Estimating production costs and returns for coconut in Kerala
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2007-02
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The cost of production of coconuts in Kerala has been estimated at Rs. 1.10/nut under lS82-83 factor costs, but without taking the value of land into consideration. When a moderate price of Rs. 50,000 per hectare of land is added to the investment on coconuts, the production cost goes upto Rs. 1.94/nut. In view of the fact that the rate of appreciation of land is significantly higher than that of bank rates and the land market is out of normal economic ambit, there is no justification to include land value in the investment in present Kerala situation. Considering the average production cost and farmgate price of coconut as Rs. 1.10 and Rs. 1.50/nut respectively, the net return works out to be Rs. 4200/ha. Further, since coconut is a small holder plantation crop atleast 75 per cent of labour required for various operations excluding harvesting could be expected from the farmers family itself. Therefore the returns to family labour and investment per hectare of coconut garden comes to Rs. 5760/annum. The study thus reveals that coconut cultivation under good management is a profitable proposition in Kerala.
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J.Plantn.Crops 1984 v-12 i-2 p-152-159