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Full Paper Cost & Return Analysisi of Pineapple

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Cost and Return analysis of Pineapple Cultivation in Uttar

Dinajpur district, West Bengal
Parvej Alam1 Azaz Ahamed1 Md.Ashif Ali1 Dr. Tariq M. Usmani2
Research Scholar1 Associate Professor2
Department of Geography , Aligarh Muslim University , Aligarh – 202002

Email :[email protected], [email protected], asif4u.amu.gmail.com,

[email protected]

ABSTRACT
Pineapple is an important fruit crop in tropical as well as subtropical region, with
high export value, is scientifically known as Ananas comosus and locally known as nanas.
Pineapple cultivation has been found economically feasible in the district as well as in the
state. Keeping this in view, a study has been conducted regarding the analysis of cost and
return or benefitof pineapple cultivation of the growers in Chopra Block of Uttar Dinajpur
district of West Bengal. For the sake of this, fifty (50) farmers has been selected randomly as
a respondent from five selected villages. For getting information on cost an return of
pineapple cultivation from growers, a structured questionnare was framed and a face to face
interview has done. An analysisof frequency and percentage calculation has been done in a
simple tabular form to exposition the data of total cost, gross return and net return and the
cost return ratio of per hectare of operational holding. The study revealed that the total costs
of production (including rent of leased land and imputed value of own land) per hectare of
marginal, small, medium and large operational holdings are 22088.02, 226131.2, 220487.69
and 218350 respectively. Whereas the gross returns of marginal, small, medium and large
operational holdings are 277625.59, 286974.2, 289097.42 and 302160.67 per hectare
respectively. The trend of net return per hectare of marginal to large operational holdings
are increasing.

Key Words : Pineapple (Ananas Comosus), cost-return analysis, cost-return ratio.

 Page 2 of 11

Introduction:Pineapple is a native fruit of South America. Pineapple (Bromeliaceae

family) is a wonderful tropical and sub-tropical fruit having exceptional juiciness, vibrant,
tropical flavour and immense health benefits. Pineapple contain considerable amount of
calcium, potassium, fibre, vitamin A, B, and C. It is low in fat and Cholesterol. A large
number of value added products like jam, jelly, mixed jam etc. can be produced which will
provide a remunerative price to farming community in a sustainable manner and also will
generate employment opportunity for unemployed rural people. Considering the economic
importance of the crop, Government of India has sanctioned one out of ten Agriculture
Export Zone (AEZ) for the sake of pineapple for all round development of pineapple
producing areas.

Pineapple grows in warm and humid climate. The pineapples are commercially grown
over a wide range of latitudes from 30° N in the northern hemisphere to 33°5 S in the
Southern hemisphere. Pineapple grows well in tropical and subtropical climate ranging from
mild coastal climate up to an altitude of about 1000 meters provided the area is free from
frost. When pineapple is grown at altitudes greater than 1000 m, smaller fruits with elevated
tartness are produced and the pulp is less attractive in colour and flavour. The optimal growth
temperature lies between 20 to 30°C and more specifically at 23 - 24 ° C. During periods of
intense sunlight and high temperature above about 35°C, the fruit is susceptible to sunburn
damage. Good fruit quality is attributed to growing sites having a combination of relatively
cool night temperatures, sunny days and day temperatures ranging from 21 to 29.5°C ◦but not
exceeding 32°C. It can be grown in areas that have a relatively high atmospheric humidity
and an average rainfall of 760-1,000 mm. The damage caused by sunburn in pineapple
production areas in the world where this fruit is harvested can be very important in periods
when solar radiation is high.

The best soils for pineapple production are well drained non-compacted loams, sandy
loams and clay loams with no heavy clay or rock within one meter of the surface. A soil pH
in the range of 4.5-5.6 is optimal for pineapple production. Slopes between 2-6% are best for
pineapple growing. Below this range, it may be hard to achieve adequate drainage. Acidic
soil rich in organic matter and potassium is desirable to pineapple cultivation. The
topography of the district is generally flat and have a gentle slope toward the south. Road
connectivity is good having nearby market. The district fullfill maximum favourable
condition which attracts the farmers for pineapple cultivation.
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Scenario in India:In fruit production, India is the second leading producer after china
produced 81285334 thousand tonnes in 6982015 thousand hectares of land (Indian
Horticulture Database-2013). But in Pineapple production India stand in 6th position, 7 % in
total world production with 1415 thousand tonnes in 89 thousand hectares of land (Indian
Horticulture Database-2011). Among all the fruits produced in India, Pineapple ranks 10th
(1736.7 Thousand Tonnes) in terms of production and 11th (109.9 Thousand Hectares) in total
croping area. Similarly West Bengal stand 4th (316 thousand tonnes) in production and 7th
(10.7 Thousand Hectares)in total croping area. But only in pineapple production West bengal
is the largest producer among all other states in India.

Study Area
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The state of West Bengal plays significant role in fruits as well as in pineapple
production. It alone produced one fifth of the country`s total production. According to NHB-
2013 it produced 316000 tonnes (i.e.18.20 percent) in 10.7 thousands hectares of land (i.e.
9.74 percent of total pineapple fruit land in India) But in state`s fruits production, banana
stand 1st, produced 1097.5 thousand tonnes in 45.5 thousand hectares of land and pineapple
stand in 4th in production and 7th in area.
Uttar Dinajpur is one of most backward district of West Bengal but in pineapple
prodution it alone produce one fourth(1/4) of the total production of the state (26.92 %) and
stand second ranks in production with 85.08 thousand tonnes in 2.95 thousand hectares of
land. This commercial fruit plays very significant role in income generation of farmers as
well as labourers of the study area. There is enormous commercial potentiality of this fruit in
improving the economic condition of the region. Hence the commercial importance of the
fruit, the study has been undertaken to the study of cost and return analysis of the pineapple
growers in Uttar Dinajpur district of West Bengal.

Objectives of the Study:

1. To examine the total cost of cultivation per unit area for different size group of
sample farmers.
2. To find out the total return and net return per hectare of land and different size group
of farm.
3. To analyse the cost and return ratio of different size group of farm.
4. To study the major different components or inputs use in farm operation.

Database and Methodology: Pineapple is being cultivated extensively as commercial

fruit in Chopra Block under Uttar Dinajpur district of West Bengal so this is the main purpose
of the selection of district as well as the district for the study. The study is basically based on
primary data and this data collected from five different villages by field survey. For obtaining
necessary information i.e cost of different components, gross return, net return, return-cost
ratio or primary data, structured questionnare schedule has been framed and for the sake of
this fifty farmers have been selected by using simple random sampling technique. To show
the inter-class comparison of total cost per hectare of land, gross return, net return and cost-
return ratio, the sampled farmers are divided into four major groups on the basis of size of
their total farm holdings. The first group of farmers having their farm holding less than 0.5
 Page 5 of 11

hectare, second group of farmers ranging 0.5-1.0 hectare, similarly third group of farmers
having 1-2 hectare and the final i.e fourth group of farmers having above 2 hectares of farm
holding. For estimating the total cost of cultivation per hectare of farm land of different farm
size groups, important components i.e. (suckers or seeds, manures, PP chemicals or
pesticides, hired and family labours, rental value of leased land and imputed rental value of
own land) has been taken into consideration. So the cost concept or the estimation of cost
structure which I have used in this study are as follows:
Cost A = Value of all out of pocket costs (suckers, manures, pesticides and depreciation of
machines & implements) + hired and family labours.
Cost B = Cost A + rental value of leased land and imputed rental value of own land.
In this study only two types of cost structures has been taken and cost B is being considered
as the total cost of pineapple cultivation per hectare of land.
Result and Discussion: Pineapple is being mainly cultivated as a commercial purpose so
in this regard for getting better result of cost and return of pineapple cultivation per hectare of
land, farmers have been classified into four main categories in which size of farm holding,
number of farmers in each category, percentage and area under pineapple cultivation of each
categories are shown below in table.
Table 1
Distribution of sampled farmers in different size groups of farms classified on the basis
of their holding size.

Percentage of the
Farm size group Area under pineapple
Number of Farmers total sample
(Hectare) cultivation (Hectare)
farmers
Marginal (<0.5) 29 58 10.93
Small (0.5-1.0) 10 20 8.82
Medium(1-2) 7 14 9.82
Large (Above 2) 4 8 22.67
Total 50 100 52.24

The above table shows that in marginal group of farm holding percentage of farmers are high
i.e. 58 percent whereas land under pineapple cultivation depicts low and this group covers
only 10.93 hectare of farm land. 20 percent farmers fall under small group of farm size and
covers only 8.82 hectare of land, similarly14 percent farmers fall under medium farm group
category and covers 9.82 hectare of land under pineapple cultivation. The fourth group of
farm size having above 2 hectare of farm land consist only 8 percent sampled farmers but it
 Page 6 of 11

covers large area under pineapple cultivation i.e. 22.67 hectare. Total area under pineapple
cultivation of 50 sampled farmers are 52.24 hectare of the study area.

8%
14%
Marginal (<0.5)
58% Small (0.5-1.0)
20%
Medium (1.0-2.0)
Large (>2.0)

Cost of cultivation: Cost A

Cost A comprised all different inputs or components used during the cultivation of pineapple
or from land preparation to harvesting period. As 78 percent of farmers farming land size are
marginal to small so depreciation of machinery and implements has not been taken into
consideration in the estimation of cost A.
Table 2
Cost structure of important different components of cost A for pineapple cultivation of
different farm size group categorized according to operational holding size of sample
farmers (Rs/Hectare).

Farm size Area under PP Hired &

Suckers / Manures /
group pineapple Chemicals/ Family Total Cost A
Seeds Fertilizers
(Hectare) cultivation Pesticides labour

74122.24 69460.47 5687.37 37200.97

<0.5 10.93 186471.1
(39.75%) (37.25%) (3.05%) (19.95%)

73067.15 69511.74 5575.91 38956.51

o.5-1.0 8.82 187111.8
(39.05%) (37.15%) (2.98%) (20.82%)

73241.57 69826.39 5502.60 41174.67

1.0-2.0 9.82 189745.6
(38.60%) (36.80%) (2.90%) (21.7%)
70490.41 71058.36 5582.48 42105.15
Above 2 22.67 189236.6
(37.25%) (37.55%) (2.95%) (22.25%)

72730.34 69964.24 5587.09 40359.32 188141.28

Total/Average 52.24
(38.66%) (37.19%) (2.97%) (21.18%) (100%)
 Page 7 of 11

Above table 2 depicts that under marginal size of farm total cost A i.e. (inputs like suckers,
manures, pesticides, hired and family labours and depreciation of any kind of machinery
which is not shown in the table.) are 186471.05 rupees per hectare. In small size of land
holding it is 187111.78, similarly in medium and large size of holding the cost per hectare are
189745.63 and 189236.64 rupees respectively. The average cost A of all farm size per hectare
is 188141.28. It also shows that the trend of labour cost slowly increasing from marginal to
large farm holding because in large holding all works are done by hired labours whereas in
marginal and small holding maximum works are done by farmers themselves and they are not
taking into account of all minor works in the family labour cost. Similarly it has been seen
that in marginal and small holding the sucker value or cost are more whereas in large and
medium holding the cost of suckers are decreasing. It is because large holding farmers buy
much more or in a bulk of suckers and marginal farmers purchase less. In terms of total cost
A, the trend is increasing because of the fact that large scale farmers tries to adopt modern
mechanism of farming and due to this they spent more in production to get better return.
Cost of cultivation: Cost B
Cost B includes cost A and rent paid for leased land and imputed rental value of own land.
Cost B is the final cost of pineapple production per hectare of land. Table No.3 show the total
cost of B.
Table 3
Estimation of cost A and cost B for pineapple cultivation categorised according to their
size of holding. (Rs/Hectare).

Rent paid for leased

Farm size (Hectare) Land under pineapple Cost A land/Imputed rental Cost B
(1) cultivation (2) (3) value of own land (3+4)
(4)

<0.5 10.93 186471.05 33616.93 220088

0.5-1.0 8.82 187111.78 39019.42 226131.2

1.0-2.0 9.82 189745.63 30742.06 220487.69

Above 2 22.67 189236.64 29113.32 218350

Total/Average 52.24 188141.28 33122.93 221264.22

 Page 8 of 11

Above table shows that the trend of cost A of pineapple cultivation is gradually increasing
from marginal to large farm land i.e. 186471.05 to 189236.64 rupees per hectare due to
the fact that in marginal land holding the farmers doing almost all the farm works i.e. from
planting to harvesting by themselves and they are not taking into account of minor works into
the labour expanses whereas large farm holding farmers are being done all the works by hired
labours so they consider each and every expenses. But one the contrary the total cost or the
trend of cost B from small to large farm holding is decreasing i.e. 226131.2 to 218350 rupees
per hectare. It is because the large farmers taking large land in leased in which they have to
pay less rent as compare to small leased land farmers. It is very important to note that in table
3 it is shown that large farmers have to pay less rent of the land i.e. about 30 thousand only
whereas in small farm holders it is about 39 thousand per hectare. The cause of this variation
of the rent value of small and large holding is mainly differs from one land owners to others,
according to their suitability and social relationship with the farmers from them they receive
rent.

Table 4

Estimation of Gross and Net return of different size of holding over Cost B and cost-
return ratio (Rs/Hectare)

Farm size Cost-Return

Cost B Gross return Net return
(Hectare) ratio

<0.5 220088 277625.59 57537.57 01:26

0.5-1.0 226131.2 286974.2 60843 01:27

1.0-2.0 220487.69 289097.42 68609.73 01:31

Above 2 218350 302160.67 83810.67 01:38

Total/Average 221264.22 288964.47 67700.24 01:30.5

Estimation of Gross/Total return: Table No.4 depicts that the trend of gross or net
return from marginal farm to large farm increasing. The total return of the marginal farm per
hectare are 277625.59 rupees, whereas in small farm are 286974.2, medium farm 289097.42
and the large farm are 302160.67 rupees respectively. As in table 3 it has been already
 Page 9 of 11

discussed that the total cost B of pineapple cultivation is less in large farm than in small farm.
The production of large farm holders is more per hectare of land and it is due to the fact that
they have extension contact to agriculture department and other agencies and have better
knowledge regarding pineapple cultivation.

Estimation of Net return: Net return or output of pineapple cultivation per hectare of
land is calculated by gross return minus total cost of production or cost B. In the table No.4 it
is found that the trends of net return from marginal farm to large farm is increasing per
hectare of farm land and the net returns in marginal farms are only 57537.57 rupees, whereas
in small farms it is 60843. Very little variation in net return of marginal and small farm are
found. In medium size of holding the net return are 68609.73 and large size of holding the net
returns are 83810.67. It is very significant to note that the variation in net return between
medium and large size holding are more as it is about 15 thousand per hectare of land. The
more net return in large size holdings are mainly due to adoption of modern cultivation
mechanism and use proper necessary inputs during the cultivation.

Cost-Return Ratio: Cost-return ratio is very important indicators of any commodity or

any substance which indicates and reflects the profit or loss of doing any agriculture activities
or business. In this way it has been found in the table No.4 that the cost and return ratio of
pineapple cultivation are increasing from marginal to large farm holdings. The cost-return
ratio of marginal, small, medium and large size of farm holding are 1:26, 1:27, 1:31 and
1:38respectively.

Conclusion and Suggestion: Above all discussion regarding cost and return analysis,
Pineapple cultivation becomes apparent that it’s both capital as well as labour intensive.
About 20-25 per cent of the total cost goes only in labour expenses. The study revealed that
there is an increasing trends of total return from marginal to large size of holdings and
decreasing trends of total cost per hectare. The total cost of cultivation per hectare of
marginal and small land is higher i.e.226131.2 rupees than in large size holding i.e. 218350,
whereas in total output or return it reverse. Higher the size of land holding higher the total as
well as net return. The sucker value are also included in the total return of pineapple
cultivation though it is not shown in the above table where total return calculated. It is also
revealed that in the study area 78 percent of farmers are having marginal and small size of
 Page 10 of 11

land holding due to this the farmers are not more benefitted. There is a large prospects of
pineapple cultivation in the study area if the farmers adopt scientific methods of cultivation,
increase extension contact, possess higher level of education, awareness and possess proper
knowledge about the mechanism of weather and its relation with pineapple cultivation.
Maximum cost goes to manures and chemicals or pesticides so for reducing use of chemicals
and manures, government or local authority should organise awareness programs regarding
agriculture mechanism. As pineapple is commercially grown and its capital intensive so the
government should provide loan or credit to the farmers to practice large scale farming which
will be more beneficial.

References:

1) HASAN, SS; ALI, MA; KHALIL, MI. Impact of Pineapple Cultivation on the Increased
Income of Pineapple Growers. The Agriculturists, [S.l.], v. 8, n. 2, p. 50-56, May. 2011.
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2) Chakraborty, A. J., & Bera, B. (2008). A study on structure of costs and returns of
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8) Hossain, Md & Abdulla, Faruq. (2015). A Time Series Analysis for the Pineapple
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