Economic Analysis of Production and Marketing of Organic Turmeric in Kandhamal District of Odisha, India

Abstract

Aims: This study analysed organic turmeric farming in Kandhamal district of Odisha, India, by assessing growers’ awareness of organic practices and production constraints, estimating production economics and resource-use efficiency, and examining marketing channels, price spread and marketing efficiency. Study Design: The study followed descriptive and exploratory research designs. Place and Duration of Study: The study was conducted in 2024 in five major turmeric-producing blocks of Kandhamal district: Daringbadi, G. Udaygiri, Phiringia, Raikia and Nuagaon. Methodology: A multistage purposive sampling procedure was used to select 10 villages across the five blocks. Probability Proportional to Size sampling was applied to select 30 farmers from each village according to land-size classification, giving a total sample of 300 organic turmeric growers. In addition, 50 market intermediaries were selected through judgemental sampling. The data were analysed using chi-square tests, one-way ANOVA, Garrett ranking, benefit-cost ratio, Cobb-Douglas production function, marginal value product analysis, Kendall’s W statistic and Acharya’s modified marketing efficiency method. Results: Farmers showed high awareness of basic practices, including planting time, but lower awareness of specialised bio-inputs such as Bijamruta. Organic turmeric cultivation generated an average gross income of ₹4,29,900.98 per hectare, with an average yield of 7,103.85 kg per hectare and a benefit-cost ratio of 1.92. Labour was a major cost component, and high labour cost was the leading production constraint. Resource-use efficiency results indicated over-utilisation of seed, bullock ploughing, mulching and primary processing materials, while labour for land preparation, sowing and weeding was under-utilised. Although 80 per cent of growers used the traditional intermediary channel, the direct-to-processor channel had the highest marketing efficiency (11.10) and the highest producer’s share in the consumer rupee (92.37 per cent). Conclusion: Organic turmeric cultivation in Kandhamal is economically feasible, but its performance is constrained by labour cost, resource-use inefficiencies, transportation cost and limited regulated market access.