Abstract:
Coconut (Cocos nucifera) is one of the major plantation crops that plays a vital role in the Sri
Lankan economy. Currently coconut production has dropped significantly comparison to
previous years. This contraction in nut production affected adversely to local consumption and
coconut related industries. In such context, this study was conducted as a case study to examine
the production and marketing issues faced by the coconut growers and analyze gross market
margins of coconut cultivation at Bingiriya and Pannala Divisional Secretary’s Divisions in
Kurunegala District. Primary data were collected from randomly selected 70 coconut growers by
using a pre-tested structured questionnaire. Descriptive and inferential statistical tools were
used to analyze the data. According to the kruscal-wallis analysis, it was identified four major
production constraints which affect the coconut growers. Adverse weather condition was the
most leading constraint while losses due to pest and diseases were the second main constraint.
The third and fourth priorities were lack of proper management practices and land availability,
respectively. The majority (94%) of the respondents have marketed their coconut production
through intermediaries. The main constraint faced by the growers during coconut marketing
was the high commission for intermediaries. The cost of coconut cultivation per acre was LKR
413040.00. Based on the gross margin analysis, highest producer share was reported for the
channel which consists of the Producer- Wholesaler- Retailer- consumer (66.3%). This study
suggested that it is vital to produce and introduce heat tolerant, pest and disease tolerant high
yielding coconut varieties to the growers. Also it is important to enhance the farmers’
accessibility to different marketing channels in order to obtain a higher profit.