A COST BENEFIT ANALYSIS ON PRODUCTION AND MARKETING OF BANANA: BASE ON WALAWA REGION IN SRI LANKA

Abstract

Banana is one of the prominent cultivation fruit in Sri Lanka and at present, approximately 54 per cent of the total fruit cultivation lands are used to cultivate Banana. There is a wide range in cultivating practices and sales channels which all are linked together into the supply chain in the country. The domestic Banana supply chain is a good example of the fruit and vegetable supply chain of the country. This study attempts to determine the relative profitability of banana using data collected from ‘Walawa region’ during the period of July to September 2017. Total cost, profit and benefit cost ratio for indifferent marketing channels such as banana producers, wholesalers and retailers ware investigated. The results show that, the profit margin of the retailer is greater than that of the farmers and wholesalers. It is also found that average benefit cost ratio of the producer has the highest, however the retailer has the largest impact on determining the price of banana in the intermediate chain. The results of this study can be used to make appropriate policies for increasing the competition in different value chain of the Banana production and marketing in Sri Lanka.