Economic Analysis of Cost and Returns in Turmeric Production and Processing in the Chamarajanagar District of Karnataka, India

Abstract

This study investigated the economic dynamics of turmeric production and primary processing in Chamarajanagar district, Karnataka, emphasized the significant role of this region in enhancing India's reputation for producing high-curcumin-content turmeric. Despite the growing domestic and international markets for turmeric, which have contributed to the crop's substantial increase in production and productivity over recent decades, there remains a significant gap in organized processing units at the local level. The analysis employed different cost concepts and the Garrett Ranking Technique. By examining the economic aspects of both turmeric cultivation and primary processing phases among farmers in the district, the findings revealed that farmers accrue a net return of ₹18,134 per acre from cultivation after incurring costs of ₹86,424, and a higher net return of ₹24,775 per acre from primary processing with an incurred cost of ₹99,439 per acre. The cost-benefit analysis further underscores the economic viability of turmeric cultivation, with ratios of 1.21 without primary processing and 1.25 with it, thereby highlighting the substantial profitability of turmeric production for local growers. However, the study identifies significant challenges, such as labour shortages and elevated wage rates, attributed to the crop's labour-intensive nature. Moreover, while primary processing increases profitability, it also demands considerable labour and time, potentially compromising the quality of turmeric powder. The research suggests that the adoption of advanced technologies and machinery in curing and processing operations could mitigate these challenges, enhancing efficiency and product quality in turmeric cultivation and processing sectors.