South Andaman district is a group of 10 inhabited islands spread over an area of 310.6 thousand ha as a part of Andaman and Nicobar group of islands in Bay of Bengal. Shifting cultivation on slopes, land degradation, high intensity rainfall, poor crop harvest, low cropping intensity, non availability of labour, high price of agricultural produce imported from mainland and limited employment opportunities resulted into acute poverty in this region. The study revealed that major cultivated crops(vegetable: 1317 ha, paddy: 216.1 ha, maize: 55 ha, ginger: 51.5 ha, sweet potato: 46 ha, tapioca: 26.5 ha, turmeric: 19.5 ha, green gram: 7.2 ha, black gram: 6.5 ha)were not at all economic due to lower net returns and lower benefit-cost ratios (BCR). It was found that the higher net returns were obtained from ginger cultivation (Rs 4, 23, 900) followed by tapioca (Rs 3, 68, 160), sweet potato (Rs 2, 42, 760), vegetables (Rs 2, 07, 760), turmeric (Rs 1, 15, 450), mustard (Rs 19, 125), maize (Rs 11, 430) and arhar (Rs 10, 375). Benefit cost ratio (BCR) was found to be highest in case of tapioca (3.06) followed by sweet potato (2.68), vegetables (2.17), ginger (2.00), arhar (1.53), mustard (1.46), green gram (1.38), turmeric (1.30) and black gram (1.23). In order to avail maximum returns, crops having higher net returns and BCRs need to be allocated more area. Therefore, limited area should be put under paddy, maize, green gram and black gram to meet the minimum food requirement of the district and surplus area to be used for growing crops like ginger, tapioca, sweet potato, vegetable having higher BCRs and net returns to make the agriculture profitable and sustainable.