An economic analysis of organic farming in Namil Nadu, India

Abstract

In view of the economic importance of organic farming, the present study was taken up in Erode district of Tamil Nadu, India. The total cost of cultivation of organic and conventional turmeric per hectare was worked out to US$ 2641.43 and US$ 3529.13 respectively. The net income per hectare was US$ 2727.19 and US$ 1876.13 respectively. The cost of cultivation of organic and conventional cotton per hectare was worked out to US$ 1306.79 and US$ 1725.19 respectively. The net income per hectare was US$ 1332.13 and US$ 1032.68 respectively. The results of logit model for turmeric growers showed that chemical fertilizers cost had highly significant influence on adoption of organic farming whereas in case of cotton growers, chemical fertilizers cost and information received from NGO’s highly influenced on adoption of organic farming. The results of Cobb-Douglas production function for organic turmeric revealed that farm yard manure, neem cake, jeevamirtham, vermicompost, panchakaviya and human labour contributed significantly on yield of organic turmeric. The Cobb-Douglas production function for organic cotton revealed that seeds, farm yard manure, neem cake, jeeva amirtham, vermicompost, panchakaviya, human labour and irrigation contributed had significantly influenced the yield of organic cotton. The most important constraints identified by the organic growers in productivity of organic turmeric and cotton were non availability of labour and organic certification whereas conventional growers’ constraints were non availability of labour and high wage rate.