Economics of cardamom cultivation in Idukki district Kerala state

Abstract

A study on the Economics of Cardamom Cultivation in Idukki district, Kerala state was done in the year 1983-84. Various analyses were done in respect of the three cultivating zones and two size groups to evaluate the cost and returns, capital productivity measures and efficiency in resource uses. The problems facing the cardamom industry in the district were also studied. The cost of cultivation of cardamom in the district during the establishment period of two years was Rs.16,601/- while the cost of maintenance during 3rd to 12th year ranged from Rs.12,056/- to Rs.14,674/- and read as at Rs.11,287/- during 13th to 15th year of cultivation. Cost of production of one kilogram of cardamom varied from Rs.172/- per kg during the third year (the first economic yielding year) to Rs. 125/- during the period fourth to 8th year. Labour intensity in the cardamom production was very higher. More than 30 percent of the yearly total expenditure of the cultivation was on labour. Capital productivity analyses indicated towards payback period being 4 years, BC ratio 1.46, IRR 49.50 percent and NPW Rs.41,294/- when discounted at 11 percent interest rate signifying the shorter payback period among the plantation crops and the attractive profitability in venturing in the cardamom industry. The standardized income at 11 percent discount rate was the highest during the 12th year suggesting the ideal time of replantation of cardamom to be after 12 years of economic returns. The serious problem facing cardamom industry was the necessity for eco-preservation with giving emphasis on organic farming for producing environment friendly cardamom preferred in the international markets. Along with this, cultivation of cultivars suited to micro-agro-climate with providing irrigation support needed encouragement in getting the potential cost-effective returns in the long run. The study on the economics of cardamom cultivation in Idukki district, Kerala state revealed that cardamom being one of the important plantation as well as spice crops is a profitable enterprise in the district irrespective of the size of the holdings provided agro-climatically suitable cultivars are made use of for cultivation.