[2] AN ANALYSIS OF COST AND PROFITABILITY OF ARECANUT CULTIVATION IN SHIVAMOGGA DISTRICT AT KARNATAKA

How to Cite the Article: Gayathri B A, Ramananda M S (2026). An Analysis of Cost and Profitability of Arecanut Cultivation in Shivamogga District at Karnataka. International Journal of Multidisciplinary Research & Reviews, 5(si-2). 12-23.

Abstract

Arecanut is the main crop of the Western Ghats of Karnataka, as it produces well in high rainfall hilly areas. Shivamogga is one of the main districts it producing the arecanut under a multi-storeyed cropping system. This region has been earmarked as a traditional arecanut growing district since ancient. Shivamogga district is a major areca nut producing region in Karnataka, with a substantial area under cultivation and a substantial production volume. The total area under arecanut cultivation in Shivamogga district is almost 94,077.50 hectares. This represents a significant share of Karnataka's total arecanut cultivation, yielding around 52,781 metric tons. The study has been conducted to understand the cost of cultivation and profitability of arecanut cultivation in the study area. A random sampling design was employed for picking farmers and about 60 farmers were interviewed from the Shivamogga district in Karnataka. The study was conducted with the help of a pre-tested schedule through the personal interview method. The results of the study show that the total cost incurred for the establishment of a one-acre arecanut cultivation was 1091000. This figure includes expenses for land preparation, planting, planting material, fencing, and other initial costs. The annual maintenance cost including rental value of owned land was 85500 after 6 years. The gross income and cost obtained from the one-acre arecanut cultivation were 1125000 and 1091000 respectively from 10 Years. After 10 years, overall total cost incurred per acre was 85500 for matured plants. The gross and net returns obtained from the one-acre arecanut cultivation were 350000 and 2,65,000 respectively in current year. However, it can also be found that there is a negative corelation between area in cultivation and cost of cultivation of arecanut cultivation and there is a significant positive corelation between area in cultivation and income earning capacity from arecanut cultivation in study area.