An Economic Analysis of Organic Farming in Tamil Nadu

In view of the economic importance of organic farming, the present study was taken up in Erode district. The net income per hectare of organic and inorganic turmeric was 160904.46 and 110691.67 respectively. The net income per hectare of organic and inorganic cotton was 78595.23 and 60928.50 respectively. The results of production function for organic turmeric revealed that farm yard manure, neem cake, jeevamirtham, vermicompost, panchakaviya and human labour contributed significant influence on yield of organic turmeric. The results of production function for organic cotton revealed that seeds, farm yard manure, neem cake, jeeva amirtham, vermicompost, panchakaviya and human labour contributed significant influence on yield of organic cotton. Five and three types of marketing channels for turmeric and cotton were identified in the study area and price spread were estimated for each of the marketing channels. The analysis revealed that the price spread for turmeric was lower in channel IV namely farmer- regulated market- retailer- consumer. Whereas cotton price spread was lower in channel II namely farmer- regulated market- retailer- consumer.