Economic Analysis of Banana Cultivation: A Comparative Study of Kollegala Horticulture Farmers Producer Company Limited (KHFPCL) Members and Non-members in Kollegala, Karnataka

Abstract

Banana cultivation plays a significant role in the agricultural economy of India, particularly in regions like Karnataka, Tamil Nadu, Kerala, which is well-suited for banana farming due to its fertile soils and favourable climatic conditions. The study evaluates the economics of cultivation for banana farmers who are members of the Kollegala Horticulture Farmers Producer Company Limited (KHFPCL) compared to non-members. Data were collected from 400 farmers, equally split between KHFPCL members and non-members, to estimate key cost components such as labor, fertilizers, plant protection chemicals (PPC) and machinery usage. Results revealed that membership in the KHFPCL significantly reduces input costs due to collective procurement of inputs, technical guidance and resource-sharing mechanisms. Human labor costs for members are ₹34,000 per acre, compared to ₹38,000 for non-members, while machine labor expenses decrease by 36.84%. Input costs for fertilizers, including DAP, Urea, MOP and PPC, are consistently lower for members owing to bulk purchase discounts and advisory support. KHFPCL members also benefit from improved resource management, which enhances productivity. The yield per acre for members is 11 tons, compared to 9.3 tons for non-members, resulting in a gross return of ₹3,30,000 for members against ₹2,60,400 for non-members, a 26.67% increase. Net returns for members, at ₹2,00,841, are significantly higher, reflecting a 71.05% increase over non-members. Statistical analysis, including t-tests, confirms the significance of these differences, emphasizing the financial advantages of FPC membership. These findings underscore the role of Farmer Producer Companies in optimizing input costs, promoting modern farming practices and enhancing market access.