COST STRUCTURE AND PROFITABILITY OF PEPPER AND CARDAMOM CULTIVATION IN KERALA: A COMPARATIVE ANALYSIS

*Jiya Tom, & **Geevarghese M. Thomas

*Research Scholar, Department of Economics, Catholicate College, Pathanamthitta, Kerala, India.

**Assistant Professor, Department of Economics, K.G. College, Pampady, Kottayam, Kerala, India.

Abstract

Pepper and cardamom are two of the most important plantation spice crops cultivated in Kerala, contributing significantly to farm income, rural employment, and export earnings. However, cultivation of these crops is increasingly characterised by rising production costs and heightened economic risk. This study examines and compares the cost structure and profitability of pepper and cardamom cultivation in Kerala using secondary cost of cultivation data for the period 2019–20 to 2021–22. Standard cost concepts, namely Cost A, Cost B, and Cost C, are employed to analyse item-wise expenses, labour intensity, and inter-year changes in cultivation costs across different holding size classes. Profitability is assessed using the value of output per hectare and benefit–cost ratios. The results reveal that hired human labour constitutes the dominant component of cultivation costs in both crops, highlighting their labour-intensive nature. While pepper cultivation exhibits higher cash profitability under Cost A, cardamom cultivation generates a higher gross value of output but is associated with substantially higher cultivation costs. The comparative analysis underscores important differences in cost composition, labour participation, and economic returns between the two crops. The study emphasises the need for targeted policy interventions aimed at reducing cost pressures, improving productivity, and strengthening income stability for spice cultivators in Kerala.

Keywords

cost of cultivation, profitability, pepper, cardamom, benefit–cost ratio, kerala.

References

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To cite this article

Jiya Tom, & Geevarghese M. Thomas. (2025). Cost Structure and Profitability of Pepper and Cardamom Cultivation in Kerala: A Comparative Analysis. Sparkling International Journal of Multidisciplinary Research Studies, 8(4), 58-64.

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