An Economic Analysis of Grape Cultivation and Supply-Chain Related Constraints in Theni District, Tamil Nadu

Abstract

The study examined the economics of grape cultivation in Theni district, Tamil Nadu, focusing on socio-economic characteristics, profitability, farm-size differences, factors influencing output and net returns, and major marketing and supply-chain constraints. Primary data were collected from grape growers using a structured interview schedule and analysed using descriptive statistics, cost and return analysis, benefit-cost ratio, farm-size comparison, multiple linear regression, and weighted rank score analysis. The findings showed that grape cultivation was mainly undertaken by middle-aged and experienced farmers with moderate landholding and varied income levels. The average total cost of cultivation was Rs. 2,84,884.25, while gross returns and net returns were Rs. 17,80,645.16 and Rs. 14,95,730.81, respectively. The benefit-cost ratio of 6.35 indicated that grape cultivation was highly profitable. Farm-size analysis revealed that larger farms earned higher absolute net returns, whereas smaller farms showed slightly better per-unit profitability. Regression results showed that education level, total landholding, and farming experience significantly influenced both grape output and net returns. Annual income was excluded from the final model due to multicollinearity with total landholding. Constraint analysis identified pests and diseases, delayed payment, and lack of storage as major problems. The study concludes that grape cultivation is economically viable, but improved technical, marketing, and institutional support is needed to sustain farmer profitability and resilience.