Economic Analysis of Coconut in West Godavari District of Andhra Pradesh

Abstract

The present study is an attempt to analyze the feasibility of investment in coconut orchards and to find out the profitability of coconut crop. So, present study was taken up with overall objective of enquiring into economics of coconut production with the objectives to examine the per hectare resource use pattern and costs and return structure, to study problems faced in production of coconut growers. The methodology adopted was, on the basis of area under highest area under coconut cultivation west Godavari districts was selected purposively. The annual per hectare cost of production (Cost C ) for coconut worked out to Rs. 58425.35. The analysis of investment in coconut orchard showed that, the investment made in coconut plantation is economically viable with Benefit cost ratio (BCR) greater than unity(1.23), Net present value (NPV) was positive (Rs. 47371.18) and Internal rate of return (IIR) was higher than prevailing rate of interest (12 %).