Adoption, Economics and Constraints of Oil Palm Cultivation: A Comparative Study of Adopters and Non-Adopters

Abstract

Oil palm is being promoted in Tamil Nadu under the National Mission on Edible Oils–Oil Palm (NMEO-OP) as a means of reducing India's dependence on imported edible oil. This study compares the socio-economic profiles, perceptions, awareness, economics, and constraints of oil palm adopters and non-adopters (sugarcane growers) in two blocks of Villupuram district, Tamil Nadu. A multi-stage sampling design was used to select 60 oil palm adopters and 60 non-adopters from six villages across the Vikravandi and Koliyanur blocks. Primary data were collected through a structured interview schedule and analysed using descriptive statistics, independent-samples t-tests, chi-square tests, Garrett ranking, and cost–return budgeting. Adopters were significantly older and more highly educated, held larger landholdings, and had greater access to assured irrigation than non-adopters. Assured market or buy-back support, income potential, and irrigation availability were the highest-ranked perceived drivers of adoption, whereas labour shortage and the long gestation period were the most severe constraints reported by adopters. Oil palm recorded a higher benefit–cost ratio (2.85) than sugarcane (1.89) during the bearing stage, although sugarcane generated higher absolute annual net returns. Because the study used a fixed-size comparative design with cross-sectional data rather than a random, prevalence-representative sample, the findings indicate associations rather than causal effects; these and other design limitations are explicitly discussed. The results suggest that assured irrigation, market linkages, and extension support are important for supporting oil palm adoption in the district.