Abstract:
Cinnamomum zeylanicum is a high-value spice with deep historical and economic significance,
particularly as a major export crop in Sri Lanka. This study aimed to examine the economic
aspects of cinnamon farming, focusing on input use, transportation, profitability and factors
affecting income from cinnamon cultivation in Hakmana Divisional Secretariat Division in Matara.
Primary data collected from 100 farmers using stratified random sampling across 12 Grama
Niladhari divisions were analysed using descriptive statistics, Cost-benefit analysis and
regression models. The average yield was 795.85 kg/acre/year, with the majority of farmers
producing H1/H2 grade cinnamon (92%), indicating a preference for grades that meet market
demands. The average cost of cultivation was Rs 1,428,372.83 per acre and income per acre
ranged from Rs. 1,056,000 and Rs 4,500,000, with a mean income of Rs 2,645,486.42 per acre.
Average profit was Rs 1,217,113.59 per acre with the benefit-cost ratio of 1.88. While results
highlight the profitability potential of cinnamon farming, better cost control could further
increase profit margins. Regression analysis revealed that land size (p < 0.01) and education level
(p < 0.01) significantly influenced the income from cinnamon cultivation. Further, planting at
spacings of 3 x 2 feet, 3.5 x 3.5 feet and 4 x 3 feet significantly and positively influenced the income.
Moreover, cinnamon planted without any intercropping also had a significant positive effect on
income (p < 0.05). Major challenges identified included high input costs, labor shortages and
limited availability of skilled peelers. Nevertheless, cinnamon cultivation remains profitable, with
most farmers relying on hired transportation, primarily lorries, to deliver products to the market.
This research emphasizes the need for policies promoting mechanization, farmer education and
cooperative resource access to enhance the sustainability of cinnamon cultivation.
