Economic analysis of arecanut cultivation in Central Western Ghats region of Uttara Kannada district, Karnataka

Arecanut is the major crop of the Western Ghats of Karnataka, as it grows well in high rainfall hilly regions. Uttara Kannada is one of the major districts growing the arecanut under a multi-storeyed cropping system. This region has been earmarked as a traditional arecanut growing district since immemorial (Yadava, 2008). The study has been conducted to understand the profitability and constraints of arecanut cultivators in the region. A Random Sampling Design was employed for selecting farmers and about 90 farmers were interviewed from the central Western Ghats region in Karnataka state. The study was conducted with the help of a pre-tested schedule through the personal interview method. The budgeting technique and Garrett’s ranking method were employed for the analysis of the study. The results of the study show that the total cost incurred for the establishment of a one-acre arecanut garden was 1,46,443. The annual maintenance cost including annuity of fixed cost was 36,312. Similarly, processing and marketing cost was 14,733 per acre. Overall total cost incurred per acre was more than 55,000. The gross and net returns obtained from the one-acre arecanut cultivation were 1,10,793 and 55,221 respectively. However, it can also be found that high labour wages, non-availability of timely and skilled labour, high cost of inputs and instability in market prices were the major constraints faced by the arecanut farmers.