Economic analysis of profitability and productivity of banana production
*P. Aravind Perumal
*Department of Economics, S.T.Hindu College, Nagercoil Affiliated to Manonmaniam Sundaranar University, Abishekapatti, Tirunelveli – 627012 (India) *Assistant Professor
ABSTRACT
Increasing agricultural productivity and yield is no longer the only factor driving agriculture’s growth nowadays; improved and well- managed marketing is also essential to getting agricultural products from the farmer’s field to the final consumer’s location. One of the most well-known and ancient fruits is the banana. Tamil Nadu, Karnataka, and Maharashtra are renowned for producing a significant amount of shares among all the states in India. In practicallyeverydistrict of Tamil Nadu, bananas are farmed. Districts like Trichy, Tuticorin, Coimbatore, and Kanyakumari are where it is primarily grown. While demand is inelastic, banana production isseasonal. This has an impact on pricefixing. Because bananas vary widely in quality, it can be challenging to grade and standardise them. Examining the structural differences in banana output between the blocks of Kalakadu and Cheranmahadevi in the Tirunelveli district was the aim of the study. The results show that the marginal value of all factor product input was positive in the Kalakadu andCheranmahadevi blocks. It implies that income might rise byutilising an additional unit in these variables. The analysis of the marginal productivities of inputs in orchards in Kalakadu and Cheranmahadevi reveals that the orchards in Kalakadu have higher marginal value productivities for the two variables—the cost of tillage practices and plant protection—while the orchards in Cheranmahadevi have higher marginal value productivities for the variables of human labour, age of the orchard, and number of bearing trees. There is a structural difference in the production relationship between the two taluks, as evidenced by Chow’s test, and theexamination ofmarginal value productivitygenerally indicates the possibility of further boosting inputs while retaining profitability. On both taluks, it was discovered that the marginal value productivities of all factor inputs were positive. According to this, there might be an opportunityto raise input levels while still turning a profit.