Economic Analysis of Leaf Rust Management by Chemical Controls: Evidence and Implications for Household Coffee Farmers in India

Coffee Leaf Rust (CLR) is a disease that affects the production of Arabica coffee. Its management is essential to improve the production, income and livelihood of household Arabica coffee farmers. This paper develops a simple methodology to calculate the economic costs, gross returns and net economic gains of CLR management by adopters of chemical controls at the national, state and district levels in India. Chemical controls are distinguished by application of recommended and non-recommended combinations and spray schedules of Bordeaux mixture and Systemic fungicides. The methodology is implemented by using a newly collected sample survey data of 575 household Arabica coffee farmers in the traditional coffee growing regions (Karnataka, Tamil Nadu and Kerala) and comprising more than 90 per cent of small farmers. In general, empirical results offer evidence for higher gross returns and positive net economic gains for all adopters of chemical controls with remarkable inter-state and inter-district variations. Though total cost shows remarkable variations between chemical controls and across regions, the composition of total cost shows higher chemical input cost than labour cost for all chemical controls and in all regions. These results have implications for design of a public promotional policy of CLR management by chemical controls for small farmers on empirical economic grounds. Subject to the comparability of CLR by chemical controls, the methodology, empirical results and policy implications are applicable and relevant for other coffee growing and developing countries of Asia and Africa.