Feasibility Analysis of Areca Nut + Pepper Mixed Cropping System in Karnataka

The per hectare total initial cost incurred by organic orchard growers was 6, 42, 676.48 of which investment cost constituted 21.46% and maintenance constituted 78.54%. Similarly, the per hectare total establishment cost incurred by inorganic orchard growers was 7, 02, 508.36 of which investment cost constituted 20.84 per cent and maintenance constituted 79.16 per cent. The average per ha maintenance cost incurred by respondents in arecanut + pepper mixed cropping orchards under organic methods was 1, 27, 135.05 during the bearing period. The labour, material and fixed costs accounted for 26.58, 32.83 and 36.75%, respectively. While the cost was 1, 45, 031.52 under inorganic methods where labour, material and fixed cost accounted for about 29.77, 34.90 and 35.33%, respectively. The average per ha yield of arecanut and pepper from arecanut + pepper mixed cropping orchards under organic methods was 19.94 and 2.08 quintals, respectively and the net returns obtained were 4, 93., 460.71. Similarly the average yield arecanut and pepper from arecanut + pepper mixed cropping orchards under inorganic methods was 21.96 quintals per ha and 2.31 quintals per ha, and the net returns were 4, 86, 943.93. The investment appraisal analysis revealed that the payback period was found to be 7.80 years in organic orchards and 8.02 years in inorganic orchards. The net present value of investment for the orchards under organic and inorganic methods were 6, 67, 552.02 per ha and 5, 59, 219.08 per hectare respectively at 12.00% discount rate for arecanut + pepper mixed cropping orchards. The discounted benefit cost ratio were 1.74 in organic orchards and 1.56 in inorganic orchards and the internal rate of return was found to be 23% and 21% respectively.