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ECONOMIC ASSESSMENT OF BLACK PEPPER CULTIVATION IN DAKSHINA KANNADA AND KODAGU DISTRICTS

Author Information
Name: Venkatesha Prasanna. P.K
Country: India
Publication Details
Year: 2023
Volume: Volume-10, Issue-1 (January-June)
Page Number: 30-42
Abstract
ABSTRACT
Black pepper (Piper nigrum), known as the ―King of Spices,‖ is one of India’s most
important export-oriented spice crops. Karnataka, and particularly the districts of Kodagu and
Dakshina Kannada, account for a major share of India’s black pepper area and production.
Black pepper cultivation plays a multifaceted role in the economy of Dakshina Kannada and
Kodagu districts — contributing to farm income, employment, trade, and exports. This study
analyses the economics and performance of black pepper cultivation in Dakshina Kannada
and Kodagu, focusing on costs, yields, income, and growth trends. Cultivation requires a high
initial investment of ₹3.11 lakh in the first year and consistent annual costs of about ₹5.41
lakh until maturity. Since black pepper plants take three years to yield, the first two years
bring no returns, making it a long-gestation crop. Break-even is achieved only in the sixth
year, with cumulative profits beginning thereafter; by the seventh year, cumulative gross
income reaches ₹11.02 lakh and gross profit about ₹3.15 lakh. The area under cultivation
expanded steadily between 2011–12 and 2021–22, from 2,146 ha to 15,037 ha in Dakshina
Kannada and from 10,643 ha to 98,445 ha in Kodagu, with Kodagu’s growth nearly ten times
faster. Production showed fluctuations in Dakshina Kannada, dipping in 2015–16 and 2017–
18 before rising sharply to 82,704 MT in 2021–22, whereas Kodagu recorded rapid and
consistent growth, reaching 4,46,940 MT in 2021–22 (over five times increase). Productivity
in Dakshina Kannada fluctuated sharply (200–580 kg/ha), while Kodagu showed more stable
upward trends (237–512 kg/ha). Overall, Kodagu emerged as the dominant hub for black
pepper cultivation due to its larger area and stable yields, while Dakshina Kannada struggled
with yield fluctuations despite land expansion. Hypothesis testing based on primary data
indicates no significant year-wise differences in cultivation area or production within each
district, but a significant difference exists between Dakshina Kannada and Kodagu in both
area and production, confirming Kodagu’s clear dominance in black pepper cultivation.
Keywords: Black Pepper Cultivation, Cost and Profitability.
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