Economic Analysis of Coconut Farming in Salem District, Tamil Nadu

R. Kaviyazhagan

Department of Economics, PSG College of Arts & Science, Affiliated to Bharathiar University, Coimbatore – 641014, Tamil Nadu, India.

A. Saravanan *

Department of Economics, PSG College of Arts & Science, Coimbatore – 641014, Tamil Nadu, India.

*Author to whom correspondence should be addressed.


Abstract

Background: Coconut (Cocos nucifera L.) is an important plantation crop in Tamil Nadu, and farmers in the Salem district have difficulty with the unpredictability of economic returns because of climatic variations and changes in input costs.

Objective: This paper will examine socio-economic profile of more coconut growers and determine cost of cultivation and profitability (returns) per acre in Salem district.

Methodology: A cross-sectional survey was conducted using multistage sampling design to select 150 coconut cultivators randomly from the Omalur and Kadayampatti talaiks of Mettur revenue division. The primary data were collected using a structured interview schedule for the agricultural year 2023-24. Date was analyzed using percentage analysis for socio-economic profiling and standard cost accounting methods for estimating cost and returns.

Findings: The socio-economic information shows that the population is heterogeneous: 45.33 of the farmers are in the middle of their ages (40-60 years), and 66.67 of the agro-families are nuclear. The educational attainment level is still a problem and 26.67 percent are illiterate, and only 10 percent have higher secondary education. The financial analysis indicates that the overall cost of land establishment of one acre of coconut orchard is Rs.96,958 and the yearly cost of cultivation in the bearing phase is Rs.39,225 per acre. The gross returns were captured at Rs.54,711 and this gave a net return of Rs.15,486 per acre. The majority of farmers are generating profits, as evidenced by a Benefit-Cost Ratio of 1.39.

Conclusion: The study has supported the economic viability of coconut farming in the region. Despite high fixed costs, the enterprise remains profitable due to substantial gross returns. However, the prevalence of low standard of education and income levels (78% below Rs.50,000 per month) highlights the need to provide specific extension and financial aid.

Keywords: Coconut farming, economic analysis, farm profitability, Salem, agriculture


How to Cite

Kaviyazhagan, R., and A. Saravanan. 2026. “Economic Analysis of Coconut Farming in Salem District, Tamil Nadu”. Asian Journal of Agricultural and Horticultural Research 13 (1):35-42. https://doi.org/10.9734/ajahr/2026/v13i1433.

Downloads

Download data is not yet available.