Economics of production and marketing of selected medicinal plants in Thrissur district

Abstract

The present investigation on the production and marketing of selected medicinal plants (Kacholam and Koduveli) in Thrissur district was undertaken during the year 1994-1995. The study aimed at estimating the cost of cultivation, cost of production, benefit-cost ratio, study the market structure and look into to the various uses to which these medicinal plants are put and the problems encountered in medicinal plants cultivation. Multi stage random sampling design was adopted for the study. The largest single item of input was human labour in Koduveli and seeds in Kacholam. Cost A1, Cost A2, Cost B1, Cost B2, Cost C1 and Cost C2 per hectare were Rs.26,678.09; Rs.26,678.09; Rs.27,534.09; Rs.27,534.09; Rs.52,534.09; Rs.31,549.59 and Rs.56,550.59 respectively for Koduveli and Rs.49,332.5; Rs.49,332.5; Rs.50,609.30; Rs.50,609.30 and Rs.75,609.30 respectively for Kacholam. The income measures in relation to different cost concepts in medicinal plants cultivation such as gross income, farm business income, family labour income, net income at Cost C1 and Cost C2 and were Rs.130400.69, Rs.81068.19, Rs.54791.39, Rs.79791.39 and Rs.54791.39 for Kacholam and Rs.136003.69, Rs.109325.6, Rs.83469.6, Rs.104454.1 and Rs.79452.8 respectively for Koduveli. Input-output ratio based on Cost A1, Cost A2, Cost B1, Cost B2, Cost C1 and Cost C2 were Rs.2.62, Rs.2.62, Rs.2.55, Rs.1.71, Rs.2.55 and Rs.1.71 for Kacholam and Rs.5.10, Rs.5.10, Rs.4.90, Rs.2.59, Rs.4.30 and Rs.2.40 for Koduveli respectively. The average per hectare yield in the district for Kacholam was 1862.9 kilogram (dried) and for Koduveli 6476.3 kilogram (green). Production function analysis done separately for the two medicinal plants revealed that area and seeds towards gross income were found to have positive effect on gross income. The sum of elasticities of production function for Kacholam (1.0862) and for Koduveli were (1.0228) respectively which indicated constant returns to scale. The major marketing channels identified in Thrissur market for marketing of medicinal plants was Producer-dealer-manufacturer. The producers’ net share on dealer rupee was Rs.69 per kilogram (92 per cent) for Kacholam and Rs.20 per kilogram (83.3 per cent) for Koduveli. The index of marketing efficiency was 11.5 for Kacholam and 7 for Koduveli. The analysis of marketing efficiency revealed that the efficiency of marketing of Kacholam was higher when compared to Koduveli. Non availability of good materials in sufficient quantities, unawareness of farmers about their cultivation, high post-harvest losses and unorganized trade are the main constraints encountered in medicinal plant cultivation.