A STUDY ON PRODUCTION AND MARKETING OF COCONUT IN TAMILNADU WITH SPECIAL REFERENCE TO THANJAVUR DISTRICT Thesis submitted to the Bharathidasan University, 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 KHADIR MOHIDEEN COLLEGE ADIRAMPATTINAM 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 THANJAVUR DISTRICT”, 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 Peravurani, 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 India 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 Kerala 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 Tamil Nadu 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.