Cost and Returns Analysis of Coir Products: A Case of East Godavari District of Andhra Pradesh

This study was analysing the cost and returns of coir products in East Godavari District of Andhra Pradesh. The production performance of coir industry have been examined. The primary data collected from 40 sample coir products manufacturing units/ producers and Cobb Douglas model has been employed to analyse the factors that actually contributed to more coir products production. The study mainly shows that the increasing returns to scale all coir products manufacturing units. The study also shows that the expected gross revenue of coir products were to increase 1.12, 1.00, 1.11, 1.01 and 1.02 percent for coir fibre, yarn, rope, mattings and mats respectively these units when the variable inputs in the production functions are at once increased by one percent. Further, finally comparative cost and returns medium sized coir units are in better economic and institutional conditions comparative to small size of coir units in terms of profitability.