Indian Journal of Economics and Development, Vol 4 (9), September 2016 ISSN (online): 2320-9836 ISSN (Print): 2320-9828 An Analysis of Banana Cultivation in Theni District, Tamil Nadu C. Mahalakshmi 1 , S. Vinoth Kumar 2 , P. Maneesh 3 , J. Syed Ali Fathima 4 1,2, M.Phil. Scholar, Department of Economics, The American College, Madurai -625002, India. 3 M.Phil. Scholar, Department of Economics, Gandhigram Rural Institute-Deemed University, Gandhigram, Dindigul. 4 M.Phil, Scholar, Department of Economics, Meenashi College, Madurai -625002. mahaecomku17@gmail.co 1 , maneeshpanakkeel21@gmail.com 3 , safathima05@gmail.com 3 Abstract Objectives: To examine the production, cost performance, and the factors influencing banana cultivation in Theni District of Tamil Nadu, India. Methods/Statistical analysis: The study relies exclusively on primary information obtained from the banana cultivators of Theni District. Purposive sampling procedure was followed for the selection of the study area. It is found that there are 90 farmers cultivating banana in the selected village and therefore, all of them are considered as respondents for the study. Findings: The natural factors affecting the banana crop production include water storage, soil fertility, problems of soil, insects, weeds and crop variety. Water storage and weeds were reported by majority of cultivators as a major problem affecting crop productivity. Among the economic factor affecting banana cultivation, 88 percent of the respondents reported that fluctuations in price as the major reason. Inadequacy in credit and capital are the second major causes affecting crop productivity. Application/Improvements: Crop insurance scheme can be introduced by the government of Tamil Nadu in order to protect the farmers in critical situation, like crop loss due to natural disorders. The government provides subsidies to the small farmers for adopting the new technology (i.e.) drip irrigation, soil testing etc. Keywords: banana cultivation, cost performance, cost structure, cost and returns, profitability levels. 1. Introduction Agriculture is the mainstay of the Indian economy. Agriculture contributes approximately one-fifth of total gross domestic product (GDP). Agriculture and allied sectors contribute nearly 17.8 and 17.1 per cent of Gross Domestic Product (GDP of India) during 2007-08 and 2008-09 respectively [1]. The agricultural output, however, depends on monsoon as nearly 55.7 per cent of area sown is dependent on rainfall. Agriculture provides the means of livelihood to about two-thirds of the country’s population [2]. This Sector provides employment to 58.4 per cent of the country’s workforce and is the single largest private sector occupation. Agriculture accounts for about 10 per cent of the total export earnings and provides raw material to a large number of industries. Besides, the rural areas are the biggest markets for consumer goods, including consumer durables, apart from a major source of domestic savings. Above all, agriculture is the only source of food security for the nation. In [3] has used Cobb-Douglas production function and studied the efficiency of inputs and yield of banana which was influenced by size of land, suckers and supporting prices. Land and supporting pole showed diminishing marginal return to their application. The return to scale of production of banana is the operation of diminishing return to scale, which 1% yield of banana. There is more scope for further application of land and supporting poles and there is a case for reduction in use of suckers in the cultivation of banana in the study block. A [4] study found that the cost of cultivation per hectare was Rs.36.249, the return worked out to cost of both family and hired labour and manure per hectare of banana cultivation. The study showed that the total expenditure for labour was rising. The contribution of family labour showed a decreasing trend as the size of holding increased. In [5] found out the productivity of resources used in banana and also production environment. Primary data was collected form sample of 19 farmers form the study area. They used Cobb- Douglas production function and locative efficiency methods for analyzing data. 1 www.iseeadyar.org