Rubber is the minor plantation crop cultivated in Shimoga. Rubber is cultivated mostly in the southern district in Karnataka. The inputs like land, labour, capital etc., are most conspicuous in Shimoga district. Rubber predominantly rainfed crops in Shimoga. Hence, there are affected by weather fluctuation, which may have an impact on yield and return correspondingly, their supply may also be affected leading to high variability in prices. The higher cost of cultivation of rubber was primarily due to higher variable costs. It might be due to higher variable costs and to higher average plant population per acre and better adoption of recommended package of practices in rubber. The benefit cost ratio indicates the return per rupee of investing during the entire life period of an enterprise. It was less than unity implying that non-viability of investment in rubber. The capital investment in rubber was substantial. Hence, its financial impact was long term in nature.
