Economics of coconut cultivation in Calicut district

Abstract

A study on the economics of coconut cultivation in Calicut district was conducted during the period 1985-86, to evaluate the costs and returns, capital productivity, resource use efficiency of yielding plantation, the problems of coconut cultivators and the impact of incentives given by different agencies for coconut cultivation. Three stage random sampling was adopted for the study and data were collected from a sample of 120 cultivators by personal interview method. Coconut was cultivated mostly in small holdings and the average area under coconuts in the sample was 0.24 hectare. Most of the holdings were rainfed. Total cost of cultivation for 16 years was estimated to be Rs. 91,311 for the district, in terms of 1985-86 prices. The major item of expenditure was human labour constituting about 50.49 percent of the total cost. Fertilisers including farm yard manure accounted for 24.16 percent and harvesting charges for 9.90 percent of the total cost for 16 years. The total cost of bringing one hectare of coconut plantation up to bearing stage (initial 7 years’ expenditure) was estimated as Rs.38,773 and the maintenance cost per hectare per year was Rs.5,853. The average annual production of nuts per hectares during the stabilized period was estimated as 10049 nuts. Cost of production per nut was calculated as Rs.1.12. The estimated net returns on investment per hectare per year come to Rs.13,835 based on 1983-84 prices. Pay back period was found to be 13.18 years. Benefit cost ratio was calculated as 1.44. Net present worth was Rs.24.454 and internal rate of return was calculated to be 16.39 percent. The factors age, labour, fertilizer and plant protection were found to have significant influence on the gross income obtained from a coconut garden. High input costs, poor irrigation facilities and difficulties associated with marketing were some of the general problems faced by the sample farmers. The study showed that in general, incentives and subsidies given by different agencies have had very little impact on coconut cultivation in the study area.