A Comparative Study on Economics of Traditional versus Popular Variety of Black Pepper (Piper nigrum L.) Plantations in Karnataka

Abstract

The current study estimated the area under black pepper plantations and demand for its seedlings in Karnataka and compared the economic benefits of Sigandhini and Panniyur-1black pepper plantations. The data were collected from primary and secondary sources to estimate the CAGR and financial feasibility of black pepper plantations. The black pepper area in Karnataka showed an annual growth rate of 22.59 per cent, indicating an additional 44,517 ha would demand 494.58 lakh additional seedlings in 2023-24. The study revealed that, compared to Panniyur-1, the Sigandhini variety generated higher net revenue for farmers. It was evidenced by profitability and project evaluation techniques; Sigandhini gives a higher net present value with a benefit-cost ratio of 4.52 and 53.63 per cent internal rate of returns against Panniyur-I, which gave a benefit-cost ratio of 2.35 and 33.84 per cent internal rate of returns. The study suggested that, to enhance the area, production and revenue generation from black pepper plantations, an ancient variety Sigandhini needs to promote among the black pepper growers in Karnataka