Cost and Returns of Banana Cultivation in Tamil Nadu with Special Reference to Karur District

Abstract

The study aims to find the effect of fixed cost and variable cost on banana production and also to find the return to scales of farmers. Agricultural is a predominant occupation in Karur District and it occupies an important place in the District economy. Karur District was selected for the present study since the banana cultivation occupied first place in agriculture in this district. Primary data required for the study were collected for the 500 selected respondents of Karur District in order to analyse the technical efficiency of the farmers. The field survey was carried out during the period 2004. To find out input and output relationship (Returns to scale) the Cobb- Duggles function production function has been used. Cobb-Doughlas function was applied to find the effect of fixed cost and variable cost on banana production and also to find the return to scales of farmers. On the basis of the study concluded the agricultural growth strategy of the past has intensified the interclass inequalities. Except the imputed value of family labour, the other things like cost of production, overall returns etc., are not favourable to the small farmers.