A STUDY ON PRODUCTION AND MARKETING OF COCONUT IN TAMILNADU WITH SPECIAL REFERENCE TO DISTRICT

Thesis submitted to the , Tiruchirapalli for the award of the degree of

DOCTOR OF PHILOSOPHY IN COMMERCE

Research Scholar C. MOORTHI (Ref. No. 3902/Ph.D/Commerce/P.T./July2007/Date: 26.06.2007)

Research Advisor Dr.A.PEER MOHIDEEN, M.Com., M.Phil., Ph.D., Associate Professor in Commerce

POST GRADUATE AND RESEARCH DEPARTMENT OF COMMERCE 614 701 TAMILNADU

November- 2012 Dr.A.PEER MOHIDEEN, M.Com., M.Phil., Ph.D., Associate Professor and Research Advisor P.G. and Research Department of Commerce Khadir Mohideen College Adirampattinam 614 701 Tamilnadu

CERTIFICATE

Certified that the thesis entitled ―A STUDY ON PRODUCTION

AND MARKETING OF COCONUT IN TAMILNADU WITH

SPECIAL REFERENCE TO ”, is a bonafide record of work done by Mr. C. MOORTHI, M.Com., M.Phil., under my guidance and supervision.

Signature of the Guide

C. MOORTHI, M.Com., M.Phil., RESEARCH SCHOLAR Assistant Professor of Commerce Sri Venkateshwara College of Arts and Science , Thanjavur (Dt.)

I hereby state that the thesis entitled ―A STUDY ON PRODUCTION AND MARKETING OF COCONUT IN TAMILNADU WITH SPECIAL REFERENCE TO THANJAVUR DISTRICT”, is my original work and that it has not previously formed the basis for the award of any Degree, Diploma, Associateship, Fellowship or other similar title. This work was done under the supervision of Dr.A.PEER MOHIDEEN, M.Com., M.Phil., Ph.D., Associate Professor and Research Adviser, Research Department of Commerce, Khadir Mohideen College, Adirampattinam, affiliated to Bharathidasan University, Tiruchirapalli.

SIGNATURE OF THE CANDIDATE

ACKNOWLEDGEMENT I am able to complete this study mainly because of the wholehearted support, guidance and cooperation received from different quarters. Even though, I wish to thank all of them, I feel words will not really convey the extent of help and support I got.

I extend my sincere and profound thanks and heartful gratitude to Dr.A.PEER MOHIDEEN, M.Com., M.Phil., Ph.D., Associate Professor and my Research Advisor, Research Department of Commerce, Khadir Mohideen College, Adirampattinam, for his valuable guidance and encouragement at every level of my research work. This venture would not have materialized but for his inspiring guidance.

I am very much grateful to the Secretary and Correspondent and the Principal, Khadir Mohideen College, Adirampattinam, for having given me an opportunity to carry out the Ph.D. programme. My sincere thanks are due to the authorities of Bharathidasan University for permitting me to pursue this research work.

I am grateful to Dr.M.SEENIKAMAL, Head, Research Dept. of Commerce, and all members of the faculty of Commerce, Khadir Mohideen College, Adirampattinam, for their valuable cooperation in completing the research programme successfully.

I express my special thanks to Dr.V.Rajagobalan, Principal Sri Venkateshwara college of Arts & Science, Peravurani for their encouragement and support throughout my thesis.

My sincere thanks are due to the Chairman, Secretary, and all members of faculty of commerce, Sri Venkateshwara Arts & Science College, Peravurani for their encouragement and support throughout my Ph.D. programme.

I express my special thanks to Dr.M.Nazer, Dr. V.Ramaiyan, Dr. N.Palanivelu and Mr.K.S.Gowthaman for his invaluable help in the preparation of the thesis.

I place on record my deepest love to my family members for their encouragement and cooperation for the successful completion of the work. I also thank all my friends and well wishers for their continuous support throughout the study.

Above all I thank GOD ALMIGHTY for showering his blessings on me to complete the thesis successfully.

C. MOORTHI

CONTENTS

CHAPTER TITLE PAGE

1. DESIGN AND EXECUTION OF THE STUDY 1

2. REVIEW OF LITERATURE 32

3. PROFILE OF THE STUDY AREA 59

4. COCONUT PRODUTION AN OVERVIEW 80

5. MARKETING PRACTICES OF COCONUTS 100

6. COST AND RETURN ANALYSIS 124 PROBLEMS AND PROSPECTUS OF 7. MARKETING OF COCOUNT ( AN ANALYSIS 184 AND INTERPRETATION ) 8. SUMMER OF FINDINGS AND CONCLUSION 257

REFERENCES 270

ANNEXURE

LIST OF TABLES TABLE TITLE PAGE NO Area under coconut cultivation in 4.1 81 2000-2001 to 2009-2010 Production of coconut in India from 2000-2001 4.2 83 to 2009-2010. Productivity of coconut in India from 2000-2001 4.3 85 to 2009-2010. Area, production and productivity of coconut in 4.4 87 Andhra Pradesh from 2000-2001 to 2009-2010. Area, production and productivity of coconut in 4.5 89 from 2000-2001 to 2009-2010 Area, production and productivity of coconut in 4.6 90 Maharashtra from 2000-2001 to 2009-2010. Area, production of productivity of coconut in 4.7 92 west Bengal from 2000-2001 to 2009-2010 Area, production and productivity of coconut in 4.8 94 from 2000-2001 to 2009-2010. Tamil Nadu‘s share in area under coconut 4.9 96 cultivation in India 2000-2001 to 2009-2010 Area, production and productivity of coconut in 4.10 97 Thanjavur 2000-2001 to 2009-2010.

Area of coconut in Tamil Nadu and Thanjavur 4.11 98 districts share from 2000-2001 to 2009-2010.

Production of coconut in Tamil Nadu and 4.12 Thanjavur district‘s share from 2000-2001 to 99 2009-2010 Future price v/s. actual price v/s delivered price 5.1 122 of coconut oil at kochi market (rs.) 6.1 establishment cost for coconut cultivation 125 average annual operation and maintenance cost 6.2 130 of coconut 6.3 Average cost of production of coconut. 132 6.4 Cost of cultivation as per cost concepts 135 6.5 Cost of production and productivity of coconut. 137 6.6 Income from coconut cultivation 138 average variable cost of cultivation for different 6.7 140 growers Average total cost of cultivation for different 6.8 141 growers 6.9 Returns on cultivation for different growers 142 Estimated Cobb-Douglas type production 6.10 145 function for small growers Estimated Cobb- Douglas type production 6.11 147 function for large growers Estimated Cobb-Douglas type production 6.12 148 function for over growers 6.13 The nature of return to scale 149 Marginal value productivity of the resource in 6.14 151 small growers. Marginal value productivity of the resource in 6.15 152 large growers. Marginal value of the resource in overall 6.16 153 growers. Computation of pay-back period, benefit cost 6.17 ratio.net present value and internal rate of return 157 for coconut 6.18 Benefit cost ratio of coconut cultivation 159 6.19 Net present value of coconut cultivation 160 6.20 Preference of middlemen by sample growers 165 6.21 Reasons for preferring pre- harvest contractors 167 6.22 Marketing cost of sample growers. 168 6.23 Marketing cost of pre- harvest contractors. 170 6.24 Marketing cost of commission agents. 171 6.25 Marketing cost of wholesalers 172 6.26 Marketing cost of retailers 173 6.27 Marketing margin in different channels 174 6.28 Price spread for coconut 176 6.29 Overview of price spread 178 6.30 Marketing efficiency under shepherd‘s method 179 Marketing efficiency under Acharya and 6.31 180 Agfarwal‘s method. Marketing efficiency under composite index 6.32 181 method 6.33 Marketing problems of coconut growers 182 7.1 Distribution of respondents based the gender 184 7.2 Distribution of respondents based the age group 185 Distribution of respondents based on the 7.3 186 educational qualification. 7.4 Distribution of place of domicile 188 Distribution of respondents based on the 7.5 190 ownership of the land Distribution of respondents based on the type of 7.6 191 farming Distribution of respondents based on the in year 7.7 192 of experience in coconut farming Distribution of respondents based on the 7.8 194 occupation Distribution of respondents based on the 7.9 195 monthly income Distribution of respondents based on the total 7.10 197 value of coconut products produced per annum. Distribution of respondents based on the family 7.11 199 size Distribution of respondents based on the land 7.12 200 owned Distribution of respondents based on the type of 7.13 agro ecological region in which the coconut 202 being cultivated Distribution of respondents based on the 7.14 opinion on the type of drainage facility in which 204 the coconut being cultivated Distribution of respondents based on the 7.15 205 rating of the soil texture Distribution of respondents based on the 7.16 206 rating of the soil fertility Distribution of respondents based on the 7.17 207 rating of the crop management Distribution of respondents based on the 7.18 208 rating of the vegetation Distribution of respondents based on the type 7.19 209 of cultivation Distribution of respondents based on the crop 7.20 210 condition Distribution of respondents based on the variety 7.21 211 of coconut grown Distribution of respondents based on the source 7.22 213 of plant Distribution of respondents based on usage of 7.23 214 coconut Distribution of respondents based on the 7.24 216 tolerance to drought / pest / disease Distribution of respondents based on the 7.25 217 performance of hybrid variety of coconut Distribution of respondents based on availability 7.26 218 of eco type suitable for nut and fiber Distribution of respondents based on the 7.27 harvesting and husking practices and allied 219 features Distribution of respondents based on the 7.28 utilization of matured coconut and tender 220 coconut. Distribution of respondents based on the 7.29 222 marketing of coconut / copra Distribution of respondents based on the sale of 7.30 224 coconut Distribution of respondents based on the sale of 7.31 225 husk Distribution of respondents based on the impact 7.32 226 of agro ecological influence on coconut quality Distribution of respondents based on the tender 7.33 227 coconut for marketing Distribution of respondents based on the practice 7.34 228 of irrigation Distribution of respondents based on the practice 7.35 229 of manuring Distribution of respondents based on the practice 7.36 230 of application of green manure. Distribution of respondents based on the 7.37 231 problems involved in the coconut marketing Eigen value and cumulative percentage of 7.38 233 opinion behind coconut marketing problems 7.39 Factors loading of coconut marketing problems 234 Eigen value and cumulative percentage of 7.40 opinion on the practice coconut cultivation 240 problems faced by the farmers Factors loading of coconut cultivation problems 7.41 faced faced by the farmers in the delta region of 241 Thanjavur 7.42 Variable in the multiple regression analysis 243 7.43 F tests of equality of group means 245 Variables in the discriminant analysis using 7.44 247 stepwise method

LIST OF FIGURES FIGURES TITLE PAGE NO 6.1 Percentage share of capital of cost of cultivation- 136 small farmers.

6.1.1 Percentage share cost of cultivation large farmers 136 6.2 Marketing cost of sample growers 169 7.1 Distribution of respondents based on the 187 educational qualification 7.2 Distribution of place of domicile 189 7.3 Distribution of respondents based on the in year of 193 experience in coconut farming. 7.4 Distribution of respondents based on the Monthly 196 Income 7.5 Distribution of respondents based on the total value 198 of coconut products produced per annum. 7.6 Distribution of respondents based on the land 201 Owned 7.7 Distribution of respondents based on the type of 203 agro ecological region in which the coconut being cultivated 7.8 Distribution of respondents based on the variety of 212 coconut grown 7.9 Distribution of respondents based on usage of 215 coconut 7.10 Distribution of respondents based on the utilization 221 of matured coconut and tender coconut 7.11 Distribution of respondents based on the marketing 223 of coconut / copra

CHAPTER – I DESIGN AND EXECUTION OF THE STUDY 1.1 INTRODUCTION Coconut is one of the most valuable gifts of nature to mankind. The every part of a coconut tree has its own use or applications. It is generally called ―Tree of Heaven‖, ‗‗Tree‖ of Abundance‖, ―Tree of Life‖ and kalpavriksha‖.

Historically, in the medieval period the coconut was known as Nux indica, the Indian nut, during the same period it was also referred as Nargil tree, ―the tree of life‖.Western literature mentioned the Malayalam name ―Tenga‖ for the coconut palm which related to Tamil ‗Tennai‘ and believed to have been introduced from . Its geographical dispersion around the world was aided by waves of sea, travelers migrating and trading between homeland countries and even to more distant Islands, from Asia to American coasts. Botanically, the coconut palm is a monocotyledon and belongs to the order Arecaceae, family Palmae and the specie is known as Cocus nucifera Linn.

Since ancient times, coconuts are ceremonially associated with workship of Gods and Goddess in Hindu religion. Its antiquity in Indian mythology is well established from its mention in Kishkinda kand and Coconut Tree Aranya kand in Valmiki . References also have been mentioned on coconut in Raghuvamsha of Kalidasa and Sangama literature. Coconut, in its natural form, decorated with gold or silver formed a part of offerings on many religious occasions and social gatherings. The coconut is a benevolent crop and a perfect gift to mankind. It has during the span of history represented not only the source of food, beverage, oil seed, fibres, timber and health products but also associated with magic, mystery, medicine and omen in the life of people. The coconut palm tree provides clothing, utensils and dwellings and therefore, remains an important source of earning livelihood to the inhabitants of the coconut producing states in costal areas. The inhabitants therefore, affectionately eulogized the coconut plant with reverence as ―Kalpavriksha‖, because of its manifold virtues. Even today the omen and mystery of coconut symbolism appears in day to day life of people and therefore this nature‘s most precious gift continue to be explored, scientifically, economically and artistically in the world traditions to adorn coconut.

Among the oilseed palm trees, coconut palm hardly needs any emphasis on its multi-utility significance. The economic importance of this tree crop is evident from the fact that it is grown in more than 90 countries across the world in an area of 14.231 million hectares producing about 57.514 billion nuts or 10.52 million tonnes of copra. However, Philippines, Indonesia, India and Sri Lanka account for 78 per cent of the area and production.

India ranks third on world coconut map and in recent times became the largest producer of coconut with the production of 16.9 billion nuts from average under plantation of about 1.89 million hectares. Even though India is among the largest producer of coconut with a distinction of having the highest productivity of 7779 nuts per hectare as against 3630 nuts per hectare in Indonesia and 3859 nuts per hectare in Philippines, the per capita annual availability of coconut estimated to have been 10 nuts only which is quite low compared to 222 of Philippines, 145 of Sri Lanka and 55 nuts of Indonesia. The most important and economically valuable produce of coconut palm is its fruit popularly known as ‗nut‘. It is made up of an outer exocarp, a thick fibrous fruit coat known as husk; underneath lies the hard protective endocarp or shell. Lining the shell is a white albuminous endosperm or ‗coconut meat‘ and the inner cavity is filled with a clear sweet refreshing liquid called ‗coconut water‘. The kernel of a matured nut is the most precious product used for edible purpose. The dried kernel or copra is the richest source of edible oil and a by-product coconut oil cake, a source of vegetable protein used as an ingredient for livestock feed. The shell as such is used for fuel purpose, shell gasifier as an alternate source of heat Coconut fruit energy, making handicrafts, ice-cream cups and other commercial products like shell powder, shell charcoal and activated carbon. The husk yields fibres, which is converted into coir and coir products viz., coil carpets, coir geo-textile, coir composite, coir safety belts, coir boards, coir asbestos and coir pith. Coir pith a secondary by product obtained during defibring process is used as soil conditioner and mending all types of soils. The spongy nature of pith helps in disintegration of clay soil and allows free drainage. Its sponginess helps to retain water and oxygen and also prevents loss of vital nutrients from soil.

The food processing sector has not paid due attention to diversification and value addition to coconut, coconut products and by products. The coconut processing therefore traditionally remained confined to copra production, oil extraction, manufacturer of desiccated coconut, coir and coir products.

Even though, India is the third largest coconut growing country in the world, its contribution to international market remains insignificant. Inspire of the slow growth in coconut industry, all round efforts made for integrated development of coconut sector in the areas of production, processing and marketing after establishment of a statutory body, the Coconut Development Board, by the Government of India in the year 1981, are appreciable. During past two decades the coconut plantation crop has received ample research and development attention in the country and the result of these consorted efforts are well exhibited in terms of increase in area, production and productivity of coconut in the country. In view of the changed scenario in the coconut sector, it was felt necessary to revise the report on production and marketing of coconut and make fresh appraisal of the changing pattern of coconut production, trade and its ancillary industries.

Coconut servers as a veritable source of food and drinks to millions of people in the tropics. The coconut crop is gaining significance as a fibre crop, beverage and a medical crop. It is a traditional plantation crop grown 1 in India for the last 3000 years ,,

The coconut Palms (Cocos nucigfera Linn.) is supposed to be one of the five legendary Devavrikshas and is known as Kalpavrikshas-the all giving tree-in Indian classics. All part of the coconut palm are used in some way or another in the daily life of the people of the coconut growing countries in the world. Its fruts is called lakshmi phai and is used in social and religious functions in India irrespective of whether coconut palm is locally grown or not.

Coconut is grown in more than 86 countries worldwide, with a total production of 54 billion nuts per annum. India occupies the premier position in the world with an annual production of 13 billion nuts, overtaking Indonesia and the Philippines, the other two prominent coconut-growing countries. The coconut palm is a versatile tree crop, grown can match coconut palm in its versatility. It provides nutritious food and a refreshing drink, oil for edible and non-edible uses, fibre of commercial value, shell for fuel and industrial uses, thatch, an alcoholic beverage, timber and a variety of miscellaneous products for uses as domestic fuel. The palm is amenable to both plantation and homestead management and it can be either a major crop or a minor one in a homestead grand of mixed crops. While responding favorably to scientific management, the palm also tolerates negligent farming to a certain extent. Thus, it can adapt to the divergent farming situations and management practices that are prevalent in the different agro- climatic regions.

The coconut palm exerts a profound influence on the rural economy of the many states where it is grown extensively and it provide sustenance to more than 10 million people. The export earnings derived by India from coconut are around Rs.3000 million, mainly through the export trade in coir and coir goods. The processing and related activities centered on the crop generate employment opportunities for over two million people in India. The contribution of coconut oil to the national edible oil pool is 6 %. In addition, the crop contributes Rs.7000 Crores annually to the Gross Domestic Product (GDP). It is no wonder coconut culture is spreading even to non-trational belts that were, until recently, considered unsuitable for the purpose.

In India, coconut is cultivated mainly in the costal track of Kerala, Tamil Nadu, , Andhra Pradesh, Orissa, West Bengal, , and Maharashtra and in the islands of Lakshadweep, Andaman and Nicobar. Of late, coconut cultivation has been introduced to suitable location in non- traditional states including Assam, Gujarat, Madhya Pradesh, Rajasthan, Bihar, Tripura, Manipur, and Arunachal Pradesh and in the hinterland regions of the coconut growing states. Kerala in the main coconut growing state with an area of 10.20 lakh hectares an production of 5910 million nuts, followed by Tamil Nadu (3.20 lakh hectares and 3716 million nuts), Karnataka (2.87 lakh hectares and 1493 million nuts) and Andhra Pradesh (0.95 lakh hectares and 780 million nuts).these four southern states together account for 90 % the total production in the country.

The productivity too, India ranks number one among other coconut growing countries in the world. The average productivity of coconut in the country is 6898 nut per ha. Among the four major coconut growing states, Tamil Nadu has the highest productivity (11 620 nuts/ha), Andhra Pradesh has productivity of 8296 nuts/ha, followed by Kerala (5793 nuts/ha) and Karnataka (5204 nuts/ha).

There are mainly two varieties of coconut: tall and dwarf. In addition, hybrids of varies combinations have also evolved. The tall cultivar is extensively grown throughout India, while the dwarf is grown mainly for parent material is hybrid seed production and for tender coconuts. The tall cultivar grown along the east cost is called East Cost Tall.

Benaulim is the tall variety in Goa and coastal maharashtra. Laccadive Ordinary, Laccadive Micro, Tiptur Tall, Kappadam, Komadan and Andartian Ordinary are some of the tall varieties grown in the country and chowghat Dwarf Orange, Malayan Yellow Dwarf and Malayan Orange Dwarf are some of the dwarf cultivars grown in India. Gangabondam is a dwarf type grown in certain tracts of Andhra Pradesh. Many hybrid combinations of tall and dwarf cultivars that have evolved also grown in the country. Coconut possesses the unique characteristic of allowing any crop combination in the inter-spaces. A well-spaced coconut garden provides adequate inter-spaces where it is possible to grow a variety of crops, both seasonal and perennial. When annuals or seasonal crops are grown in coconut holdings it is designated as inter-cropping; when perennials are grown it is called mix cropping. A combination of inter-crops raised together are referred to as a multi-stored cropping system.

In widely spaced gardens the shade from the coconut palms is not intense enough to prevent the growth of other crops. During the pre-bearing period, especially up to three years after planning, the entire area could be made use of because of the negligible shade effect. As the palms grow there is a progressive increase in the shade coverage produced by the crown for up to 20 years. Depending on the age of the palms and canopy coverage suitable crops, or a combination of crops, could be selected for growing in the gardens. The common inter-crops that could be grown during the pre- bearing or the early stage of the growth palms are pineapple, banana, groundnut, chilies, tapioca, sweat potato and other root crops. In addition, cocoa, pepper, cashew, fruit trees could be grown as mix crops.

Coconut crops are susceptible to various disease and pest attack. The major pests to coconut in India and rhinoceros beetle, red palm weevil, leaf- eating caterpillar and rats and major disease are root wilt, Thanjavur wilt/ganoderma, tatipaka, but root, leaf root, stem bleeding and crown chocking. Of these, root wilt, prevalent in Kerala, is century old disease. Effective control measures are yet to be developed for root wilt disease in kerala; Thanjavur wilt/ ganoderma disease in Tamil Nadu and Karnataka; and titapika disease in Andhra Pradesh. However, the disease can be kept under control by adopting the recommended of practices.

Of the total production of coconut, about 5% is consumed in the tender form for drinking purposes. The rest is utilized as mature nuts for household and religious and for the production of edible copra, milling copra and desiccated coconut. Coconut oil production in the country is nearly 4.5 lakh tones. Of this 40 % is consumed for edible purposes, 46 % for toiletry uses and 14 % for industrial uses.

The emphasis given by the Coconut Development Board to evolving technologies for the development of new value added products has yielded result and this product diversification and by- product utilization has recently gained momentum. Various research programmers sponsored by the board through the existing research institutions in the country, have led to the development of new technologies for the manufacture of coconut cream, spray dried coconut milk powder, preserved and packed tender coconut water and coconut water based vinegar. Commercial production units have started in various part of the country with the technologies developed so far.

The research on coconut in India is being carried out by the institutions under the Indian Council of Agricultural Research and the State Agricultural Universities located in different coconut growing states. Research on post harvest processing of coconut is also undertaken by the institutions under the CSIR. The board has a programmer to sponsor research on post harvest processing of coconut through such research institutes. The institutes under the Coir Board mainly undertake the coir research.

Coconut development programmers in India are mainly carried out by the coconut Development Board, which was established in 1981. The board‘s schemes are either implemented directly or through the Development of Agriculture/Horticulture of the states and union territories. The state governments also implement their own programmer to suit the local needs. The board functions under the administrative control of the Ministry of agriculture, Government of India with the Chairman as the chief executive. The coconut Development Board Headquarters is in Kochi in the state of Kerala and in order to implement and monitor various developmental projects, the board has established field offices in various part of the country.

Coconut is a crop with unique features. Owing to its versatile uses, the demand for coconut and its products has been on the increase. The crop is spreading fast even to the interior tracts and the north and northeastern parts of the country gaining national acceptance. Having already attained the premier position in the world, Indian‘s thrust now shall be to exploit the wealth potential of the crop in all respects. Moreover coconut is an eco- friendly crop which permits coexistence of multi-species plants. It enriches soil fertility in association with other crops and is quite amenable to organic farming if appropriate intercrops are grown in the inter-spaces. Due to multifarious uses, the future of the crop is very bright irrespective of the locations where it is grown in the world.

The coconut industry is one of the country‘s major pillars in employment generation and foreign exchange earnings. However, local production problems, the expansion in coconut hectare of neighboring countries, and recent developments in biotechnology research on other competing crops that have high lauric oil content might affect bits long term sustainability and viability . In a highly liberalized global trade environment , innovation and creativity in the country‘s coconut industry are needed for survival ( Boceta , 1997). The Asian and Pacific Coconut Community ( APCC) is an intergovernmental organization organized in 1969 under the aegis of the United Nations of the Economic and Social Commission for Asia and the Pacific ( UN-ESCAP). The APCC has 17 coconut producing member countries accounting for over 90% of world coconut production and exports of coconut products.

The APCC (Asian and Pacific Coconut Community) member countries include: (Federated States of Micronesia, Fiji, India, Indonesia, Jamaica, Kiribati, Malaysia, Marshall Islands, Papua New Guinea, Philippines, Samoa, Solomon Islands, Sri Lanka, Thailand, Tonga, Vanuatu and Vietnam. Jamaica is an associate member of the APCC (Asian and Pacific Coconut Community)

1.2 COCONUT MARKETING IN TAMIL NADU Coconut (cocos nucifera) is one of the most important crops grown in the humid tropics. More than 11 million farmers, mostly smallholders with low income grow the palm in 90 countries. More than80 % of the total world production comes from the Asia-pacific countries. Coconut prices in Tamil Nadu, the third largest coconut producing state in the country, are expected to rise by around 10-15% in the coming months due to short supply and festival demand. According to the latest report released by the Domestic & Export market Intelligence Cell (DMIC) attached to Tamil Nadu Agricultural University (TNAU), farm level price in Tamil Nadu would increase to Rs. 5-5.5 per nut during August-September and the price is likely to move up further to Rs. 5.75-Rs.6 per nut in October- November. The price outlook has been given as per the survey conducted in Pollachi (Tamil Nadu), a major coconut market in the country. The demand- supply gap in the Indian coconut market has widened as coconut area in Kerala has been shrinking in the past few years, trade sources said. Kerala tops in coconut production in the country with an area under cultivation of 0.87 million hectare.

1.3 COCONUT MARKETING IN THANJAVUR The state government has constructed a coconut marketing complex at in Thanjavur district at a cost of Rs. 4 Crores. The complex incorporates a drying yard, rest room for farmers to stay, a godown, shops for farms to sell coconut, a quality control wing, an administrative block, canteen and parking spaces and emerged as a full- fledged marketing complex. The complex constructed on 20 acres of land at Ponnvarayankadu near Pattukkottai. The coconut marketing complex is a boon for the farmers of Thanjavur area.

The Thanjavur district, coconut is cultivated on 68,000 acres by nearly 75,000 farmers. Two lakh farm laborers are also involved in coconut cultivation and production. The coconut farmers have been facing the problem of fluctuation in price for both the nut and copra, lack of facilities for converting the nut into copra and lack of storage facilities. The complex may help them in solving these problems. The complex provides a solar drier and machine drier facilities to the formers. The state government is procuring copra from the formers through Co-operatives. Pattukkottai Agriculture Produce Co-operative Sales Society is procuring copra from the farmers now. Identity cards have been issued to them. Now the farmers can sell their produce at the coconut marketing complex.

1.4 USE OF COCONUT Major coconut production in the country primarily is in demand from consuming states for traditional products viz.,matured nuts, tender coconut water, coconut oil, desiccated coconut, oil cake and coir products. Nearly 90 percent coconut production is directed for traditional use in domestic markets. The most important traditional commercial product traded in the country has been the coconut oil. Therefore, the demand and supply of this single coconut product determines the price of raw coconut. Moreover, the market share of coconut oil both in domestic and export market is declining due to tough competition, especially from palm and soybean oil prices.

The cost of production of the traditional coconut products in the country has been so high that price-wise, the Indian coconut product are less competitive in global market. Its contribution to export market has therefore been in significant except the coir and coir product.

In India, product diversification of coconut was accelerated in late nineties due to sustained efforts made by Coconut Development Board by employing technology development through reputed Research Institutions in the country. The marketable value added products includes packed tender coconut water, coconut milk and milk based products, coconut chips, coconut based dairy products, desiccated coconut, coconut water based products, snowball-tender-coconut, vinegar, coir based products, coconut shell and coconut wood based products. Other products, which are being subjected to research and development, are organic food, oleo chemical, bio- diesel, bio-lubricant and cosmetics.

The Government of India, through the Coconut Development Board made strategic efforts and motivated entrepreneurs industrialist and artisans to exhibit their products in national and international trade fairs and exhibitions, to get better access to up country markets. Coconut shell and wood based products viz. handicrafts and utensils certainly have aesthetic utility and value. It has been observed that these products have good demand for export too.

In the development process of coconut, about 12 months Plate – 18 period lapses between the emergence of inflorescence and complete maturity of the fruits and at one point of time palm carry 12 or more bunches of coconut at successive stages of development, each representing growth interval of about a month. In the development process the fruit reaches it maximum size normally in the 6 months and filled with nut water throughout this period. The water of tender coconut is technically called as liquid endosperm. The kernel starts forming Packed Tender Coconut water as a thin soft layer in 6 months and increases in its hardness and quantity till the end of maturity. With the increase in thickness of kernel the internal cavity gets reduce in size and decrease in quantity of nut water as the nuts ripen. The chemical composition and volume of nut water changes during maturation. The coconut water plays an important role in bio-synthesis of fat in the kernel and also the development of the germination of the nuts.

The water of tender coconut is the most nutritious, wholesome beverage that nature has provided. It has calorific value of 17.4 per hundred gms, with the normal PH between 4.9 and 5.2.

Sugars are important constituents of tender coconut water found in maximum Concentration of about 5 to 5.5 percent in early months of maturation and slowly reduces to 2 percent at the stage of full maturity of nuts. In early stages of maturity glucose, fructose and sucrose are found in the coconut water. In the fully matured nuts approximately 50 percent of total sugar is sucrose.

The tender coconut water contains most of the minerals such as potassium, sodium, calcium, phosphorous, iron, copper, sulphur and magnesium. The tender coconut water being rich in potassium and other minerals is of immense the rapeutic value as di-uretic and is considered curative for hypertension. It is rich in vitamin C (ascorbic acid) content and other vitamins of ‗B‘ group.

The snow tender kernel of tender coconut is a delicious dessert. Traditionally, the kernel of tender coconut is sometimes consumed after drinking the water by the consumer or else the ball is thrown away. The tender coconut water along with tender coconut kernel without husk is produced and named as snow ball tender coconut.

Coconut water can be converted into vinegar by using vinegar generator assembly which comprises a feed vat, an acidifier and a receiving vat for collection of vinegar. The mature coconut water consisting of about 3 per cent sugar content is concentrated to 10 per cent level by fortifying with sugar. The fortified coconut water is then fermented by inoculating the solution with Sacchaaromyces cerevieae. After alcohol fermentation is completed for about 4-5 days, the clear liquid is siphoned off and inoculated with mother vinegar containing aceteobacter bacteria. Vinegar is used as preservative in pickle industry and flavouring agent in many food roducts. It has been reported that the natural coconut vinegar enjoys consumersPreference over synthetic vinegar when available in the market. 1.5 COCONUT MILK: Coconut milk is a product extracted from the endosperm or kernel of coconut and constitutes into an emulsion of coconut oil in water, stabilized by proteins and probably by some iron found in oil water interface. The coconut milk has a pleasant sweet and agreeable flavor. It is an ingredient in many household culinary viz., fish, shell-fish, meat, poultry and vegetable dishes confectionaries, sweets and as substitute of dairy cream in beverage type milk, evaporated sweet condensed milk, cheese, yoghurt and many other types of preparation.

The Central Food Technology Research Institute, , has developed the technology for commercial production of spray dried coconut milk.

The product is developed from the matured coconut kernel after removing the moisture content of the kernel through osmotic dehydration using various osmotic pressures techniques. The dehydrated coconut chip in ready-to-eat form can be used as snacks.

1. Fresh Dry Processed / Wet Milling Route – Involves de-shelling the coconut meat manually or by machine – splitting and slicing the de-shelled meat – washing – grinding or wet milling – drying the particulates coconut meat – extracting the oil using screw type press to produce virgin coconut oil. Virgin coconut oil and food grade medium fat coconut flakes. The flakes are ground to produce coconut flour.

2.Fresh Dry Processed / Desiccated Coconut Route – The processed involve all the steps desiccated coconut viz., de-shelling, paring, washing, grinding blanching and drying except sulphite treatment and then extracting the virgin coconut oil using screw type press.

3. Fresh Dry Processed / Graded Coconut Route – It involves splitting the nut grating – blanching and drying the coconut meat and extracting the virgin coconut oil using screw type press.

4. Low Pressure Oil Extraction or Intermediate Moisture Content Method – It involves splitting the nut – grating the meat to find particles – drying to the level of moisture content of 10 to 12 per cent of extracting the virgin coconut oil using a manually operated press.

Contents of Virgin Coconut Oil Total Fats 96.46% Capric Acid 5.53% Sturated 89.46% Oleric Acid 4.40% Mono-unsturated 4.60% Others 14.20% Poly- unsturated 1.00% Cholesterol 0% Lauric Acid 43.59% Trans Faty Acid 0% Myristic Acid 17.08% Iodine Value 4.94% Caprylic Act 7.64% Sodium(Na+)% 9.46% Palmatic Acid 7.26%

Coconut products and By-products; Sl. Principal Edible Products by Products and Value Added No . Product Products

1. Products from Derivatives Inflorescence SAP. (i) Sugar/Jaggery (ii) Beverage(Boiled Sap) (iii) Toddy (fermeuted Sap) (iv) Coconut Wine (v) Neera( Fresh Sap) (vi) Vinegar (vii) 2. Immatured coconut kernel in Syrup Confectionary (i) JellyCocount Jam (ii) Puddings / Ice cream Matured Coconut (i) Desiccated Coconut (ii) Partially De-fated Coconut Powder Product from (iii) Rousted Coconut Paste Coconut kernel (iv) Coconut Chips (Sweetened Chips) (Sliced (Meat) Coconut) (v) Ball Copra (vi) Cup Copra (Coconut flour) (vii) Coconut yoghurt / Ice cream (viii) Fresh Coconut gratings (ix) Dehydrated edible coconut meat (x) Coconut oil / Virgin Coconut oil 3. Products from (i) milk powder ( Dehydrated Milk) coconut milk (ii) Coconut milk / Syrup (iii) Coconut spread / Cheese (iv) Coconut honey/ candy (v) Coconut skim milk beverage (vi) Sweetened Coconut skim milk blend (vii) Coconut protein (viii) Low/ High fat coconut jam (ix) Virgin Coconut oil 4. Production from Tender Coconut Coconut Water i) Tender coconut water ii) Tender nut coconut water & Coconut meat shake iii) Canned or pouched tender coconut water Matured Coconut i) Coconut Water concentrate (Syrup) as flavored beverage on dilution ii) Carbonated / Non carbonated coconut water iii) Nata-de-coco iv) vinegar v) Toddy 5 Coconut Oil i) Edible oil ii) Bio diesel / biofuel iii) Industrial oil iv) Cosmetics 6. Virgin Coconut oil i) Dietary oil ii) Body Oil ( Skin Can) iii) Body Cream / Lotion / Shampoo iv) Soap v) Pharmaceuticals vi) Nutriceutical Products Non Edible Products 1. Coconut Husk i) Coir, Coir foam, Rubberized foam ii) Coir Carpets / Mattresses iii) Coir Geotextiles iv) Coir Composite v) Coir pith briquette vi) High value Coir products safety belts vii) Coir Boards, Coir asbestos 2. Coconut Shell i) Charcoal ii) Activated Charcoal iii) Shell powder iv) Shell handicrafts v) Ice cream & beer cups vi) Shell gasified for alternate heat energy. 3. Coconut palm i) Furniture Wood ii) Doors iii) Panels (Wall & Floor) iv) Handicrafts 4. Coir Pith i) Organic Manure ii) Ornament plant growing pot iii) Coir pith briquettes iv) Coir chullah

1.6 COIR: India is the largest producer of brown coir fibre and its production hasbeen steadily increased during the last five years Coir is one of the important natural, golden color, hard fibres extracted from the husk or fibrous mass (mesocare) covering the coconut. It is of great commercial interest and falls under the category of industrial hard fibres such as hemp, abucca, henequen etc. Coir has certain unique qualities, such as resistance to spoilage due to moisture and dampness. Coir fibres posses remarkable, durability to withstand physical strength and hence it is a renewable resource for manufacturing various floor covering and other coir products. In India coir fibres is extracted from coconut husk after retting in saline water and also by deploying mechanical method using fibre extracting machines. Mechanical extraction of coir fibre requires dry husk and is widely used in coconut growing states in the country owing to better realization of coir fibre, cost effectiveness and overall inadequate retting facilities. The white fibre sector has become stagnant over last few years, whereas the export requirement is mainly of white fibres products. The coir industry is mainly concentrated in the coconut producing states viz., Kerala, Karnataka, Tamil Nadu and Andhra Pradesh in southern region and Orissa in the eastern region. The industry‘s strength lies in the export oriented coir products manufactured in the country. It has been reported that there were 6531 functional coir processing units in the country. Out of which 5124 units in Kerala, 217 units in Karnataka, 262 in Tamil Nadu,265 in Andhra Pradesh, 100 in Orissa, 75 in West Bengal, 5 in Maharashtra, 6 in Pondicherry and 3 in Goa. Consequent upon mechanization in coir processing sector in Kerala, production of brown fibre has increased many folds. A new retting process using coir ret, a bacterial culture developed through research by coir board has become popular in Karala. The fibre is called green husk fibre which is mixed with white fibre to make coir yarn and other products.

1.7 COIR PITH Coir pith commonly known as coconut peat is the by-products of coir industry, which was hitherto considered as a waste material. Coir pith is converted in to briquettes for the purpose of easy transportation. It is easily composed to be used as an organic manure and soil ameliorant. ‗Pith plus‘ a product developed by the Coir Board in collaboration with Tamil Nadu Agri University, is supplemented with urea is added to coir pith to make the manure.

1.8 COCONUT SHELL PRODUCTS The coconut shell can be converted into very useful industrial products like coconut shell charcoal, activated carbon and coconut shell powder which have a market all over the world especially in Japan, South Korea, France, and USA. Coconut shell is a by-product of the coconut industry. It has been estimated that ever one to seven million tones of coconut shell could be salvaged per annum in the country but very small quantity of coconut shell is processed into useful products. 1.9 STATEMENT OF THE PROBLEM Coconut is one of the traditional, prominent perennial crops associated with heritage, culture and economy of India for the last 3000 years. It is preferred and cultivated by all the categories of farmers irrespective of their land holding and economic and social status. Moreover coconut is closely coupled with the daily foodstuff of millions of people around the world. Amidst huge production and demand, coconut suffers with the bottlenecks of low level of production technology, high degree of pest and disease, land fragmentation, obsolete irrigation system conventional arrangements in marketing, unstabilized price; lock of proper financing institution etc.

Therefore there is a need to traces the evolution of coconut forming, describes botanical biology, variety of coconut trees, proper pest and disease control nutritional and health aspects of coconut, medicinal and industrial use of coconuts and its by-products and trends in coconut area and production in Tamil NADU .Moreover it examines the production and marketing practices of coconut farmers and their perception about the present market functionaries, Marketing practices of market functionaries and it offers suggestions to surmount the existing marketing problems.

1.10 NEED FOR THE STUDY The production and marketing scenario of coconut in the country has witnessed a phenomenal development, particularly in the field of production such as development high yielding dwarf varieties of crossbred coconut palm, traditional, non-traditional, commercial and industrial coconut product, it was decided to study the current status of developments that have taken place on production and marketing front of coconut and its products in the country. Therefore, a fresh survey on production and marketing of coconut and coconut product in Tamilnadu was undertaken. This thesis makes an attempt to study the present scenario of coconut industry and the problems faced by the producers and traders involved in the marketing process of coconut and to focus on the inadequacies prevailing in the marketing system of coconut and coconut product in the country.

1.11 OBJECTIVES OF THE STUDY The following are the main objective of the study  To study the marketing practices followed by the coconut growers in the study area.  To identify the overall performance of coconut production.  To analyse the cost and return of marketing of coconuts.  To examine the problems and prospects of coconut marketing.  To offer suggestions on the basis of findings.

1.12 RESEARCH DESIGN Methodology used in this study is of both qualitative and quantitative. However, participatory approaches were used for gathering information that was used in guiding the survey and enriching analysis and interpretation of the survey results. Both cases were simultaneously utilized to collect the required information. A simple cross-section survey design was applied to the collect the data, where households of the formers in the projected areas were given an equal chance of being selected for the survey.

1.13 SAMPLING The validity of any research is based on the systematic method of data collection and analysis. The present study uses both primary and secondary data. The primary data have been collected from the formers cultivating coconut and their problems involved in the coconut marketing in the Thanjavur delta region. The size of the sample was 320 farmers.

1.14 PRIMARY DATA COLLECTION The primary data for the study were collected through the questionnaire. The researcher met the formers and collected the required data from them. Published information from journals, newspapers, newsletters and websites were also obtained. The researcher interviewed 400 farmers in Thanjavur district, the respondents those who have given complete information were chosen for the study. The respondents those who given incomplete information were not included in the study.

1.15 SECONDARY DATA COLLECTION  The secondary data are gathered from reference books, reports, journals, newspapers, other Ph.D., theses, internet and etc. in order to provide the academic theories.  Secondary data used to support with the primary data, are collected from the chosen study on Indian coconut industry

1.16 POPULATION The farmers in the Thanjavur district have been chosen as the population. The samples were drawn from this population.

1.17 FRAME WORK OF ANALYSIS In order to study the farmers view in coconut marketing problems encountered by them, the questionnaire consisting of the 5 point rating scale has been adopted. ―Strongly agree‖ denotes 5 points, ―agree‖ indicate 4 points, ―Neutral‖ indicates 3 points, ―disagree‖ denotes 2 points and ―strongly disagree‖ indicates 1 point. The analysis have been scaled on the basis of mean score value. The collected data were classified and tabulated with the help of computer programming. The collected data was edited, coded and classified. The views of the farmers on marketing problems of coconut were then analyzed by applying relevant statistical techniques.

1.18 SAMPLING METHOD The stratified sampling method was employed for the purpose of this survey. First the population was divided into homogeneous sub-parts (strata), which were mainly the coconut farmers. The Thanjavur district was further sub-divided into divisions and locations. This method assisted in identifying the exact locations/ sub-location where the actual survey was to be conducted. In the selected areas, all the farmers were then interviewed.

1.19 DATA COLLECTION TOOL The main tool used for the survey was questionnaire. Primary data was collected from farmers using two-structured questionnaire. One questionnaire was designed specifically for farmers only. The study was conducted in local language Tamil. The farmers were probed through simple questions found in the questionnaires. Information sought under these instruments related to annual production of various coconut-based products as well as earnings from these products, prices and quantities, cultivating practices, problems involved in coconut marketing of coconut. 1.20 PILOT STUDY A pilot study was conducted with 80 sample farmers. On the basis of their views, certain scales and variables were modified. Item analysis was also applied. The significance of difference between item mean of the high score group was found by calculating ―t‖ value, thereby retaining items which have the greatest ―t‖ value. After the pre-testing the data from the Thanjavur delta region was analyzed with the major focus on problems encountered in getting information from the respondents and the ability to achieve the set goals. Finally all the questions that proved difficult to administer were revised according in lion with the findings of the pre-testing exercise while important information that was not captured in the pre- tested survey questionnaire(s) was included in the revised version.

1.21 DATA COLLECTION The data collection exercise was carried out by me. The research instrument was a questionnaire pertaining to the subject matter of coconut marketing problems.

1.22 DATA PROCESSING Data entry, processing and analysis were done using SPSS for windows (version 19.0) spreadsheet program and Microsoft Excel 2007. Descriptive statistics (frequencies, scores, mean, maximum, minimum) were determined. The actual processing and analysis started with data cleaning to remove the gaps and ensure consistency. In order to test the association between independent variables and dependent variables, chi-square test was applied ANOVA was applied to find the variation within samples and between samples.

1.23 PERIOD OF STUDY Secondary data were collected for a period of TEN years from 2000- 2001 to find out the production and marketing of coconut. Further, the primary data were also collected for the year of 2010-2011.

1.24 RESEARCH TOOLS USED 1.24.1 Factor analysis Factor analysis is the statistical methods used to measure variability in a set of unknowns determined to be factors. It is measuring how factors contribute to the results of the unknown variable. Factor analysis beings begin with a large number of variables and then try to reduce the interrelationships amongst the variables to a few numbers of clusters or factors.

Factor analysis finds relationships or natural connections where variables are maximally correlated with one another and minimally correlated with other variables and then groups the variables accordingly. After this process has been done many times a pattern appears of relationships or factors that capture the essence of all of the data emerges.

1.24.2 Chi-squire Chi-squire is a statistical test commonly used to compare observed data with data would expect to obtain according to a specific hypothesis. The shi-square (I)test is used to determine whether there is a significant difference between expected frequencies and the observed frequencies in one or more categories.

1.24.3 Regression analysis Regression is the determination of statistical relationship between two or more variable. In simple regression two variables are used. One variable (independent) is the cause of the behavior of another one (dependent). When there are more than two independent variables the analysis concerning relationship is known as multiple correlations and equation describing such relationship is called as the multiple regression equation.

Regression analysis is concerned with the derivation of an appropriate mathematical expression is derived for finding value of a dependent variable on the basis of independent variable. It is thus designed to examine the relationship of a variable Y to a set of other variables X1, X2, X3,…………………

Xn. the moat commonly used linear equation in Y=b1 X1+b2 X2+………. + bn

Xn+b0.

Here Y is the dependent variable, which is to be found X1, X2

………and Xn are the known variables with which predictions are to be made and b1, b2 …. bn are coefficient of the variables.

1.24.4 The multiple correlation analysis The multiple correlations is a linear relationship among more than two variable. It is measured by the coefficient of multiple determinations, denoted as R2, which is a measure of the fit of a linear regression. A regression‘s R2falls somewhere between zero and one (assuming a constant term has been included in the regression); a higher value indicates a stronger relationship among the variable, with a value of one indicating that all data points fall exactly on a line in multidimensional space and a value of zero indicating no relationship at all between the independent variables collectively and the dependent variable. 1.24.5 Discriminate analysis Discriminate analysis is used to distinguish between margins and costs of various intermediaries‘ for coconut marketing. Margins and costs of various intermediaries for coconut marketing are measured using 15 statements. Based on this opinion of the farmers, discriminate analysis is carried out to distinguish between margins and costs of various intermediaries for coconut marketing.

The tests of equality of group means measure each independent variable‘s potential before the model is created. Wilks‘ lambda, the F statistic and its significance level are presented.

1.25 RESEARCH HYPOTHESES Hypothesis-1 There is association between gender and high fluctuations in market prices of coconut.

Hypothesis-2 There is significant difference between overall assessments of performance of variety of coconut and the age of the farmers.

Hypothesis-3 There is significant difference between mean ranks towards variety of soil conditions by the farmers in the Thanjavur delta region.

Hypothesis-4 There is significant difference between male and female with respect to overall coconut marketing problems.

Hypothesis-5 There is association between price received by the farmer and the years of experience of farmer. Hypothesis-6 There is significant difference between mean ranks towards problems involved in the coconut marketing faced by the farmers in the Thanjavur delta region.

Hypothesis-7 There is significant difference between income groups of farmers with respect to overall coconut marketing problems.

1.25.1 Null Hypothesis: There is no significant difference between income groups of farmers with respect to overall coconut marketing problems.

1.25.2 Alternative Hypothesis: There is significant difference between income groups of farmers with respect to overall coconut marketing problems.

1.26 LIMITATIONS OF THE STUDY  The present study is based on the reliability of the primary data the sample units were selected from the population having multidimensional features of a large group. The farmers cultivating the coconut in some villages of Thanjavur district for a period less than 5 years were not selected for the study.

 Since the farmers involved in the production and cultivation of coconut, agriculture farming, coconut fibre, are assumed to be surviving and facing marketing problems. The samples are selected at random out of these selected areas of Thanjavur district. Therefore the findings are applicable to the areas from which the samples were drawn, not applicable for other areas.

 The farmers in the chosen area felt that there was an exploitation of coconut farmers by the marketing middlemen because of the credit marketing tie up of their commodity. Traders entice farmers short of cash to borrow money from them without interest. This means that the farmers were unknowingly paying for the interest. This system also creates an interdependence of prices which concentrates profit among buyers. Market knowledge and information, again to the disadvantage of the farmers, are taken from the traders themselves. These limitations are specific to the Thanjavur delta region where the study was carried out, not applicable for other areas.

1.27 CHAPTER SCHEME: Chapter 1 This chapter deals with a general introduction and background of the study tracing the evolution of coconut marketing. Besides the above, this chapter gives a brief account of the marketing problems of coconut in India, Tamilnadu and Thanjavur. It also presents the significance of the study, statement of problem of the study, limitations of the present study, and finally outlines of the structure of the study.

Chapter II Gives a review of literature on coconut marketing in India and Tamilnadu. It also presents various important factors affecting the performance of the sector contained in works of several researchers, identifies the gap in past research, outlines the objectives of the study, the previous empirical findings and models developed to analyze the efficiency and performance parameters and thoroughly examined.

Chapter III This chapter presents the socio economic characteristics of farmers living and production of coconut in and around Thanjavur delta region. Chapter IV Is the marketing practices of coconuts in the study area.

Chapter V Examines an overview of coconut industry.

Chapter VI Deals the cost and return of the coconut marketing.

Chapter VII Is the problems and prospectus of marketing of coconut (an analysis and interpretation)

Chapter VIII Offers the findings, suggestion and conclusion of the study.

CHAPTER –II REVIEW OF LITERATURE INTRODUCTION This chapter consists of research finding drawn from review of Literature relevant to the study. Acquaintances with earlier, pertinent study and formulate, appropriate research methodology. There are number of theoretical and empirical studies on the various aspects of productions, Marketing and export of coconut. In this chapter, the most relevant literature is presented keeping in view the objectives and methodology of the present study. Since, there were limited studies related to coconut Marketing problems faced by the farmers , an attempt ics made to put together some of the closely related and available literature on research study .The information is presented under the following headings.

The research on coconut in India is being carried out by the institutions under the Indian Council of Agricultural Research and the State Agricultural Universities Located in different coconut growing states. Research on post harvest processing of coconut is also undertaken by the institutions under the CSIR (Council for scientific and industrial research) the board has a programme to sponsor research and harvest processing of coconut through such research institutes .The institutes under the Coir Board Mainly undertake the coir research. Coconut development Programmes in India are mainly carried out by the Coconut Development Board, which was established in 1981. The board‘s schemes are either implemented directly or through the Department of Agriculture / Horticulture of the states and union territories. The state government also implements their own programme to suit the local needs. The board functions under the administrative control of the Ministry of Agriculture, Government of India with the Chairman as the chief executive. The coconut Development Board Headquarters is in Kochi , Kerala implement and monitor various developmental projects . The Coconut Development Board has established field offices in various parts of the country. The following table shows the All India Estimates of area and production of Coconut in India state wise.

The coconut is a crop with unique features. Owing to its versatile uses, the demand for coconut and its products has been on the increase. The crop is spreading fast even to the interior tracts and the north and northeastern parts of the country gaining national acceptance .Having already attained the premier position in the world , Indian‘s thrust now shall be to exploit the wealth potential of the Coconut in all respects . Moreover coconut is an eco – friendly crop which permits coexistence of multi – species plants. It enriches soil fertility in association with other crops and is quite amenable to organic farming, if appropriate intercrops are grown in the inter – space. Due to multifarious uses, the future of the coconut is very bright irrespective of the locations where it is grown in the world.

2.1 REVIEW OF LITERATURE This section briefly reviews some of the concepts used in the earlier studies on coconut as well as other commercial crops grown. It presents the concepts relevant to the present study.

The review has been classified into four heading for better exposition and clarity. The review of previous studies is done in a systematic manner.

1. Studies related to cost structure. 2. Studies related to return. 3. Studies related to coconut. 4. Studies related to marketing.

2.2 STUDIES RELATED TO COST STRUCTURE Costs are defined as the cash expenses, the costs, which a farmer incurs on crops, are categorized into: (1) fixed cost and (2) variable cost. Fixed costs are for an overhead nature and do not very with output. Such expenses include rental value of land, depreciation, livestock, agricultural implementation and interest on fixed capital. Variable expenses such as expenditure on seedlings fertilizer, pesticide and maintenance do vary with the output.

Venkatraman1 in his studies says that apportionment of fixed cost is done on different criteria in the case of perennial crops. He assume the life period of grape. Vineyard as 25 years and apportioned the land value to the entire life period with 10 per cent interest on the share of land value for the particular year. The cost establishing the vineyard is also distributed among the life period of 25 years.

Coconut is a perennial crop perennial crops are entirely different from seasonal crops. The cost analysis of potential crops bristles with conceptual and methodological problems due to their complex production characteristics. The right decision on investment in farming activities can be taken only when valuable information on cost and returns are available.

______1. J.V. Venkatraman, Economics of production and marketing of Grapes in Bangalore, south Taluck (Unpublished M.Sc (Ag) Thesis Department of agricultural Economics, Tamil Nadu Agricultural university, 1964, 4.7.

Such information will be useful to improve cropping pattern as well as efficiency through least cost combination resources Madappa2, has divided the cost of production of coffee into three main categories viz Cost of cultivation (2) cost of preparing the produce for the market and (3) Other costs.

Mittal and saxena3 explain that fixed cost in agriculture as those which are independent of level of production where as the variable costs every with the of output.

The directorate of Economics and statistics used the concept in many of the cost of production and farm management studies. Those four concepts are discussed below 4.

Cost Al approximates the actual expenditure incurred in cash and kind. It includes value of hired human labour, value of bullock labour (owned and hired), machine labour, value of seeds manure and fertilizer, plant protection chemicals, irrigation charge, land revenue and cess, water tax, Interest paid on working capital, depreciation on implements, machinery farm buildings and the like.

Cost A2 comprises cost A1, plus rent paid for leased land. Cost B includes cost A2 plus rental value of owned land plus interest on fixed capital excluding land. Cost C includes cost B plus imputed values of family labour.

______2. Madappa,―A study of cost on production of coffee in India‖, Indian journal of Agricultural Economics, 25(2), 1970, P.6.

3. J.P. Mittal and P.P. saxena, A mathematical Expression for cost and Analysis of farm Equipment, Indian Journal of agricultural Economics, 29 (1) 1974, P.51.

4. Directorate of Economics and statistics, studies in a economics of fam management in coimbatore District, (Tamil Nadu), 1977. PP.501- 502. Alikhan sadath and Rajagopalan5 have classified total cost of production. According to them cost of production consists the sum of establishment cost and operation cost. Total establishment cost up to the bearing age is spread over the life of the crop. Annual share of establishment cost, Interest on working and fixed capital, and depreciation charge are included under indirect cost. Kahlon and singh and kahlon and miglon6, are a few among a number of researchers who have used the same concept of the cost structure.

A review of some concept is discussed below: Padmanandam7 classified costs as direct cost and indirect cost. According to him direct costs include the operation and maintenance cost and indirect cost. Include the annual share of establishment cost, interest on fixed capital, interest on working capital and depreciation.

Rajagopalan8 , defines the study of cost and return structure of principal crops in the districts of Tamil Nadu. He considered only cost A (variable cost) and cost C (fixed cost). The following components are include in cost A and C.

A) and A: i. Value of human labour, including family labour. ii. Value of bullock labour. iii. Value of machinery charges.

______5. H.S. Alikhan sadath and V. Rajagopalan, ―A Economic Analysis of coconut production in Tiptup Taluck of Trumkuna District, Karnataka, (mysore)‖, the madras Agricultural journal, VOI.66 (9), 1979, PP. 582-586. 6. A.S Kahlon and aingh, Economics of farms management in India. Theory and practice, Allied publishers, private limited New Delhi, 1980,PP.88.90. 7. Padmanandam Economics of mango cultivation in and Dindugul District‖ unpublished Ph.d., Thesis submitted to the madurai kamaraj university, madurai.1987.P.23. 8.V. Rajagopalan, studies on cost production Economics, Tamil Nadu Agricultural University, Coimbatore, 1987, PP.2-3.

iv. Value of speed. v. Value of insecticide. vi. Value of manure and fertilizer. vii. Cost of irrigation and viii. Interest on working capital.

B) and A: i. Value of human labour, including family labour. ii. Value of bullock labour. iii. Value of machinery charges. iv. Value of speed. v. Value of insecticide. vi. Value of manure and fertilizer. vii. Cost of irrigation and viii. Interest on working capital.

C) cost C: Cost A + rent (including rent paid by the tenant (or) rental value of owned land) + Interest on fixed capital, excluding Land+ Land revenue, cesses and taxes+ depreciation of implements and marketing.

Based on the above studies, cost A and cost C are considered in the present study. In terms of cost A and cost C, the following factors are included: i. Human labour including family labour. ii. Bullock labour. iii. Value of seed. iv. Chemical fertilizer. v. Pesticide. vi. Farm manure. vii. Cost of irrigation. viii. Interest in working capital. ix. Rent and x. Interest on fixed capital excluding Land revenue, cess and taxes and depreciation of implements and machinery.

According to Srinivasan9 the cost of production consists of direct cost indirect cost. The Direct cost represents the operation and maintenance cost during reference year. The indirect cost refers to the sum of costs such as annual share establishment cost, Interest on fixed capital, Interest on Working capital and depreciation charges. The total sum of the direct cost and indirect cost from the total cost of production.

Thangaraja10 considers that the total cost of cultivation includes both costs incurres on fixed and variable inputs. Cost on fixed assets include rent, depreciation, tax, Interest, insurance premium, and the like. The variable inputs cost incurred on variable inputs such as human labour, speed, fertilizer, pesticides, mechanical power, and bullock labour and the like.

According to Bhardwaj11 et.al the items in fixed costs included were feed hopper, chick feeder water foundation and the like Cost of building was excluded in the cost. The expenditure on medicine feed wage and salary, rent electricity bill, transport charge, interest on capital and like, were included in the variable costs. ______9.Srinivasan Economics of Grape cultivation in Dindigul and Nilakottai areas madurai District, unpublished Ph.d., thesis. Submitted to the Madurai Kamaraj University, Madurai 1987,.P.23. 10. C. Thangaraja, The Economics of production and marketing of medicinal plants with special reference to senna leaves from Tuticorin District‘., unpublished Ph.d., Thesis submitted to madurai Kamaraj University Madurai,1999. P.76. 11. S.P. Bharadwaj, V.K. Mahajan and R.K. Pandey ―study of cost Behavior and marketing margin in poultry products. A case study of Broilers‖.Encyclopedia of Agricultural marketing, VOI.7.Mittal publications, New Delhi, India, 2001.P. 97.

Hentry Louis12 speaks about in his study cost of establishing a coconut garden in one acre land. In the present study, the total cost of production is classified into fixed cost and variable cost. The cost includes land revenue, rental value of land, annual share of establishment cost, depreciation on fixed asset, and interest on fixed capital, exclude land. The variable cost includes annual operation and maintenance cost which included cost incurred on garden protection labour, manure, fertilizer, irrigation, pesticide and interest on working capital.

2.2 STUDIES RELATED TO RETURNS Sivanandam et al13, have adopted present value of flow of future returns. Benefit cost ratio, internal rate of return and pay back method for measuring the productivity of capital. These methods are further extended with sensitivity analysis by changing the parameters to suit real world situation.

Harrison14 studied the cost and return structure of small and large farms in this study on ―agricultural modernization and income distribution‖. The study was conducted in the Tanjore District Tamil Nadu. The study rerelated that small farmers spend higher amount per hectare on the inputs. Chemical fertilizer is identified the highest input cost incurred in the small and large farms followed by seed.

12. Hentry Louis. Coconut- the wonder palm coconut corporation , Tamil Nadu, may 2002. PP. 74.75. 13. Sivanandam, A. Kandaswamy and C. Ramasamy, ―Return on Investment in forest plantation‖, Financing Agriculture, 13(1), 1981, PP.21-26. 14. James quingly Harrison, Agricultural modernization and Income Distribution: An Economic Analysis of the impact of New seed varieties on the crop production of large and small farms in India, Ph.d., Thesis submitted to Princeton university, USA, 1982.

Reddy et.al15 have defined gross income as gross value of output sold and net income was the residue of gross income after deducting the total cost.

Vijayalakshmi16 defines that gross income refers to the value of input and its by- product the stalk. The farm business income is computed by deducting cost A1 from gross income. Nat income was computed by deducting cost that is total coat from gross income.

Thangaraja 17 in his work has discussed that the net income per farm (profit) was defined as the excess of revenue. According to the farms over its variable expenditure. Hence, total revenue minus total variable (total wage bill) is equal to net income or profit.

According to sundararaj18 gross income is the value of total output including the main and by products.

Srividya19 has studied the feasibility of establishing a banana processing unit. The study real that the market potential is 35.42 tones per annum. She says that the internal rate of return (IRR) is 9.35 per cent, net present value(NPV) is Rs.250.54 Laksh and Benefits cost Ratio (BCR) is 1.59:1 for the project period of 10 years and the break ever analysis of procession plant is 120 tonnes per annum as against the target production of 150 tonnes per annum. ______

15. A. Vijayalakshmi, An Economic Analysis of production of chilies in Kamarajar District, unpublished Ph.D, Thesis submitted to Madurai Kamaraj University Madurai. 1995. P. 63. 16. C. Thangaraja; op.cit. 17. K. Sundararaj, marketing of chillies in District- Tamil Nadu, unpublished Ph.D, Thesis submitted to M.K.V. Madurai, 1997, P.20. 18. V. Srividya, A study on feasibility of Establishing Banana processing unit in Trichirapalli District, unpublished Dissertatin, Agricultutural university, coimbatore, 1998. 19. C.Chandran, A study of coconut marketing in Tamil Nadu, unpublished P.hd., Thesis submitted to M.K.U. madurai 1992.P.12. Chandran 20 has found that the investment Rate of Return (IRR) 13.72 and 17.63, Net present Value (NPV) are Rs. 24432 and 31273 and the Benefits Cost Ratio (BCR) are 2.21 and 3.04 respectively for tall and dwarf varieties of coconut garden.

Monoharan 21 defines in his study the gross return on the sale of total output after deducting marketing cost. Contribution has been calculated by deduction variable cost from the gross returns. Deducting fixed cost from contribution arrives at the next profit.

And also he has defined in his study to assess the worthiness of investment in epper cultivation on long-term basis. Internal Rate of Return (IRR) in this study is defined as the rate of discount, which equalizes benefit and cost. He has found that Internal Rate of Return (IRR) is 60 per cent for the projected year 20 years and Net Present value (NPV) is Rs.277839, and Benefit Cost Ratio (BCR) is 4.03.

In the present study gross return on coconut production is the Value realized on the sale of total output after deducting marketing cost. The contribution has been calculated by deducting variable cost from the gross returns, the net profit is arrived at by deducting the fixed cost from contribution.

______

20. C.Chandran, A study of coconut marketing in Tamil Nadu, unpublished P.hd., Thesis submitted to M.K.U. madurai 1992.P.12.

21. N. Manoharan, Economics of production and marketing of pepper in India, unpublished P.hd., Thesis submitted to M.K.U. Madurai, 2001, P.12.

2.3 STUDIES RELATED TO COCONUT Aravindakshan 22 in his article state that India occupies the premier position in the world production of coconut. More than 90 per cent of the production is contributed by the four Southern States namely, Kerala, Tamil Nadu, Karnadaka and Andhra Pradesh. The world production of coconut at 5400 crore nuts of which more than 25 per cent is contribution of India.

Thampan 23, in his article says that the states stability of the rural economy depends on the coconut industry. As coconut cultivation is the mainstay of small and marginat farmer its profitability is important. This depends on the cost production and the demand for coconut products. The cost of production can be minimized by reducing the level of conventional impose and increasing the unit productivity.

Husain, shilaja and sobhana 24 in their article state that the coconut climbers are employed for 218 days in a year. Of this, more than,75 per cent of the period (164 days) they are engaged in coconut climbing. They receive maximum number of days of employed during the month of February, March and May. The daily average wage rate of coconut climbers is Rs. 82.30 with a monthly income of Rs.1496. they earn higher income during the month of may followed by march, February and April. ______

22. M. Aravindakshan ―India Ahains the premier position in coconut production‖ Indian coconut journal, VOI XXVIII, No.3, July 1977, P.P.2-3. 23. P.K. Thampam, ―prospects for eco- friendly far miry‖, The Hindu survey of Indian Agriculture,1995, P.111, 24. S.A. Husain, S. shilaja and G. sobhana, ―Employment and wage pattern of coconut climbers‖ Indian coconut journal, VOI, XXVII, No.6, October 1996-P.2.,

Kumar, Mohamed Abdhulkhader, Pangaswami and Irulappan 25, in their articles that the coconut palm is one of the most beautiful and useful palms in the world. It provides a variety of useful products like food, fuel and timber. Every part of the Tree is utilized for some purpose or other and hence, it is called Kalpavriksha meaning tree of heaven which provides all the necessities of life.

Barman and Ahmed 26, in their article analyze the performance of production and productivity of coconut in Bangladesh and also state that there is considerable expansion in area which mainly contributes to increase in production. The cultivation of coconut of in Bangladesh is mostly concentrated in the coastal regions in chittagong and Khulna divisions. These two divisions account for about 81 per cent of coconut area and 83 per cent of production.

Markose 27, in his article analyzed that the formation of the coconut development programmes for coconut are given new dimensions, by identifying thrust area where efforts are to be concentrated. He has also stated that the decade prior to the formation of the coconut development board witnessed a declining trend in production and productivity with the area under the crop remaining almost stagnant.

______25. N. Kumar., J.B.M. Mohamed Abdul Khader, P. Pangaswami, I. Irulappan, Introduction to apices, plantation crops medicinal and Aromatic plants: 1997, PP. 11-3. 26. S.C. Barman and M. Ahmed, ―coconut and its in Area, production and productivity in Bangladesh‖, India coconut journal VOI, XXXX.No.2., June,1998, PP.6-7. 27. V.T. markose, “fifty years of coconut Development” Indian coconut journal, VOI. XXXX. Augustst 1998, P.49. Romany Gopalakrishanan 28, in his article, traces the history and growth of coconut in India, He also reveals that the coconut board will continue to serve the coconut industry and will help to stabilize the coconut based economy in the country.

Kathirvel and Manian 29 in their article state that while harvesting the nuts, one has to climp up each tree, usually in our country the farmers practice conventional harvesting system only. Their application in coconut gardens has immense potential. In order to eliminate the above said problems and also to increase the production a power tiller operated telescopic ladder for Radder for coconut harvesting has been developed.

Mamoria 30 In this study analyse and infer that India is the second largest producer of coconut in the world and majority of this area is concentrated in Kerala, Karnataka, Tamilnadu, Goa-Derman and Din. In Tamilnadu production is obtained from Thanjavur, Coimbatore, , Madurai, Trichy, Selam, Ramanathapuram and Theni districts.

Attri, Sharma, Suryanarayana and Sujatha Nair 31 in their articles speak about the processing and packing of tender coconut water. It is the most nutritive drink and can be taken up on a commercial scale in the Andaman group of islands where about 10-20 percent harvest is being used as tender coconut and the rest for nut purpose.

______28. Ramany Gopalakrishnan, “Sixteen Years of Coconut Development Board”. India coconut Journal, vol XXIX, No 4, August 1998.P.67. 29. K.Kathirvel and R.Manian, “Power Tiller Operated Ladder for Coconut Harvesting” Indian Coconut Journal, Vol XXIX No. 8, December 1998. P.8. 30. C.B.Mamoria, Economic and Commercial Geography of India, Lata Garwala and Company, Agra, 1999.P.238. 31. B.L.Attri, T.V.R.S.Sharma, M.A.Suryanarayana and Sujatha A.Nair, “Evaluation of Different Cultivators of Coconut (Cocos nucifera 2) at Tender Nut Stagae”, India Coconut Journal, Vol XXX.No1.P.9. Jose Mathew and Santhakumari32 in their article state that coconut grows well and yield high in regions where rainfall is well distributed. Irrigation during dry spell mitigates the ill effects of water stress and ensures high yields in irrigated palms. Several investigations have been conducted to study the various aspect of water management in coconut. Several recommendations on the scheduling of irrigation to coconut have been formulated based on the results available from the large number of trials conducted in various locations in India.

Remany Gopalakrishnan 33 in this article has stated that all parts and products of coconut are used in one way or other processed or in their natural forms. The leaf, midrib, spindle, inflorescence kernel, ruff-water, shell, husk, stem and roots are all made use of in the daily life of the people. Coconut cultivation and industry have important role in employment generation and poverty alleviation. The crop is a life supporter of more than 10 million people in the country by providing employment and income. By exploiting the full potential the coconut industry can provide livelihood to more than 20 million people even without increasing the total area under the crop in the country.

Sheeba Rebecca Isaac and pushpakumari 34 in their article state that coconut is perhaps the most economically important tree crop that is accommodative of diverse species of perennial and seasonal crops as components of the agro ecosystem, Home gardens is Kerala are predominantly coconut based and these have a crucial role to

32. Jose Mathew and G.Santhakumari, ―Irrigation Management in Coconut‖ Indian Coconut Journal Vol.XXVII.No.4.August.1999.P.5. 33. Remany Gopalakrishnan Employment Opportunities in Coconut Sector‖ Indian Coconut Journal Vol.XXX, No.5.September 1999.P.52. 34. Sheeba Rebecca Isaac and R.Pushpakumari, ―Tuber crops for coconut Gardens‖ Indian coconut Journal, Vol.XXX, No.12, April 2000, P.3. play in the agricultural scenario of the state. Tubes crops are the most important food crops to human kind after cereals, tropical tuber crops like, tapioca, sweet potato, yams and elephant food yam.

Kasturi Bai and Rajagopal35 analyze that a perennial tree crop of long life is influenced considerable all the weather factors. Rainfall has maximum influence on the seasonal variation in yield. In India the crop flourishes in the coastal belt of west coast and east coast, the reason being ideal climate without much temperature fluctuations. Even the limit to attitude and latitude are determined by temperature.

An article written by Markose,36 Analysis that the coconut has assumed considerable significance in our national economy. Proper technology is needed effectively for utilizing coconut wood and other palm parts. He also reveals that the coconut lands would be more productive in terms of food security in the new millennium.

Singh 37 in his article analyze area, production and productivity of coconut is different in coconut growing countries.

Soundrapandian and Shiny Philip 38 in their article state coconut husk which is abundantly available in India should be put to proper utilization on a commercial scale which in turn will provide means of living to the masses. Mallillin, Askali and

______35. K.V.Kashturi Bai and V.Rajagopal, ―How fastidious is coconut in its climatic Requirement‖, Indian coconut Journal, Vol.XXX, No.12, April 2000.P.1. 36. V.T. Markose ―Assured Bright Futures‖ the Hindu survey of India Agriculture, 2000, P.89. 37. H.P.Singh ―Coconut Industry in India Challenges and Opportunities‖ India coconut Journal, Vol.XXX, 39.4, August 2000, P.5. 38. M.Soundrapandian and Shiny Philip ―Coconut Waste, Husk-Product Industries in Kerala‖. Khadi Gramodyog. The Journal of Rural Economy, Vol. XXXVI.December 2000.P.154. Magalaya 39 in their articles analyze have made a comparative study of the soluble fiber of coconut flour with other local sources such as banana, cassava, wheat and rice flours.

Rathinam 40, in his article, entitled ―Research output and farmers adoption of technology on coconut based farming system in the Indian experience‖, state that young plantations upto the age of 8 years need, good light transmissions.

Alka Gupta, Murali Gopal and Rohini Iyer 41 in their article analyse that rhizophene micro organism, contribute significantly of the control of pests and enhancement of plant growth.

2.4 STUDYING RELATED TO MARKETING Srivastava 42 has stated that the producers share is inversely related to consumer price. The retailer‘s shares increase with an increase in the consumed price, whereas the producer‘s share decrease with an increase in the consumer‘s price. The benefit derived from all increase in the consumer‘s price absorbed by the retailers.

The observation of Banumathy43 is that farmers cultivating cotton are not using co-operative marketing society and regulated markets to sell their produce and hence village traders play a vital role in the marketing of cotton.

______39. C.Mallillin, C.Asikali and S.Magalya ―Coconut-four from Residue‖. A Good Source of Dietary‖ Indian coconut Journal, Vol. XXXII.No.6, October 2001, P.9. 40. R.Rathinam, ―Research Output and Farmers adoption of Technology on coconut based Farming system the Indian experience‖ Indian coconut Journal, Vol. XXXII, No.4. August 2000, P.4. 41. Alka Gupta, Murali, Gopal and Rohini Iyer ―Need for introducing the concept of PGPR in coconut crop production system for improved plant Growth and Establishment‖ Indian coconut Journal, Vol. XXXI. No.11. March 2001.P.12. 42. G.C.Srivastava ―Dynamics of vegetable marketing‖ Indian Journal of agricultural Economics. 39(3) 1984.P.229. 43. S.Banumathy, channel the service rendered.Economics of production and marketing of cotton in Kamarajar District. Tamil Nadu unpublished Ph.D, This is submitted to Madurai Kamaraj University Madurai 1997. P.167. Gadhavi et.al44 has worked out the price behaviour of coconut using time series analysis method. They analyse that the seasonal variation from the original composite time series. The time series data is done by assuming multiplicative model of the Y=TXCXSX1. Where Y= Monthly arrival or price, T= Trend value, C= Cyclical movement, S= Seasonal variation, and I= Irregular fluctuation.

B.B.Singh etal45 has studied about the marketing of chillier in Begusarai, Bihar. They have identified the three different channels and worked out the price spread and farmer‘s share of the consumer‘s rupee. They have found out that the princes spread indicate that the intermediaries present in the marketing channel charge high margin of profit as compared to channel the service rendered.

2.5 EMPIRICAL STUDIES ON COCONUT MARKETING PROBLEMS Cocos nucifera Beccari or coconut belongs to the palm family , Arecaceae (=palmaceae) which consists of 200 genera and over 2.000 described species (child1974). According to Woodroof (1970) the term coconut is derived from the Spanish and Portuguese word , ―coco‖ which means ―monkey / grotesque face‖ but the plant is know in many countries by local names . For example, it has been know as ―man‖s most useful tree‖ , ―king of the tropical forest‖, ―tree of life‖ , ― tree of heaven‖ and lazyman‘s crop , inter alia. (Woodroof,1970).

44. B.K.Gadhavi, K.A.Khunt and H.M.Gajipara, ―Price Behaviour of Coconut in Saurashtra Region of Gujarat State‖ Journal of plantation crops, Vol 29, No.2. August, 2001, P.60. 45. B.B.Singh, R.K.P.Singh and R.N.Yadav ―A Study on Marketing of Chillier in District Begusarai, Bihar‖, Encyclopedia of Agricultural Marketing, Edited by Jagdish Prasad, Mittal Publications, Vol.7, New Delhi, 2001, PP.234-237. Coconut varieties fall under two broad groups, Tall or typical and Dwarf or nana. Tall and Dwarf coconut types may hybridize to produce intermediate forms (Woodroof 1970, child 1974 ). The tall variety has greater genetic variability as it is usually cross pollinated. The coconut plant is monoecious , producing both male and female flowers. The male flowers are located distally while the female flowers are found proximally on each inflorescence. The type of pollination is determined by the relative maturation times of the male and female flowers.In the Tall varieties the male flowers open before the female flowers, hindering self pollination while, an overlap of the opening phases of male and female flowers in Dwarf plants allows for self pollination and greater tendency toward homozygosity . Coconuts are also named after areas where they grown long enough to have developed distinctive characteristics ,e.g., Panama Tall, West African Tall and Malayan Dwarf (Woodroof 1970, Child 1974 ). Mayapan varirty is a hybrid of the Malayan Dwarf and Panama Tall varieties (Coconut Industry Board [ Jamaica],1973).

The traditional commercial coconuts were the Tall varieties which were preferred above the Dwarf varieties which were preferred above the Dwarfvarieties because of the quality and quantity of copra they produce (Woodroof 1970 ). They normally live for over 60 years, are adaptable to a wide range of soil conditions, fairly resistant to diseases and water stress, and start to bear within six to ten years. The Dwarf varieties come into within three to four years, attain full production by the ninth year and have a life span of about 30 to 40 years . While they show greater susceptibility to some diseases, the Dwarf varieties exhibit greater resistance than the Talls to some viral diseases, including lethal yellowing (Woodroof 1970, Child 1974). Each coconut inflorescence emerges from the base of a leaf and is approximately 120 around from the previous one. After fertilization of the female flowers, each inflorescence is in direct contact with the spikelet remnants of an older bunch ( Hall 1981, Moore and Alexander 1987).

The native habitat for the coconut palm is unknown because coconut is dispersed by water, although human activity could be credited for much of its dispersal (Child 1974). Of all the cultivated trees in the world, the coconut palam has the widest geographical range (Ghai and Wadhi 1983). Ninety percent of the world‘s coconut acreage lies within 20o S of the Equator (Woodroof 1970, Persley 1992). The coconut is best grown within 600 ft .above sea level, with over 1,250 mm rainfall or a high water table on a rich silty loam . Coconut was introduced into the West Indies at the beginning of the 20th Century (Woodroof 1970 , child 1974).The main variety was the panama Tall found in Guyana , Jamaica , St . Lucia , Venezuela , Trinidad and Tobago . There was also the drwarf variety , with its Yellow , Red (golden) , and Green colour morphs (Griffith 1982 a).

2.6 SOCIAL AND ECONOMIC IMPORTANCE OF COCONUT The coconut palm and its fruit are regarded as the most important plant to humans around the world (Child 1974 ). Among its mst important uses coconut is a food source , provides supplement for body fluids and minerals, and acts as an antihelminthic. The liquid endosperm is also a media for in vitro storage of semen and a growth regulator of plants (Woodroof 1970). Copra , the dehydrated endsperm of the nut , is next to soybean as a source of oil for food . Coconut oil is also used in cosmetics and pharmaceuticals. The material that remains after oil is expressed from copra is called oilcake and is used as animal feed (Woodroof 1970) . Coconut shell is used directly as fuel, filler , extender in the synthsis of plastic , to make activated charcoal, household articles, and to produce various distillation products , such as tar, woodspirit and pitch. Coir , a course fiber from the husk of the nut, has various domestic and industrial uses . Coconut root is brewed and in folk medicine , for example , as a cure for dysentery (Woodroof 1970).

Coconut oil is produced by crushing copra, the dried kernel , which contains about 60-65 % of the oil. The oil has the natural sweet taste of coconut and contains 92 % of the oil . The oil has the natural sweet taste of coconut and contains 92 % of saturated fatty acids (in the from of triglycerides), most of them (about 70% ) are lower chain saturated fatty acids known as medium chain fatty acids (MCFAS).

The review covers the production of coconut oil, its uses coconut oil is consumed in tropical countries for thousands of years. The studies done on native diets high in coconut oil consumption show that the population is generally in good health.

2.7 INTERNATIONAL STUDIES ON COCONUT MARKETING Coconut oil has a long shelf and is used in baking industries, processed foods , infant formula, pharmaceuticals, cosmetics as hair oil. Chemistry, MCT and its applications taking a holistic approach on the good and bad effects of coconut oil reported in the literature.

Coconuts play a unique role in the diets of mankind bcause they are the source of important physiologically functional components. These physiologically functional components are found in the extracted coconut oil. Lauric acid , for the unque properties that it lends to nonfood uses in the soaps and cosmatics industry . More recently , lauric acid has been recognized for its unique properties in food use, which are related to its antiviral , antibacterial , and antiprotozoal functions. Now, capric acid, another of coconut‘s fatty acids has been added to the list of coconut‘s antimicrobial components. These fatty acids are found in the largest amounts only in traditional lauric fats , especially from coconut .Also , recently published research has shown hat natural coconut fat in the diet leads to a normalization of body lipids , protects against alcohol damage to the liver , and improves the immune system‘s anti-inflammatory response. Clearly , there has been increasing recognition of health – supporting functions of the fatty acids found in coconut . Recent reports from the U.S. Food and Drug Administration about required labeling of the trans fatty acids will put coconut oil in a more competitive position and may help return to its use by the baking and snack food industry where it has continued to be recognized for its functionality . Now it can be recognized for anther kind of functionality , the improvement of the health of mankind.

The research over four decades concerning coconut oil in the diet and heart disease is quite clear .coconut oil has been shown to be beneficial.This research leads us to ask the question, ―should coconut oil be used to both prevent and treat coronary heart disease ?‖ This statement is based on several reviews of the scientific literature concerning the feeding of coconut oil to jumans. Blackburn et al (1988) have reviewed the published literature of ― coconut oil‘s effect on serum cholesterol and atherogenesis‖ and have concluded that when ―…[coconut oil is ] fed physiologically with other fats or adequately supplemented with linoleic acid , coconut oil is a neutral fat in terms of antherogenicity‖. After reviewing this same literature ,kurup and Rajmohan (1995) conducted a study on 64 volunteers and found‖ … no statistically significant alteration in the serum total cholesterol, HDL cholesterol, LDL cholesterol, HDL cholesterol / total cholesterol ratio and LDL cholesterol /HDL cholesterol ratio of triglycerides from the baseline values…‖ A beneficial effect of adding the coconut kernel to the diet was noted by these researchers.

Kaunitz and Dayrit (1992) have reviewed some of the epidemiological and experimental data regarding coconut – eating groups and noted that the ―available population studies show that dietary coconut oil does not lead to high serum cholesterol nor to high coronary heart disease mortality or morbidity‖ they noted that in 1989 Mendis et al reported undesirable lipid changes when young adult Sri Lankan males were changed from their normal disets by the substitution ofcorn oil for their customary coconut oil.

Mendis and Kumarasunderam (1990) also compares the effect of coconut oil and soy oil in normolipidemic young males, and again the coconut oil resulted in an increase in the HDL cholesterol, whereas the say reduced this desirable lipoprotein.

As noted above , Kurup and Rajmohan (1995) , who studied the addition of coconut oil alone previously mix fat diets, had reported no significant difference from baseline .

Previously, Prior et al (1981) had shown that islanders with high intakes of coconut oil showed ―no evidence of the high saturated fat intake having a harmful effect in these populations‖ When these groups migrated to new Zealand, however , and lowered their intake of coconut oil, their total cholesterol and LDL cholesterol increased , and their HDL cholesterol decreased statement that any saturated fat is a dietary problem are not supported by evidence (Enig 1993).

Studies that allegedly showed a ―hypercholesterolemia‖ effect of coconut oil feeding , usually only showed that coconut oil was not as effective at lowering the serum cholesterol as was the more unsaturated fat to which coconut oil was being compared. This appears to be in part because coconut oil does not ―drive‖ cholesterol into the tissues as does the more polyunsaturated fats . The chemical esters are 74% unsaturated (41 % of the total fatty acids is polyunsaturated ) and only 24 % are saturated .None of the saturated fatty acids were reported to be lauric acid or myristic acid (Felton et al 1994).

In spite of what has been said over the past four or more decades about the culpability of the saturated fatty acids in heart disease, they are ultimately going to be held blameless. More and more research is showing the problem to be related to oxidized products .One protection man has against oxidized products is the naturally saturated fats such as coconut oil.

2.8 INDIAN STUDIES ON COCONUT MARKETING According to K.Rajkumar et al ., (2009) Coconut is a naturally abundant material and on strictly speaking there is no part of it treated as useless. From the sweet core to the small coir pith is used in number of applications.

The 141st report of Department – related parliamentary standing committee on industry (2003) pointed out the problems faced by the farmers growing coconut in West Bengal that there is no system for collection of coconut husks from onsumers of coconuts in the state. Only coconut traders and goladars (stokiest) are the sources of husks as they collect coconuts from primary agricultural markets of different districts, remove coconut for onward disposal to their clients and keep the husks for selling to the processors.

In most of the districts there is no existence of such traders (stockiest) and so there is no adequate machinery to get husks for processing though husks are available in these districts and are mostly wasted by using as fuel. With the development of coir industries in the state in future and with consequent increase of the demand of husks , the system of collection of husks may develop and supply of husk may increase for processing purpose and accordingly may also increase the supply of husk for processing purpose.

The work carriedout by Ponciano S. Intal Jr.and Luis Osman Ranit (2001) highlighted that a fragmented agricultural economy has important negative welfare effects on the country . First , as the Congressional Commission on Agricultyral Modernization (congress of the Philippines, 1997, p.72) noted , ―marketing inefficiencies result in farmers‘ getting low prices for their produce and consumers‘ paying more than the fair price‖.Second , un expected large harvests leave farmers with much lower farm prices in a fragmented economy than in a well- functioning distribution system . Third , unexpected demand surges end up in increased imports rather than increased sales by domestic farmers. Fourth, an inefficient distripution system leads to additional pressure for agriculture protection in order for the domestic products to be able to compete with imports in greater Manila, the country‘s largest net deficit food market.And finally, the resulting high food prices lead to demands for higher wages.

Ravi(1975) examined the marketing of coconut and copra in Arasikere and Tiptur regulated markets of Karnataka. He reported that 66.20 per cent of the producers disposed their produce through village merchants, 16.20 per cent directly to wholesalers in village mandies and remaining 10.8 per cent of the produce sold through more than one channel.

Thimmappa (1981) has reported a positive relationship between social participation and adoption behavior of farmers with respect to coconut cultivation.

MCFAS are not to different vegetable oils with lauric acid at 45- 56 % . Various fractions of coconut oil have medium chain triglycerides and are excellent solvent for flavoours, essences, emulsifiers etc. These fatty acids are used in the preparation of emulsifiers , as drugs and also in cosmetics .Its metabolism is different from that of the normal vegetable oils containing iong chain fatty acids. Hence, it cannot be generalized as oil similar in properties to that a 92% long chain saturated fatty acids containing oil / fat .More studies ar required to prove the good effects of coconut oil , medium chain triglycerides (MCT)and the fatty acids on humans especially on the ill effects on cardiovascular and other diseases. The review covers the production of coconut oil ;its coconut oil is consumed in tropical countries for thousands of years . coconut oil has a long shelf life and is used in baking industries, processed foods. Infant formulae, pharmaceuticals, cosmetics and as hair oil. More and more research is showing the problem to be related to oxidized products. One protection man has against oxidized products is the naturally saturated fats such as coconut oil.

In most of the districts there is no existence of such traders (stockiest ) and so there is no adequate machinery to git husks for processing though husks are available in this districts and are mostly wasted by using as fuel. With the development of coir industries in the state in future and with consequent increase of the demand of husks , the system of collection of husks may develop and supply of husk may increase for processing purpose and accordingly may also increase the supply of husk for processing purpose.

The work carried out by Ponciano S.Intal Jr.and Luis Osman Ranit (2001) highlighted that A fragmented agricultural economy has important negative welfare effects on the country . First , as the Congressional Commission on Agricultural Modernization (Congress of the Philippines, 1997, p.72) noted, ―marketing inefficiencies result in farmers‘ getting low prices for their produce and consumers‘ paying more than the fair price‖ Second, unexpected large harvests leave farmers with much lower farm prices in a fragmented economy than in a well- functioning distribution system. Third ,unexpected demand surges end up in increased imports rather than increased sales by domestic farmers. Fourth , an inefficient distribution system leads to additional pressure for agriculture protection in order for the domestic producers to be able to compete with imports in greater Manila, the country‘s largest net deficit food market. And finally , the resulting high food prices lead to demands for higher wages. Ravi (1975) examined the marketing of coconut and copra in Arasikere and Tiptur regulated markets of Karnataka. He reported that 66.20 per cent of the producers disposed their produce through village merchants, 16.20 per cent through commission agents , 6.8 per cent directly to wholesalers in village mandies and remaining 10.8 per cent of the produce sold through more than one channel.

This chapter has covered a review of relevant literature regarding the problems and prospects of marketing of coconuts. This chapter began with reviews of the Empirical studies on problems and prospects of cultivating and marketing coconut .This chapter dealt with the studies carried out by the researchers in the world as well as in india pertaining to coconut marketing problems faced by the farmers. This chapter also identified that price and storage related issues involved in the coconut marketing.

CHAPTER-III PROFILE OF THE STUDY AREA 3.1 INTRODUCTION This chapter consists of the profile of the study area. It explains Location and Geographical Details, Population, Education ,Agricultural ,important places, the overall infrastructure, soil, tenancy, and administrative units of Thanjavur district.

3.2 THANJAVUR DISTRICT The Rice Bowl of Tamilnadu , The land of big Temple and other exquisitr temples , the Cradle of Art and Culture, Thanjavur district has many such distinctions. It is known for its cultural excellence and agricultural Prominence.

3.2.1 Location and Geographical details The District lies between 90 50‘ 110 25‘ northern and 790 50‘ of eastern longitude . It has a geographical area of 3396.57 sq.Kms. It is bound on the north by and perambalur District, on the west by Trichirappali District, on the south by District and on the east by Nagappattinam and Thanjavur District and . The District is essentially a deltaic terrain and greater part of it consists of an undulating plain bisected by the valley of Cauvery. The climate of the district is basically tropical and the district falls under the category of medium and high rainfall region with annual average rainfall of 1021 mm. Major part of precipitation is reeived through North East Monsoon (October early December). The soils in the district range from the alluvial in Cauvery Delta to sandy in coastal areas.

3.2.2 Population density of Thanjavur District The total population of the district as per 2001 Census is 22.05 lac and the decennial growth rate is 11.48% .The population density is 605 / km2, which is higher than the state average of 371/km2. The incidence of Scheduled Caste / Tribe Population is 3.57 Lacs. Out of the total working population , agricultural laborers constitute the largest group ie 3.23 lacs, followed by cultivator‘s ie 1.90 lacs indicating excessive occupational dependence on agriculture.

3.2.3 Education Thanjavur has the prestigious . The Govt Medical College and other hospital have brought advanced and comprehensive medical care to the people .It has also many engineering colleges, polytechnics, Industrial Training Institutes, Art and Sciences colleges and has specialized training and research institutions like Co-operative Training Institute , Teacher Training College , College of Art and Crafts Music College , Rural Extension training Cener ,Rice Research Center , Coconut Research Center ,etc.It will not be completed without mention of the famous Tanjore Maharaja Sarfoji‘s Saraswathy Mahal Library which is one of the few medieval libraries that exist in the world .It is an unbounded repository of culture and inexhaustible treasure house of knowledge.

3.2.4 Agriculture Thanjavur District is the rice bowl of Tamil Nadu. As a result, most of the people in Thanjavur District are farmers. Many of these Farmers are tenant farmers, who work the lands of a landlord and pay rent for their property. The district is essentially a deltaic terrain and greater part of it consists of an undulating plain bisected by the valley of Cauvery. The climate of the district is basically tropical and the district falls under the category of medium and high rainfall region with annual average rain fall 1021 mm . Major part of precipitation is received through North East Monsoon (October to early December ).The soils in the district range from the alluvial in Cauvery Delta to sandy soils are coastal areas.

3.2.5 Importance Places Thanjavur is home to the famous Brahadeeshwara Temple which was built by Raja Raja chola during the 11th century. The Brahadeeshwara Temple also known as the big temple which is one of UNESCO world Heritage sites. The temple is enclosed in two courts surmounted by a lofty tower and including the exquisitely decorated shrine of subrahmanya.Among the other historic buildings is the vijiayanagar fort, which contains a palace that was expanded by the Maratha king Serfoji II with an armory, a Bell Towers and the , which contains over 30.000 Indian and European manuscripts written on palm leaf and paper.

3.2.6 Economy Thanjavur economy is predominantly agrarian with about 75 % of work depending on agriculture .Paddy is the principal crop which accounts for major portion of cropped area and the other crops are Sugarcane, Banana, Pulses and Oil- seeds.

The major sources of irrigation are the canals (96%) .Cauvery, Vennar and G.A Canal contribute to the irrigation of the district. The Grant Anaicut built by king Kariakal chola (50 AD-95 AD) testifies to the skill of south Indians in harnessing rivers for irrigation. The operational is 1.03 ha. The preponderance of smaller holding, large number of tenant cultivators and temple lands resulted in low productivity of paddy in the district. According to District Industries Center, The district has gort 8723 SSI units, 9 medium and large scale units , 5187 cottage infustries and 7805 handicrafts units. Thanjavur is famous for its traditional handicrafts such a Thanjavur art plates, Icon works, pith works, musical instruments, Thanjavur paintings besides weaving (lead Bank (I.O.B.) Report, 2002 -2003).

3.2.7 Art and Culture The Big Temple constructed by king Raja Raja chola is a standing monument of ancient architecture.The striking features are huge Nandi carved out of a single piece of rock and the hollow construction of over the sanctum.The manimandapam and Tholkappier Tower construcuted on the eve of Eighth world Tamil Conference arealso worth o be seen.The District has many holy temples and especially, is dotted with temples in and around and the famous Mahamham Tank.

The Trinities of Music namely saint Thiyagarajar , Muthuswamy Dikshither and Shyama Sastri contributed richly to the glory of . Pandanallur and Vazhuvur schools of Bharata Natya are known for their distinctive styles. Bhagavatha Melas celebrated on the eve of Narasimho jayanthi at Melattur and Saliamanagalam and associated with traditional dance and drama events .The South Art & Culture Center at Thanjavur promotes various culture activities and folk arts in the district.

3.2.8 Transportation Infrastructure Thanjavur is one of the main Railways Junctions of southern Railway .It is connected with (popularly called as mainline) .It is also connected with Nagore in East and Tiruchirappalli in the west.

3.2.9 Thanjavur Municipality Thanjavur Municipality is one of the oldest Municipalities in Tamilnadu which was formed in the year 1866 (9.5.1866) during the British regime.Since 9.5.1983 it is a special Grade Municipality in Tamilnadu .The Thanjavur District consists of 3 Municipalities , namely ,1. Thanjavur , 2. Kumbakonam and pattukkottai .This is the biggest municipality in thanjavur District and is placed in the district head quarter area. Heance all the Government offices are situated in the Thanjavur town ( Source Thanjavur MunicipalOffice).

Thanjavur District is essentially a deltaic plain comprising of old and new delta. The old delta has a net work of canals and channels of the river Cauvery and Vennar. Upperportion of this new delta area is irrigated by Grant Anaicut canal. Tapping of ground water is done considerably in this area to advance the first cropping season Kuruvai to avoid damage due to North East monsoon and to accommodate the two crops namely kuruvai and Thaladi.

The soil of new deltaic area are amenable to wide variety of crops such as Coconut Mango , Guaua, Cotton , Gingelly , Groundnut ,Banana etc.cultivation of oil palm and Soyabean is also carried out in this district wherever assured water supply and drainage facilities are available. The major crops cultivation in Thanjavur district are Paddy , Pulses , Gingelly , Groundnut and Sugercane .The minor crops like Maize soyabeans ,Redgram are also grown .Paddy is the prin cipal crop grown in three seasons viz. Kuruvai, Samba and Thaladi . Pulses like Black gram, Green gram and cash crops like Cotton and Gingelly are grown in rice fallows.

In new delta area, the Groundnut is the principal crop Sugarcane is cultivated both in new delta and old delta .Bananais primarily grown in padugai lands.

3.2.10 Irrigation The presence of the river Cauvery and numerous irrigation projects that have been carried out even from days of chola kings can beconsidered as the best irrigation system in Tamil Nadu .Especially in arenaceous soil tracts in Pattukkottai , Provision of irrigation has proved very useful .The necessity for irrigation was realized very early and irrigation syatems of the district are date back to days of .

Thanjavur today has one of the best irrigation systems in the State and ranks foremost in the area irrigated. Over 70 % of the gross cropped area is under irrigation systems from one source or the other .It would be obvious if one see the net area irrigated in the district, over 90 % of the net sown en joys the benefit of irrigation. The total area irrigated in Thanjavur district stood at 2,17,581 hectare during 1999-2000 .The chief sources of irrigation in the district are rivers , a few rainfed tanks , tubes wells and wells. These tanks and wells situared mostly in the upland regious Cauvery and Coleroon are the movst important rivers in the district and as these rivers, a few rained have their origin in the , they are fed by the southwest monsoon . Strictly speaking agriculture in the district is dependent on the river Cauvery as most of the irrigated area in the district derive water from Cauvery and its numerous branches.A bird‘s eye view of the course of the Cauvery in Thanjavur will show how and where it has been tapped efficiently for irrigation. Abourt 80% of the total net area irrigated is served by canals and these canals are fed by the river Cauvery.Thus Cauvery is the primary source of irrigation in the district .The Cauvery delta system in Thanjavur which comprises mainly three important project Viz., the Grand Anaicut , The Cauvery ,Vennar and Cauvery project.

The oldest and most significant among these three is Grand Anaicut and is reprted to have been constructed during the Sangam Age of Chola Period. This has been built at the junction of Cauvery and Coleroon about sixteen kilometers from Triuchirappalli at the lower end of island and is designed to regulate the water supply which comes down the Cauvery from the .When the supply exceeds the requirements of the delta channels , the gates of the Grand Anaicut are raised and the surplus water is passed down into the Coleroon where it proceeds down to the and it is again regulated and utilized for irrigation by means of other canals .The Grand Anaicut was first built by granite stones and mud with an outer layer of granite blocks in lime mortar .Its length is 1080 and breadth is 40‘ to 60‘ with a depth of 15‘ to 18‘ Later on , it has undergone num berous improvements. In 1806 , it was raised further and in 1830 it provided with sand scouring sluices .Some fifty years later , the stones were removed and replaced by lifting shutters in 1899 . The main purpose of this Anaicut was to check and control the waste water running into Coleroon.Sir Arthur Cotton, an able engineer , built a masonry wall at the head of the Coleroon in 1836 , in order to prevent silting up of Cauvery in the deltaic regaion by Coleroon so as to keep enough water in the main river Cauvery .After thfe Construction of the Upper Anaicut , Floods often threatened the Anaicut and then Occurred serious erosions on the banks of the Cauvery dam .In order to avoid the dander completely, Upper Anaicut was rebuilt in 1899 so as to provide passage flood water down the Coleroon in casas of emergency. Cauvery Vennar regulatorfs which are immediately below the Grand Anaicut divide the stream between rivers and control flow of water. Just below these small regulators are built in order to effect proper distribution of water among various branches of the river and other numerous irrigation channels .The Coleroon Anaicut was also the product of the mastermind of engineer Sir Arthur Cotton and was built in the order to irrigation the north eastern columns of the district , especially the Taluks of and which were not adequately covered by the Cavury system .This dam was extended remodeled and rebuilt on the same lines as the Upper Anaicut .A few major repair works for strengthening of the dam were undertaken early this century.

Channels of this Anaicut irrigated an area of 182953 Hectares in Thanjavur District.The Total area irrigated by the system (for the first crop alone ) to 1,50,943 hectares from 29, 866 acres under the second crop.

The idea to built a reservoir on the Cauver in order to irrigate the deltaic regions of the district was that of Sir Arthur Cotton whom the entire district will remember and owes ever. Numerous proposals were put forward and investigation carried on before and finally in 1910, Colonel W.M Ellis worked out practicable schemes, but there was disagreement between Tamilnadu and the Karnataka Governments of the question of sharing Cauvery water .At the end , it was due to the efforts of Dr .C.P.Ramasamy Iyer , the then member of the executive council, that an agreement was arrived at . According to this agreement , the scheme was to be executed subjected to certain conditions and most important of which were that both the states should built their own reservoirs and that the reservoirs at Mettur should be limited to a capacity of not exceeding 93000 million cubic feet that it should irrigate over 3,01,000 acres . Based on the conditions, Mettur reservoir or the Stanely Reservoir was Constructed. is the biggest dam in the State ,with a length measuring over 5300 and height 214 above the deepest foundations. The project has been designed to ensure steady supply of water irrigation to over a million acres already supported by the Cauvery delta system and to irrigate an additional area of about 3,00,000 acres in orathanadu, Pattukkottai , peravurani and Thanjavur Taluks. The utility of the scheme is manifold .by the storage of flood water in the reservoirs, the dam has made it possible to provide sufficient supply of water for agricultural purposes during the inter monsoon periods and also to safeguard cultivation against the unforeseen vagaries of nature .Even in times of drought, The project ensures even supply and distribution of available water. Apart from these , it also acts a barrier against onrush of Cauvery in all its fury during the north east monsoon period and causing serious damage to crops and lands.

During the last decade, the agriculturists of the district suffered a heavy damage to crops for want of timely and sufficient supply of water from Cauvery. Due pressure from the .Union Government has a tribunal on the Cauvery water between Karnataka and Tamil Nadu.

Total food and non –food crop 2,17,581. It is noted that 59.8 % of the area falls under the net area sown. IT is also obvious that Land under forest is much below the state Avarage but this ecological imbalance has to some extent set aside by the land under miscellaneous tree crops and groves of 1.8% which is equal to the state percentage of 1.8.

3.2.11 Tenancy Most of the lands were under the control of big landlords in the preindependance days .After Independence introduction of Land ceiling Act and other Acts protecting the Interest of tenants, The size of holding of indiduals have been minimized .More than 80% of land were with small farmers and the average of the holding is less than 5 hectares.

3.2.12 Soil The geological formation of Thanjavur district is made up of cretaceous, Terti ary and Alluvial deposits and the major area is occupied by the Alluvia and Tertiary deposits.The cretaceous formations occur as a small patch in West and South – West of . These formations have a very thick lateritic cap consisting of impure lime stones and sand stones of silt, clay calcarious and agillaceous variety, in the coast , these formations are over lain by Cuddalore sand stone of tertiary age .

The Cuddalore sand stone of Tertiary age are well developed as best seen, West of Grant Anaicut and near Orathanadu .These sand stones are covered by a thin layer of wind brown sandy clays , Unconsolidated sand ,clay bound sands and mottled clays with the lignite seams . This tertiary formation is invariably capped by laterite.

In the east, the alluvial deposits of river Cauvery and its tributaries lie over the Tertiary sand stone. They consist of sands, gravelly sands, clays and sandy clays. The thickness of these formation ranges from 30Mt. to 400 Mt.

3.2.13 Rivers The river Cauvery and its tributaries are the most remarkable feature of Thanjavur District . Cauvery is considered to be the best of the river that drain the Southern Pennisula of India. The river flows from Karnataka state and passes through Dharmapuri Salem , Tiruchirappalli , Thanjavur , and Nagappatinam district covering a distance of about 770 Kms draining an area about 72.800 aq.Km in all Springing from a spot lying on Brahmagiri Mountains on western – ghats at a height of 1, 320 meters above sea level , Cauvery meandus its way across Karnataka and Tamilnadu and showering not only economic prosperity of millions of people but also carving a riche itself in their lives in historical , culture religious realms.

Emerging as a small rivulet from the Co org mountains the river Cauvery expands rapidly increasing in volume , as hundreds of streams and rivulet merge with it which are mostly fed on the heavy rainfall of the south – West monsoon . After Sivasamudram Falls in Mysore , The Cauvery again forms beautiful water falls at Hoganekal in Dharamapuri District.

The three tributaries , palar ,Chennar and Toper enter into the Cauvery on her course , above Mettur , where the famous dam has been constructed . the Mettur dam Joins the Sita and Pala Mountains beyond that Valley through which the Cauvery flow, up to the Grand Amicus. The dam in Mettur, impounds water not only for the improvement of irrigation but also to ensure the regular and sufficient of water to the important Hydro-Electric where river Bhavani Noyyal and Amravati join it before it reaches Thiruchirappalli district. Here the river becomes wide, with a sandy bed and flows in an easterly direction till spilts into two at upper Anaicut about 14 kilometers west Tiruchirappalli .The northern branch of river is called the Celeron while the southern branch retains the same name Cauvery and then goes directly eastwards into Thanjavur District. These two rivers join again and from the near Tiruchirappali.

The Chola king, ―Karikalan‖ has been immortalized as he has constructed the bank for the Cauvery all the way from puhar (Kaveripoompattinam) to Srirangam .It was built as far back as 1,600 years ago or even more. On both sides of the river are found walls spreading to a distance of 1,080 feet .the dm kallanai on the border between Tiruchirappalli and Thanjavur constructed by him is a superb work of engineering, which was constructed with earth and stone and has stood the vagaries of nature for hundereds of years. In 19th century, it was renovated in a bigger scale. The name of the historical dam has since been changed to ―Grand Anaicut‖ and stands as the head of great irrigation system in the Thanjavur district .from this point , the coleroon runs north – east and discharge herself into the sea at Devakottai , a little south of Parangipettai .From river Coleroon , Manniar and Uppanai Branch of at lower Anaicut and irrigates a portion of Mayiladuthurai Taluk and Sirkazhi Taulk .After Grand Anaicut , The Cauvery divides into numerous branches and cover the whole of the delta with a vast network of irrigation channels and gets lost in the wide expanse of paddy fields . The mighty Cauvery river here is reduced to an insignificant channel and falls into the Bay of Bengal at the historical place of Poompuhar (Kaveripoompatinam ) about 13 kms north of Tharangampadi .The river Cauvery Flows the entire district in different names through its tributaries and branches viz., Grand Anaicut canal Vennar , Pannaiyar, Koraiyar, Vettar, Kodamuritiyar, Thirumalarajanar, Arasalar, Veerasozhanar, Mudikondan, Noolar, Vanjiar, Vikaraman, Nattar, Kirtimanar, Nandalar, Majalar,Majalar, Mahimalayar, Palavar, Cholasudamani, Puthar, Valappar, Vadavar, Pamaniar, Mulliyar, Ayyanar, Adappar, Harichandranathi, Vellaiyar, Pandavaiyar, Odambogiyar, Kattar, Kaduvaiyar and all these branch off into a number of small streams.

Among the various names by which the holy Cauvery is know during its course, the most popular in Tamil Nadu is ―Mother Cauvery‖ due to the high sanctity attached to it. It is worshipped by the people irrespective of caste , creed or religion during Maha Magam festival celebrated at Kumbakonam once in 12 years . The Pilgrims after a bath in Mahamagam tank proceed for a holy dip in Cauvery which is bellied to purge of all sins. In the Tamil month of Adi (july – August ) on the 18th day, (adi – Perukku), The people throng the bank of the river for the holy bath and pray the mother Cauvery for their prosperity .In the Tamil month of Aypasi (October - November) thousands of devotees participate in a festival called ―kudamuzhukku‖ celebrated on the banks of the river Cauvery and its tributaries have also arned fame as either sacred religious centers or beautiful scenery spots, providing the much needed respite and mental solace to urbanities.

3.2.14 Rainfall and climate The climate of Thanjavur can be termed as a fairly healthy one like other coastal areas. November, December, January and February are the pleasant months in a year with climate full of warm days and cool nights. From March onwards, the climate rather becomes sultry and he mercury shoots and reaches its peak by the end of May and June depending upon the set of summer rain .The north –East monsoon in October brings complete relief .the south –West monsoon sets in June and continues till September. The rainfall during this period in much lowers than that of North –East monsoon which relief. The South – West monsoon sets in October and continues more or less till February (Up to winter). However Thanjavur District is benefited more by North – East monsoon because of its heavy rainfall and the Western Ghats invariably feeds the Cauvery and helps greatly for the vast cultivation of the deltaic area.

3.2.15 Administrative Units In TamilNadu there are 32 district, 215 sub- districts, 1097 towns and 15979 villages as per Census – 2011 .the corresponding figures for Census 2001 were 30 district, 201 sub – districts, 832 Towns and 16,317 Villages, There is an increase of 2 districts, 14 sub-districts, and 265 Towns (all Census Towns) In respect of village the number has come down from 16317 to 15979.

There were 16,317 revenue villages in 2001 Census and as per 2011 census the number is 15979 of 16317 revenue villages, 295 revenue village falls. Under the newly categorized 271 Census Towns, 96 villages were accommodated in 67 revenue village (which includes 6 declassified CTs). 14 villages are identified as out growths for 2011 Census (16,317-295-96- 14+67=15,979).

3.2.16 Population of Tamilnadu Tamil Nadu returned a total population of 7, 21, 38,958(provisional) in 2011 census. Of this, the rural population stands at 37.19 million and the urban population 34.95 million. In absolute numbers, the rural population has increased by 2.27 million and the urban population by 7.47 million in the last decade. 3.2.17 Population of Thanjavur as per census, 2011 In 2011, thanjavur had population of 2,402,781 of which male and female were 1,183,112 and 1,219,669 respectively. There was change of 8.42 percent in the population compared to population as per 2001. In the previous census of 7.91 percent to its population compared to 1991. The initial provisional data suggest a density of 691 in 2011 compared to 638 of 2001. Total area under thanjavur district is of about 3,476 sq.km.

Average literacy rate of thanjavur in 2011 were 82.72 compared to 75.45 of 2001. Of things are looked out at gender wise, male and female literacy were 89.06 and 76.61 respectively. For 2001 census, same figures stood at 84.47 and 66.70 in Thanjavur District. Total literate in Thanjavur District were 1,802,291 of which male and female were 951,803 and 850,488 respectively. In 2001, Thanjavur District had 1,476,256 in its total region.

With regards to sex Ratio in Thanjavur, it stood at 1031 per 1000 male compared to 2001 census figure of 20011. The average national sex ratio in India is 940 as per latest reports of census 2011 Directorate. In census enumeration, data regarding child under 0-6 age were also collected for all districts including Thanjavur.

Sarabondrarajanpattinam, is an example of Architecture of Marattas . It was built in 1814 to commemorate the victory of the British over Nepolean Bonapart in war of Waterloo. Pattukkottai is the birthplace of eminent and profound personalities like former president Mr. R. Venkataraman, famous poet Pattukkottai Kalayansundaram.

Other places of tourist interest in and around the town include the shrine of sheik Alauddin Sahib, Goddness Naiamman Temple, and shirne of Venkidu Subbiah Swamigal, Arulmigu Thurgai Amman temple and Gandhi Park. Nearest airport is at Tiruchirappalli. Pattukkottai Railway station is on the Karaikkudi. Tiruturaipundi line pattukkotai municipality was upgraded as selection grade in 1984.

3.3 SOCIO ECONOMIC CHARACTERISTICS OF FARMERS IN TAMILNADU Tamil Nadu, the southernmost state of the Indian peninsula is, spread over 1.30,058,sq.km; it lies between 80 5‖ to 130 35‖ N and 760 15‖ to 800 20‖ E and accounts for about 4 percent of the total area of the country. The topography of Tamil Nadu broadly consists of the coastal plains in the east; uplands and hills as one proceeds westwards; the plains account for more than half the ar5ea of state.

Tamil Nadu has number or rivers that are relatively small and perennial. Barring the hills, the climate of Tamil Nadu can be classified as semi-arid tropic monsoonic. The maximum temperature in the plains about 450C in the summer and the minimum goes to about 100C during the winter; the normal rainfall in the state is about 950mm with an average number of 50 rainy days.

Analyzing the land use pattern of the state, it is found that 43% of Tamil Nadu geographical area is under agriculture with a per capita figure of 0.0982 ha. Of agriculture land, while agriculture and allied sectors account for nearly 62% of the total employment of the state, their contribution to economic is only 22% in order to increase the productivity we have relied too much on improved crop varieties, fertilizers and pesticides. The residues of these have affected soil structure and polluted the water through leaching. India is the leader in fruit production in the world.

The horticulture and plantation crops occupy total of 7, 53, 985 ha. of area. However, there is need to improve the productivity of these crops on sustainable basics without affecting in the world.

For the well being and prosperity of a country, atleast about one third of her geographical area should be under good forest cover. In Tamil nadu we have only 17.5% of the area under forest cover a sizeable area is under degraded of which condition.

3.4 INDIAN COCONUT MARKET The coconut palm (cocos nucifera linn.) is supposed to be one of the five legendary devavriskshas and is eulogized as kalpavriksha-the all giving tree- in Indian classics. All parts of the palm are used in some way or another in the daily life of the people of the west coast; the traditional coconut growing area. Its fruit is called lakshmi phai and is used in social and religious functions in India irrespective of whether palm is locally grown or not.

Coconut is growing in more than 86 countries worldwide with a total production of 54 billon nuts per annum. India occupies the premier position in the world with an annual production of 13 billion nuts, overtaking Indonesia and the Philippines, the other two prominent coconut-growing countries.

The coconut palm is a versatile tree crop ; no other tree crop grown can match coconut palm in its versatility .It provides nutritious food and a refreshing drink , oil for edible and non- edible uses , fiber of commercial value , shell for fuel and industrial uses, thatch , an alcoholic beverage , timber and a variety of miscellaneous products for use as domestic fuel .the palm is amenable to both plantation and homestead management and it can be either a major crop or a minor one in a homestead , of mixed crops. While responding favorably to scientific management , The palm also tolerates negligent farming to a certain extent , Thus it can adatpt to the divergent farming situation and management practices that are prevalent in the different agro – climatic regions.

The coconut palm exerts a profound influence on the rural economy of the many states where it is grown extensively and it provides sustenance to more than 10 million people the export earning derived by India from coconut are around Rs.3000 million , mainly through the export trade in coir and coir goods. The processing and related activities centered on the crop generate employment opportunities for over two million people in India. The contribution of coconut oil to the national edible pool is 6 % In addition; the crop contributes Rs.7000 Crores annually to the Gross Domestic Product (GDP). It is no Wonder coconut culture is spreading even to non – traditional bets that were, until recently, considered unsuitable for the purpose.

In India, coconut is cultivated mainly in the coastal tracts of Kerala, Tamil Nadu, Karnataka, Andra pradesh, Orissa, West Bengal, Pondicherry, and Maharashtra and in the islands of Lakshadweep, Andaman and Nicobar. Of late coconut cultivation has been introduced to suitable locations in non – traditional states including Assam, Gujarat, Madhya Pradesh, Rajasthan, Bihar, Tripura, Manipur, and Arunachala pradesh and in the hinterland regions of the coconut growing states. Kerala is the main coconut growing state with an area of 10.20 lakh hectares and production of 5911 million nuts, followed by Tamil Nadu (3.20 lakh hectres and 3716 million nuts). These four southern states together account for 90% of the total production in the country.

In productivity too, India ranks number one among other coconut growing countries in the world. The average productivity of coconut in the country is 6898 nuts per ha. Among the four major coconut growing states, TamilNadu has the highest productivity (11 620 muts /ha), Andhra Pradesh has a productivity of 8296 nuts /ha, followed by kerala (5793 nuts /ha) and Karnataka (5204 nuts /ha).

There are mainly two varieties of coconut; tall and dwarf. In addition, hybrids of various combinations have also evolved .The tall cultivar is extensively grown through out India, while the dwarf is grown mainly for parent material in hybrid seed production and for tender coconuts. The tall cultivar is generally grown along the west coast is called West Coast Tall, and the cultivar grown along the east coast is called East Coast Tall.

Benaulim is the tall variety grown in Goa and coastal Maharashtra, Laccadive Ordinary, Laccadive Micro, Tiptur Tall, Kappadam, Komadan and Andartian Ordinary are some of the tall varieties grown in the country and chowghat Dwarf Orange, Chowghat Dwarf Green, Malayan Yellow Dwarf and Malayan Orange Dwarf are some of the dwarf cultivars grown in India. Gangabondam is a dwarf type grown in ertain tracts of Andhra Pradesh. Many hybrid combinations of tall and dwarf cultivars that have evolved are also grown in the country. Coconut possesses the unique characteristic of allowing any crop combination in the inter – spaces. A well – spaced coconut garden provides adequate inter- spaces where it is possible to grow a variety of crops, both seasonal and perennial. When annuals or seasonal crops are grown in coconut holdings it is designated as inter – cropping; when perennials are grown it is called mix cropping .A combination of inter –crops and mixed crops raised together are referred to as a multi –stored cropping system.

In widely spaced gardens the shade from the coconut palms is not intense enough to prevent the growth of others crops. During the pre-bearing period, especially up to their year after planting, the entire area could be made use of because of the negligible shade effects. As the palms grow there is a progressive increase in the shade coverage produced by the crown for up to 20 years. Depending on the age of the palms and canopy coverage suitable crops, or a combination of crops, could be selected for growing in the gardens. The common inter-crops that could be grow during the pre- bearing or the early stages of the growth of the palms are pineapple, banana, groundnut, chilies, tapioca, sweat potato and other root crops. In additions, cocoa, pepper, cashew, fruit trees could be grown as mix crops.

Coconut crops are susceptible to various disease and pest attack. The major pests to coconut in India are rhinoceros beetle, red palm weevil, leaf- eating caterpillar and rats the major diseases are root wilt, Thanjavur with ganoderma, tatipaka, bud rot, leaf rot, stem bleeding and crown choking. Of these, root wilt, prevalent in kerala, is a century old disease. Effective control measures are yet to be developed for root wilt disease in kerala; Thanjavuur and tatipaka disease in Andhra Pradesh. However, the disease can be kept under control by adopting the recommend package of practices. Of the total production of coconut, about 5% is consumed in the tender from for drinking purpose. The rest is utilized as mature nuts for household and religious purpose and desiccated coconut. Coconut oil production in the country is nearly 4.5 lakh tones. Of this 40% is consumed for edible purpose, 46% for toiletry uses and 14% for industrial uses.

The emphasis given by the coconut development board to evolving technologies for the development of new value added products has yielded results and this product diversification and by-product utilization has recently gained momentum. Various research programmes, sponsored by the board through the existing research institution in the country, have led to the development of new technologies for the manufacture of coconut cream, spray dried coconut milk powder, preserved and packed tender coconut water and coconut water based vinegar. Commercial production units have started in various parts of the country with the technologies developed so far.

This chapter clearly deals with Thanjavur district profiles socio economic characteristics of farmers in Tamilnadu and also explains the explains the Indian coconut market.

CHAPTER-IV COCUNUT PRODUCTION AN OVERVIEW

4.1 COCONUT CULTIVATION IN INDIA Coconut is grown in most of the states and union territories in India. However there is district in the country. The major portion of coconut production is contributed by the four southern states namely Kerala, Karnataka, Tamil Nadu, and Andhra Pradesh. Orissa, Maharashtra, west Bengal and Andaman and Nicobar, Islands are the other traditional coconut growing states and union territory in the country. The coconut is also grown in some pockets in the central north and northeastern region of the country. The area under cultivation the production and productivity of coconut are always in upward trend.

4.4.1 Area under coconut cultivation in India: The average yield of coconut per hectare, the percentage increase or decrease trend values and compound growth rate are presented in Table 4.1.

Table 4.1 Area under coconut cultivation in India 2000-2001 to 2009-2010. Year Area (in ‗000) Increase/ Percentage of Trend value hectares Decrease Increase/ Decrease 2000-2001 1537.7 - - 1650.67 2001-2002 1635.1 97.4 6.33 1678.03 2002-2003 1713.8 78.7 4.81 1705.38 2003-2004 1850.9 137.1 8.00 1732.73 2004-2005 1890.8 39.9 2.16 1760.09 2005-2006 1861.0 -29.8 -1.58 1787.44 2006-2007 1754.5 -106.5 -5.72 1814.80 2007-2008 1777.7 23.2 1.32 1842.15 2008-2009 1823.9 46.2 2.60 1869.51 2009-2010 1892.3 68.4 3.75 1896.86 CGR 1.61

Source: 1. Coconut development Board, coconut statistics, Ministry of Agriculture, Government of India, Cochin, 2006 and 2010. 2. Indian coconut Journal, Vol. XXXIV., NO. 5. September, 2006, P.13. Note: CGR= Compared Growth Rate (%). It should be observed from table 4.1 that there was a steady expansion of land under coconut cultivation in India during the first five years of the study period. It could be seen that the area under coconut cultivation in India was the highest in 2009- 10 and the lowest in 2000-2001. The area under coconut cultivation has gone up from 1537.7 thousand hectares in 2000- 2001 to 1890.8 thousand hectares in 2004-2005. But the area of cultivation decreased in 2004- 2005 and 2006- 2007 and again it increased. Area under coconut cultivation in India was positive, the percentage of increase was negative during 2004- 2005 and 2006-2007. The compound growth rate of expansion of the land under coconut cultivation was 1.61 percent per annum.

4.4.2 Production of coconut in India: The production of coconut the percentage increase or decrease and the trend value are exhibited in Table 4.2.

Table 4.2 Production of coconut in India from 2000-2001 to 2009-2010. Year Production Increase/ Percentage of Trend (million Decrease Increase/ value nuts) Decrease 2000-2001 11240.9 - - 12217.33 2001-2002 11974.7 733.8 6.53 12292.00 2002-2003 13299.6 1324.9 11.06 12366.67 2003-2004 12952.3 -347.3 -2.61 12441.33 2004-2005 13061.0 108.7 0.84 12516.00 2005-2006 12717.3 -343.7 -2.63 12590.67 2006-2007 12535.9 -181.4 -1.43 12665.34 2007-2008 12251.6 -284.3 -2.27 12740.00 2008-2009 12678.4 426.8 3.48 12814.67 2009-2010 12821.7 143.3 1.13 12889.34 CGR 0.64

Source: 1. Coconut development Board, coconut statistics, Ministry of Agriculture, Government of India, Cochin, 2006 and 2010. 2. Indian coconut Journal, Vol. XXXIV., NO. 5. September, 2011, P.13. Note: CGR= Compound Growth Rate (%). Table 4.2 presents the fact that there was a steady expansion coconut of production during first three years of the study period in India. Table 4.2 also reveals the fact that the production of coconut ranged from 11240.9 million nuts in 2000-2001 to 13299.6 million nuts in 2002-2003 but the production decreased in 2005-2006 and in 2007-2008.

It is also observed from Table 4.2 that the production under coconut had gone down from 13299.6 million nuts in 2002-2003 owing to unfavorable climate conditions. There was a strong reduction in production between 2005-2006 and 2006-2007. It is also inferred from the table that the trend value for coconut production had in increased trend. The trend value increased from 12217.33 million nuts in 2000-2001to 12889.34 million nuts in 2009-2010. The compound growth rater was 0.64 per cent per annum.

4.4.3 Productivity of coconut in India: The average yield of coconut nuts, the percentage increase or decrease, trend values and compound growth rate per annum are presented in Table 4.3.

Table 4.3 Productivity of coconut in India from 2000-2001 To 2009-2010. Year Productivity Increase/ Percentage of Trend (nuts per Decrease Increase/ value hectares) Decrease 2000-2001 7310 - - 7384.87 2001-2002 7223 -87 -1.19 7318.74 2002-2003 7760 537 7.43 7252.61 2003-2004 7074 -686 -8.84 7186.49 2004-2005 6908 -166 -2.35 7120.36 2005-2006 6834 -74 -1.07 7054.23 2006-2007 7145 311 4.55 6988.10 2007-2008 6892 -253 -3.54 6921.98 2008-2009 6951 59 0.86 6855.85 2009-2010 6776 -175 -2.52 6789.72 CGR -0.92

Source: 1. Coconut development Board, coconut statistics, Ministry of Agriculture, Government of India, Cochin, 2006 and 2010. 2. Indian coconut Journal, Vol. XXXIV., NO. 5. September, 2011, P.13. Note: CGR= Compound Growth Rate (%).

It is inferred from Table 4.3 that the yield of coconut nuts per hectare had registered a fluctuating trend during the period under study. The table reveals that the productivity of coconut study. The table reveals that the productivity of coconut nuts per hectare ranged from 6834 nuts per hectare to 7760 nuts per hectare. The productivity of nuts per hectare increased from 7223 nuts per hectare in 2001-2002 to 7,760 nuts per hectare in 2002-2003, registering 7.43 percent increase in annual growth rate. The yield per hectare, which stood at 7760 nuts in 2002-2003, decreased to 7074 nuts in 2003-2004 resulting in a negative annual growth rate of 8.84 per cent when compared to that of 2002-2003.

The productivity of coconut output had a positive annual growth rate of 7.43, 7.55 and 0.86 percent respectively during 2003-2004, 2006-2007 and 2009-2010; It is also observed from the table that the annual growth rate of coconut productivity decreased by -1.19 per cent in 2001-2002, -8.84 per cent in 2003-2004, -2.23 per cent in 2004-2005, - 1.07 percent in 2005-2006, -3.54 per cent in 2007-2008 and -2.25 per cent in 2009-10. The trend value of productivity over the years was negative. The average compound growth rate was 0.92 per cent per annum.

COCONUT CULTIVATION IN SELECTED STATES OF INDIA: The India coconut is grown in 13 states in a total area of 1892.3 thousand hectares producing 12821.7 million nuts annually. Kerala, Tamil Nadu, Karnataka and Andhra Pradesh are the four major coconut growing states which together contribute 93 per cent of the India‘s area and 91 per cent of the production as per the Indian Coconut Journal in 2003. Though Tamil Nadu Occupies the second place in production by contributing nearly 3293.6 million nuts from 335.8 thousand hectares of land (2009-2010), the share of Tamil Nadu 26 per cent of the total production and 18per cent of the total area of coconut production in India. West Coast Tall (WCT), East Cost Tall (ECT), Chowghat Green Dwarf, Malayan Yellow Dwarf, Malayan orange Dwarf, Malaya Green Dwarf and VHC-1 varieties are cultivated in Tamil Nadu. Mostly the Tall varieties and Hybrid varieties are cultivated in Tamil Nadu. These varieties are cultivated for oil contents and million purpose.

4.4.4 Coconut Cultivation in Andhra Pradesh: Table 4.4 Presents the Area, Production and productivity of coconut in Andhra Pradesh for the study period. Table 4.4 Area, Production and productivity of coconut In Andhra Pradesh from 2000-2001 To 2009-2010. Year Area Production Productivity (hectares) (million (nuts per hectare) nuts) 2000-2001 71677 1081.762 15092

2001-2002 76531 1103.525 15007 2002-2003 75072 1181.400 15734 2003-2004 80785 1231.400 15243 2004-2005 80863 635.872 8482 2005-2006 95026 779.650 8205 2006-2007 89783 698.140 7776

2007-2008 97657 1049.500 10747 2008-2009 102645 1029.700 10646 2009-2010 104000 1129.100 10857 CGR 4.45 -1.087 -5.45

Source: 1. Coconut development Board, coconut statistics, Ministry of Agriculture, Government of India, Cochin, 2001 and 2010. 2. Indian coconut Journal, Vol. XXXIV., NO. 5. September, 2011, P.13. Note: CGR= Compound Growth Rate (%). It is observed from Table 4.4 that the area under coconut cultivation shows a important variation in the state Andhra Pradesh shows a important variation in the state Andhra Pradesh. Almost a constant growth is seen in all the aspects of coconut cultivation. The increase in the land under cultivation. The increase in the land under cultivation has increase in the land under cultivation has increased from 71,677 hectares in 2000-2001 to 1,04,000 hectares in 2009-2010 showing a compared growth rate of 4.45 per cent per annum which is higher than the Indian average.

The production had negative compared rate of -1.08 per cent per annum, which was also lower than the Indian average. The productivity also registered a decrease that the compound growth is -5.45 because of conductive climate conditions during these periods in Andhra Pradesh.

4.4.5 Coconut Cultivation in Kerala: The area, production and productivity of coconut in Kerala are shown in Table 4.5. Table 4.5 Area, production and productivity of coconut in Kerala from 2000-2001 TO 2009-2010. Year Area Production Productivity (hectares) (million nuts) (nuts per hectare) 2000-2001 877012 5124.000 5812 2001-2002 882263 5192.400 5885 2002-2003 910963 5336.000 5858 2003-2004 914370 5155.000 5638 2004-2005 902104 5276.478 5849 2005-2006 884344 5209.408 5891 2006-2007 882288 5132.000 5817 2007-2008 925035 5680.000 6140 2008-2009 925800 5536.000 5980 2009-2010 939500 5744.000 614 CGR 0.55 1.07 0.55

Source: Coconut development Board, coconut statistics, Ministry of Agriculture, Government of India, Cochin, 2006 and 2010. 1. Indian coconut Journal, Vol. XXXIV., NO. 5. September, 2011, P.13. Note: CGR= Compound Growth Rate (%).

It is deserved from Table 4.5 that there is an upward movement in area, production and productivity of coconut in Kerala, which had resulted in almost a constant productivity. The compound growth rate of the area is 0.55 which is very meager and the growth rate in production is 1.07 and the productivity is 0.55 which are more positive than the Indian average.

4.4.6 Coconut Cultivation in Maharashtra: The area, production and productivity of coconut in Maharashtra are show in Table 4.6. Table 4.6 Area, Production and productivity of coconut in Maharashtra from 2000-2001 TO 2009-2010. Year Area Production Productivity (hectares) (million nuts) (nuts per hectare) 2000-2001 7900 130.971 16578

2001-2002 7900 148.54 18803 2002-2003 8187 178.553 21809 2003-2004 8187 169.200 20667 2004-2005 15100 263.700 17464 2005-2006 15100 226.756 15017 2006-2007 15765 221.00 14018

2007-2008 15765 218.300 13847 2008-2009 16800 244.400 14548 2009-2010 16800 193.800 11536 CGR 11.06 5.39 -5.12 Source: 1. Coconut development Board, coconut statistics, Ministry of Agriculture, Government of India, Cochin, 2006 and 2010. 2. Indian coconut Journal, Vol. XXXIV., NO. 5. September, 2011, P.13. Note: CGR= Compound Growth Rate (%). It is observed from Table 4.6 that the area under coconut cultivation registered a low increase in first year and this was maintained subsequently for two year (79000). The compound growth rate was 11.06 per cent P.a. which was higher that of other states. The production of coconut also exhibited maximum similar trend and the compound growth rate was 5.39 per cent per annum. The compound growth rate was negative- 5.12 per cent per annum.

4.4.7 Coconut Cultivation in West Bengal: The area, production and productivity of coconut in West Bengal are presented in Table 4.7.

Table 4.7 Area, Production of productivity of coconut in West Bengal from 2000- 2001 To 2009-2010. Year Area Production Productivity (hectares) (million (nuts per hectare) nuts) 2000-2001 20349 285.066 14009

2001-2002 21159 310.342 14667 2002-2003 21553 274.426 12733 2003-2004 23111 279.375 12088 2004-2005 23662 313.055 13230 2005-2006 24500 339.485 13857 2006-2007 24870 345.736 13902

2007-2008 27710 384.781 13886 2008-2009 24500 330.500 13490 2009-2010 25600 331.600 12953 CGR 2.83 2.59 -0.24

Source: 1. Coconut development Board, coconut statistics, Ministry of Agriculture, Government of India, Cochin, 2006 and 2010. 2. Indian coconut Journal, Vol. XXXIV., NO. 5. September, 2011, P.13. Note: CGR= Compound Growth Rate (%). Table 4.7 shows that the area under coconut cultivation registered nominal increase every year and reached a maximum during 2007-2008 and the compound growth rate was 2.83 per cent per annum. The coconut production was flexible in every year and the compound growth rate was 2.59 which was higher than the area growth rate. The productivity was in negative growth rate- 0.24 per cent per annum.

4.4.8 Coconut Cultivation in Tamil Nadu: The area, production and productivity of coconut in Tamil Nadu are shown in Table in 4.8. Table 4.8 Area, Production and productivity of coconut in Tamil Nadu from 2000-2001 TO 2009-2010. Year Area Production Productivity (hectares) (million (nuts per hectare) nuts) 2000-2001 282109 3364.6 11926

2001-2002 272823 3311.4 12137 2002-2003 298588 4345.7 14554 2003-2004 322549 3257.6 10100 2004-2005 328020 3810.6 11617 2005-2006 351841 4356.8 12383 2006-2007 274877 3335.3 12134 2007-2008 304028 3222.0 10598 2008-2009 323500 3192.0 9867 2009-2010 335800 3293.6 9808 CGR 1.49 -1.045 -2.50

Source: 1. Coconut development Board, coconut statistics, Ministry of Agriculture, Government of India, Cochin, 2006 and 2010. 2. Indian coconut Journal, Vol. XXXIV., NO. 5. September, 2011, P.13. Note: CGR= Compound Growth Rate (%). Table 4.8Shows the area, production and productivity of coconut in Tamil Nadu during the period under study. The area under coconut cultivation had increased from 2,72,823 hectares exhibiting a compound growth rate of 1.49 per cent per annum. The production had changed over the period showing a compound growth rate of -1.04 per cent per annum. The productivity registered was very low but the period exhibited a compound rate of negative growth -2.50.

4.4.9 Tamil Nadu’s share in Area under Coconut Cultivation in India: Production of coconut in India and Tamil Nadu and the percentage of changes share over the previous years is given in Table 4.9.

Table 4.9 Tamil Nadu’s share in Area under coconut cultivation in India 2000-2001 TO 2009-2010 Year All India Area Area in Tamil Share of Tamil (‗000 Nadu (‗000 Nadu (In Hectares) Hectares) percent) 2000-2001 1537.7 282.109 18.35

2001-2002 1635.1 272.823 16.69 2002-2003 1713.8 298.588 17.42 2003-2004 1850.9 322.549 17.43 2004-2005 1890.8 328.020 17.35 2005-2006 1861.0 351.841 18.91 2006-2007 1754.5 274.877 15.67

2007-2008 1777.7 304.028 17.10 2008-2009 1823.9 323.500 17.74 2009-2010 1892.3 335.800 17.75 Sources: Complied from tables 4.8 and 4.9

It is observed from Table 4.9 that the per cent share of Tamil Nadu to the all India coconut area ranged between 15.67 per cent and 18.91 per cent during the period under study. The share of Tamil Nadu in all India products was the maximum of 18.91 per cent during the periods 2005-2006 and the minimum of 15.67 per cent during the period 2006-2007. Table 4.10 Area, production and productivity of coconut in Thanjavur 2000-2001 TO 2009-2010. Year Area Production Productivity (hectares) (lakhs nuts) (nuts per hectare)

2000-2001 7020 1536 21880

2001-2002 7686 1681 21871 2002-2003 8498 1890 22241 2003-2004 9053 1980 21871 2004-2005 9902 2166 21874 2005-2006 13465 889 6602 2006-2007 12437 2636 21195 2007-2008 12038 1692 16298 2008-2009 12888 2819 21873 2009-2010 13407 2933 21877 2000-2001 7.83 5.14 -1.17

Source: 1. ‘G’ Return of Madurai District from 2000-2001 TO 2005-2006. 2. ‘G’ Return of Theni District from 2006-2007 TO 2009-2010. 3. Coconut Development Board, Coconut statistics, Ministry of Agriculture Government of India. Cochin, 2011. Note: CGR = Compound Growth Rate (%). Table 4.10 shows that the area under coconut cultivation in Theni District has increased by two times, whereas production has no notable change during the period under review. In fact the productivity has touched an enviable position when compared to other districts in Tamil Nadu and other states in India. The growth rate of area, production and productivity of coconut were 7.83, 5.14 and – 1.71 per cent per annum respectively. 4.4.11 Share of Thanjavur District in Area under Coconut Cultivation of Tamil Nadu: The share of Thanjavur District in area under coconut cultivation of Tamil Nadu is presented in Table 4.11.

Table 4.11 Area of coconut in Tamil Nadu and Thanjavur Districts share from 2000-2001 TO 2009-2010. Year Taminadu Area Area in Share of (‗000 Hectares) Thanjavur Thanjavur District District(In (‗Hectares) percent)

2000-2001 282109 7020 2.49

2001-2002 272823 7686 2.82 2002-2003 298588 8498 2.85 2003-2004 322549 9053 2.81 2004-2005 328020 9902 3.02 2005-2006 351841 13465 3.83 2006-2007 274877 12437 4.52

2007-2008 304028 12038 3.96 2008-2009 323550 12888 3.98 2009-2010 335800 13407 3.99 Source: Compiled from Tables 4.9 and 4.11 1 ‘G’ Return of Thanjavur District from 2000-2001 TO 2005-2006. 2 ‘G’ Return of Thanjavur District from 2006-2007 TO 2009-2010. 3 Coconut Development Board, Coconut statistics, Ministry of Agriculture Government of India. Cochin, 2011. 4.4.12 Coconut Production in Tamil Nadu- Thanjavur Districts share: The position of coconut production in Tamil Nadu and the share of Thanjavur District are presented in Table 4.12.

Table 4.12 Production of coconut in Tamil Nadu and Thanjavur District’s share from 2000-2001 TO 2009-2010 Year Tamil Nadu Production in Share of Thanjvur Production (In Thanjavur District(In percent) Laksh nuts) District (In Laksh nuts) 2000-2001 33646 1536 4.57

2001-2002 33114 1681 5.08 2002-2003 43457 1890 4.35 2003-2004 32576 1980 6.08 2004-2005 38106 2166 5.68 2005-2006 43568 889 2.04 2006-2007 33353 2636 7.90

2007-2008 32220 1962 6.09 2008-2009 31920 2819 8.83 2009-2010 32936 2933 8.91 Source: Complied from Table s 4.9 and 4.11. 1 ‘G’ Return of Thanjavur District from 2000-2001 TO 2005-2006. 2 ‘G’ Return of Thanjavur District from 2006-2007 TO 2009-2010. 3 Coconut Development Board, Coconut statistics, Ministry of Agriculture Government of India. Cochin, 2011.

CHAPTER-V

MARKETING PRACTICES OF COCONUTS 5.1 Marketing of coconut 5.1.1 Marketing of coconut like that of any other horticultural commodities, notionally has two aspects i.e. the ‗marketing activity‘, in which sellers and buyers have mutual Coordination in each other‘s activities, where goods and services from producers move through certain channels by conscious application of marketing tools. The other aspect is the ‗marketing promotional activity‘, which comprises of gathering information, data, Compilation, analysis, interpretation of the data and passing the resulted valid Information to farmers, traders, business organizations and other concerned agencies to facilitate marketing functions. The tools used for market promotional activities are marketing research, advertising and effective coordination between producers and consumers. While marketing promotional activities play supporting and strengthening role to the marketing activity, however, the later requires professional and commercial skill.

5.1.2 Marketing of coconuts differs from that of other fresh fruits due to natural durability of coconuts, which are sold as fresh tender nuts as well as matured water nuts and dry nuts. Since coconut is mainly cultivated in Southern states viz., Kerala, Karnataka, Tamil Nadu and Andhra Pradesh and nominally in coastal area of Maharashtra, Goa, Gujarat, Orissa and West Bengal etc., the Marketing practices followed are more or less similar in nature. It has been observed that they do not differ much except where the post harvest practices change on account of the form of the coconut and coconut products consumed in that area. Indirect mode of disposal of coconuts as a strategy is more popular and widely adopted by coconut farmers. This indicates that channels, intermediaries play a major role in both assembling and equalization functions in marketing of coconuts. Coconut farmers who depend on direct channel are those who have comparatively better financial base than other categories of farmers, provided with infrastructure facilities and nearness

5.1.3 Coconut farmers have two channels for disposal of their coconuts. One is the direct channel and the other one, an indirect channel. Indirect channel is the most prominent channel adopted among coconut farmers. Direct channel is very simple while the indirect channel is very complex. Based on their mode of disposal of coconuts, four types of coconut farmers have been observed. They include lesser farmer, opportune farmers and farmer adopting mixed practices. Nearly half of the coconut farmers in general and two third of marginal and small farmers in particular have been observed adopting leasing as the mode of disposal of their coconuts. The financial crises especially the need for money to redeem prior debts and to meet domestic expenses are the prime reasons for leasing coconut trees. The marginal as well as big coconut farmers with sound financial position are free from any such forces compelling them to lease coconut trees. Adoption of mixed practice for disposal of coconuts is found common among big farmers. Location differences of the farm and differences in age and productivity of coconut trees are the reasons attributed for following mixed practices of marketing by farmers. Absence of lease holders, low productivity as well as poor protection to trees in the farm, seasonal harvesting etc. are some of the factors forcing coconut farmers to adopt mixed marketing practices.

5.1.4 Tender Coconut: The tender coconuts are disposed off by the farmers immediately after harvesting, without giving any kind of dressing or grading. It has been observed that tender coconuts Plate – 12 are manually sorted out at the time of retail sale, where the husk of the tender coconut is chopped off with a sharp sickle shape knife to make an opening of about 1 inch diameter to facilitate directly drinking of water. Dehus king of tender coconut is very difficult due to high moisture content of the husk and delicate nature of immature shell. The discarded nuts are cut into halves before being disposed off by natural degradation. Tender coconuts are sent to market within a day or two after harvesting as there is no practice of storage for Tender Coconut Sale longer period. The tender coconuts are kept in shed on the farm till they are lifted by the wholesaler and/or retailer. The wholesalers and retailers store the tender coconuts only for a few day or week, since, the interval between the harvesting and consumption does not exceed more than 10 to 15 days, even at the distant places of consumption. Moreover, prolonged storage makes the tender coconut water insipid and hence is disposed off for consumption at the earliest possible. Tender coconuts have great demand in most of the towns and cities all over the country. Kolkata , Mumbai, Chennai, Bangalore and Delhi are the major consumer markets for tender coconuts.

5.1.5 The tender coconuts are sorted out at the retailer level according to their size. Since, bigger the coconut higher the price due to consumer preference and belief that it contain more quantity of coconut water. The assembling and distribution of tender coconut through out the country is almost uniform and involve producer, contractor, itinerary merchants, wholesalers, retailers and hawkers. Farmers of the main coconut growing areas generally sells tender coconuts at the farm or gardens to itinerary merchant, wholesaler or retailer. At some places, the producers take the tender coconut to nearby mandi or market. The itinerary merchant and wholesaler after procuring either through commission agent or even directly, sell to the retailers. The retailer may directly sell to the consumer or through hawker to consumer. The buyers transport the tender coconut nuts to nearby town and market hatts. It has been observed that 90 per cent of the tender coconut production is handled by itinerary merchants. In Thanjavur traditionally coconuts are used for religious purpose and for consumption; hence, harvesting of fully matured nuts has been seldom practiced. In most cases, nuts of six to seven months, attaining maturity are harvested. The marketing channel in Thanjavur district includes village merchants, commission agents / wholesalers, dealers / re-traders, retailers and consumers.

5.1.6 Increasing awareness among the consumers about the medicinal properties and health benefits of tender coconut water has increased the demand for tender coconuts. The farmers Tender Coconut Sale and wholesalers transport the tender coconuts to College Street for auction through commission agent. The lots of tender coconut are unloaded from the vehicles and sored out into the lots of 150, 200 and 250 nuts according to the size of the coconuts. The commission agent auction each lot and sells to the highest bidder in presence of the farmer or wholesaler. After auctioning the whole produce, the wholesaler or farmer is paid the amount after deducting the six per cent commission and other expenses incurred by the commission agent. During the summer months, nearly 45,000 to 50,000 tender coconuts per day are transacted in this market. The transaction drops to around 25,000 to 30,000 tender coconuts per day during rainy or winter season. However, it was gathered that the arrival in the market has been declined due to large quantities of tender coconuts were being exported . 5.1.7 Thanjavur markets is also an important terminal market for tender and matured Plate – 15 coconuts. Arrival of both types of coconut depend not only in the seasonal demand and consumption pattern in the Northern region but influence the supply from the markets in coconut producing areas. Study of the arrival of coconut in Delhi market for the triennium ending 2004-05 shows the arrival of matured coconut as 60.13 per cent compared to 39.08 per cent arrival of tender coconut. Arrivals of tender coconut has been proportionately Tender Coconut Sale higher during March, April and May due to higher demand for tender coconut water during summer season and decline in arrival during monsoon months. However, arrival of matured coconut appeared higher during the summer and winter season i.e during August, September and October due to festival.

5.1.8 The Coconut Development Board has sponsored the project of adopting integrated approach for marketing of minimally processed tender coconut to provide a sustainable and enhance income to coconut growers. In marketing practices of tender coconut, it has been observed that the supply chain of tender coconut is simple unlike matured coconut, copra and coconut oil but highly unorganized. In the marketing channel of tender coconut it could be observed that no organized efforts are made to ensure the availability of quality tender coconuts on a continuous basis to meet the consumer demand. A substantial share of coconut production could be traded as tender coconuts, if an integrated approach was adopted for marketing of tender coconuts with the active participation of various stake holders. This would in turn help in reducing the dependence of coconut price being decided by trends in coconut oil market.

5.1.9 It has been observed that on a very small scale, tender coconut water is being soldin bottled form, to serve in processed and chilled form. But the venture has not been so Plate – 16 popular on account of high cost involved in sophisticated processing technology to preserve the natural taste and flavor of coconut water and establishing bottling plant. Scientists have suggested a viable option to adopt minimal processing technology of serving tender coconut in its natural container itself at a reasonable cost. In this process the bulkiness of husk on the tender nut is removed the partially Plate – 17de-husked coconuts are dipped in a solution of 0.5 per cent Bottled Tender Coconut water citric acid and 0.5 per cent potassium meta-bisulphate for three minutes to prevent discoloration of the outer covering. The partially de-husked and thus treated coconuts canbe stored up to 24 days in refrigerated condition at 50C to 70C temperature without loss of white colour of the minimally processed outer most covering of the tender coconut, natural taste and flavour of tender nut water Partially Dehusked Tender Coconutinside. The tender coconut water can be served chilled like any other soft drink. Theseprocessed tender nuts would require plastic crates and insulated chill boxes for transporting and storage. This will facilitate distribution and marketing of tender coconut in different segments of market like, super malls, markets, hospitals, hotels, road side shops, kiosks and vending on railway stations and bus stands. Chilling and Storage at the cold storage infrastructure created in the Agricultural Wholesale market

Integrated Way of Marketing of Partially Processed Tender Coconuts COCONUT FARMERS Coconut Garden Homestead Garden

Harvesting Tender coconuts from selected palms by Climbers

Recycling Husk Recycling Husk

Minimal Processing, Partial Dehusking Tender Coconuts (Women SHG)

Transportation of Minimally Processed Tender Coconuts

Chilling and Storage at the cold storage infrastructure created in the Agricultural Wholesale Market

Retail Outlets

CONSUMER

5.2.1 Matured Coconut: Matured coconuts are generally disposed by farmers in unhusked form for want of Nearby market place. However, farmers located near to market places, dehusk the coconuts and sell them as husked nuts. Farmers, from the areas where the husks is not utilized for retting and coir purpose, store the coconuts for two to three months, particularly the nuts harvested in the monsoon season. In Kerala,Karnataka and AndhraPradesh farmers keep nuts forseveral months and sell them as dry nuts for Makingedible copra. The majority farmers sell the bulk crop as unhusked coconuts, still aconsiderable quantum of nuts are sold to consumers as husked nuts. Harvesting Tender Coconuts from selected Palms by Climbers Recycling Husk Recycling Husk Minimal Processing, Partial Dehusking Tender Coconuts (Women SHG) Transportation of Minimally Processed Tender Coconuts Retail Outlets CONSUMER

5.2.2 The nuts reaching markets are either partially husked or dehusked as per demandand requirement in distant markets. Coconuts meant for copra making sold in local markets are fully husked; coconuts meant for distant market places are left with some fibres covering the eyes or on all around nuts. Such partially husked coconut minimizes the breakage during transportation and posses‘ longer keeping quality. In Maharashtra state, it has been observed that even when coconuts are fully husked a tuff of husk is left at the end of the nut over the eyes as it is considered to be auspicious and believed to preserve the nuts from spoilage. Some quantities of nuts are slightly husked, only the outer skin is removed and most of the husk is left over the nut- in-shell, and rests are completely husked. Different types of husking in preparation of dry nuts have been reported from the coconut producing areas of Andhra Pradesh, depending upon the trade demand from the consuming markets. The dry nuts which are completely husked except a tuft of fibers left over the eyes are meant for cities and towns of Maharashtra, Madhya Pradesh and some part of Uttar Pradesh and Bihar state. The dry nuts meant for some markets in Madhya Pradesh are typically husked where in three corners of matured coconuts are completely husked and from inter-space the husk is only partially removed to decorate the nuts meant for religious purpose. The nuts meant for Rajasthan market are partially husked, in some cases matured nuts are husked at the bottom only. The husking charges vary in different states and types of husking carried out in producing areas. Therefore, the wages paid to the labour used for husking widely differs from state to state.

5.2.3 The storage practice for matured coconut differs from place to place and in accordance with marketing practice i.e. by the producers, merchants or exporters. The farmers and local village merchants store coconuts in their houses. In markets, coconuts are stored in godowns owned by the wholesalers or commission agents. Since matured coconuts are meant for immediate consumption or crushing for oil, they are not warehoused for longer period. The matured nuts meant for copra making, are stored as unhusked nuts immediately after harvesting, and undergo further ripening to improve the quality of copra obtained. The husk obtained from such nuts losses the quality required for coir making purpose. In places where husks are used for retting and nuts are sold for millingpurpose, the matured nuts are not stored but husked immediately after harvesting. The matured nuts meant for consumption of water and kernel, are stored for few weeks to three months by the farmers in their garden itself, as it fetch premium price when the colour of the nuts become brownish. The practice of this type of storage has been observed in some districts of Maharashtra, Karnataka and Kanyakumari district of Tamil Nadu. ASSEMBLING AND DISTRIBUTION OF MATURED COCONUTS

Coconut Farmers / Contractors

Sales at Garden Markets/ Shan dies

Village Merchant

Wholesalers and Commission Agents

Retailers

Hawkers

Copra Makers Millers

Consumers

It has been reported that storage is practiced for preparation of dry nuts in the Godavari districts of Andhra Pradesh, where the trading of dry coconuts was predominant in the market. The coconuts meant for preparation of dry nuts, immediately after harvest are stored in gardens under shade, initially for 5 to 6 weeks, subsequently they are partially dehusked and further stored for 10 to 15 months, on an attice, aspecially made bamboo platform. The partially dehusked coconuts are dried by applyinghot air passed through fire place or hearth underneath the drying platform, especially forthe coconuts harvested during monsoon season. The nuts harvested during dry seasonsare sun dried and converted into ball copra and cup copra accordingly. The nuts meantfor making copra are also stored for 9 to 12 months before being subjected to sun dryingon specially made bamboo platform in the Arcot district of Tamil Nadu.The cost of storage varied from place to place, different conditions prevailing in the producing areas and the form in which coconuts are marketed. When the storage is on the farms the cost of storage might be almost nil. But when stored by the middlemen or wholesalers, near or in the market place, the handling charges and storage cost increase. Obviously, there are certain progressing losses in terms of quality factors and weight loss with the increased period of storage. The losses on storage are influenced by the quality of husk left on the nuts before marketing and processing. The loss in weight is more in unhusked nuts and minimum in completely dehusked nuts.

5.3.1Village merchant (Copra maker): In Kerala State, the village merchants are the first purchaser of the nuts from the producers. Traditionally, the price of coconut is determined by the price of coconut oil prevalent in the market. The accepted norms followed in Kerala are that the price of one quintal of coconut oil is considered equivalent to the price of 1000 nuts i.e. the cost of single nuts is equivalent to 100gms of coconut oil. The Copra maker transacts the business on the basis of this conversion. In other part of the state, the prices of coconut are based on two important products of the coconut i.e. husk and the kernel, this practice is followed where the relevance of coir industry is much more and the loss in the sale of copra is compensated by the sales proceeds of husk. In some parts of Kerala, the price is also based on the estimated number of nuts required for making one candy of copra when crushed, assuming 62.5 per cent oil, 35 per cent oil cake and 2.5 per cent waste. The sale proceeds of husk and shell is added and cost of production and transportation of copra is deducted. The delivery of nuts is taken, by the village merchant after the sale, at the coconut gardens itself, generally on credit basis. The nuts are de- husked on the spot and the husk is sold to the netter to process it for coir fibre for the coir unit.

5.3.2 Middle man (Copra Merchant) : The middle men who are also merchants convert the coconut into copra on sun drying or kiln dry or by following both the methods. It takes around 7 days for producing standard quality of copra. In most of the cases, copra is sold at the stage when moisture level is 10 to 12 per cent, commonly known as ‗ghatti‘, for which, corresponding amount is deducted by the traders compared to the better quality of copra of 6 to 7 per cent moisture. The price of the copra is calculated on the following basis i.e. (a) The price of oil per candy (b) The price of cake per candy (c) Less Sales Tax crushing changes. Since the Marketing prices of coconut oil always fluctuate specially, the copra makers have to rush to manufacturer of copra by reducing the drying period. In some villages, where drying of copra is carried out in a crude form of copra-kiln, results in manufacture of inferior quality of copra. The small copra makers in village sell their lots to big processors and thus, there would be more than one intermediaries involved before it reaches to the millers.

5.3.3 Traders (Millers) The copra thus procured is brought for further sale to millers by the traders. The transportation involved is either by country boats or bullock carts. Generally, traders are associated with particular miller but can go to other agency if they have not taken any advance payment from the miller. In Kerala state, most of the units are situated near to the back water, facilitating water transport. The trader take about 10 per cent of the copra procured as sample to the miller for approval and then bargaining starts. The trader moves from one miller to another for final settlement. The trader ultimately sale the product to miller, some times edging price for the copra or some times as a distress sale for crushing the whole thing into coconut oil. Since the major demand of coconut oil is from the up country markets, mainly meant for industrial purpose, specially for soap industry. In some cases, this process of the marketing channel is repeated on the same route on credit basis by paying the amount due for the last transaction.

5.3.4 Hatta System (Under cover) Though dealing under cover is not a healthy marketing practice but still it is prevalent in copra trade. The copra makers take their produce to market and contact the broker with copra samples, commonly called ―one eda‖, in one basket and moves from one broker to another. The settlement of the price for the produce is determined in secret manner without uttering the price in open. Thebuyer and the broker engaged by the seller determine the price through pre-determined secret codes of price for every one of the five fingers of their left hand held and hidden under cover of the towel. They touch each finger alternatively by offering the price on their different parts of fingers and position known to both but not to the sellers. When the deal is finalized at the price arrived at secretly, after consultation by the broker with the seller both firmly hold their particular finger under the cover of towel. This practice was in vogue among the copra / coconut oil merchants in Travancore-Kochi. The copra merchant might not get the payment for copra immediately, but get the amount due for the previous consignment, when the next lot is brought to the market. 5.3.5 Deductions The trader in the trade of matured nuts / copra, practices deductions for immature nuts, mouldy and dis-coloured copra, moisture content etc. The deductions are made arbitrarily by the traders. The same procedure is observed by the traders brining the lots to the millers and after bargaining with some millers at their site, the lots are sold to the millers. The lots are weighed on beam balance, at this stage also additional copra cups are taken for each weighment. Market charges such as sales tax, cess for coconut committee, brokerage, bonus to cart men / boatmen. Unloading, drying charges etc., are deducted arbitrarily. It has been reported that the growers and coconut processors are fully exploited by various trade practices such as additional nut for every 100 nuts, popularly known as ―Vasi‖, bunching of small nuts and counting at par with a single nut, besides irregular and insufficient payment, over estimation of allowances, quality disputes etc., are some of the ill practices prevailing in the market.

5.3.6 Grading Wholesale traders adopt the practice of grading copra based on the quality factors prevailing in the trade. The coconuts are categorized in the two forms, fresh and dry, while copra into edible and milling. The edible copra is classified as ball copra and cup copra, depending on the quality, edible copra is further graded as copra from dry nuts, copra from semi-dry nuts and copra from fresh nuts. Each grade is again classified into different trade name. Such as OfficePass, Rassi, Rajpur, Moong etc. The office pass grade is generally used for milling purpose and sold to miller. The traders grade the copra in the order of its market value. The grading is mainly based on moisture content with maximum limit of 10 per cent, the foreign matter upto 2 per cent and black copra upto 5 per cent. However, the good quality copra ideally should have moisture upto 6 per cent, oil content 71 per cent, acid value 2.5 per cent, foreign matter 0.5 per cent, mouldy cups 5 per cent, wrinkled cups 5 per cent and black copra 1 per cent. The edible ball copra has different quality parameters to offer price even under price support scheme.

Edible Copra Milling Copra Size 75 mm (minimum)

Foreign matter 0.2 % 1.0%

Mouldy& black kernels 2.0 % 10.0%

Wrinkled kernels 10.0 % 10.0%

Chips 1.0% 10.0%

Moisture 1.0% 6.0%

The edible copra is selected for export to North Indian states and other parts of the Countryfor directconsumption or as an ingredient in spices or culinary preparations. The demand for edible copra is seasonal and subjected to fluctuations. Therefore, grading is resorted to by traders depending on demand or even the edible copra issoldfor crushing.

Several grades and classification of edible copra are prevalent in the market. The ‗vadagara‘ variety is referred to as ‗Calicut Gola‘ in the trade. In ‗vadagara‘, the balls are classified into 5 types according to the size. In Karnataka state, four grades of ball copra according to size are designated as ―Mysore‖, ―Madras‖ ―Ras‖ and ―Barik‖. The sizes of different grades are not defied in any measurable unit but the balls are classified into the different grades by visual assessment / observation only. Ball copra from Godavari district is referred to as Madras copra which is not as good as Karnataka or Vadagara varieties. The ball copra from vadagara and kozhikode areas is consideredslightly inferior to that of Tiptur area of Karnataka. The three main grades of edible cup copra in Kozhikode are known as ‗Rajpur‘, ‗Madras‘ and ‗Dilpass‘. ―Rajpur‖ copra is considered as the best edible cup copra and is prepared by cutting the copra balls and further drying the halves in the sun for two to three days. It is sorted out into two or three grades according to the whiteness of the kernel. The Rajpur variety comes to the market from September to June. The Madras copra is some what inferior to the Rajpur copra and is prepared from nuts in which water has not been fully absorbed. Rejections from Rajpur quality also go as Madras. According to the colour of the skin (testa), Madras copra is classified into two grades. Dilpass is inferior to Madras variety in quality and is prepared from partially dried nuts, stored for three to four months or from fresh nuts.

In Alappuzha the best cups of sun dried copra with good colour and clean appearance are separated out and classified as edible copra. There are different grades according to the size, colour and outer skin etc. which are locally known as Rai, Murgi, Dala etc.

In Kerala state, the best grade of milling copra is known as ‗office pass‘. All other inferior quality copra is known ‗Rasi‘. ‗Rasi‘ is sometimes classified as ‗Thirurassi‘ and ‗Kazhippu‘. In Tiptur copra rejected from edible copra is called ‗kavathu‘. Moisture is an important factor for judging the quality; hence millers sometimes differentiate copra on the basis of number of days taken for drying such as 4 day drying, 7 days drying etc. The term ―cutter‖ dry is used to indicate fully dried copra.

5.7.1 Intermediaries at different stages of marketing of coconut It has been observed that presence of intermediaries at different stages of marketing of coconut, copra and coconut oil. The structure of coconut trade varies from traditional coconut growing state to non-traditional coconut growing state and region to region. It is a common practice among big farmers to pool his produce along with produce of small farmers of his village/area, convert into copra and sell it to intermediaries or miller directly. The miller in turn sells it to wholesalers in terminal market or to upcountry buyers. Sometimes farmers sell their produce to converters cum traders, who directly sell copra to upcountry buyers for manufacturing of value added products. The number of intermediaries in the marketing channel critically differs in Kerala and Tamil Nadu state. The marketing channel for copra in Kerala is characterized by presence of intermediaries at multiple stages, which is conspicuously lesser in Tamil Nadu and Andhra Pradesh. It has been observed that some farmers sell coconuts to traders who in turn sell the coconut to composite mills, where conversion, drying of copra and its milling into coconut oil is carried out.

The major coconut oil trading centers are functional in the zones where more number of coconut oil mills are located. They are mainly at Kochi (Cochin), Trichur and Trivandrum in Kerala; KankeyamandVellakovil in Tamil Nadu and NorthKanara, Udupi and Mangalore in Karnataka. Though Kochi has been a terminal market, it has been reported that it has been experiencing decline in trading of coconut oil. The reasons attributed to this decline are highlabour wages, grading and transportation cost. The traders in Kochi who have the capacity, started to pool the minimum quantity up to 50 drums of coconut oil in short period of 11 days to economize the loading, grading and transportation cost. The small traders in Kochi, unable to adopt pooling practice, have been suffering from a low turnover. Further, the buyers have been forced to accept substandard coconut oil deliveries with more than permissible impurities, which the dealer have to purify at their own cost and in their establishment before dispatching it to upcountry buyers or industrial end users.

From the marketing practices followed in the coconut and coconut product trade, it has been revealed that in-numerable intermediaries, channels, functionaries, brokers, assemblers, traders, merchants, wholesalers, institutions and retailers are involved directly or indirectly in the movement of coconut from the point of production to the point of consumption, performing various activities in the flow process, enabling movement of coconut and its products until placed in the hands of consumers. The distribution systems in marketing channels differ from product to product due to difference in marketing environment, marketing composition and marketing situations. It is apparent that they perform one or all the functions of assembling, buying, selling, transportation, storage and warehousing. The auxiliary functions such as grading / standardization, market financing, market risk bearing and market intelligence/information are also performed by these functionaries.

MARKETING CHANNELS OF COCONUT AND COCONU T PRODUCTS

COCONUT FARMERS / PRODUCERS

From small producer Coconut product Traders pools copra converters-cum-Traders

Convert coconut into Traders Composite Millers (Millingof copra copra) and Conversion

Intermediariesor Terminal Upcountry Coconut oil Millers Markets Buyers

Upcountry Value added Terminal Market Buyers productsManufactures

Wholesalers Retailers Wholesalers

Retailers Retailers

Consumer Consumer Consumer

However, in the existing marketing system the functionaries, except the institutional agencies, have not fulfilled the objectives of effective marketing system, towards remunerative price realization, through sale of coconut and coconut products. The price realization reported to be lower than the direct sale by farmers or through farmer‘s institutions. Even though every addition of marketing functionaries results in widening of the price spread, the dominance of marketing functionaries in the marketing channels of coconut and its products cannot be denied, due to certain limitations which directly or indirectly affect the farmers and producers / manufactures.

Majority of the coconut farmers have small and marginal holding and have dearth of holding capacity due to financial crisis, lack of credit facilities from the financial or cooperative institution against coconut trees, compel them for forced sale. The coconut farmers are the worst sufferer in the present marketing practices as they need short term credit especially during off seasons and flush season i.e. during summer days. The farmers thus borrow advances from the middle men / traders, especially those who raise coconut palms in grove as monocrop even to meet their expenses for normal production and consumption. Moreover, they do not have storage facility and holding capacity. Fluctuation in prices of coconut forces them to sell these coconuts on farm immediately after harvest. The farmers are unable to take up value addition activities to their produce. This strikingly affects the effectiveness of marketing of coconut and coconut products. The structure of coconut trade varies from traditional coconut growing states to nontraditional coconut growing states and from one region to another, likewise the presence of intermediaries, at different stages of marketing of coconut, copra and the coconut oil. 5.4.1 Future Trading in Coconut The centralized trading practice in coconut trading, where operating agents practice contracts with standardized specifications with flexibility in prices known as future trading and was in vogue till 1971. Futures‘ trading of coconut oil was carried out under two recognized association in 1950‘s viz; the Alleppey Oil Millers and Merchants Association, Alleppey and the Oil Merchant Association, Cochin. At Cochin, four consecutive bi-monthly contracts were permitted to recover concurrently according to the bye-law of the association for the purpose ofhedging, the due data of the 1st bi-monthly contract being the 15th of the month and thatof the second being the last day of the month. It was discontinued later to check excessive speculation in trading activities.

However, it has been reintroduced in the last quarter of 2001 for coconut oil under the first commodity exchange of India at Kochi, after a gap of 3 decades. This brought about a sea-change in the coconut industry and trade. Copra crushing industry which suffered a set back in the past decade also received a boost on resumption of future trading in June 2010. National Multi-commodity Exchange, Ahmedabad, though started future trading in coconut oil during their initial months of operations. However, there is not much activity in copra and coconut oil in this exchange, other commodity exchange such as Multi Commodity Exchange (MCX) and National Commodity Exchange (NCDX) are yet to start trading of copra and coconut oil.

The trading in the above markets is conducted simultaneously for three contracts only. These contracts are required to commence three months in advance and the period of hedging is four months. The trader who trades in the exchange are bound to pay margin and special margin money as fixed from time to time by forward market commission (FMC). Further, the members have to deposit a security with the exchange. The limit on open position is fixed with the sanction of Forward Market Commission. Trade in exchange is carried on line. The trading of coconut oil and copra is in two tones and multiple there off. Minimum price movement for coconut oil and copra is 5 kg. / 100 kg. The maximum price fluctuation for a day is Rs.100 and as per bye-law of the exchange delivery can be made any where in India.

The prices at Kochi in 2005 given in Table-14, revel that the future prices, vis., actual prices, vis., delivered prices of coconut showed using trends during to 15th half of March, 05. By the second half of March and beginning of April, 05 the actual price showed decline with respect to future price in respect to the month of January and February where the actual prices were much higher than that of the future market. However, during May, 2010 to December, 2010 the prices on future market trading were higher than that of the actual prices. However, it is seen that the actual delivery prices were always less than that of actual and future prices except in case of the months of January and February.

Table No.5.1 Future Price V/s. Actual Price V/s delivered Price of Coconut Oil at Kochi Market(Rs.)

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010

Actual 7280 7198 6199 5763 5394 5539 5212 5154 5125 4862 4864 4765 Future 6767 6700 6417 6167 6043 5935 5709 5702 5517 5399 5217 4888 Delivered 6920 6870 5650 5780 5240 5300 4940 4905 4700 4720 4500 4560

Table – 1 shows the volume of coconut oil traded and delivered under future trading it is clear from the figure that though the total volume traded had increased from 21,628 to 1,24,244 during the year 2010-2011. However, the quantity delivered at the same time was very less, though it had also kept the increasing trend as per the volume traded. Though the contribution of the system is very negligible, however, active involvement of farmers / traders will help to increase the trade in future market. It was expected to avoid violent fluctuation in price to bring transparency in marketing of oils and oil seeds, and provide option to farmers / traders to sell their products at a favorable price, three months in advance. Future trading practice could be used as a tool to stabilize price. However, contrary to this expectation from future trading it was reported that in the year 2010, future trading in coconut oil has failed toachieve the expected results due to alleged anomalies in the trading. It has been observed that there was lack of transparency in trading and pricing in the spot market and hence the future market was unable to perform its function. Unfortunately, the spot markets of coconut oil were influenced by the supply and demand factors in particular regions, and future prices were driven by a very small section of operators in the future exchange which was not observed as healthy trend in future trading. The spot market in coconut oil failed to meet the required conditions in absence of proper dissemination of market information and fragmentation of markets in different regions. It was observed that the speculators were responsible for wild fluctuations of coconut oil prices. Some traders were manipulating the prices by taking comfortable short position in futures market. This has resulted in default in payment amounting to about Rs.2 millions thereby forcing the market to suspend trading for a few days in theyear 2010. This kind of artificial fluctuation is certainly detrimental to the coconut farmers and consumers.

Chapter VI

COST AND RETURN ANALYSIS An analysis of cost and return is plays a significant role in the profitability aspect. Coconut being a perennial crop requires establishment and maintenance cost. This chapter attempts to find the cost and return structure of growers to find the cost and return structure of growers cultivating of growers cultivating coconut in Thanjavur District.

6.1 Establishment cost: The establishment cost included both variable and fixed cost incurred during the first five years till the plantation comes to commercial yielding of coconut. All the pre-bearing cost incurred in the establishment of coconut grove up to the bearing stage was termed as establishment cost. This included the cost incurred in the establishment of coconut plantation such as cost of digging pits, cost of planting material cost of manures cost of fertilizers, cost of irrigation, cost of labours and other cost which included in the interest on land value, land revenue up to bearing stage, depreciation on building and equipments and interest on working capital up to bearing stage.

The details of establishment cost for coconut cultivation for the first five years are presented in Table 6.1. Table 6.1 Establishment cost for coconut cultivation. S1.No Cost component Amount Rs. Percentage Per acre I VARIABLE COST 1. Tillage practice 1565.50 0.85 2. Coconut seeding 1895.83 1.02 3. Labour 13591.18 7.34 4. Manure 18843.70 10.74 5. Pesticide 6108.49 3.30 6. Irrigation 13822.35 7.46 7. Fertilizer 7549.90 4.08 8. Watch and ward 5934.54 3.20 9. Interest on working capital 15887.25 8.58 10. Total variable cost 85198.74 45.99 II FIXED COST 1. Land tax 750.00 0.40 2. Rental value of land 29000.00 15.65 3. Other fixed costs 70317.05 37.95 4. Total fixed costs 100067.05 54.01 Total Establishment cost(I+II) 185265.79 100.00 Value of coconut output during 185265.79 100 the year(-) Net establishment cost (15-16) 156780.04 - Annual share of net 2850.55 establishment cost Source: Primary data. It could be observed from Table 6.1 that the total establishment cost per acre and average worked out to Rs. 1, 85,256.79.

Variable cost: The total variable cost amounted to Rs. 85,198.74 per acre. The total variable cost constituted 45-99 per cent of the total establishment cost. Following are the items included in the variable cost.

Tillage Practice: The cost of tillage practice consists digging of coconut garden, ploughing of Land, borrowing and the like. The cost of such operations are included in this item. The overall average cost of such practice was Rs. 1,56.50 per acre. The cost of tillage practice accounted for 0.85 per cent of the total establishment cost.

Coconut Seeding: The growers used coconut nursery procured form own nurseries, horticulture department and coconut seedling cultivators. The cost of coconut seedling ranged wide considerably depending upon the sources from which they were purchased, the variety and the distance transported. It was observed that 75 percent of the sample growers procured from the nurseries and the seedling cultivators. It was also found that about 85-95 trees were planted per acre. The cost incurred towards coconut nursery amounted to Rs. 1895.83.

Labour: The amount of labour used in the production of coconut was to some extent less when compared to the amount of labour used in the production of other perennial crops. The present study consists of both hired labour and family labour. The cost of labour included the labour employed for digging pits for planting the coconut seedling ploughing of land and watch and ward which was necessary to provide favorable conditions for the early establishments and growth of trees, planting, application of fertilizer, manure, irrigation and pesticide. The cost of labour included the wages paid for hired labour and imputed wages for family labour. The total labour cost incurred was Rs. 13591.18 per acre. The percentage share of labour cost to total establishment cost was 7.34 per cent.

Manure: Coconut requires application of organic manure and inorganic manure at the establishment stage. The overall average cost of manure was Rs. 18843.70 per acre. The cost of manure accounted for 10.17 per cent of the total establishment cost and ranked second among the various components of establishments cost.

Pesticide: The cost of pesticide was Rs. 6108.49 per acre and its contribution to the establishment cost was found to be 3.3 per cent.

Irrigation: The charges for electricity or fuel used are calculated at the actual prices paid. If hiring the oil engine for the irrigation, then the hire charges were included. The overall average cost of irrigation was 13,822.35 per acre. The cost of irrigation accounted for 7.46 per cent of the total establishment cost.

Fertilizer: Fertilizers are applied to the coconut plant at the beginning stage and at the bearing stage. The practice of applying chemical fertilizer is fast growing and it results in very good yielding. The expenditure of fertilizer was Rs. 7549.90 per acre and its contribution to total establishment cost was 4.08 per cent. Watch and ward: Coconut is a commercial product and each coconut has commercial value in the Local markets. So watch and ward is important for every coconut garden. The cost of watch and ward was Rs. 15887.25 per acre and represented 8.58 per cent of the total establishment cost.

Fixed cost: The fixed cost per acre was worked out to Rs. 1,00,067,05. The percentage share of total fixed cost to the total establishment cost incurred was 54.01 per cent. Following are the items included in the fixed cost.

Rental value of land: The impated rental value of land for the first five years was worked out to Rs. 29,000.00 per acre and formed 15.65 per cent of the total establishment cost.

Other fixed cost: The other fixed cost includes the Land revenue, interest on fixed capital, depreciation of capital assets, staff salary and the like. The other fixed cost amounted to Rs.70317.05 per acre and accounted for 37.95 per cent of the total establishment cost.

Land Tax: The land tax was Rs. 750.00 per acre and formed only a small share of 0.40 per cent of the total establishment cost.

Annual Share of Net Establishment Cost: In working out the unit cost of production of coconut, the annual share of net establishment cost is also taken into account since the productivity of coconut also depends on the expenditure of coconut also depends on the expenditure incurred during the establishment period. Coconut plant comes into the yielding stage only in the sixth year though small amount of tender coconut is obtained in the fifth year. The total value of coconut output obtained during the fifth year was deducted from the total establishment cost incurred during the first five years to workout the net establishment cost. The net establishment cost was apportioned among the remaining economic life period of 55 years and the annual share of net establishment cost per acre was estimated at Rs. 2,850.55.

6.2 Operation and maintenance cost: The operation and maintenance cost of coconut cultivation includes all the recurring costs incurred every year during the bearing period. It includes the cost of labour, manure, pesticide, watch and ward, irrigation, fertilizer, interest on working capital. The input wise distribution of annual operation and maintenance cost of coconut production per acre from the sixth year onwards was compute and presented in Table 6.2.

Table 6.2. Average Annual operation and maintenance cost of coconut Amount S1.No. Cost component Percentage Rs. Per 1. Labour 15795.59acre 33.98 2. Manure 9508.74 20.46 3. Pesticide 3598.74 7.75 4. Watch and ward 3917.27 8.43 5. Irrigation 2764.47 5.95 6. Fertilizer 7709.98 16.59 7. Interest on working capital 3177.45 6.84

Total operation and 46472.24 100 maintenance cost Source: primary data.

The above table 6.2 reveals that in the total average annual operation and maintenance cost, labour took the significant share followed by manure. Cost of labour included the expenditure on labour employed for application of manure, pesticide, cutting of coconut, cleaning of coconut, processing, weeding, ploughing, mulching earthing UP around the tree, and the like. The cost of Labour on an average was Rs. 15795.59 per acre, which contributed to 33.98 per cent of the operation and maintenance cost.

Manures are the second important components of the operation and maintenance cost. The average expenditure on manure amounted to Rs. 9508.74 per cent and the percentage share to the total operation and maintenance cost amounted to 20.46 per cent. The average expenditure on pesticide amounted to Rs. 3598.74 per acre and the percentage share to the total operation and maintenance cost was reported 7.75 per cent. Amount important compare of the cost structure was the ward watch. The expenditure towards this input value was Rs. 3917.27 per acre, which was reported 8.43 per cent of the total operation and maintenance cost.

The irrigation cost was incurred every year of the coconut cultivation. It was worked out to Rs. 2764.47 per acre amounting to 5.95 per cent of the total operation and maintenance cost. It was found that the average cost incurred towards fertilizer was Rs. 7709.98 per acre, which formed to 16.59 per cent of the operation and maintenance cost. The interest on working capital was worked out to Rs.3177.45 per acre, accounting to 6.84 Rs. 3177.45 per acre, accounting to 6.84 Rs. 3177.45 per acre, accounting to 6.84 per cent of the total operation and maintenance cost.

6.3 Cost of Production of Coconut: The cost of production of coconut includes both variable and fixed cost. The variable cost included annual operation and maintenance cost and fixed cost included Land revenue, rental value of land, annual share of establishment cost and other fixed costs. The detailed cost of production of coconut per acre was worked out and is presented inTable6.3.

Table 6.3 Average cost of production of coconut. S1.NO Cost component Amount Rs. Per acre Percentage I Total variable cost 46472.24 67.01

Fixed cost 1. Land tax 150.00 0.21 2. Rental value of land 5800.00 8.36 3. Other fixed cost 14134.76 20.38 4. Annual share of Net 2796.30 4.03 establishment cost II Total fixed cost (1 to 4) 22881.06 32.97 III Total cost of production 69353.30 100.00 (I+ II) Source: primary data.

The above table 6.3 shows that the cost of production of coconut per acre was worked out to Rs. 68353.3. The total variable cost per acre was worked out to Rs. 476472.24, which constituted 67.01 per cent of the total cost of production. It was found that the total fixed cost was worked out to Rs.22881.06 per acre constituting 32.97 per cent of the total cost of production.

The imputed rental value of land was also the components of the total fixed cost. The rental value of land may depend upon the level of fertility of the land and its proximity to approach road and market centers. It was observed that the rental value of land was worked out to Rs. 5800.00 per acre, constituting 8.35 per cent of the total cost of production. The second important component of the total fixed cost was the annual share of net establishment cost. On an average, the annual share of net establishment cost was worked out to Rs. 2796.30 per acre accounting to 4.03 per cent of the total cost of production. Amount of other fixed cost in fixed cost was worked out to Rs.14134.76 per acre and its contribution to the total cost of production was 20.38 per cent. The land tax formed only a negligible share in the total cost of production.

6.4 Cost of Cultivation as Per Cost Concepts: The cost of cultivation of coconut accordingly to cost concepts has been computed and analyzed for groups of growers of different size. Under the cost concepts costs are categorized as Cost A, Cost B and Cost C for the purpose of suitable analysis. Each of the categories contains a separate set of elements. The category and the elements are given below.

Cost A: Wages of hired labour, Value of manure owned and purchased, Cost incurred for watch and ward, Cost of pesticides purchased, Expenses of irrigation charges, Value of fertilizer purchased Depreciation, repaired and maintenance Cost of implements and farm buildings Land and other taxes, interest on Working capital. Cost B: Cost A+ imputed rental value of owned Land + imputed interest on owned fixed capital. Cost C: Cost B+ imputed value of family labour. The individual cost items are included in total cost that is cost C also has been grouped into operational cost and fixed cost as under. Operational Cost = wages of hired labour + value of manure owned and purchased + cost incurred for watch and ward + cost of pesticide purchased + expenses of irrigation charges + value of fertilizer purchased + Depreciation, repairs, and maintenance cost of implements and farm buildings + Land + and other taxest Interest on working capital. Fixed Cost = Cost C- Operational Cost.

Table 6.4 Cost of cultivation as per cost concepts S1.NO Cost of component Farm size I Cost A Small Large Over all

1. Hired Human labour 11582.16 13810.73 12696.45 2. Manure 9477.8 9539.68 9508.74 3. Watch and ward 3882.32 3952.21 3917.27 4. Pesticide 3619.39 3578.09 3598.74 5. Irrigation 2702.41 2826.52 2764.47 6. Fertilizer 7762.00 7657.96 7709.98 7. Land tax 150.00 150.00 150.00 8. Other fixed cost 12108.53 16160.99 14134.76 9. Other on working capital 3236.86 3118.03 3177.45 10. Total I 54521.74 60794.21 57657.86 II Cost B 1. Rental value of land 1300.00 1350.00 1325.00 2. Interest on fixed capital 5393.33 7007.65 6200.49 3. Annual share of net establishment cost 2796.30 2796.30 2796.30 4. Total II 9489.63 11153.96 10321.79 5. Cost + B=(I+II) 21598.16 27314.94 24456.55 III Cost C 1. Family labour 1075.90 3099.14 2. Cost C= (I+II+III) 26720.55 28390.84 27555.69 Source : primary data.

Figure 6.1 Percentage share of capital of cost of cultivation- small farmers.

Figure 6.1.1 Percentage share cost of cultivation large farmers.

The above table 6.4 reveals that the aggregate of cost A is the largest in the case of large growers due to engineering more hired laborers and more amount spent on involving cultivation practice. manure is used higher by the large growers then the small growers. The large farmers have spent a very growers. The large farmers have spent a very low cost for pesticides and fertilizers then the small farmers. The irrigation costs of the large growers are higher than that of the small growers. Cost A, Cost B, and Cost C of the small growers are found to be the lowest not with standing the fact that their input cost is higher but the establishment cost is equal to both the growers.

6.5 Productivity and unit cost of production of coconut:

The output of coconut per acre and its unit cost of production were computed and furnished in table 6.5.

Table 6.5 Cost of production and productivity of coconut. S1.NO Farm size Output Total cost Cost of (nuts. Per ) Rs. Per production acre acre (Rs. Per. nuts) 1. Small (85 trees x 95 nuts) 8075 26720.55 3.3 2. Large (85 trees x 95 nuts) 8400 28390.84 3.38 3. Overall (85 trees x 95 nuts) 8250 27555.69 3.34

Source: primary data.

Table 6.5 shows that the production per acre is the highest for the large growers with the total cost of Rs.28390.84 per acre. It is followed by the small growers (Rs.26720.55). Small growers were able to produce only 8,075 nuts per acre. Interest on fixed capital and establishment cost were vital causes for such deviation. Therefore net cost of production was the highest for the large growers (Rs.3.38 per nuts) followed by the small growers with Rs.3.30 per nut.

6.6 Returns form coconut cultivation: The gross returns of the coconut growers were computed and present in Table 6.6.

Table 6.6 Income from coconut cultivation S1.NO Particulars Amount Rs. Per acre I Gross sales 89832.10 Sale of husk 3094.19 Sale of leaves 2027.30 Sale of tender coconut 4313.63 99267.22

2. Less: Marketing cost 11391.33 3. Gross return 87875.89 4. Less: Variable cost 46472.24 5. Contribution 41403.65 6. Less fixed cost 33995.56 7. Net profit 7408.09

Source: Primary data. The above table 6.6 observed that the gross returns were Rs.87875.89 per acre. Some was computed after deducting the marketing cost incurred by the growers from the sale proceeds of coconut, husk, leaves and tender coconuts. The contribution was calculated at Rs.41403.65 per acre after deducting the variable cost from gross returns. The net profit per acre was arrived at after subtracting the fixed cost contribution which was Rs.7408.09.

6.7 Comparative Analysis for Both the Size Growers: The analysis of cost and return structure for the small and the large growers on the basis of land holding was made and results obtained are presented in Table 6.7. The objective of this analysis is to find the types of expenses incurred, the variations between them and the reasons for such difference. This analysis also aims at emphasing the factors influencing profitability of three types of Landholders.

The average variable cost of cultivation for the small and the large growers were computed and presented in Table 6.7.

Table 6.7 Average Variable Cost of Cultivation for Different Growers: (Rs/ Acre) S1.NO Cost component Small Large Overall 1. Labour 16 .80 14886.63 15795.59 2. Manure 3882.32 9539.68 9508.74 3. Watch and ward 3619.39 3952.21 3917.27 4. Pesticide 2702.41 3578.09 3598.74 5. Irrigation 7762.00 2826.52 2764.47 6. Fertilizer 3236.87 7657.96 7709.98 7. Interest on working capital 3118.03 3177.45 8. Annual share of 2796.30 2796.30 2796.30 establishment cost

Total 50181.63 48355.42 49268.53 Source: Primary data.

It is observe from Table 6.7 that in the middle of the variable expenses, the cost of labour, pesticide, fertilizer and Interest on working capital are more in the case of small growers, which the large growers incurred more expenses on manure, watch and ward and irrigation.

The average total cost of cultivation for the small and the large growers were computed and presented in Table 6.8.

Table 6.8 Average Total cost of Cultivation for different growers. (Rs/ Acre) S1.NO Cost component Farm size I Total variable cost 50181.63 48355.42 49268.55

Fixed cost 1. Land Tax 150.00 150.00 150.00 2. Rental value of land 1300.00 1350.00 1325.00 3. Interest on fixed capital Annual 5393.33 7007.65 6200.49 4. share of net establishment cost 2796.30 2796.30 2796.30

II Total fixed cost 9639.63 11303.95 10471.79

59740.32 III Total cost of cultivation (I + II) 59821.26 5965937

Source: Primary data. It is observed from Table 6.8 that the fixed cost is highest for the large growers than the small growers was Rs.9639.63 and the large was Rs.1133.95. But the cost of cultivation was lower for the large growers (Rs.59659.37 per acre) than the small growers (Rs.59740.32 per acre).

6.9 Analysis of Net Profit on the Basis of growers: The gross return and net profit were computed for the sample growers and the results were analyzed and presented in the Table 6.9.

Table 6.9 Returns on Cultivation for Different Growers (Rs/ Acre) S1.NO Cost component Farm size Small Large Overall 1. Sale of coconut 89715.47 89948.80 89832.13 Sale of husk 3300.95 2887.43 3094.19 Sale of leaves 2264.15 1790.45 2027.30 Sale of tender coconuts 3936.15 4671.12 4313.63 Gross sales 99236.71 99178.47 99207.59 2. Less: Marketing cost 11830.96 10951.71 11391.33 3. Gross Return 87405.75 88226.76 87816.26 4. Less: Variable cost 50181.63 48355.42 49268.53 5. Contribution 37224.63 37885.49 37554.81 6. Less: Fixed cost 9489.63 11153.95 10321.79 7. Net profit 27734.49 26731.54 27233.02

Source : Primary data. It could be observed from Table 4.9 that the income realized from the sale of coconut is the highest in the case of the small growers. The small growers obtain only the lowest amount from the sale of coconut. The small growers sell their products to the local consumption area so that can get good price for the coconut and that too immediately. In the same way the large growers will nor market their coconut in the local market and they concentrate only through the proper marketing channel. The price of coconut is determined on the basis of the size of coconut is determined on the basis of the size of coconut offered at the time sale. In this case the large size growers are in adverse position of getting the uncertain favorable price for their coconut and so their revenue per acre is low.

It can also be observed from Table 4.9 that the revenue from husk and leaves is the highest in the case of the small growers and the lowest for the large growers. The large growers give full attention to the yield of coconut and they take little efforts to the supplementary sources of income. The large growers consider the summer season as the best time for the sale of the tender coconut for it will give high price than the matured coconut. The sale of tender coconut is the highest in the case of the large growers and the lowest of the small growers on the whole the small growers fetch a higher amount of total revenue as profit not withstanding their higher marketing and other variable costs.

6.10 Functional Analysis The cost and return analysis shows that the cultivation of coconut was profitable. Analysis of cost and return form coconut cultivation showed that it gives reasonable margin to be growers not enduring the size of holdings. The Question is whether there is any scope to increase the net return per acre and the Question could be answered by analyzing the resource use efficiency. In this segment, Cobb-Douglas type of production function could successfully be used to ascertain the possibility of increase in the production through increase in doses of important inputs. The determined of gross return, return to scale and resource- use efficiency were analyzed, using Cobb- Douglas type production function. The function in log from would be as follows.

Log Y = a+b1 logX1 + b2 logX2+...... +b6 log X6

where, Y= Yield of coconut per acre (in Rs) X1= Watch and ward per acre (in Rs) X2= Pesticide per acre (in Rs) X3= Manure per acre (in Rs) X4= Human Labour per acre (in Rs) X5= Irrigation per acre (in Rs) X6= Fertilizer per acre ( in Rs)

b0, b1, to b6 are the parameters to be estimated.

b0= Regression Constant

b1 to b6= partial elasticity of yield with respect of the factors X1 to

X6 respectively. In order to test the significance of the estimated parameters b1,b2,...... b6, t- test of the following formula is used.

B1 T = ...... (2) S b1

Sbi = Standard error of bi The sum of all the production elasticities of factor inputs indicate returns to scale i.e sb1, = 1,2,6. If sbi > 1 increasing return to scale sbi < 1 Decreasing return to scale sbi = 1 Constant return to scale. 6.11 DETERMINATES OF GROSS RETURN The Cobb- Douglas type production function (1) fitted is to test the relationship between the yield of coconut and the independent variable for yield of small growers, large growers and overall farmers. The results are presented in Table 6.11 for small growers.

Table 6.10 Estimated COBB- Douglas type production function for small Growers S1.NO Variable Elasticity Standard ‗É‘ value co-efficient error 1. Returns (y) - - - 2. Intercept (bo) 5.4560 1.0240 5.239 3. Watch and ward 0.0582* 0.0277 2.092 4. (x1) 0.0578NS 0.0362 1.513 5. Pesticide(x2) 0.1700* 0.0842 2.029 6. Manure (x3) 0.0212NS 0.0552 0.384 7. Labour (x4) 0.0372NS 0.0345 1.078 8. Irrigation (x5) 0.34.00* 0.0617 5.517 Fertilizer (x6) Source: Primary data.

R2 : 0.807 F-Test : 47.563 No of observations : 160 Significant at 1 per cent level of probability. NS= Not significant.

It could be observed from Table 6.11 that the small growers in the study area are concerned about six independent variables they are watch and ward, pesticide, manure, labour, irrigation and fertilizer. Among these independent variables watch and ward and ward, manure and fertilizer but irrigation, labour and pesticide are not significant inputs.

The level of watch and ward utilized has significantly influenced the yield of coconut. The yield is expected to increase by 0.0581 per cent from its mean level for every one per cent increase in the level of labour utilized keeping all other factors constant.

In the same way the elasticity co-efficient for the cost of manure was 0.170, which indicates that by increasing the expenditure on manure by one per cent the yield of coconut would increase by 0.170 per cent keeping all other factors constant.

The co-efficient of fertilizer 0.34 was significant at one per cent level. This indicate that for every one per cent increase from the present level of fertilizer and irrigation the yield would increase by 0.34 per cent from their mean value ceteris paribus.

The analysis illustration that the small growers in the study area have better scope for increasing the yield of coconut by the effective utilization of fertilizer.

The estimated results of the Cobb- Douglas type production function for the large growers are furnished in Table 6.12.

Table 6.11 Estimated Cobb- Douglas type production function for large Growers S1.NO Variable Elasticity Standard ‗t‘ value Co-efficient error 1. Returns (y) - - - 2. Intercept (bo) 8.9650* 0.4900 18.296 3. Watch and ward (x1) 0.0480NS 0.292 1.669 4. Pesticide(x2) 0.0040NS 0.0171 0.285 5. Manure (x3) -0.1370* 0.0582 -2.350 6. Labour (x4) 0.1970* 0.0628 3.147 7. Irrigation (x5) 0.0125NS 0.0175 0.714 8. Fertilizer (x6) 0.1520* 0.0711 2.123

R2 : 0.8475 T- Test: 63.001 No. of observation: 160  Significant at 1 percent level of probability NS= Not significant.

It is seen from Table 6.11 that in the production elasticities out of the five independent variables, three measures of variables namely manure, labour and fertilizer were found to be significant at one per cent level. The elasticity co-efficient for the cost of manure was – 0.137 which indicated an increase in the expenditure use of manures to increase the yield over the mean level.

The elasticity co-efficient of labour was 0.197, which indicates an increase of labour by one per cent which may result in an increase in coconut yield by 0.197 per cent ceteris paribus.

The level of fertilizer applied also significantly influenced the yields of coconut. The analysis indicated that every one per cent increase in the cost of fertilizer ceteris paribus. Could increase the yield by 0.426 per cent from its mean level.

A complete result would be helpful to frame a generated design about the influence of each variable over coconut yield in the study area and this the calculated results for overall sample growers are presented in Table 6.13.

Table 6.12. Estimated Cobb- Douglas type production function for over Growers S1.NO Variable Elasticity Standard ‗t‘ value Co-efficient error 1. Returns (y) - - - 2. Intercept (bo) 7.4400* 0.4450 16.685 3. Watch and ward (x1) 0.0681* 0.0200 3.365 4. Pesticide(x2) 0.0030NS 0.0170 0.197 5. Manure (x3) 0.0310NS 0.5013 0.618 6. Labour (x4) -0.0100NS 0.0171 -0.638 7. Irrigation (x5) 0.0390* 0.0174 2.249 8. Fertilizer (x6) 0.3320* 0.0333 9.985

R2 + 0.779 F- Test + 89.041 No of observation: 320  Significant at I per cent level of probability NS= Not significant. It is seen from Table 6.12 that the co-efficient of determination (R2) was 0.77. indicating that 77.9 per cent of variation in the output of coconut could be explained by the entire six variables included in the production function. The F- value indicated that the fitted cob. Douglas type production function was significant at one per cent level and is valid to draw influence. The value of regression constant was statistically significant.

On the subject of production elasticities out of the six independent variables watch and ward irrigation and fertilizer would influence the output as in the case of other types of growers in a significant manner. The yield of coconut could be increased by 0.0681 per cent 0.039 per cent and 0.332 per cent by one per cent increase in the present level of watch and ward, irrigation and fertilizer respectively allowing the respective input to vary while the other factors remain constant.

6.14 Return To Scale: The estimated return to scale of for yield increasing the offered size of growers of coconut plants are furnished in Table 6.13.

Table 6.13 The nature of Return to scale Sum of the Nature of Return S1.No Particulars production to scale Elasticity 1. Yield for small growers 0.6801 Decreasing 2. Yield for large growers 0.3889 Decreasing 3. yield for overall 0.4637 Decreasing Source: Primary data.growers Table 6.13 shows that the sums of the production elasticities for yield of the small, large and overall growers were 0.6801, 0.3889 and 0.4637 which indicates decreasing return to scale.

6.15 RESOURCE USE EFFICIENCY: The marginal value productivity of resource and the cost of that resource would give an indication of the reallocation of resource to make the best use of return. Optimization principle in resource allocation suggests that the application of a resource should be increased till the marginal value product of a factor equals its marginal cost. In the present study, marginal value product of a factor equals its marginal cost. In the present study marginal value product of the inputs X1, X2 ……X6 was calculated by using the following formula.

Y MVPj = Bj Pi Xi

Where, MVPj = Marginal value product for input j Bj = Estimated elasticity co- efficient of variable j Y = Geometric mean yield (nuts) Xj = Geometric Mean value of variables. P = Mean net selling price of coconut (Rs/nuts)

After computing the MVP of various inputs, it was divided by marginal cost of factor cost to arrive at the ratio of marginal value product to factor costs.

The marginal value products of the significant variables for yield of small growers, large growers and overall growers of coconut plant were estimated and presented in Table 6.14.

Table 6.14 Marginal value productivity of the Resource in small

growers.

oduct

MIC

S1.No Variables Geometric mean Average physical pr (Rs) Elasticity Coefficient Marginal physical product Marginal value of product Marginal Input cost(Rs) MVP

1. Yield 99203.64 ------

2. Watch 3870.74 25.62911485 0.058 1.489 7.267 0.25 29.066 &ward 3. Pesticide 3613.38 27.45452734 0.055 1.507 7.354 0.65 11.314 4. Manure 9476.15 10.46877054 0.171 1.790 8.736 0.25 34.944 5. labour 16689.47 5.944085702 0.212 1.260 6.150 1.00 6.150 6. Irrigation 2692.97 36.83800414 0.037 1.370 6.687 0.65 10.288 7. fertilizer 7755.31 17.7917053 0.340 4.349 21.224 0.35 60.640

Source: Computed data. Table 6.14Shows that the ratio of marginal value products to the factor cost were 29.066, 11.314, 34.944, 6.150, 10.288 and 60.640 respectively for watch and ward, pesticide, manure, labour, irrigation and fertilizer. It is inferred from the table that there was wide scope for increasing the use of watch and ward, pesticide, manure, labour , irrigation and fertilizer to increase the return from coconut cultivation, as the ratio of marginal value product to factor cost was more than unity. It was also revealed that, every rupee additionally spent on fertilizer and manure, worked yield Rs. 60.64 and Rs. 34.94 respectively worth of output. The marginal value products of the significant variables for yield of large growers of coconut were estimated and presented in Table 6.15.

Table 6.15

Marginal value productivity of the resource in large Growers.

al al

MIC

S1.No MVP

Variables Geometric mean Average physical product(Rs) Elasticity Coefficient Marginal physical product Margin value of product Marginal Inputcost(Rs) 1. Yield 99151.08 ------2. Watch 3949.46 25.10497131 0.049 1.225 5.979 0.25 23.914 &ward 3. Pesticide 3564.57 27.81571971 0.005 0.136 0.665 0.55 1.209 4. Manure 9338.27 10.61771399 -0.137 -1.455 -7.099 0.35 -20.282 5. labour 14861.56 6.671646853 0.198 1.319 6.437 1.25 5.149 6. Irrigation 2814.18 35.22891618 0.013 0.440 2.149 0.55 3.907 7. fertilizer 7647.49 12.96517942 0.151 1.958 9.554 0.40 23.884 Source: Computed data. It could be observed from Table 6.15 that the ratio of marginal value products to the factor cost were 23.91, 1.20,- 20.28, 5.14, 3.90 and 23.88 respectively for watch and ward, pesticide, manure, labour, irrigation and fertilizer to increase the return from coconut cultivation, as the ratio of marginal value product to factor cost was more than unity. It was also revealed that every rupee additionally spent on watch and ward and fertilizer, would yield Rs. 23.91 and Rs. 23.88 respectively worth of output.

The marginal value product of the significant variables for yield of overall growers of coconut plants were estimated and presents in Table 6.16.

Table 6.16

Marginal value of the Resource in overall growers.

-

Rs)

S1.No MVP MIC

Variables Geometric mean Average physical product( Co Elasticity efficient Marginal physical product Marginal value of product Marginal Input cost(Rs) 1. Yield 99177.85 ------2. Watch 3909.9 25.36582777 0.06818 1.729442 8.439678 0.25 33.75871 &ward 3. Pesticide 3588.9 27.6346949 0.00351 0.096997 0.473348 0.60 0.788913 4. Manure 9506.56 10.43256972 0.0317 0.330712 1.613877 0.30 5.379589 5. labour 15749.01 6.297402186 -0.0109 -0.06864 -0.33497 1.13 -0.29775 6. Irrigation 2753.06 36.02458719 0.0392 1.412164 6.891359 0.60 11.4856

7. fertilizer 7701.21 12.87821654 0.332 4.275568 20.86477 0.38 55.63939 Source: Computed data.

It could be observed from Table 6.16 that the ratio of marginal value products to the factor cost were 33.75, 0.788, 5.37,-0.29, 11.48 and 55.63 respectively for watch and ward, pesticide, manure, labour, irrigation and fertilize. It is inferred from the table that the was wide scope for increasing the use of fertilizer, watch and ward, irrigation, manure, pesticides and labour to increase the return from coconut cultivation as the ratio of marginal value product to factor cost was also revealed that, every rupee additionally spent of on fertilizer and watch and ward, would yield Rs. 55.63 and Rs. 33.75 respectively worth of output.

6.19 CAPITAL PRODUCTIVITY ANALYSIS: Coconut is a perennial crop. The coconut palm is broadly distinguished in two groups Viz., the Tall and the Dwarf. The Tall variety is mostly extensively grown on plantation scale in all coconut tracts of the world. The coconut life span extends from 60 to 80 years. Or even more. In the study area most of the cultivators cultivate the Tall varieties. The researcher studied only samples of Tall varieties and calculated that the coconut tree and the average economic life of 60 years and the commercial production will start from the 6th year onwards. So considerable investments invesments are made over several years before the crop starts to yield. Therefore, it is necessary to know the present value of the expected future income to justify the investments made. A resource appraisal technique should be used to measure the economic worth of the investment in the coconut garden.

The Analytical Framework: In the present study the following capital budgeting techniques are used to measure the economic worth of investment in coconut production.

Pay- Back period: It measures the human of years required to recover the original cash outlay investment in the project. The maximum acceptance pay back period is fixed by taking into account the reciprocal of the cost of capital. This can be terminal as cutoff point. Generally a project having a pay-back period more than cut-off point is not entertained.

Benefit- cost Ratio: It is the ration of present value of returns, at the required rate of return, to the present value of costs. When the benefit cost ration exceeds one, the investments is considered feasible at the required rate of return.

Present Value of returns Benefit- Cost Ratio = Present Value of Costs. Symbolically, n

Bt/ (1+i)t BCR ratio = t=1

n

Ct/ (1+i)t t=1

Where; N = Life period of the project in years

Bt = Returns in the year ‗t‘

Ct = Cost in the year ‗t‘ i = Discount rate

Net present Value: Net present value is found out by subtracting present value of cost from the present value of presents. A project whose net present value is greater or equal to zero is considered as worthy investment. Net Present Value = Present Value of Returns- Present Value of Cost Symbolically,

Bt -Ct N NPV (1+i) = t

t=1

Where, the symbols used are the same as in the case of benefit cost ratio.

Internal Rate of Return: Internal Rate of Return is the rate of discount at which the NPV is Zero. If the IRR exceeds cut-off rate (opportunity cost of capital) the investment is economically viable. Symbolically:

Bt -Ct N IRR = (1+i)t = 0

t=1 where; the symbols used one the same as in the case of benefit cost ratio. The national Bank for Agriculture and Rural Development (NABARD) considers an agricultural project which yields a return of 15 per cent and above as an economically viable project. Hence in this study the requirement rater of return is taken as the 15 per cent.

To compute the payback period Net Present Value, benefit cost ratio and internal rate of return for coconut cultivation increment cost, present value of cost and return at 15 per cent discount factor were calculated and presented in Table 6.17

Table 6.17 Computation of pay-back period, Benefit Cost Ratio.Net Present Value

and Internal Rate of Return for coconut.

ent ent

S1.NO Rs/ Cost acre Returns Rs/acre Income Benefit 15 Disc % Pres value of cost Present value of Return 1. 6517014 0.00 65170.14 0.8696 56669.69 0.00 2. 15174.30 0.00 -15174.30 0.7561 11473.95 0.00 3. 16932.30 0.00 -16932.30 0.6575 11133.26 0.00 4. 17542.50 0.00 -17542.50 0.5718 10029.98 0.00 5. 17885.65 23384.76 5499.11 0.4323 7732.46 10109.88 6. 27255.82 47935.81 20679.99 0.4972 13550.96 23232.57 7. 35075.75 58932.79 23587.04 0.4323 15164.21 25478.27 8. 37380.65 79386.45 42005.80 0.3759 14052.77 29844.31 9. 39489.90 87584.04 48094.14 0.3269 12909.32 2831.38 10. 42854.35 89139.54 46285.19 0.2843 12181.88 25339.02 11. 46784.87 98294.86 51509.99 0.2472 11564.50 24296.99 12. 48587.65 99875.33 51287.68 0.2149 10443.59 21467.53 13. 48958.53 112004.26 63.45.73 0.1869 9150.70 20934.40 14. 48285.85 122535.72 74249.87 0.1625 7847.80 19915.48 15. 49348.68 123822.47 74473.79 0.1413 6974.38 17499.66 16. 48984.00 124425.44 75441.44 0.1229 6019.86 15291.20 17. 48544.58 125732.66 77188.08 0.1069 5187.71 13436.39 18. 48282.69 132407.40 84124.71 0.0929 4486.71 12304.08 19. 47988.63 134008.87 86020.24 0.0808 3877.73 10828.60 20. 47753.28 142879.68 95126.40 0.0703 3355.40 10039.49 21. 47512.37 142987.62 95475.25 0.0611 2903.02 8736.58 22. 46872.64 143501.58 96.628.94 0.0531 2490.38 7624.34 23. 46551.12 144000.92 97449.80 0.0462 2150.69 6652.93 24. 46352.84 144952.32 98599.48 0.0402 1862.20 5823.38 25. 45987.64 145963.52 99975.88 0.0349 1606.55 5099.13 26. 45578.36 159905.58 114327.22 0.0304 1384.56 4857.55 27. 44687.52 158387.84 113700.32 0.0264 1180.44 4183.87 28. 44358.45 157231.51 112873.06 0.0230 1018.91 3611.59 29. 44382.35 156382.34 111999.99 0.0200 886.48 3123.55 30. 43686.64 153260.67 109574.03 0.0174 758.77 2661.91 31. 43579.65 152924.71 109345.07 0.0151 658.19 2309.63 32. 43193.64 151988.59 108794.96 0.0131 567.27 1993.08 33. 42480.65 149411.35 106930.70 0.0114 485.13 1706.29 34. 41325.81 135946.25 94620.44 0.0099 410.39355 1350.0111 35. 41111.28 134405.83 93294.55 0.0086 .00 60.62 36. 40522.86 130897.45 90074.59 0.0075 306.53 982.89 37. 39321.40 128698.79 89377.39 0.0065 256.75 840.33 38. 38759.66 125350.99 86591.33 0.0057 220.07 711.72 39. 38175.93 121603.08 83427.15 0.0049 188.48 600.38 40. 35230.26 119246.06 84015.80 0.0043 151.25 511.95 41. 34218.34 107203.16 72984.82 0.0037 127.75 400.22 42. 32218.36 105158.15 72939.79 0.0032 104.59 341.37 43. 31759.17 106309.67 74550.50 0.0028 89.65 300.10 44. 29407.40 105924.71 76517.31 0.0025 72.19 260.01 45. 25106.38 104899.59 79793.21 0.0021 53.59 223.91 46. 23849.00 103586.53 79737.53 0.0019 44.27 192.27 47. 21535.72 102411.33 80875.61 0.0016 37.76 165.29 48. 19860.86 100348.98 80488.12 0.0014 27.87 140.84 49. 18873.53 99864.19 80990.66 0.0012 23.03 121.87 50. 17920.23 97828.86 79908.63 0.0011 19.02 103.82 51. 18250.00 97989.96 79739.96 0.0009 16.48 90.43 52. 18768.86 98325.68 79556.82 0.0008 15.06 78.90 53. 32937.51 119200.41 86262.91 0.0007 22.98 83.17 54. 16873.28 95321.32 78448.04 0.0006 10.24 57.84 55. 15823.28 93458.93 77635.65 0.0005 8.35 49.31 56. 15751.08 91902.17 76151.09 0.0005 7.23 42.16 57. 14735.54 86407.45 71671.91 0.0004 5.88 34.47 58. 13779.51 81264.00 67484.49 0.0003 4.78 28.19 59. 12647.03 79440.64 66793.61 0.0003 3.82 23.96 60. 12746.54 78340.36 65593.82 0.0003 3.34 20.55

Source: Computed data.  It the average price of Rs. 3.02 per nut of coconut.

6.21 Pay- back period: The pay- back period computed on the basis of undiscounted cumulative value for the investment made in coconut cultivation was 2.74 years indicating that the growers can recover the initial investment made in coconut garden in 2.74 years the cut-off year at 15 per cent cost of capital is 6.67 years. The calculated pay- back period is less than the cut- off year. Hence it may be concluded that the investment in coconut cultivation in viable one.

6.22 Benefit- Cost ratio: Benefit cost ratio computed on the basis of discounted cost and returns for the investment in coconut cultivation is presented in Table 6.18. Table 6.18 Benefit cost Ratio of coconut Cultivation Present value of Present value of Benefit cost Nature of Benefit cost Return (Rs.Peracre) cost (Rs. Per acre) Ratio Ratio

376552.65 254343.14 1.48 71

Source: Computed data. At the discounted rate of 15 per cent the Benefit, cost ration was 1.48 which indicates for that on an average for one rupee invested in coconut cultivation, the benefit received would be 1.48. since the ratio is larger than unity the investment in coconut cultivation at the unity the investment in coconut cultivation at the specified rate of discount is worthwhile.

6.23 Net Present Value: It is the most valid techniques of evaluating an investment project. It is generally consistent with the objective of maximizing wealth. The Net Present Value of coconut production was computed on the basis of estimates in Table 4.17 and the results are presented in Table 6.19.

Table 6.19 Net Present Value of coconut cultivation. Present value of Present value of Net present value Nature of Net Return cost (Rs. Per (Rs. Per acre) Present Value (Rs.Per acre) acre)

376552.65 254343.14 122209.50 positive

Source: Computed data. It is found from the table that the Net present value was Rs. 122209.50 at 15 per cent discount rate. Since the Net Present value is positive and large it is inferred that the capacity to generate more wealth is large in coconut farmers. Therefore investment in coconut cultivation is economically beneficial.

6.24 Internal Rate of Return: Internal Rate of Return is the rate at which the sum of discounted cash inflows equals the sum of discounted cash of outflows. It is the maximum rate of interest which an organization can afford to pay on the capital. Invested in a project. The computed value of internal rate of return was 22 per cent for the samples. As compared to the opportunity cost of capital (cut- off rate) which was taken as 15 per cent, the rate of return on investment made in coconut cultivation is very high. It indicates the economic viability of investment in coconut cultivation.

From the capital productivity analysis, it is inferred that coconut cultivation is an economically viable one. The investment in coconut cultivation can be preferred to other alternatives that yield less than 22 per cent internal rate of return.

Marketing of coconut: Agriculture marketing plays a crucial role in Agricultural development which is pre-requisite for development in other sectors and for the overall development of the economy. In a changing economic situation, the marketing system companies several agencies and institutions, each playing an important role in the system.

The marketing system in India provides substance for about 3 million people who are engaged in performing various marketing functions. In the field of experts too, the agricultural factor accounts for about 50 per cent of the total value.

The most important change in the present day market is the Quality standard, which was previously determined by the marketers is now determined by the consumers. Such being the case customer wants taste expectations and delight require special attention through appropriate measures in advertising, communication, distribution and branding. Marketing beings with the assessment of customers concerns and ends with evaluation.

Spinks defines agricultural marketing as the operations involved in the movement of food and raw materials from the farmer to the final consumer plus the organization of raw materials supplied to processing industries and the marketing of processed products, including an assessment of demand as well as policy related to agricultural marketing.

Agricultural marketing involves in its simplest from of the buying and selling of agricultural produce. In modern marketing, the agricultural produce has to undergo a series of transfer or exchange from one hand to another before it finally reaches the consumer.

In this chapter an attempt has been made to study the marketing system in terms of marketing practices such as harvesting, grading, packing, marketing channels, and the like. Further an attempt is also made to study the marketing cost, marketing margin, price spread, effects of variation in the consumer‘s price on the share of producer, pre- harvest contractor, wholesaler and retailer efficiency of marketing.

6.25 MARKETINDG SYSTEM AND PRACTICES: A brief account of practices generally followed in coconut marketing is presented in the following paragraphs.

6.25 Cutting (Harvesting) Coconut marketing operations begin with cutting of the coconut. It is harvested at tender and matured stages. In almost all the sample respondent grove harvesting is done only at the matured stages. For matured nuts harvesting is done six times in a year, that is once in two months. On the basis of yield the harvesting period can be divided into two periods. One is a period of high yield that is from January to June and other is a period of low yield that is a period from July to September

6.26 Grading Matured nuts enter the market as green coconut, partially dehusked nuts and fully husked nuts. The major portion of the nuts are partially dehusked and then graded. For the local market, coconut is classified only on the basis of the visible size as small, medium and big.

6.27 Counting The coconuts ate normally counted before Loading on the transport. The dehusked coconuts are loaded in lorry or ran to the marketing centers.

6.28 Transportation It was observed during the survey that most villages where coconut cultivation is carried on are not well connected by roads. Therefore the harvested nuts are to be carried as small head- loads from homestead garden to the nearly road points. Lorry, van, and tractor transportation is the main mode of transportation for coconuts within the state and tractor transportation is the main mode of transportation is the main mode of transportation for each market normally loose load of coconuts are sent either by cart or by tractor or by lorry depending upon the distance.

6.29 Storage Coconuts are stored in coconut Godown. The commission agent and wholesalers have Godown for storing the nuts till they are dispatched to discount markets. Normally it is stored in a shed or a shady place and are covered with husk so that it is protected from the sun. The Normal storage period for coconut is from 45 days to 90 days. 6.30 Finance Adequate finance is required to perform the various marketing activities of coconut. The commercial banks and the local money- lenders provide finance but to a limited extent. Generally, growers depend on pre-harvest contractors, local money Lenders or wholesalers for their financial requirements. Most of the pre- harvest contractors and wholesalers are able to manage with their own funds or they get trade credit from bankers.

6.31 CHANNELS OF DISTRIBUTION: The channels of distribution of coconut are similar to those of the other agricultural products. The marketing channels linking producers and consumers consists of intermediaries viz pre-harvest contractors, commission agents, wholesalers and retailers. If the demand is in the every place of production, number of middlemen involved would be minimum. If the demand is in the nearly towns, services of auctioneers may be required in addition to the services of wholesalers and retailers. Whenever the product is to be sent to far off markets the number of intermediaries involved in the channel is increased.

In Thanjavur district the role played by the pre-harvest contractors in very important. There is no institutional agency like marketing society or regulated market involved in the distribution process of coconut.

Channels of coconut marketing in Thanjavur District:

Channels – I

Growers  Pre- harvest contractors commission

Agents  wholesalers  Retailers  consumers.

Channels –II

Growers  commission Agents  wholesalers  Retailers  Consumer.

Channels –III

Growers  wholesalers  Retailers  consumers.

Marketing channel Pre-harvest commission agent

Growers Wholesalers Retailers  consumers

commission agents

Table 6.20 Preference of middlemen by sample Growers S1.NO Middleman Number of Percentage Growers 1. Pre-harvest contractor 125 39.06 2. Wholesaler 110 34.37 3 Commission agent 85 26.57 Total 320 100.00 Source: Primary data. Marketing of coconut is done through different channels of distribution. It could be observed from Table 6.20 that 26.57 per cent of the sample growers sell their produce directly to commission agents. They bring their produce to the market where they get immediate payment. Here the grower has to do all the works of harvesting, deciding the market and transporting the produce to the market.

39.06 per cent of sample growers prefer the sale to pre-harvest contractors, who make advance payment a few months before the harvest on condition that the entire produce should be sold to them at the price prevailing at the time of harvest. Hence the pre-harvest contractor bears the cost of cutting loading, transporting unloading and commission period to the agents.

34.37 per cent of the coconut growers sell their produce directly to the wholesalers who are prepared to buy coconut at the garden of the growers when there is a great demand for coconut. The growers do the cutting, loading and transporting the coconut at their own cost. The wholesalers pay the full price of the produce on the spot.

Reasons for preferring pre- harvest contractors Pre-harvest contractors play an important role in coconut marketing in the study area. The multi-faceted functions performed by them stimulate majority of the coconut growers to them stimulate majority of the coconut growers to target them irrespective of their size of land holdings.

The researcher has identified that advance payment, convenient sale, price benefit, conventional practice, less expenses and low volume of rejection are the primary reasons for having a preference to pre-harvest contractors. To find out the reasons which influence them the most, the sample growers were asked to rank the reason and the opinions obtained were analyzed with the help of the Garrett Ranking Technique and the results are furnished in

Table 6.21 Reasons for preferring pre- Harvest contractors. S1.NO Middlemen Number of Rank growers 1. Advance money 65.57 I 2. Convenient sale 59.11 II 3. Price benefit 55.12 III 4. Conventional practice 46.25 IV 5. Less expensive 37.45 V 6. Low volume of rejection 36.50 VI

Source: Primary data.

The highest mean score given by the growers was 65.57 per cent and it was given for the advance payment given by the pre-harvest contractors. Such payments before harvest enable growers to meet their cultivation and social expenses. Convenient sale (59-11), price benefit (55.12) and conventional practice (46.25) are also some of the motivating factors that influence the growers for preferring pre- harvest contractors.

6.34 Marketing Cost Marketing cost is the cost incurred in cutting, de-husking. Transporting and other incidental charges paid in marketing the coconuts. It is the actual expenses incurred in bringing the goods and services from the producer to the consumer. The marketing cost is a vital factor in determining the profitability of the coconut growers and middlemen.

6.35 Marketing cost of Growers In the study area the coconut growers use different channels to sell their produce. The cost incurred by them in marketing one thousand nuts under different channels was worked out and the results obtained are represented in Table 6.35.

Table 6.22 Marketing cost of sample Growers. S1.NO Cost component Small Large 1. Cutting 71.85 65.60 (11.05) (10.75) 2. Loading and unloading 128.15 111.95 (19.71) (18.35) 3. Commission 150.00 150.00 (23.07) (24.59) 4. Counting 29.35 28.25 (4.51) (4.81) 5. Transporting 248.15 234.20 (38.16) (38.39) 6. Market fee 22.75 22.75 (3.50) (3.73) Total 650 610.10 (100) (100) Source: Primary data. Figures in parentheses are percentage to total.

Figure 6.2

shows that of all marketing expenses the transportation expenses lead the total marketing cost irrespective expense lead the total marketing cost irrespective of the size of growers. The growers use van and lorry for transporting coconut from coconut-garden to the terminal market. As the small growers transport low Quantities, their expenses of transportation, loading and unloading and commission to intermediaries are higher. The large growers used their own van so the transportation cost is low. Counting and market fee are uniform for all.

6.36 Marketing cost of pre- Harvest Contractors In Table 6.23 the details of marketing cost incurred by the harvest contractors are given. Table 6.23 Marketing cost of pre- Harvest contractors. Rs. (000 nuts) S1.NO Cost component Amount Percentage 1. Cutting 55.15 8.48 2. Loading& unloading 60.25 9.27 3. Commission 130.00 19.99 4. Counting 10.00 1.54 5. Transporting 214.85 33.04 6. Interest on working 180.00 276.68 capital Total 650.25 100.00 Source: Primary data.

From Table 6.23, it is obvious that the pre-harvest contractors incurred a marketing cost of Rs. 650.25 per 1000 nuts. The transport cost tops all the other costs. In the same way marketing cost, excluding interest on working capital, is less for the pre-harvest contractors when compared with that of the growers. This was mainly because of concessions enjoyed by the pre-harvest contractors due to their frequent and large scale transactions with the Growers.

6.36 Marketing cost of commission Agents The marketing cost incurred by the commission agents in marketing of coconut was worked out and the results obtained are furnished in table 6.24 Table 6.24 Marketing cost of commission Agents. S1.NO Cost component Amount Percentage 1. Office rent 33.33 13.84 2. Wage and salary 36.67 15.23 3. Commission 150.00 62.31 4. Miscellaneous 20.75 8.62 Total 240.75 100.00 Source: Primary data.

From table 6.24, it could be observed that commission agents have to pay Rs. 240.75 for nuts towards marketing cost. Commission charges amounted to Rs. 150.00 per 1000 nuts which account for 62-31 per cent of the total marketing cost. Commission agents do not more from place to place to contract growers, pre-harvest contractors and wholesalers. They have their shops in the marketing centers and the growers and others come to them.

6.36 Marketing cost of wholesalers The marketing cost incurred by the wholesalers is given on Table 6.25. Table 6.25 Marketing cost of wholesalers (Rs/ 000 nuts) S1.NO Cost component Amount Percentage 1. Loading 115.85 26.10 2. Commission 135.35 30.49 3. Wages and salaries 39.00 30.49 4. Go down 25.85 5.82 5. Packing and counting 12.80 2.88 6. Wastage 15.00 3.40 7. Interest on working capital 100.00 22.52

Total 443.85 100.00 Source: Primary data.

From Table 6.25, it is observed that the wholesalers incurred a marketing cost of Rs. 443.85, 1000 nuts. As the table shows, with 30.49 per cent, of the total cost, commission, tops the list of marketing cost. Before marketing sales of the coconut, the wholesalers have to give commission charges for each coconut. These may be the reasons for high commission charges.

Loading, wages and salaries, go down, and office rent and office, packing, counting, wastage and interest on working capital are borne by them.

6.37 Marketing cost of Retailers The details of expense paid by the retailers in marketing of coconut were analyzed and the results obtained are furnished in table 6.26

Table 6.26 Marketing cost of Retailers S1.NO Cost component Amount Percentage 1. Market fee 30.00 16.22 2. Shop rent 75.00 40.54 3. Transport cost 45.00 24.32 4. Go down and office rent 25.00 13.51 5. Wastage 10.00 5.41

Total 185.00 100.00 Source: Primary data.

Retailers purchase coconut from the wholesalers and not directly from the commission agents or the pre-harvest contractors. More than 40 per cent of the marketing cost of the retailers is due to their shop rent. Retailers have to buy only dehusked coconut and they need to sell it at once as the produce is perishable. Total marketing cost 1000 nuts of retailers worked out at Rs. 185.00.

6.38 MARKETING MARGIN Marketing margin is the share due to middleman. Before a final price is determined the middleman add their margin which included the cost of service provided and the reward for understanding future risks. It is the income of the marketing agency, most of which is paid out to cover the agencies own costs. equipment and the like employed in carrying out marketing functions. A relatively small portion is left as reward for management of enterprises and risk.

Coconut passes through various intermediaries in its Journey from producer to consumer. The intermediaries render a number of services in the process of marketing of coconut. The margin of the intermediaries may be taken as a indicator of the efficiency of the marketing system.

The marketing margin of various intermediaries in all the three channels taken up for the study is presented in table 6.27 The marketing of coconut produce in different blocks of Thanjavur district and local markets is computed and discussed in detail. Table 6.27 Marketing margin in Different channels S1.NO Particulars channel I II III 1. Pre-harvest 375.75 - - 2. Wholesalers margin 223.15 - - 3. Retailers margin 552.00 - -

Total marketing margin 1150.90 775.15 845.67 Source : Primary data. It is observed from Table 5.27 that in all the three channels of distribution the retailers earned uniform margin and the their share is the highest among the intermediaries. The margin enjoyed by the pre-harvest contractors ranked second and that too only in channel I. As far as wholesalers are concerned, they get a better share in channel III than in other channels. Their share is the least in all the three channels which comparing the share of the other intermediaries. 6.39 PRICE SPREAD The difference between the price paid by the consumer and the price received by the producer for the same Quantity of produce is called price spread. The spread consists of marketing costs and margins of the intermediaries which ultimately determines the overall effectiveness of the marketing system. The market is said to be efficient if the price spread is minimum.

Marketing cost of coconut in Thanjavur district engages the contribution of number of middleman between the producers and the final consumers. As a result the price paid by the latter does not entirely reach the producers. There is a considerable difference between the price paid by the consumers and the amount received by the producers. The difference is shared out by the intermediaries.

The price spread has been computed for every nut of coconut sold by the sample growers. The goes and net price received along with the marketing cost incurred by each intermediary under different channels have been computed and presented in Table 6.28

Table 6.28 Price spread for coconut S1.NO Particulars Channel Channel Channel Amount % Amount % Amount % 1.0 Procedure 1.1 Net price 2450.00 50.20 2845.82 58.32 2866.00 58.73 1.2 Received - - 630.18 12.91 610.00 12.50 1.3 Marketing cost 2450.00 50.20 3476.00 71.23 3476.00 71.23 Gross price 2.0 Pre-harvest Received 2.1 contractor 2450.00 50.20 - - - -

2.2 Price paid 650.25 13.32 - - - - 2.3 Marketing cost 375.75 7.70 - - - - 2.4 Marketing 3476.00 71.23 - - - - margin Price received 3.0 Wholesaler 3.1 Price paid 3476.00 71.23 3476.00 71.23 3476.00 71.23 3.2 Marketing cost 443.85 9.10 443.85 9.10 373.33 7.65 3.3 Marketing 223.15 4.57 223.15 4.57 293.67 6.02 3.4 margin 4143.00 84.90 4143.00 84.90 4143.00 84.90 Price received 4.0 Retailer 4.44.1 PricePriced paid 4880.004143.00 100.0084.90 48804143.00.00 100.0084.90 4880.004143.00 100.0084.90 4.2 ReceivedMarketing by cost 185.00 3.79 185.00 3.79 185.00 3.79 4.3 Marketing 552.00 11.31 552.00 11.31 552.00 11.31 commissionmargin Source: Primary data.

From Table 6.28 it could be seen that the share of the producer in the price paid by the consumer is 50.20 per cent. 58.32 per cent, 58.73 per cent in channels I, II and III respectively. It is found to be the highest in channel III when compared to channels I and II.

The marketing cost of coconut incurred by the producers was less in channel III (12.50 per cent) then coconut II (12.91). The producer incurs no marketing cost under channel I. The cost incurred by the wholesaler was the same in both channel I and channel II with 9.10 per cent of consumer price and it was lower in channel III with 7.65 per cent. As far as the retailers are concerned the marketing cost was uniform with 3.79 per cent in all the three channels.

The margin Received by the retailers is the maximum with 11.31 per cent of consumer price among all the intermediaries and also in all the channels of distribution followed by the pre harvest contractor with 7-70 per cent in channel I and the wholesalers with 6.02 per cent in channel III.

AN OVERVIEW OF PRICE SPREAD To get s comprehensive idea about the different channels of distribution, total marketing cost, marketing margin, grower‘s price, consumer‘s price and price spread have been consolidated and presented in Table 6.29

Table 6.29 Overview of price spread S1.No Particulars Channels I II 1. Marketing cost III1279.10 1259.03 1168.53 2. Marketing margin 1150.90 775.15 845.67 3. Producer‘s price 2450.00 2845.82 2866.00 4. Consumer‘s price 4880.00 4880.00 4880.00 5. Price spread 2430.00 2034.18 2014.00 Source: Primary data.

It could be seen from Table 6.29 that the total marketing cost incurred by the various market intermediaries was the highest in channel I where the producers realized the least price for their products under this channel. The price spread was the lowest in channel III where the marketing cost was minimum. Under channel III the producers realized the maximum price for their products. Marketing margin was minimum in channel in channel II though the producer‘s price was also less which was due to some extent higher marketing cost under this channel.

6.41 MARKETING EFFICIENCY Marketing efficiency is directly related to the cost involved in moving from the producer to the consumer and the Quantity of services offered. If the cost incurred when compared with the services involved, is low, it will be efficient marketing. The improvement in marketing efficiency means the reduction of marketing cost without reducing the Quantum of services to the consumer. The marketing efficiency of the three channels in the present study is measured by shepherd‘s method, Acharya and Aggarwal‘s method and composite Index method.

In the present study only the consumer price and marketing cost of coconut per cent are taken into account to find out the marketing efficiency of the channels. The results are given in Table 6.30.

Table 6.30 Marketing efficiency under shepherd‘s method S1.No Particulars Channels I II III 1. Consumers (Rs. Per. nuts) 4.88 4.88 4.88 2. Marketing cost (Rs. Per. Nuts) 1.28 1.26 1.17 3. Marketing efficacy (Rs. Per . 2.81 2.87 3.17 nuts)

Source: Primary data.

Table 6.30 shows that the marketing efficiency in channel III (3.17) is greater than channel II (2.87). The efficiency of the participating intermediaries may be due to the lowest total marketing cost. The poor efficiency was noticed in channel I as it is clearly evidenced from the fact that the total marketing cost was the highest in this channel.

Table 6.31 Marketing efficiency under Acharya and agfarwal‘s method. S1.No Particulars Channels I II III

1. Total marketing cost 1.28 1.26 1.17 2. Value added 2.43 2.0 1.02 3. Marketing efficiency 0.53 0.63 1.15 4. Marketing efficiency index 53 63 115

Source: Primary data. The marketing efficiency index of channel III is greater than that of channel II and channel I.

To verify the results obtained under shepherd‘s method scores were computed by using the composite index method and results obtained are present in Table 6.32.

Table 6.32 Marketing efficiency under composite index method Producer‘s Marketing Marketing Marketing share cost margin Total Mean S.NO channels percent of percent of price of Rank score score Rank consumer marketing marketing price cost margin 1. Channel I 50.20 13.32 7.70 6 2 II Rank (1) (3) (2)

2. Channels II 58.32 9.10 4.57 5 1.67 III Rank (2) (2) (1)

3. Channels III 58.73 3.79 11.31 7 2.33 III Rank (3) (1) (3)

Source: Primary data.

The channel obtaining the least score is considered to be efficient under the composite Index method and thus, as evidenced from Table 6.32 channels II consisting of growers commission agents wholesalers and retailers which has the least score is considered the most efficient channel followed by channel I. The inefficient channel was channel III the mean score of which was the maximum of all.

6.44 Problems in marketing of coconut There are many problems relating to the marketing of coconut through all the three channels of distribution. In order to find the most important problems of marketing in each channel of distribution the number of problems were identified with the help of respective growers and middlemen. The growers and the middlemen were asked to assign rank to different problems faced by them. Finally by the application of Garrett‘s ranking techniques the relative important of each problem was identified by growers and middlemen.

6.45 Problems of Growers The sample coconut growers were asked to rank the problems faced by them in the marketing of coconut and the ranks gives by them were analyzed using the Garrett Ranking Technique. The percentage of the individual ranks were converted into scores using the Garrett table and there by the mean scores and ranks were assigned to the problems encountered by the growers in the study area and the details are furnished in Table 6.33

Table 6.33 Marketing problems of coconut Growers S1.No Problem Score Rank 1. Price fluctuation 64.65 I 2. Inadequate finance 60.52 II 3. Heavy commission 58.76 III 4. Indebtedness to traders 57.93 IV 5. High transport cost 51.69 V 6. Lack of marketing information 49.74 VI 7. Too many middle men 41.08 VII 8. Absence of grading by middle men 35.52 VIII 9. Irregular payment 30.11 IX

Source: Primary data. It could be observed from Table 6.33 that the price fluctuation of coconut was the major problem with a mean score of 64.65. Inadequate finance was the next important problem faced by the growers with a mean score of 60.52.

High amount of commission and large scale indebtedness of growers middlemen were the third and the fourth problems respectively. Brokers having close nexus with the pre-harvest contractors and wholesalers exploit the growers by collecting exorbitant amounts by way of commission.

High transport cost (r) and lacks of marketing information (VI) also important problems of growers. The growers do not know about the accurate cost of the transport and also the current availability of the marketing information. Too many middle men (VII) and absence of grading by middle men

(VIII) are also some of the other important problems encountered by growers. The middlemen role was also responsible for the non-remunerated prices receive by the growers. In coconut marketing too many middlemen do the coconut grading unscientifically with mere eye Judgment the growers are very often thrown to the receiving end.

The least, considered problem was the irregular settlement of dues (1X) by the middlemen with the mean score of 30.11.

The major interest in coconut marketing was broad fluctuation in price. Moreover, taking two nuts as profit-nuts per 100 nuts, combining two small nuts as one during price fixation, rejection of small nut and exercise delay in payment after harvest are the other delay in payment after harvest are the other important problems faced by the growers.

CHAPTER –VII PROBLEMS AND PROSPECTUS OF MARKETING OF COCONUT (AN ANALYSIS AND INTERPRETATION)

In this chapter a detailed analysis of the collected data has been attempted as per the objectives stated earlier .Hypotheses were also tested based on the finding of the study, interpretations and conclusions were drawn . In this chapter the following statistical techniques for the analysis of the data gathered for the present study viz., Descriptive analysis and inferential statistics etc .

Table – 7.1 ANALYSIS THE DEMOGRAPHIC FACTORS Distribution of respondents based the Gender

s.no Family No Of Percentage of Income respondents respondents 1. Male 200 62.5 2 Female 120 37.5 Total 320 100 Source : Data generated from the respondents

Shows the distribution of gender of the respondents The highest 62.5%by the respondents were male followed by 37.5% of the respondents were female.

It is inferred that the highest 62.5% the respondents were male followed of the respondents were female. Table – 7.2 Distribution of respondents based the age group

S. No Frequency oil No of Percentage of the age group (in respondents Respondents year) 1. Below 30 21 6.6 2. 31-40 42 13.1 3. 41-50 87 27.1 4. 51-60 102 31.9 5. Above 60 68 21.3 Total 320 100.0 Source : Data generated from the respondents

Shows the distribution of age group of the respondents. The highest31.9%of the respondents were in the age group between 51-60 years. Followed by 27.1 % of the respondents were in the age group of 41-50 years. Followed by 21.3 % re in the age group of above 60 years 13.1 % were in the age group 31- 40 years 6.6 % of the respondents were in the age group of bellow 30 years. It is inferred that the highest 31.9 % farmers were in the age group between 51-60 Years

Table – 7.3 Distribution of respondents based on the educational qualification.

S.No Educational Frequency of Percentage of qualification durational respondents qualification 1. Illiterate 56 17.50 2. Primary 49 15.32 3 Middle school 62 19.37 4. High School 108 33.75 5. Graduate and 45 14.06 above Total 320 100.00 Source : Data generated from the respondents

Shows the distribution of education of the respondents. The highest 33.75 % of the respondents were having high school background followed by 19.37 % of the respondents were having middle school background followed by 17.50 % of the respondents were illiterates followed 15.32 % were having primary school background and 14.06 % of the respondents were having Graduate and above as the education qualification.

The highest 33.75% of the respondents were having high school background as their educational qualification in the Thanjavur delta region.

Figure – 7.1 Distribution of respondents based on the educational qualification

Table – 7.4 Distribution of place of domicile S. No Place of No. of Percentage of Domicile Respondents Respondents 1 Urban 48 15.00 2 Semi- 77 24.06 urban 3 Rural 195 60.94 Total 320 100.00 Source: Data generated from the respondents

Show the distribution of place of domicile of the respondents‘. The highest 60.94 % of the It is inferred that the highest respondents are living in rural areas followed by 24.06 % of the respondents are living in semi- urban areas and 15.00 % of the respondents are living in urban areas. It is inferred that the highest 60.94 % of the respondents are living in rural areas in the Thanjavur delta region.

Figure – 7.2 Distribution of place of domicile

Table – 7.5 Distribution of respondents based on the ownership of the land

S.N Ownership No. of Percentage of o of Land respondents respondents 1 Owned 225 70.31 2 Leased 95 29.69 total 320 100 Source: Data generated from the respondents

Shows the distribution of respondents based on the ownership of the land in the Thanjavur area. The highest 70.31% of the respondents were having their own land followed by 29.69% of the respondents were having leased land.

It is inferred that the highest 70.31 % of the respondents were having their own land followed by 29.69 % of the respondents were having leased land.

Table – 7.6 Distribution of respondents based on the type of farming

No of Percentage S. No Type of farming respondent of s respondents 1. Coconut 185 57.81 Coconut based 2. 135 42.19 agriculture Total 320 100.00 Source: Data generated from the respondents

Shows the distribution off responds based on the type of farming of the farmers in Thanjavur area. It is evident from the table that the highest 57.81% of the respondents were growing coconut followed by 42.19 % of the respondents were carrying out coconut based agriculture.

It is inferred that the highest 57.81 % of the respondents were growing coconut in the Thanjavur delta region.

Table – 7.7 Distribution of respondents based on the in year of experience in coconut farming

S.No Years of Number of Percentage experience in respondents of coconut Respondents farming 1. Bellow 5 22 6.87 2. 5-10 38 11.88 3. 10-15 60 18.75 4. 15-20 93 29.06 5. Above 20 107 33.44 Total 320 100.00 Source: Data generated from the respondents

Shows the distribution of respondents based on the year of experience farmers in Thanjavur area. It is evident from the table that the highest 33.44 % of the respondents were having above 20 years of experience in coconut cultivate followed by 29.06% of the respondents were having 15-20 years of experience in coconut cultivation followed by 18.75 % of the respondents were having 10-15 years of experience in coconut cultivation followed by 11.88 % of the respondents were having 5 - 10 years of experience in coconut cultivation followed by 6.87% of the respondents were having less than 5 years of the experience in coconut cultivation.

It is inferred that highest 33.44 % of the respondents were having above 20 years of experience in coconut cultivation in the Thanjavur delta region.

Figure – 7.3 Distribution of respondents based on the in year of experience in coconut farming

Table – 7.8 Distribution of respondents based on the Occupation S.No Occupation No of Percentage of respondents respondents

1. Agriculture 202 63.12

2. Non – Agriculture 118 36.88 Total 320 100.00

Source: Data generated from the respondents Shows the distribution of Occupation of the respondents . The highest 63.12 % of the respondents were involved in the agriculture followed by 36.88 % of the respondents were involved in the non – agricultural activity.

It is inferred that the highest 63.12 % of the respondents were involved in the agriculture in the Thanjavur delta region.

Table – 7.9 Distribution of respondents based on the Monthly Income

S.No Monthly No of Percentage

Income Respondents of

Respondents

1. Rs 1000-3000 14 4.38 2. Rs 3001-6000 32 10.00 s3. Rs 6001-9000 86 26.88 4. Rs 9001 – 122 38.12 12000 5. Above Rs 66 20.62 12001 Total 320 100.00

Source: Data generated from the respondents Show the distribution of monthly income of the respondents. The highest 38.12 % of the respondents were having a monthly income ranges from Rs 9001 -12000 , followed by 26.88 % of the respondents were having a monthly income ranges from Rs 6001 – 9000, followed by 20.62 % of the respondents were having a monthly income ranges from above Rs 1 2001, followed by 10 % of the respondents were having a monthly income ranges from Rs 3001 – 6000 and 4.38 % of the respondents were having a monthly income ranges from Rs 1000 – 3000.

It is inferred that the highest 38.12% of the respondents were having a monthly income ranges from Rs 9001 – 12000.

Figure – 7.4 Distribution of respondents based on the Monthly Income

Table – 7.10 Distribution of respondents based on the total value of coconut products produced per annum.

S. No Total value of No of Percentage coconut Respondents of products respondents produced per annum 1. Rs. 10000-30000 46 14.38 2 Rs. 30001 – 39 12.18 60000 3 Rs. 60001 – 65 20.31 90000 4 Rs. 90001- 110 34.37 120001 5 Above Rs. 60 18.75 120001 Total 320 100.00 Source: Data generated from the respondents

Shows the distribution of respondents based on the Total value of coconut products produced per annum. The highest 34.37 % of the respondents were earning Rs 90001- 120000 per annum as the total value of coconut products produced , followed by 20.31 % of the respondents were earning Rs60001 -90000 per annum as the total value of coconut product produced, followed by 18.76 % were earning above Rs 120001 per annum as the total value of coconut products produced, followed by 14.38 % of the respondents were earning Rs. 10000 -30000 per annum as the total value of coconut products produced , followed by 12.18 % were earning Rs. 30001- 60000 per annum as the total value of coconut products produced .It is inferred that the highest 34.37 % of the respondents were earning Rs 90001- 120000 per annum as the total value of coconut products produced per annum.

Figure – 7.5

Distribution of respondents based on the total value of coconut products produced per annum.

Table – 7.11 Distribution of respondents based on the Family Size

No of Percentage of S.No Family size Respondents respondents 1. Less than 4 185 57.82 members 2. 4 members 135 42.18 and More than 4 members 3. Total 320 100.00 Source: Data generated from the respondents

Shows the distribution of respondents based on the family size. The highest 57.82 % of the respondents were having less than 4 members in their family followed by 42.18 % of the respondents having 4 members or more than 4 members in their family.

It is inferred that the highest 57.82 % of the respondents were having less than 4 members in their family.

Table – 7.12 Distribution of respondents based on the land Owned S.No Land No of Percentage of Owned Respondents respondents 1. 0-5 Acres 195 60.93 2 Above 5 125 39.07 Acres Total 320 100.00 Source: Data generated from the respondents Show the distribution of respondents based on the ownership of a land in acres . The highest 60.93 % of the respondents were having 0-5 acres land followed by 39.07 % of the respondents were having above 5 acres of land .

It is inferred that the highest 60.93 % of the respondents were having 0-5 acres land

Figure – 7.6 Distribution of respondents based on the land Owned

Table – 7.13 Distribution of respondents based on the type of agro ecological region in which the coconut being cultivated Type of agro ecological No of Percentage of S.No region in which the coconut Respondents respondents being cultivated 1 Upladnd 63 19.69 2 Coastal 34 10.62 3 Plain 88 27.50 4 Alluvial Plain 108 33.76 5 Low lying land 27 8.43

Total 320 100

Source : Data generated from the respondents

Show the distribution of respondents based on the type of agro ecological region in which the coconut being cultivated. The highest 33.76 % of the respondents expressed that alluvial plain is the type of agro ecological region in which the coconut being cultivated by them .Followed by 27.5% of the respondents expressed that plain is the type of agro ecological region in which the coconut being cultivated by them . Followed by 19.69% of the of the respondents expressed that upland is the type of agro ecological region in which the coconut being cultivated by them .Followed by 10.62% of the respondents expressed that coastal plain is the type of agro ecological region in which the coconut being cultivated by them. That alluvial plain is the type of agro ecological region in which the coconut being cultivated by them .

Figure – 7.7

Distribution of respondents based on the type of agro ecological region in which the coconut being cultivated

Table – 7.14 Distribution of respondents based on the opinion on the type of drainage facility in which the coconut being cultivated

S.No Drainage Facility No of Percentage of Respondents respondents 1 POOR 47 14.68 2 MODERATE 65 20.32 3 GOOD 176 55.00 4 OTHERS 32 10.00 TOTAL 320 100.00 Source : Data generated from the respondents

The table shows the Distribution of respondents based on the opinion on the type of drainage facility in which the coconut being cultivate .It is evident from the above mentioned table that the highest 55.00% of the respondents expressed that the drainage facility in which the coconut being cultivate by them was good followed by 20.32 % of the respondents expressed that the drainage facility in which the coconut being cultivate by them was moderate followed by 14.68 % respondents expressed that the drainage facility in which the coconut being cultivate by them was poor .

It is inferred that the highest 55.00 % of the Respondents expressed that the drainage facility in which the coconut being cultivate by them was good.

Table – 7.15 Distribution of respondents based on the rating of the soil texture

S.No Soil No of Percentage of Texture Responding respondents 1. Poor 120 37.50 2. Medium 96 30.00 3 High 104 32.50 Total 320 100.00

Source : Data generated from the respondents

The table shows the Distribution of respondents based on the opinion on the type of soil texture in which the coconut being cultivated .It is evident from the above mentioned table that the highest 37.50 % of the respondents expressed that the soil texture was poor followed by 32.50% of the respondents expressed that the soil texture was high and and 30.00 % of the respondents expressed that the soil texture was medium

It is inferred that the highest 37.50 % of the respondents expressed that the soil texture was poor.

Table – 7.16 Distribution of respondents based on the rating of the soil fertility

Soil No of Percentage of S.No Fertility Responding respondents 1. Poor 148 46.25 2. Medium 98 30.62 3. High 74 23.13 4. Total 320 100.00 Source : Data generated from the respondents

Shows the distribution of respondents based on the opinion on the type of soil fertility texture in which the coconut being cultivated .It is evident from the above mentioned table that the highest 46.25 % of the respondents expressed that the soil fertility was poor followed by 30.62% of the respondents expressed that the soil fertility was Medium and 23.13 % of the respondents expressed that the soil texture was High.

It is evident from the above mentioned table that the highest 46.25 % of the respondents expressed that the soil fertility was poor.

Table – 7.17 Distribution of respondents based on the rating of the crop Management

Soil No of % of the S.No fertility respondents Respondents

1. Poor 138 43.12

2. Medium 116 36.25

3. High 66 20.63

Total 320 100.00

Source : Data generated from the respondents Shows the Distribution of respondents based on the opinion on the type crop Management in which the coconut being cultivated .It is evident from the above mentioned table that the highest 43.12 % of the respondents expressed that the crop management was medium and 20.63% the respondents expressed that the crop management was high .

It is evident from the above mentioned table that the highest 43.12 % of the respondents expressed that the crop management was poor .

Table – 7.18 DISTRIBUTION OF RESPONDENTS BASED ON THE RATING OF THE VEGETATION S.No Vegetation No of % of the respondents Respondents 1 Coconut 90 28.12 2. Agriculture 105 32.82 3. Mixed 125 39.06 Total 320 100.00 Source : Data generated from the respondents

Shows the Distribution of respondents based on the opinion on the type of vegetation in which the coconut being cultivated. It is evident from the above mentioned table that the highest 39.06% of the respondents expressed that the vegetation was mixed comprising both Coconut and Agriculture followed by 32.82 % of the respondents expressed that the vegetation was agriculture only and 28.12 % of the respondents expressed that the vegetation was coconut only.

It is evident from the above mentioned table that the highest 39.06 % of the respondents expressed that the vegetation was mixed comprising both Coconut and Agriculture.

Table – 7.19 DISTRIBUTION OF RESPONDENTS BASED ON THE TYPE OF CULTIVATION

S.No Type of No of Percentage Cultivation respondents of the Respondents 1. Irrigated 225 70.31 2. Rainfed 95 29.69 Total 320 100.00 Source : Data generated from the respondents

Shows the Distribution of respondents based on the opinion on the type of cultivation in which the coconut being cultivated . It is evident from the above mentioned table that the highest 70.31% of the respondents expressed that the type irrigation was irrigated followed by 29.69 % of the respondents expressed that the type of cultivation was rainfed . It is evident from the above mentioned table that the highest 70.31 % of the respondents expressed that the type irrigation was irrigated through the canal.

Table – 7.20

DISTRIBUTION OF RESPONDENTS BASED ON THE CROP CONDITION S.No Crop No of % of the condition respondents Respondents 1 Poor 90 28.12

2. Medium 135 42.19

3. High 95 29.69

Total 320 100.00

Source : Data generated from the respondents

Shows the Distribution of respondents based on the crop condition.. It is evident from the above mentioned table that the highest 42.19% of the respondents expressed that the crop condition was Medium followed by 29.69 % of the respondents expressed that the crop condition was high and 28.9 % of the respondents expressed that the crop condition was poor .

It is inferred that the highest 42.19 % of the respondents expressed that the crop condition was medium.

Table – 7.21 DISTRIBUTION OF RESPONDENTS BASED ON THE VARIETY OF COCONUT GROWN S.No Variety of No of % of the Respondents coconut respondents 1. Hy brid 148 46.26 2. Dwarf 122 38.12 3. East coast Tall 32 10.00 4. West coast Tall 6 1.88 5. Laccadive 2 0.62 Ordinary 6. Andaman Ordinary 2 0.62 7. Philippines 3 0.94 8. Java 2 0.62 9. Kappadam 3 0.94 Total 320 100.00

Source : Data generated from the respondents Shows the Distribution of respondents based on the variety of Coconut grown .It is evident from the above mentioned table that the highest 46.26 % of the respondents expressed that they were growing Hybrid variety of coconut followed by 38.12 % of the respondents expressed that they were growing Dwarf variety of coconut followed by 10.00 % of the respondents expressed that they were growing east coast tall.

It is inferred from the above mentioned table that the highest 46.26 % of the respondents expressed that they were growing Hybrid variety of coconut in the Thanjavur delta region.

Figure – 7.8 DISTRIBUTION OF RESPONDENTS BASED ON THE VARIETY OF COCONUT GROWN

Table – 7.22

DISTRIBUTION OF RESPONDENTS BASED ON THE SOURCE OF PLANT

S.NO Source of No of % of the Plant respondents Respondents 1. Self raised 205 64.06

2. Private 115 35.94 nurseries Total 320 100.00

Source : Data generated from the respondents

Shows the Distribution of respondents based on the source of Plant .It is evident from the above mentioned table that the highest 64.06 % of the respondents expressed that the self-raised as the source of plant followed by35.94 % of the respondents expressed that the private nurseries as the source of plant.

It is evident from the above mentioned table that the highest 64.06 % of the respondents expressed that the self-raised as the source of plant in their own coconut nursery.

Table – 7.23 DISTRIBUTION OF RESPONDENTS BASED ON USAGE OF COCONUT S.No Usage of No of % of the Coconut respondents Respondents 1. Nut and Fiber 165 51.56 2. Nut 115 35.94 3. Fiber 40 12.50 Total 320 100.00 Source : Data generated from the respondents

Shows the Distribution of respondents based on the usage of coconut. It is evident from the above mentioned table that the highest 51.56 % of the respondents expressed that they use the coconut for Nut and Fibre followed by 35.94 % of the respondents expressed that they use the coconut for Fiber.

It is evident from the above mentioned table that the highest 51.56 % of the respondents expressed that the coconut for Nut and Fibre.

Figure – 7.9 DISTRIBUTION OF RESPONDENTS BASED ON USAGE OF COCONUT

Table – 7.24 DISTRIBUTION OF RESPONDENTS BASED ON THE TOLERANCE TO DROUGHT / PEST / DISEASE

S.No Tolerance to No. of. Percentage drought / pest Respondents of the / disease Respondents 1. Difference 185 57.81

2. No Difference 135 42.19

Total 320 100.00

Source : Data generated from the respondents Shows the Distribution of respondents based on the Tolerance to drought /pest / disease capacity of the coconut cultivated. It is evident from evident from the above mentioned table that the highest 57.81 % of the respondents expressed that the Tolerance to drought / pest / disease capacity of the coconut was different followed by 42.19 % of the respondents expressed that the Tolerance to drought / pest / disease capacity of the coconut was no different .

It is evident from the above mentioned table that the highest 57 .81 % of the respondents expressed that the Tolerance to drought / pest /disease capacity of to coconut was different .Further there is a specific type of pest known as Thanjavur wilt causes enormous problems to the farmers in thanjavur delta region .

Table – 7.25 DISTRIBUTION OF RESPONDENTS BASED ON THE PERFORMANCE OF HYBRID VARIETY OF COCONUT

S.No Performance of Hybrid No. of. Percentage variety of coconut Respondents of the Respondents 1. Poor 117 36.56

2. Medium 77 24.06

3. High 126 39.38

Total 320 100.00

Source : Data generated from the respondents

Shows the Distribution of respondents based on the performance of hybrid variety of coconut It is evident from evident from the above mentioned table that the highest 39.38 % of the respondents expressed that the performance of hybrid variety of coconut was high followed by 24.06 % of the respondents expressed that the performance of hybrid variety of coconut was medium and 36.56 % of the respondents expressed that the crop condition was poor .

It is evident from the above mentioned table that the highest 39.38 % of the respondents expressed that the performance of hybrid variety of coconut was high.

Table – 7.26 DISTRIBUTION OF RESPONDENTS BASED ON AVAILABILITY OF ECO TYPE SUITABLE FOR NUT AND FIBER

S.No Availability of Eco No. of. Percentage of the type suitable for nut Respondents Respondents and fiber 1. Available 208 65.00 2. Not Available 112 35.00 Total 320 100.00 Source : Data generated from the respondents

Shows the distribution of respondents based on the availability of eco type suitable for nut and fiber. It is evident from evident from the above mentioned table that the highest 65.00 % of the respondents expressed that the eco type suitable for nut and fiber followed by 35.00 % of the respondents expressed that the eco type suitable for nut and fiber was not available .

It is evident from the above mentioned table that the highest 65.00 % of the respondents expressed that the eco type suitable for nut and fiber.

Table – 7.27 DISTRIBUTION OF RESPONDENTS BASED ON THE HARVESTING AND HUSKING PRACTICES AND ALLIED FEATURES

Harvesting and Percentage Percentage S. husking No. of No. of of the of the No practices and respondents respondents respondents respondents allied features 1 Method of Climbing Climbing Machines Machines harvesting 320 100 % 0 0% 2. Availability of Adequate Adequate In Adequate In Adequate Coconut tree 320 100 % 0 0% climbers 3. Machine for Available Available Un un Available harvesting 0 0% Available 100% 320 4. Problems in Exists Exists Does not Does not husk collection 320 100 % Exists 0 Exists 0 5. Utilization of Good Good Poor Poor husk 320 100% 0 0% 6. Availability of Good Good Poor Poor husk 320 100% 0 0%

7. Quality of husk Good Good Poor Poor 320 100% 0 0% Source : Data generated from the respondents Shows the distribution of Respondents based on the Harvesting and husking practices and allied features. It is evident from the above mentioned table that the method of harvesting was climbing, Availability of coconut tree climbers were available, Quality of husk was good, Problems in husk collection exists, Utilization of husk was good and Availability of husk was good and all these harvesting and husking practices were Rated as 100 % Similarly the non availability of machines for harvesting rated as 100 % by the respondents. It is evident from the above mentioned table that the Method of harvesting was Climbing , Availability of Coconut tree Climbers were available , Quality of husk was good , Problems in husk collection exists ,Utilization of husk was good and Availability of husk was good and all these harvesting and husking practices were Rated as 100%.

Table – 7.28 DISTRIBUTION OF RESPONDENTS BASED ON THE UTILIZATION OF MATURED COCONUT AND TENDER COCONUT S.No Utilization of No of Percentage of the matured coconut and respondents respondents tender coconut 1. Attempted 105 32.81 2. Not Attempted 80 25.00 3. To be attempted 135 42.19 Total 320 100.00 Source : Data generated from the respondents

Distribution of respondents based on the utilization of matured coconut and tender coconut at house hold level .It is evident from the above mentioned table that the highest 42.19 % of the respondents expressed that the they yet to attempt utilization of matured coconut and tender coconut at household level followed by 32.81 % of the respondents expressed that the they to attempt utilization of matured coconut and tender coconut at household level followed by 25.00 % of the respondents expressed that the they yet to attempt utilization of matured coconut and tender coconut at household level.

It is evident from the above mentioned table that the highest 42.19 % of the respondents expressed that the they yet to attempt utilization of matured coconut and tender coconut at household level.

Figure – 7.10 DISTRIBUTION OF RESPONDENTS BASED ON THE UTILIZATION OF MATURED COCONUT AND TENDER COCONUT

Table – 7.29 DISTRIBUTION OF RESPONDENTS BASED ON THE MARKETING OF COCONUT / COPRA

Marketing Percentage No of S.No of coconut / of the respondents copra respondents 1. Government 86 26.88 Institutions 2. Local 106 33.12 Merchants 3. Self 128 40.00 Total 320 100.00 Source : Data generated from the respondents

Distribution of respondents based on the Marketing of coconut / copra . It is evident from the above mentioned table that the highest 40.00 % of the respondents expressed that the they themselves market the coconut or copra followed by 33.12 % of the respondents expressed that the they market the coconut or copra followed by 26.88 % of the respondents expressed that the they market coconut or copra through the government institution.

It is evident from the above mentioned table that the highest 40.00 % of the respondents expressed that the themselves market the coconut or copra.

Figure-7.11

DISTRIBUTION OF RESPONDENTS BASED ON THE MARKETING OF COCONUT / COPRA

40

35

30

25 Government Institutions 20 Local Merchants 15 Self 10

5

0 Government Institutions

Percentage of the respondents

Table – 7.30 DISTRIBUTION OF RESPONDENTS BASED ON THE SALE OF COCONUT

Percentage Sale of No of S.No of the coconut respondents respondents 1. Neither Profitable 75 23.43 Nor unprofitable 2. Profitable 137 42.82

3. Unprofitable 108 33.75

Total 320 100.00

Source : Data generated from the respondents

Distribution of respondents based on the sale of coconut. It is evident from the above mentioned table that the highest 42.82 % of the respondents expressed that the they sale of coconut was profitable followed by 33.75 % of the respondents expressed the sale of coconut was unprofitable followed by 23.43 % of the respondents expressed that sale of coconut was Neither Profitable Nor unprofitable,

It is evident from the above mentioned table that the highest 42.82 % of the respondents expressed that the sale of Coconut was profitable.

Table – 7.31 DISTRIBUTION OF RESPONDENTS BASED ON THE SALE OF HUSK

S.No Sale of No of Percentage

coconut respondents of the

respondents

1. Neither 75 27.50 Profitable Nor unprofitable 2. Profitable 137 41.88

3. Unprofitable 108 30.62

Total 320 100.00

Source : Data generated from the respondents

Distribution of respondents based on the sale of coconut husk. It is evident from the above mentioned table that the highest 42.82 % of the respondents expressed that the they sale of coconut husk was profitable followed by 33.75 % of the respondents expressed the sale of coconut husk was unprofitable followed by 23.43 % of the respondents expressed that sale of coconut husk was neither Profitable nor unprofitable, It is evident from the above mentioned table that the highest 42.82 % of the respondents expressed that the sale of coconut husk was profitable.

Table – 7.32

S.No impact of agro ecological No of respondents Percentage influence on coconut of the quality respondents

1. Neither Influnce nor Not 60 18.75 Influenced

DISTRIBUTION OF RESPONDENTS BASED ON THE IMPACT OF AGROECOLOGICAL INFLUENCE ON COCONUT QUALITY 2. Influenced 145 45.31

3. Not Influenced 115 35.94

Total 320 100.00

Source : Data generated from the respondents

Impact Of Agro Percentage No of S.No Ecological Influence On of the respondents Coconut Quality respondents

Distribution of respondents based on the impact of agro-ecological influence on coconut quality . It is evident from the above mentioned table that the highest 45.31 % of the respondents expressed that the they coconut quality was influence by the agro-ecological condition . followed by 35.94 % of the respondents expressed the coconut quality was not influenced by the agro – ecological condition followed by 18.75 % of the respondents expressed that coconut quality was not influenced nor Not influenced by the agro – ecological condition.

It is evident from the above mentioned table that the highest 45.31 % of the respondents expressed coconut quality was not influenced by the agro – ecological condition. Table – 7.33 DISTRIBUTION OF RESPONDENTS BASED ON THE TENDER COCONUT FOR MARKETING 1. Neither Harvested or Not 60 18.75 Influenced 2. Influenced 145 45.31 3. Not Influenced 115 35.94 S.No TotalThe practice of irrigation No320 of respondents 100.00Percentage

Source : Data generated from the respondents

Shows the Distribution of respondents based on the Marketing of tender coconut. It is evident from the above mentioned table that the highest 45.31 % of the respondents expressed that the they harvest tender coconut for marketing followed by 35.94 % of the respondents expressed the they were not interested in harvest tender coconut followed by 18.75 % of the respondents expressed that harvest tender coconut.

It is evident from the above mentioned table that the highest 45.31 % of the respondents expressed that they harvest tender coconut for marketing.

Table – 7.34 DISTRIBUTION OF RESPONDENTS BASED ON THE PRACTICE OF IRRIGATION of the respondents 1. Well Irrigation 105 32.81

2 Canal Irrigation 90 28.12

3. River Irrigation 125 39.07

Total 320 100.00

Source : Data generated from the respondents

Shows the Distribution of respondents based on the Practice of Irrigation. It is evident from the above mentioned table that the highest 39.07 % of the respondents expressed that the they were dependent on the irrigation from the river followed by 32.81 % of the respondents expressed the they were dependent on well irrigation followed by 28.12 % of the respondents expressed that that they were dependent upon canal irrigation.

It is evident from the above mentioned table that the highest 39.07 % of the respondents expressed that they were dependent on the irrigation from the river.

Table – 7.35 DISTRIBUTION OF RESPONDENTS BASED ON THE PRACTICE OF MANURING

Source : Data generated from the respondents

Shows the Distribution of respondents based on the Practice of

S.No Type of practice of No of respondents Percentage manuring of the Respondents 1. Location specific 128 40.00 Manuring 2. Cultivar specific 86 26.87 Manuring 3. Both 106 33.13

Total 320 100.00 manuring. It is evident from the above mentioned table that the highest 40.00 % of the respondents expressed that the they type of manuring practice was dependent on location specific followed by 33.13 % of the respondents expressed the they type of manuring practice was dependent on cultivar specific followed by 26.87 % of the respondents expressed that they type of manuring practice was dependent on cultivar specific.

It is evident from the above mentioned table that the highest 40.00 % of the respondents expressed that the type of manuring practice was dependent on location specific such as soil condition , climatic conditions etc.

Table – 7.36 DISTRIBUTION OF RESPONDENTS BASED ON THE PRACTICE OF APPLICATION OF GREEN MANURE . Source : Data generated from the respondents

Shows the Distribution of respondents based on the Practice of green manure. It is evident from the above mentioned table that the highest 41.25 % of the respondents expressed that the they type of green manuring practice was applied by them followed by 28.13 % of the respondents expressed the

S.No Type of practice of No of respondents Percentage manur of the Respondents 1. Applied 132 41.25

2. Not applied 98 30.62

3. To be applied 90 28.13

Total 320 100.00 they type of green manuring practice to be applied by them in future followed by 30.62 % of the respondents expressed that they type of green manuring practice was not applied.

It is evident from the above mentioned table that the highest 41.25 % of the respondents expressed that the type of green manuring practice was applied by them.

Table – 7.37 DISTRIBUTION OF RESPONDENTS BASED ON THE PROBLEMS INVOLVED IN THE COCONUT MARKETING S.No problems involved in the coconut marketing Mean S.Dev 1. High fluctuations in market prices 3.70 1.170 2. Morte pets and more diseases 3.67 1.198

3. High cost of plant protection chemicals 3.05 1.373

Non – availability of adequate institutional credit 4. 2.88 1.404 facilities at right time Inadequate Infrastructural facilities and civic 5. 3.04 1.316 amenities Ineffective Channel of distribution of ‗Producer – 6. 3.19 1.380 copra maker – oil miller – wholesaler – consumer‘

7. Low profit margin 2.91 1.393

8. High marketing cost 2.93 1.406

Refusal to intervene by the state government and 9. 3.01 1.262 traditional regulator authorities

10. Low prices paid to small producers 2.88 1.397

11. Deregulation of the coir industry 3.12 1.376

Vilification campaign unleashed by vested 12. 2.99 1.267 interests against the edible use of coconut oil

13. Inadequate institutional support 3.16 1.373 14. Declining viability of coconut farming 2.92 1.439

15 Eroding profitability 2.82 1.275

Decline in coconut hectare due to land conversion 16. 2.85 1.331 into commercial and industrial purposes Tenurial arrangement as a hindrance to increased 17. 2.60 1.251 investment in coconut culture Relative un remunerativeness of Coconut farming 18. 3.10 1.417 being a predominantly monocrop Price instability due to increasing competition 19. 2.85 1.352 from substitute oils

20. Poor copra making practices 2.85 1.432

Post harvest losses due to quality deterioration of 21. 3.15 1.398 copra In insect infestation Post harvest losses due to quality deterioration of 22. 2.71 1.217 copra In transport Post harvest losses due to quality deterioration of 23. 2.95 1.360 copra In storage 24. Low farm Productivity 2.66 1.344 Source : Data generated from the respondents Shows the Distribution of respondents based on the problems encountered by the farmers in coconut marketing .It is evident from the above mentioned table that the high mean value of 3.70 with respect to high fluctuations in market prices as this problem is viewed as one of the most important problem faced by the farmers and the lowest mean value of 2.58 with respect to price instability due to increasing competition from substitute oils as this problem is viewed by the farmers as the least important. It is evident from the above mentioned table that the high mean value of 3.70 with respect to high fluctuations in market prices as this problem is viewed as one of the most import problem by the farmers.

Factor Eigen Value Percentage Cumulative Table – 7.38 of Variance percentage 1 3.512 43.9 43.9 2. 1.999 25 68.9 3 1.521 19 87.9

EIGEN VALUE AND CUMULATIVE PERCENTAGE OF OPINION BEHIND COCONUT MARKETING PROBLEMS

Source : Data generated from the respondents

Eigen value and cumulative percentage of opinion behind coconut marketing problems, states that there are 3 factors, which have an Eigen Value of 1 or more than 1 .The last column in the table shows the cumulative percentage of 3 factors extracted to gather account for 87.9 % of the total variance .this shows that only 3 factors reducing from 10 we have lost only 22.1 % of the information content , while 87.9 % is retained by the 3 factors extracted out of the original 10 variables.

Table – 7.39 FACTORS LOADING OF COCONUT MARKETING PROBLEMS

Factor Statement Factor Loading 1. High fluctuations in market prices -0.92369 Ineffective Channel of distribution of 0.88304 ‗Producer – copra marker – oil miller – wholesaler – consumer ‗ Low prices paid to small producers 0.77048 2. Non – availability of adequate 085182 institutional credit facilities at right time Low profit margin 0.81995

High Marketing cost 0.81158

3. Relative un remunnerativeness of 0.94577 Coconut farming being a predominantly monocrop Post harvest losses due to quality 0.87931 deterioration of copra in storage Source : Data generated from the respondents

From the table , Factor loading of coconut marketing problems , it is observed that , the high fluctuations in market prices , Ineffective Channel of Distribution of , producer – copra marker – oil miller – Wholesaler – consumer ,Low prices paid to small producers , are having a loading of 0.92369 , 0.88304 and 0.77048 .This suggests that factors I is a combination of these 3 original variables .Thus Factors I could be named as price and place related problems.

Factor II shows the non – availability of adequate institutional credit facilities at right time , Low profit margin , High marketing cost are having a high loading of 0.85182 , 0.81995 and 0.81158 This suggests that factors II is a combination of these 3 original Variables .Thus factors II could be named as lack of Institutional support problems .

Factor III shows that relative un remunerativeness of Coconut farming being a predominantly monocarp, post harvest losses due to quality deterioration of copra in storage are having a loadings of 0.94577 and 0.87931 .This suggests that factor III is a combination of these 2 these original variables . Thus factor III could be named as loss due to monocarp. Gender –wise Distribution of respondents based on the high fluctuations in market prices.

The table shows the gender wise distribution of respondents based on the view expressed as high fluctuations in market price of coconut in Thanjavur delta region .It is evident from the above mentioned table that the highest 35.6 % of the male respondents strongly agreed that there was high fluctuations in market price of coconut in Thanjavur delta region , followed by the 28.2 % of the female respondents strongly agreed that there was high fluctuations in market price of coconut in Thanjavur delta region .Further the highest 27.6 % of the male respondents agreed that there was high fluctuations in market price of coconut in thanjavur delta region , followed by the 24.3 % of the female respondents agreed that there was high fluctuations in market price of coconut in Thanjavur delta region.

HYPOTHESIS TESTING HYPOTHESIS –I There is no association between gender and high fluctuations in market prices of coconut. Chi –square test for association between gender and high fluctuations in market prices of coconut High fluctuations in Male Female Total Chi- P- market prices square Value Value Strongly Dis –agree 5 7 12 41.77% 58.33% 100.0% % of respondents within 2.74% 5.08% 3.76% gender Disagree 33 25 58 56.90% 43.10% 100.0% % of respondents within 18.13% 18.11% 18.12% gender Neither agree nor 44 33 77 disagree 57.15% 42.85% 100.0% % of respondents within 24.18% 23.91% 24.07% gender Agree 48 35 83 57.84% 42.16% 100.0% % of respondents within 26.38% 25.37% 25.93% gender Strongly agree 52 38 90 57.78% 42.22% 100.0% % of respondents within 28.57% 27.53% 28.12% gender Total 182 138 320 % of respondents within 56.87% 43.13% 100.0% gender 100.0% 100.0% 100.0% Source : Data generated from the respondents Since the P Value is lesser than 0.01 the null hypothesis is rejected at 1 % level of significance .Hence concluded that there is association between gender and high fluctuations in market prices of coconut.

HYPOTHESIS - II Null Hypothesis There is no significant difference between overall assessment of performance of variety of coconut and the age of the farmers. ANOVA test for significant difference between overall assessment of performance of variety of coconut and the age of the farmers . Description Sum of D.f Mean F- P- square Square Value Value overall Between 60.929 4 15.232 1.048 .382** assessment Groups of Within performance Groups 6857.524 320 14.529 of variety of coconut Total 6918.453 320 Source : Data generated from the respondents Note ** Denotes significant at 1% level  Denotes significant at 5 % level Since the p value is higher than 0.01 the null hypothesis accepted at 1 % level of significance . Hence concluded that there is no significant difference between overall assessment of performance of variety of coconut and the age of the farmers.

HYPOTHESIS – III Null Hypothesis: There is no significant difference between mean ranks towards Variety of coconut grown by the farmers in the Thanjavur delta region Friedman test for significant difference between mean ranks towards Variety of coconut grown by the farmers in the Thanjavur delta region. Friedman test for significant difference between mean ranks towards Variety of coconut grown by the farmers in the Thanjavur delta region . Mean Chi-Square P value Rank Q17_1 5.51 Q17_2 5.57 Q17_3 5.54 Q17_4 5.56 Q17_5 5.48 Q17_6 5.54 Q17_7 5.30 18.222 .033** Q17_8 5.63 Q17_9 5.12 Q17_10 5.73

Since P value is higher 0.01 , the null hypothesis is accepted at 1 percent level of significance . Hence concluded that there is no significant difference between mean ranks towards Variety of coconut grown by the farmers in the Thanjavur delta region

HYPOTHESIS –IV Null hypothesis There is no significant difference between mean ranks towards Variety of soil conditions by the farmers in the Thanjavur delta region. Friedman test for significant difference between mean ranks towards Variety of rating on soil condition by the farmers in the Thanjavur delta region

Ratings of soil condition Mean Chi-Square P-value Rank Q1s_1 3.20 Q1s_2 3.11 Q1s_3 3.12 Q1s_4 3.86 135.840 .000** Q1s_5 3.82 Q1s_6 3.89 Source : Data generated from the respondents

Since P value is lesser than 0.01 , the null hypothesis is rejected at 1 percent level of significance . Hence concluded that there is significant difference between mean rank towards Variety of soil conditions by the farmers in the Thanjavur delta region .

Table – 7.40 Eigen value and cumulative percentage of opinion on the practice coconut cultivation problems faced by the farmers

Factor Eigen Percentage Cumulative value of percentage Variance 1 2.779 34.7 34.7 2. 1.935 24.2 59.3 3. 1.632 20.4 79.3 Source : Data Generated from the respondents

Eigen value and cumulative percentage of opinion on the practice of coconut cultivation problems faced by the farmers in the delta region of Thanjavur , states that there are 3 factors , which have an Eigen Value of 1 or more than 1. The last column in the table shows the cumulative percentage of 3 factors extracted togtether account for 79.3 % of the total variance .this shows that only 3 factors reducing from 10 we have lost only 20.7% of the information content, while 79.3% is retained by the 3 factors extracted out of the original 10 variables .

Table – 7.41 Factors loading of coconut cultivation problems faced faced by the farmers in the delta region of Thanjavur Factor Statement Factor Loading Practice of irrigation 0.89360 Varieties that could be grown 0.75610 1 without irrigation Manu ring practice 0.68854 profitability of coconut crop 0.92600 2 Soil conservation 0.85541 Application of green manure 0.67050 Awareness of techniques of pest 0.86276 3 control Common pests -0.82828 Source : Data generated from the respondents

From the table , Factors loding of coconut cultivation problems faced by the farmers in the delta region of Thanjavur, it is observed that practice of irrigation, Varieties that could be grown without irrigation , Manu ring practice are having a loading of 0.89360 , 0.75610, 0.68854.this suggests that factors I is a combination of these 3 original Variables .Thus Factors I could be named as irrigation issues .Factor II shows the Profitability of coconut crop , soil conservation , Application of green manure are having a loading of 0.92600 , 0.85541, 0.67050 .This suggests that factors II is combination of these 3 original variables .Thus Factors II could be named as profitability of coconut .

REGRESSION ANALYSIS OF ASSESSMENT OF PERFORMANCE OF VARIETY OF COCONUT Regression is the determination of statistical relationship between two or more variables .In simple regression two variables are used .One variable (independent ) is the cause of the behavior of another one (dependent ) .when there are more two independent variables the analysis concerning relationship is know as multiple correlations and the equation describing such relationship is called as the multiple regression equation . Regression analysis is concerned with the derivation of an appropriate mathematical expression is derived for finding values of a dependent variable on the basis of independent variable ,It is thus designed to examine the relationship of a variable Y to a set of other variables X1,X2,X3……….Xn. The most commonly used linear equation in Y=b1 X1+b2 X2 +………….+bn Xn + bo Here Y is the dependent variable, which is to be found X!, X2 ……. And Xn are the know variables with which predictions are to be made and b1,b2,……bn are coefficient of the variables . In this study the dependent variable is Adjustment score , Independent variables are Depression and Anxiety and analysis are discussed as follows : Dependent variable : performance of variety of coconut (y) Independent variables :l Techniques of pest control (X1) 2. Practice of irrigation (X2) Multiple R value : 0.6289 R Square value : 0.3956 E value : 31.741 P value : 0.000**

Table – 7.42 Variable in the Multiple Regression Analysis Variables Unstanddardized SE of B Standdardized T vaiue LOS co-efficient co-efficient X1 0.731 0.098 0.601 7.451 0.01 X2 0.488 0.407 0.096 1.197 NS Constant 41.819 2.985 14.010 0.01

Source : Data generated from the respondents

The multiple correlation coefficient is 0.6289 measures the degree of relationship between the actual values and the predicted values of the performance of variety of coconut .Because the predicted values are obtained as a linear combination of Techniques of pest control (X1) and practice of irrigation (X2) the coefficient value of 0.6289 indicates that the relationship between adjustment and the two independent variables is quite strong and Coefficient of Determination R-square measures the goodness – of – fit of the estimated Sample Regression Plane (SRP) in terms of the proportion of the variation in the dependent variables explained by the fitted sample regression equation. Thus the value of R square is 0.3956 simply means that about 39.% of the variation in performance variety of coconut is explained by the estimated SRP that uses Techniques of pest control and Practice of irrigation as the independent variables and R square value is significant at 1 % level .

The multiple regression equation is Y=41.819 +0.731X1 + 0.488X2

Here the coefficient of X1 is 0.731represents the partial effect of Techniques of pest control (X1) on performance of variety of coconut , holding practice of irrigation as constant. The estimated positive sign implies that such effect is positive that adjustment score would increase by 0.731 for every unit increase in Techniques of 2 is control and this coefficient value is significant at 1 % level .The coefficient of X2 is 0.488 represents the partial effect of practice of irrigation on performance of variety of coconut, holding Techniques of pest control as constant. The estimated positive sign implies that such effect is positive that performance of variety of coconut score would increase by 0.488 for every unit increase in Techniques of pest control and this coefficient value is not significant at 5% level.

DISCRIMINANT ANALYSIS FOR MARGINS AND COSTS OF VARIOUS INTERMEDIARIES FOR COCONUT MARKETING Discrepant analysis is used to distinguish between margins and costs of various intermediaries for coconut marketing. Margins and costs of various intermediaries for coconut marketing are measured using 15 statements . Based on this opinion of the farmers , discriminate analysis is carried out to distinguish between margins and costs of various intermediaries for coconut marketing . The tests of equality of group means measure each indepent variables potential before the model is created . Wilk‘s lamba , the F statistic and its significance level are presented in the following table .

Table – 7.43 F tests of Equality of Group Means Margins and costs of Wilk‘s F value P value various intermediaries Lambda for coconut marketing Price received by the 0.921 21.163 0.000** farmer Selling pice of copra 0.999 0.328 0.567 maker / buying price of oil miller Marketting cost of 0.918 22.085 0.000** retailer Net margin of retailer 0.996 1.011 0.316 Price paid by the 0.988 3.049 0.082 consumer Price received by 0.997 0.843 0.360 farmers Copra marker‘s 0.968 8.084 0.005 realization from by – products Price paid by 0.930 18.661 0.000** wholesaler /selling price of oil miller Oil millers realization 0.902 26.940 0.000** from by –products Marketing cost of 0.862 39.573 0.000** wholesaler Net margin of 0.887 31.535 0.000** wholesaler

Milling and marketing 0.990 2.535 0.113 cost of oil miller Net Margin of oil 0.686 113.747 0.000** miller Price paid by retailer 0.770 74.251 0.000** Net margin of copra 0.807 59.307 0.000** marker Maketing cost of 0.917 22.587 0.000** copra marker Source : Data generated from the respondents

The above test displays the results of a one –way ANOVA for the independent variable using the Grouping variable as the factor .According to the results in the table,out of 15 variables , only 10 variables in Discriminant model is significant , since P value is less than 0.01.. Wilks‘ lambda is another measure of a variable‘s potential. Smaller values indicate the variable is better at discriminating between groups . The table suggests that Price received by the farmer ,Marketing cost of retailer , Marketing cost of copra maker , net margin of copra maker etc.the stepwise method is used starts with a model that does‘t include any of the predictors .. out of 15 variables ,only 7 variables are entered in this Discriminant analysis and are presented in the following table.

Table – 7.44 VARIABLES IN THE DISCRIMINANT ANALYSIS USING STEPWISE METHOD Factors entered on Tolerance F value to Wilks‘ Lambda margins and costs remove of various intermediaries for coconut marketing Price paid by 0.355 44.945 0.492 wholesaler /selling price of oil miller Oil millers 0.570 88.623 0.567 realization from by –Products Marketing cost of 0.284 78.868 0.550 wholesaler Net margin of 0.341 50.735 0.502 wholesaler Price paid by 0.663 3.164 0.420 retailer Net margin of 0.627 7.246 0.427 copra maker Price received by 0.346 5.507 0.424 the farmer Source : Data generated from the primary data

This table displays statistics for the variables that are in the analysis at last step. Tolerance is the proportion of a variable‘s variance not accounted for by other independent variables in the equation .A variable with very low tolerance contributes little information to a model and can cause computational problems .F to Remove values are useful for describing what happens if a variable is removed from the current model given that the other variables remain .

HYPOTHESIS –V Null Hypothesis : There is no significant difference between male and female with respect to overall coconut marketing problems. student t test for significant difference between male and female with respect to overall over all coconut marketing problems

Gender Mean SD T-Value P- value Male 59.84 7.52 2.71 0.000** Female 63.71 14.78 Source : Source : Data generated from the respondents

Since P value is less than 0.01 the null hypothesis is rejected at 1 percent level of significance .Hence concluded that there is significant difference between male and female with respect to overall coconut marketing problems mean level of coconut marketing problems of female customers are higher than male .

HYPOTHESIS –VI Null Hypothesis : There is no significant difference between numbers of years of experience of farmers with respect to overall coconut marketing problems

Table ANOVA for significant difference between numbers of years of experience of farmers with respect to overall coconut marketing problems Numbers of years of Mean SD F value P value experience of farmers Below 5 62.83 b 8.42 5-10 59.91ab 13.42 5.094 0.0006** Above 10 58.07 a 7.74 Source : Source : Data generated from the respondents

Note : Different alphabet between years of experience of farmers denotes significant at 5 % level using Duncan Multiple Range test.

Since P value is less than 0.01 , the null hypothesis is rejected at 1 percent level of significance . Hence concluded that there is significant difference between numbers of years of experience as farmers with respect to overall coconut marketing problems .Based on Duncan Multiple Range test , the below 5 years of experience as farmers are significantly higher level of overall coconut marketing problems than above 10 years but between 5 and 10 years of experience as farmers are not significant with other group of years.

HYPOTHESIS –VII Null Hypothesis : There is no association between price received by the farmer and the years of experiyance of farmer Table Chi – square test for association between price received by the farmer and the years of experience of farmer price No of years experience in coconut farming Total Pears P- receive on Value Below 5 5-10 10-15 15-20 Above d by the Chi- farmer Squar e 9 11 17 22 33 92 (9.78 %) (11.96%) (18.48%) (23.91%) (35.87%) (100.0%) [32.14%] [28.20%] [27.86%] [28.57%] [28.69%] [28.75%]

10 15 23 28 42 118 28.070 0.005 (8.48%) (12.72%) (19.49%) (23.72%) (35.59%) (100.0%) ** [35.72%] [38.47%] [37.70%] [36.37%] [36.54%] [36.88%]

4 6 9 12 18 49 (8.17%) (12.25%) (18.37%) (24.48%) (36.73%) (100.0%) [14.28%] [15.39%] [14.76%] [15.58%] [15.63%] [15.31%]

5 7 12 15 22 61 (8.19%) (11.48%) (19.68%) (24.59%) (36.06%) (100.0%) [17.86%] [17.94%] [19.68%] [19.48%] [19.14%] [19.06%]

28 39 61 77 115 320 (8.75%) (12.18%) (19.06%) (24.07%) (35.94%) (100.0%) [100.0%] [100.0%] [100.0%] [100.0%] [100.0%] [100.0%] Source: Data generated from the respondents

Note: 1. The value within ( ) refers to Row percentage 2. The value within[ ] refers to column percentage Since p value is less than 0.01, the null hypothesis is rejected at 1 percent level of significance. Hence concluded thet there is association between price received by the farmer and years of experience of farmer

HYPOTHESIS-VIII There is association between price received by the farmer and the tptal value of coconut products Null Hypothesis: There is no association between price received by the farmer and the total coconut products.

Table-: Chi-square test for association between price received by the farmer and The total value of coconut products price Total value of coconut products Total Pearso P- receive Below 5 5-10 10-15 15-20 Above n Chi- Valu d by the Square e farmer 25 12 14 26 15 92 (27.18%) 25.068 (13.04%) (15.21%) (28.26%) (16.31%) (100.0%) [50.00%] [25.53%] [21.87%] [24.29%] [28.84%] [28.75%] ) 17 21 25 37 18 118 0.005 (14.41%) (17.79%) (21.18%) (31.36%) (15.25%) (100.0%) ** [34.00%] [44.68%] [39.06%] [35.57%] [34.61%] [36.87%] 3 7 10 20 9 49 28.070 (6.13%) (14.28%) (20.41%) (40.81%) (18.37%) (100.0%) [6.00%] [14.89%] [15.62%] [18.69%] [17.30%] [15.31%] 5 7 15 24 10 61 (8.19%) (11.48%) (24.59%) (39.35%) (16.39%) (100.0%) [10.0%] [14.89%] [23.43%] [22.42%] [19.48%] [19.06%] 50 47 64 107 52 320 (15.62%) (14.69%) (20.00%) (33.43%) (16.26%) (100.0%) [100.0%] [100.0%] [100.0%] [100.0%] [100.0%] [100.0%]

Source: Data generated from the respondents Note:1. The value within ( ) refers to Row percentage 2. The value within [ ] refers to column percentage Since P value is less then 0.01, the null hypothesis is rejected at 1 percent Level of significance. Hence concluded that there is association between price received by the farmer and the total value of coconut products.

HYPOTHESIS-IX Null Hypothesis: There is no significant difference between mean ranks Towards problems involved in the coconut marketing faced by the farmers in In Thanjavur delta regions Table Friedman test for significant difference between mean ranks towards problems Involved in the coconut marketing faced by the farmers in the Thanjavur delta region

Coconut marketing problems Mean Chi- P-value S.NO Rank Square Value 1 High fluctuations in marketing prices 16.65 2 More pests and more diseases 16.63 13.37 High cost of plant protection chemicals 12.39 3. 13.20 Non –availability of protection institutional 13.98 4. credit facilities at right time 12.60 5. Inadequate infrastructural facilities and civic 12.72 amenities 13.10 6. Ineffective Channel of distribution of ‗producer - 12.50 copra maker – oil miller – wholesaler – consumer 13.63 ‗ 7. Low profit margin 13.00 8. High marketing cost 14.00 25.068 0.005** 9. Refusal to intervene by the state government and 12.72 traditional regulatory authorities 10. Low prices paid to small producers 12.08 11. Deregulation of the coir industry 12.33 12. Vilification campaign unleashed by vested interests against the edible use of coconut oil .

13. Inadequate institutional support 13.66 14. Declining viability of coconut farming 11.01 15. Eroding profitability 12.32 16. Decline in coconut hectarage due to land 12.35 conversion into commercial and industrial purposes 17. Tenurial arrangement as a hindrance to increased 13.86 investment in coconut culture 18 Relative un remunerativeness of Coconut farming 11.62 being a predominantly monocarp 19. Price instability due to increasing competition 12.85 from substitute oils 20. Lower oil recovery due to quality deterioration of 13.86 copra in insect infestation 21. Poor copra making Practices 12.35 22. Post harvest losses due to quality deterioration of 11.62 copra in transport 23. Post harvest losses due to quality deterioration of 11.62 copra in storage 24. Post harvest losses due to quality deterioration of 12.85 copra in storage 25. Low farm Productivity 11.34 Source : Data generated from the respondents Since P value is lesser than 0.01 , the null hypothesis is rejected at 1 percent level of significance .Hence concluded that there is significant difference between mean ranks towards problems involved in the coconut marketing faced by the farmers in the Thanjavur delta region .

HYPOTHESIS – X Null Hypothesis : There is no significant difference between male and female with respect to overall coconut marketing problems Table 59 Student test for significant difference between male female with respect to overall coconut marketing problems Gender Mean SD T value P value Male 74.64 7.704 Female 74.49 7.237 1.447 0.230** Source : Data generated from the respondents Since P value is higher than 0.01 , the null hypothesis is accepted at 1 percent level of significance .Hence concluded that there is no significant difference between male and female with respect to overall coconut marketing problems .

HYPOTHESIS – XI Null Hypothesis : There is no significant difference between income groups of farmers with respect to overall coconut marketing problems Table -60 : ANOVA for significant difference between income group of farmers with respect to overall coconut marketing problems Income Mean SD F value P Group Value Below – 3000 71.38 8.846 3001-6000 71.69 7.222 6001-9000 75.40 7.195 4.598 0.001** 9001-12000 75.28 7.559 Above 12000 75.13 6.838 Source : Data generated from the respondents

Note : Different alphabet between years of customer denotes significant at 5 % level using Duncan Multiple Range test . Since P Value is less than 0.01 the null hypothesis is rejected at 1 Percent level of significance. Hence concluded that there is significant difference between income group of farmers with respect to overall coconut marketing problems . Based on Duncan Multiple Range test the income group of Rs 6001- 9000 are significantly higher level of coconut marketing problems than other group of income .

CHAPTER - VIII SUMMARY OF FINDINGS AND CONCLUSION FINDINGS The highest 62.5% of the respondents were male followed by 37.5% of the respondents were female. It is clear that the more number of farmers are men in the selected area.

The highest 31.9% of the respondents were in the age group between 51-60 years. Followed by 27.1% of the respondents were in the age group of 41-50 years, followed by 21.3% were in the age group of above 60 years, 13.1% were in the age group of 31-40 years and 6.6% of the respondents were in the age group of below 30 years. It is clear that the more number of farmers are in the age group between 51-60 years.

The highest 33.75% of the respondents were having high school background followed by 19.37% of the respondents were having middle school background followed by 17.50% of the respondents were illiterate followed by 15.32% were having primary school background and 14.06% of the respondents were having graduate and above as the educational qualification in the age group between 51-60 years. It is evident from the findings the highest number of farmers in Thanjavur delta region are were having high school background.

The highest 60.94% of the respondents are living in rural areas followed by 24.06% of the respondents are living in semi-urban areas and 15.0% of the respondents are living in urban areas. 33.75% of the respondents were having high school background. It is evident from the table that the maximum number of farmers are living in rural areas. The highest 70.31% of the respondents were having their own land followed by 29.69% of the respondents were having leased land. It is evident from the table that the maximum numbers of farmers are having their own land.

The highest 57.81% of the respondents were growing coconut followed by 42.19% of the respondents were carrying out coconut based agriculture. It is evident from the table that the maximum number is farmers are growing coconut in the selected area.

It is evident from the table that the highest 33.44% of the respondents were having above 20 years of experience in coconut cultivation followed by 39.06% of the respondents were having 15-20 years of experience in coconut cultivation followed by 18.75% of the respondents were having 10- 15 years of experience in coconut cultivation followed by 11.88% of the respondents were having 5-10 years of experience in coconut cultivation followed by 6.87% of the respondents were having less than 5 years of experience in coconut cultivation. It is evident from the table that the maximum numbers of farmers are having 20 years of experience in growing coconut in Thanjavur delta region.

The highest 63.12% of the respondents were involved in the agriculture followed by 36.88% of the respondents were involved in the non- agricultural activity. It is evident from the table that the maximum numbers of farmers are engaged in agriculture only.

The highest 38.12% of the respondents were having a monthly income ranges from Rs. 9001- 12000, followed by 20.62% of the respondents were having a monthly income ranges from above Rs. 12001, followed by 10.0% of the respondents were having a monthly income ranges from Rs. 3001- 6000 and 4.38% of the respondents were having a monthly income range from Rs. 1000-3000. The highest 34.37% of the respondents were earning Rs. 90001- 120000 per annum as the total value of coconut products produced, followed by 20.31% of the respondents were earning Rs. 60001-90000 per annum as the total value of coconut products produced, followed by 20.31d% were earning above Rs. 120001 per annum as the total value of coconut products produced, followed by 14.38% of the respondents were earning Rs.10000- 30000 per annum as the total value of coconut products produced, followed by 12.18% were earning Rs. 30001 – 60000 per annum as the total value of coconut products produced. It is evident from the table that the maximum numbers of farmers are having an income base of Rs 9001-12000.

The highest 57.82% of the respondents were having less than 4 members in their family followed by 42.18% of the respondents having 4 members or more than 4 members in their family. It is evident that the highest 57.82% of the respondents were having less than 4 members in their family.

The highest 60.93% of the respondents were having 0-5 acres land followed by 39.07% of the respondents were having above 5 acres of land. It is evident that the highest 60.93% of the respondents were having 0-5 acres.

The highest 33.76% of the respondents expressed that alluvial plain is the type of agro econological region in which the coconut being cultivated by them. Followed by 27.50% of the respondents expressed that plain is the type of agro ecological region in which the coconut being cultivated by them. Followed by 19.69% of the respondents expressed that upland is the type of agro ecological region in which the coconut being cultivated by them. And 8.43% of the respondents expressed that low lying land is the type of agro ecological region in which the coconut being cultivated by them. It is evident from the table that 33.76% of the respondents that alluvial plain is the type of agro ecological in which the coconut being cultivated by them.

The highest 33.76% of the respondents were cultivating coconut in alluvial plain or red sand followed by 27.50% of the respondents were cultivating coconut in plain, followed by 10.62% of the respondents were cultivating coconut in coastal plain, followed by 8.43% of the respondents were cultivating coconut in low lying plain. It is observed that the highest 33.76% of the respondents were cultivating coconut in alluvial plain or red sand and this type of sand is seen in Thanjavur , Pattukkottai and peravurani areas. It is evident from the table that 33.76% of the respondents expressed that they were cultivating coconut in alluvial plain or red sand.

The highest 55.0% of the respondents expressed that the drainage facility in which the coconut being cultivated by them was good followed by 20.32% of the respondents expressed that the drainage facility in which the coconut being cultivated by them was moderate followed by 14.68% of the respondents expressed that the drainage facility in which the coconut being cultivated by them was poor. It is clear from the table that the highest 55.0% of the respondents expressed that the drainage facility in which the coconut being cultivated by them was good. This is due to presence of river Cauvery in the Thanjavur delta region.

The highest 37.50% of the respondents expressed that the soil texture was poor followed by 32.50% of the respondents expressed that the soil texture was high and 30.0% of the respondents expressed that the soil texture was medium. It is clear from the table that the highest 37.50% of the respondents expressed that the soil texture was poor. The highest 39.06% of the respondents expressed that the vegetation was mixed comprising both coconut and Agriculture followed by 32.82% of the respondents expressed that the vegetation was agriculture only and 28.12% of the respondents expressed that the vegetation was coconut only. It is clear from the table the highest 39.06% of the respondents expressed that the vegetation was mixed comprising both coconut and Agriculture.

The highest 70.31% of the respondents expressed that the type irrigation was canal irrigation followed by 29.69% of the respondents expressed that the type of cultivation was rainfed. It is evident from the table that the highest 70.31% of the respondents expressed that the type of irrigation was canal irrigation.

The highest 42.19% of the respondents expressed that the crop condition was medium followed by 29.69% of the respondents expressed that the crop condition was high and 28.12% of the respondents expressed that the crop condition was poor. It is evident from the table that the highest 42.19% of the respondents expressed that the crop condition was medium.

The highest 46.26% of the respondents expressed that they were growing Hybrid variety coconut followed by 38.12% of the respondents expressed that they were growing Dwarf variety of coconut followed by 10.0% of the respondents expressed that they were growing east coast tall. It is evident from the table that the highest 46.26% of the respondents expressed that they were growing Hybrid variety of coconut. The farmers in the Thanjavur delta region were happy with the productivity of coconut was high with the hybrid variety of coconut. The highest 64.06% of the respondents expressed that the self-raised as the source of plant followed by 35.94% of the respondents expressed that the private nurseries as the source of plant. It is evident from the table that the highest 64.06% of the respondents expressed that the self raised as the source of plant.

The highest 51.56% of the respondents expressed that they use of coconut for Nut and Fibre followed by 35.94% of the respondents expressed that they use of coconut for Nut and 12.50% of the respondents expressed that they use of coconut for Fibre. It is evident from the table that the highest 51.56% of the respondents expressed that they use of the coconut for Nut and Fibre.

The highest 57.81% of the respondents expressed that the tolerance to pest / disease capacity of the coconut was different followed by 42.19% of the respondents expressed that the tolerance to drought/ pest/ disease capacity of the coconut was no different. It is evident from the table that the highest the highest 57.81% of the respondents expressed that the tolerance to drought/ pest / disease capacity of the coconut was different. They were expressed that the due to different tolerance to drought/ pest/ disease capacity of the coconut, the production of coconut was different. The farmers expressed that Thanjavurvadal disease caused by Thanjavur wilt is affecting the coconut badly and the overall production of coconut is also affected. The farmers felt that the following problems ware faced by them.

Initial symptoms of Thanjavur wilt (Ganoderma wilt) start with withering, yellowing and dropping of the outer whorl of leaves. This is followed by exudation of reddish brown fluid from the basal portion of the trunk. The issues below the patch decay. The roots decay, the stem tapers and the crown reduce to small size with gradual decrease in yield. Towards the basal portion on the trunk, the sporocarp of the fungus emerges & the palm succumbs to death within 2-3 years. It is evident from the table that there are only two distinct varieties of coconut, the tall and the dwarf.

The highest 36.56% of the respondents that the performance of hybrid variety of coconut was high followed by 24.06% of the respondents expressed that the performance of hybrid variety of coconut was medium and 36.56% of the respondents expressed that the crop condition was poor. The tall cultivars that the extensively grown are the West Coast Tall and East Coast Tall. The dwarf variety is shorter in stature and its life span is short as compared to the tall. Tall x Dwarf (TxD), Dwarf X Tall (DxT) are the two important hybrids.

There are 10 different combination of hybrids, developed by Kerala agriculture University and Tamilnadu University and released for commercial cultivation. They are high yielders under the good management conditions. Laccadive Ordinary, Andaman Ordinary, Philippines, Java, Cochin-China, Kappadametc,are the other tall cultivars under cultivation.

PROSPECTS FOR COCONUT PRODUCTS A number of factors are likely to shape the prospects for the coconut sector in the coming years. The most important at global level are likely to be: Global demand for vegetable oils, which in turn will be driven by the effect of population and income changes on demand for food, and (largely policy) driven demand for befouls:

Competition from other vegetable oils in world market; Development of, and consumer acceptance of, newer coconut products, in domestic and world markets, such as ‗virgin‘ or cold pressure coconut oil, or organic coconut cream;

Domestic demands for coconut products in producing countries, including biofuel demand andDevelopment of coconut timber technology and markets.

PROSPECTS FOR INDIA Indian coconut products are rated as premium quality products in the world. Coconut oil has a huge potential in Gulf, Europe, and America, due to presence of large ethnic Indian population.

Activated carbon has been increasing its share in the bio-energy segment and the demand from USA, UK, Germany, France, and Japan has been increasing. Processed and packaged tender coconut water has an increasing demand in Gulf countries and UK, China is also a growing market for coconut and its various products. Russia is emerging as one of the major buyers of coconut oil and virgin coconut oil. Germany is an emerging market particularly for desiccated coconut powder, and coconut milk powder. Handicrafts, ice cream cups and spoons made from coconut shell are increasingly being exported to European countries‘ and hold good potential.

With more than 10 million people in the country depending on coconut cultivation, processing, marketing and trade related activities of their livelihood, the sustainability of coconut industry poses a big question before the Indian Agriculture.

Coconut is unique in all respects among other horticulture crops grown in the country as a source of food, drink, shelter and a variety of raw materials for industrial exploitation. The crop assumes considerable significance in the national economy in view of rural employment and income generation.

Major share of the coconut production in the country is contributed by millions of small and marginal farmers who form the backbone of coconut culture. The economy of the region is inbter linked with the prospects of the crop wherever coconut is grown. With an area of 1.89 million hectares and product ion of 12,998 million nuts, coconut contribution Rs. 7000 crore annually to the GDP.

The raw material for coir industry is derived from coconut husk and the country earns valuable foreign exchange to the tune of Rs. 292 crore by way of export of coir and coir products. In addition nearly Rs. 10 crore is earned through export of products other than coir.

The multi product aspect of coconut is its biggest asset. Its products are eco-friendly. Apart from all this, the coconut oil has much health and nutritional benefits, which are being increasingly recognised. Recent studies show that coconut can be used as an anti virus agent.

SUGGESTION The marketing intervention by coconut marketing complex and other co-operative and government agencies need to be strengthened, need to develop varieties resistant to diseases and adaptable to changing climate and to improve yield of coconut in Thanajvur delta region.

India‘s export to neighbouring SAARC (South Asian Association for regional cooperation) countries were either decreasing or stagnated. Hence, it should aim not only to capture the new markets but also to arrest the declining trend and to increase the export to existing traditional markets like srilanka, Nepal, and Bangladesh.

Majority of small farmers were growing coconut on less than acre of land, keeping in view this aspect, the policy makers should frame the policy both for increasing the production and marketing facilities.

Lack of remunerative prices and price fluctuation were the problems experienced by majority of the respondents. The government should have proper mechanism to control prices by declaring minimum support price or fix rate based on cost or production.

Coconut is a commercial crop, so production strategy needs to be developed in order to increase the production at state level.

Seed treatment and selection of the variety are the important technical practices for increasing the yield of coconut which was not realised by farmers. Hence, the extension agencies should take-up suitable training programme on these aspects to those farmers are properly educated. The prices of coconut products by the farmers in Thanjavur delta region are dependent on produce arrival in the market at a time and demand from consumers. A suitable marketing method need to be evolved which estimate middlemen by bringing producer direct contact with consumers with right vested in the hand of farmers to determine the price.

The Government should setup a separate godown in each taluk to stock coconut and ensure the direct link between the farmers and consumers, thus eliminating the middlemen.

CONCLUSION This thesis is considered a successful undertaking which is achieving most of its objectives and holds promise to achieve all objects in long run. Canals wells and tube wells and played as sources of irrigation and helped to develop the agriculture. Physiographical this is an area of plain region. Cauvery River and its branch Grand Anaicut canals are supply the sources of irrigation climatically this region comes tropical conditions and receivers moderate rainfall.

However, the modification as suggested when gets implemented helps to overcome the coconut marketing problems of the farmers in the Thanajvur delta region.

The processing of copra into coconut oil functions satisfactorily and within industry specific performance standards. A major drawback occurred in the form of unresolved institutional arrangement. The coconut sector in Thanjavur delta region which continue to affect not only the cost efficiency of coconut marketing, processing of coconut byproducts and trading but also appear ineffective in providing incentives to the coconut. In spite of the constraints copra production has increased to approach the ―high‖ growth rate in the years to come.

A shortcoming is that the new coconut marketing complex is not yet firmly established since the technical operation, financial management and marketing still depend on cooperation from the farmers. The needed cooperation from the farmers was not consistently available right now. The study on coconut marketing problems and prospects carried out in the Thanajvur delta region generates economic benefits offered by the coconut marketing and contribute to the national economy. The farmers in the selected region constitute an optimum approach in a situation in which both the inputs and the output can be locally traded. Institutional arrangements have to be reviewed and adapted to permit flexible and commercially oriented decision making on exporting copra as well as oil depending on prices and marketability.

The institutional implicationsought to be fully assessed and interagency relationship between the farmers and traders should be defined, agreed upon it appraisal and followed through.

The provision of consultant services offered by the coconut development board contributed to the successful operational and financial performance of coconut while pricing. It is important that suitably experienced coconut development board services continue to be employed in the Thanjavur delta region to increase the revenue earning capacity of the farmers during the harvest of coconut.

The Tamilnadu Government support such as fixing the price for coconuts, providing marketing support for the farmers in the Thanjavur delta region helps the farmers to maximise the return during the production and marketing of coconuts.

More systematic and persistent efforts are needed on the part of the Government and the coconut marketing complex to train the farmers to increase the productivity of coconut in the coming months. Since suitably experienced farmers is of crucial importance, the necessary resources have to be allocated to either attract locally available expertise of farmers to increase the productivity of coconut in the Thanjavur delta region. The functions of Tamilnadu Government agencies in the coconut sector, especially the marketing and purchasing arrangements, the copra price stabilisation scheme and cost and revenue sharing ought to be reviewed in view of the costly burden and questionable benefits derived from present procedures and institutional arrangements. The objectives should be to maximise the benefits to the regional economy.

The processing of copra would be financially advantageous for farmers and the processing and trading margins earned would contribute to the national economy. Therefore, the Tamilnadu Government should make all necessary logistic and administrative arrangements to facilitate such trade. Any further expansion of the coconut production capacity and the possibility of production of coconut oil derivative have to carefully examined not only in financial terms but also in the context of the national economy by the farmers in the Thanjavur delta region.

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SOCIO-ECONOMIC PROFILE OF FARMERS

1.Name of the farmer : 2.Address : 3.Genter : Male [ ] Female [ ] 4. Age : Less than 30 years [ ] 31-40 years [ ] 41-50 years [ ] 51-60 years [ ] Above 61 years [ ] 5. Educational status of the respondent: Illiterate [ ] Primary school [ ] Middle school [ ] High school [ ] College and school [ ] 6. Place of living: Urban [ ] Semi urban [ ] Village other [ ] Other [ ]

7.Area of land: Leased [ ] Owned [ ]

8.Type of Farming: Coconut farming [ ] Coconut based agriculture farming [ ]

9.Experience in coconut farming(No.of years): 0-5 years [ ] 5-10 years [ ] 10-15 years [ ] 15-20 years [ ] 20-25 years [ ] 10.Occupation :

11.Annual income : 12.Total Value of Coconut products: Family [ ] Less than 4 members [ ] More than 4 members [ ] 13.How much land do you own? 14.How much land in which you grow coconut? 15.What is you annual income from the coconut and by-products of coconut?

16.Which type of agro ecological region do you grow coconut? Upland [ ] Coastal [ ] Plain [ ] Others [ ] 17.What is the drainage facility do you have? Poor [ ] Moderate [ ] Well drained [ ]

15.Kindly rate the following :

S.No NAME RATING

1 Soil texture Heavy Medium Light 2 Soil fertility High Medium Poor 3 Crop High Medium Poor management 4 Vegetation Coconut Agriculture Mixed Plantation 5 Type of Irrigated Rain fed cultivation 6 Crop condition Good Moderate Poor

16.Which variety of coconut do you grow? Hybrid [ ] West coast call [ ] Dwarf [ ] East coast tall [ ] Laccadive Ordinary [ ] Andaman Ordinary [ ] Philippines [ ] Java [ ] Cochin-China [ ] Kappadam [ ]

17.Sources of planting material Self raised [ ] Private nurseries [ ]

18.Coconut palm planting for NUT/FIBRE [ ] Nut [ ] Fibre [ ]

19. Total to drought/ pest /disease No difference Difference 20. What is your assessment about performance of S.No. NAME RATING 1 Hybird coconut Poor Moderate Good 2 West coast tall 3 Dwarf 4 East Coast Tall 5 Laccadive Ordinary 6 Andaman Ordinary 7 Philippines 8 Java 9 Cochin-china 10 Kappadam

21.Availability of Eco type suitable for nut and fibre Available [ ] Not available [ ]

22.propagation of variety good for nut and fibre Favorable [ ] Not favorable [ ]

23.Harvesting and husking practices and allied features Stage of maturity 10 months [ ] Method of harvesting [ ] Climbing [ ] Machine [ ]

24.Availability of trained tree Climbers Not adequate [ ] Adequate [ ]

25.Machine for harvesting Not available [ ] Exists [ ]

26.Problems in husk collection Do not exist [ ] Coir only [ ] Energy only [ ]

27.Utilization of husk Coir & other purpose [ ] Locally [ ] Partly locally [ ] Other places [ ]

28.Availability of husk

Average [ ] Poor [ ] Good [ ]

29.Quality of husk Average [ ] Poor [ ] Good [ ]

30.Conversion of coconut into copea at household level Not attempted [ ] Attempted [ ]

31.Marketing of coconut / copra Not reported [ ] Local merchants [ ] Govt. Institutions [ ]

32.Sale of coconut Not reported [ ] Profitable [ ] Not profitable [ ] 33.Sale of husk Not reported [ ] Profitable [ ] Not profitable [ ]

34.Import of agro-ecological influence on coconut quality Not reported [ ] Influenced [ ] Not influenced [ ] Harvested [ ]

35.Tender coconut for marketing Harvested [ ] Not harvested [ ] Not reported [ ]

36.Practice of Irrigation Well irrigation [ ] Canal irrigation [ ] River Irrigation [ ]

37.Varieties that could be grown without irrigation Hybrid [ ] West coast tall [ ] Dwarf [ ] East coast tall [ ] Laccadive Ordinary [ ] Andaman Ordinary [ ] Philippines [ ] Java [ ] Cochin-China [ ] Kappadam [ ] 38.Manuring Practices Location specific Cultivar Wise Practice (a).Application of green manure Not reported [ ] Applied [ ] Not applied [ ]

(b).Profitability of coconut crop Good [ ] Medium [ ] Poor [ ]

(c).Soil conservation Not reported [ ] Adopted [ ] Not adopted [ ]

(d).Organic mulching Coconut husk [ ] Coconut pith [ ] Compost [ ] Others [ ]

(e).Common pests Rhinoceros beetle [ ] Mite [ ] Root Wilt [ ] All the three [ ]

(f).Remedial measures Timely adopted [ ] Not adopted [ ]

(g).Awareness techniques of pest control Known to farmers [ ] Unknown to farmer [ ] Vague ideas only [ ]

39.Type of buyers and products ITEMS COPRA VILLAGE ITINERANT OIL SOLD MARKS MERCHANTS TRADERS MILLERS

Outside farm sale of Coconut Inside Farm sale of Coconut

Copra

Oil

40.Margins and costs of various intermediaries for coconut marketing in Thanjavur 1 per 100 nuts

PARTICULARS RUPEES % Selling price of copra maker/buying price of oil miller Marketing cost of retailer Net margin of retailer Price paid by the consumer Price received by farmers Copra markers‘ realization from by- products Price paid by Wholesaler/selling price of oil miller Oil millers‘ realization from by-products Marketing cost of wholesaler Net margin of wholesaler Milling and marketing cost of oil miller Net margin of oil miller Price paid by retailer Net margin of copra maker

41.Kindly rate the following coconut marketing problems faced by you

S.No. COCONUT MARKETING PROBLEMS S A N D SD A A A 1 High functions in maker prices 2 More pests and more diseases 3 High cost of plant protection chemicals 4 Non-availability of adequate institutional credit facilities at right time 5 Inadequate infrastructural facilities and civic amenities 6 Ineffective Channel of distribution of producer—copra maker—oil miller— wholesaler—consumer` 7 Low profit margin 8 High marketing cost 9 Refusal to intervene by the state government and traditional regulatory authorities 10 Low prices paid to small producer 11 Deregulation of the coir industry 12 Vilification campaign unleashed by vested interests against the edible use of coconut oil 13 Inadequate institutional support 14 Declining viability of coconut farming 15 Eroding profitability 16 Decline in coconut hectarage due to land conversion into commercial and industrial purposes 17 Tenurial arrangement as a hindrance to increased investment in coconut culture 18 Relative un remunerative ness of Coconut farming being a predominantly monocrop 19 Price instability due to increasing competition from substitute oils 20 Lower oil recovery due to harvesting of immature nuts 21 Poor copra making practices 22 Post harvest losses due to quality deterioration of copra in insect infestation 23 Post harvest losses due to quality deterioration of copra in transport 24 Post harvest losses due to quality deterioration of copra in storage 25 Low farm productivity

LIST OF PUBLICATIONS BY THE RESEARCHER

S.NO TITLE JOURNAL/BOOK ISBN/ISSN NAME 1 Role of Teachers in HRD Times 0976-7401 Education 2 Marketing Through Marketing Research 978-93- Internet Issues and Challenges 80509-01-3 3 Telecommunication Service Marketing 978-93- Growth In India (Recent Trends in India) 80530-41-3