Economic Analysis of Sugarcane Cultivation in Kerala, India

Abstract

The study analysed the economics and resource use efficiency in sugarcane cultivation of Sugarcane cultivation in Kerala. A multi-stage random sampling technique was adopted for the data collection and information was gathered from 120 sugarcane farmers. The computed value of sugarcane cultivation in terms of cost A2 was Rs.3,18,115 ha-1. It is also noted that the cost of hired human labour accounts for 54.80 per cent of cost A2.  The net return at cost C2 was Rs. 1,02,221 ha-1. The computed B:C ratio at cost C2 was 1.27, indicating the profitability of sugarcane cultivation. The study examined the input-output relationship and resource use efficiency of sugarcane production using the Cobb- Douglas production function. It was observed from the fitted regression that inputs viz., setts, fertilizers and human labour were positively and significantly contributing to sugarcane production. The marginal productivity analysis further revealed the over-utilisation of organic manures and human labourers and the under-utilisation of resources like setts, chemical fertilizers and hired machine labour.