Does institutional affiliation contribute to economic benefit of farmers: A case study of oil palm farmers in Andhra Pradesh

Abstract

This work examines the gradient in economic benefits incurred between two categories of Oil Palm farmers in five districts of Andhra Pradesh, namely those belonging to Farmers Producers Organizations (FPOs) and those that do not. Cost and returns data of 402 Oil Palm farmers was subjected to Partial Budgeting analysis, and the results are presented in both tabular and graphical forms, according to orchard age. It was observed that added costs increased gradually across orchard life span, while the reduced costs increased as well, though relatively less steep. Added returns and Observed Net Profit Gap was shown to have increased throughout the orchard ages, peaking at age 19, while decreasing gradually thereafter, solidifying the fact that perennial crop systems exhibit diminishing incremental rates in production process and revenue generation as orchard age increases.