A Comparative Study of Farm Income and Economic Viability of Organic and Conventional Coffee and Pepper Cultivation: A Case Study of Meenangadi Grama Panchayat, Wayanad

Abstract

Plantation agriculture plays an important role in the livelihood of farming households in Meenangadi Grama Panchayat, Wayanad, where coffee and pepper are the major commercial crops. However, farmers face several challenges, including irregular rainfall, pest and disease incidence, labour scarcity, rising wage rates, increasing cultivation costs and fluctuations in market prices. Organic farming has emerged as an environmentally sustainable alternative, but its economic viability compared with conventional farming requires closer examination at the micro level. This study examines the socio-economic characteristics, farming practices, constraints, and profitability of organic and conventional coffee–pepper farming in Meenangadi Grama Panchayat. A descriptive and analytical research design was adopted, and primary data were collected through personal interviews from 120 farm households, comprising 60 organic and 60 conventional farmers. Secondary data were obtained from government publications, institutional reports and relevant academic literature. The study compares the costs, gross returns, net returns and Benefit–Cost Ratio (BCR) of the two farming systems. The findings indicate that both organic and conventional farms generated positive returns over the measured cost of cultivation. Organic farms incurred substantially lower mean per hectare cultivation costs, whereas conventional farms recorded higher mean gross and net returns. However, the difference in the Benefit Cost Ratio between the two farming systems was not statistically significant, suggesting comparable economic efficiency relative to investment. The major constraints faced by organic farmers include market uncertainty, price fluctuations, high labour costs, certification difficulties and limited institutional support. The study concludes that organic plantation farming is economically viable in the study area, although its relative profitability cannot be established conclusively. Strengthening market linkages, certification support, extension services and productivity-enhancing measures is essential for improving its long-term economic sustainability.