ECONOMIC ANALYSIS OF COST AND RETURN OF LEMONGRASS FARMING IN NAKHON NAYOK PROVINCE OF THAILAND: AN EMPIRICAL STUDY

Abstract

Rural farming systems of Thailand , especially in nursery farming , is one of the most interest ing field to economists, sociologists, social anthropologists . Many studies have been attempted to identify the factors that influence the growth Ayurvedic and nursery farming from ecological, social, and economic perspective. This study was aimed to examine econo mic analysis of cost and return of lemongrass farming in Nakhon Nayok province of Thailand . It also attempts to explore the economic characteristics of lemongrass production and its profitability across varied farm size in the study area in which socioeconomic factors with respect to sustenance of livelihood of the far mers is also taken into account . The present study indicates that land size and productivity is slightly inversely related. The per r ai ( 1 Rai= 0.395 Acre) production is highest for large cultivators which is 9.2 tons. Whereas it is 8.9 tons and 9 tons for small and medium farmers respective ly. Consequently, per rai profit is also highest for large farmers. However, the overall benefit to cost ratio (BCR) is 1.30 which indicates that lemongrass production is a profitable cultivation in the study area . It is also found that overall ret urn on i nvestment (ROI) of lemongrass ( Cymbopogon flexuosus ) production in the study area is 30 percent per cycle of production. Based on the study , suggesti ons and recommendations has been furnished to support the development and sustainability of local lemongras s farming community. The study will help to fulfil the lacunas in research and development to improve the sustenance of lemongrass farming.