this channel was found to be the most efficient. Pre-harvest loss assessment revealed that weather related factors were the principal cause of damage, accounting for 15.13 per cent in Red banana and 26.18 per cent in Njalipoovan. Total pre-harvest losses were 21.90 per cent and 33.63 per cent, respectively for Red banana and Njalipoovan. Post-harvest losses across the marketing chain were found to be 18.94 per cent for Red banana and 18.03 per cent for Njalipoovan, with retail-level losses being the highest at 15.26 and 12.59 per cent respectively for these varieties. Bootstrapped confidence intervals provided statistical robustness to these estimates. It was observed that only 35.63 per cent of the farmers had availed insurance in the study area. Binary logistic regression was used to identify the factors influencing adoption of crop insurance by banana farmers. Farm income, previous insurance experience, and land ownership were found to positively influence the decision to adopt crop insurance. Lack of trust in timely compensation, absence of land revenue receipts, and complicated procedures were identified as the major reasons for non-adoption. The constraints faced by banana farmers were analysed using Garrett’s ranking technique. The result revealed that unfavourable weather condition was the most serious challenge affecting both the varieties. This was followed by the rising cost of inputs and fluctuations in market prices. While Red banana growers identified price volatility as the third major constraint, Njalipoovan farmers ranked pest and disease incidence as the third most important constraint. Labour scarcity and the high cost of labour were also ii reported as a major constraint that adversely affected the banana production process. The study suggests that ensuring the availability of quality planting materials, promoting scientific cultivation practices recommended by Kerala Agricultural University, enhancing labour availability, strengthening organised procurement systems, establishing mechanisms to stabilise prices, expanding digital marketing platforms and simplifying crop insurance procedures will be essential to improve productivity, reduce risk, and enhance the overall profitability of banana cultivation in Thiruvananthapuram district.