Economic appraisal of adoption of the grow-own-fuel initiative in FCV tobacco curing: Empirical evidence from Mysuru and Hassan districts of Karnataka

Introduction

Tobacco (Nicotiana tabacum L.) cultivation remains a significant contributor to India's agrarian economy, supporting rural livelihoods, employment generation, and foreign exchange earnings. India is one of the world's leading producers and exporters of unmanufactured tobacco, exporting approximately 315.50 million kilograms during 2023-24 and earning a record ₹ 12,005.89 Crore. This growth, representing an increase of over 87% compared to 2019-20, has positioned India as the second-largest producer and exporter of unmanufactured tobacco globally. Beyond export revenues, the tobacco sector supports the livelihoods of nearly 45.70 million people across cultivation, curing, marketing, and allied activities, underscoring its socioeconomic importance. A distinctive feature of Indian tobacco cultivation is the diversity of tobacco types grown across varied agro-climatic regions. Among these, Flue-Cured Virginia (FCV) tobacco occupies a prominent position due to its export orientation and superior leaf quality. FCV tobacco is predominantly cultivated in Andhra Pradesh and Karnataka, with Karnataka producing the KLS variety mainly in the Mysuru and Hassan districts. The production and marketing of FCV tobacco in India are regulated by the Tobacco Board under the Ministry of Commerce and Industry, which oversees licensing, crop size determination, and marketing through electronic auction platforms. In 2023-24, FCV tobacco farmers realized favorable prices, reflecting improved market conditions and quality standards. However, rising production costs, climate variability, and energy-related constraints continue to pose challenges to the sustainability of FCV tobacco farming. Curing is a critical and energy-intensive stage in FCV tobacco production, as it determines the color, texture, and overall quality of the cured leaf. The curing process involves controlled heating of harvested tobacco leaves in specially designed barns over a period of five to six days. In Karnataka alone, more than 51,000 registered curing barns are operational, primarily in the Mysuru and Hassan districts. Fuelwood is the principal source of energy for curing, making its availability, cost, and sustainability central to the economic viability of FCV tobacco cultivation. An estimated 300,000-350,000 tonnes of fuelwood are www.extensionjournal.com consumed annually for tobacco curing in Karnataka. While a substantial portion of this fuelwood is sourced from trees outside forests, such as farm forestry and agroforestry systems, the sector remains largely unorganized, leading to challenges related to traceability, quality consistency, price volatility, and long-term sustainability. Increasing dependence on externally sourced fuelwood has further heightened production costs for farmers, raising concerns about the environmental footprint and economic resilience of FCV tobacco systems. In response to these challenges, sustainability-oriented initiatives promoting efficient and traceable fuelwood sourcing have gained importance. One such initiative is the "Grow Own Fuel" (GOF) concept, which encourages tobacco farmers to raise fast-growing tree species such as eucalyptus, silver oak, and melia dubia on their own lands or nearby plots to meet curing fuel requirements. The GOF approach aims to reduce dependence on market-purchased fuelwood, stabilize energy costs, enhance traceability, and alleviate pressure on natural forests. Complementary measures, including fuel-efficient curing technologies and the use of alternative biomass sources, further support sustainable energy management in tobacco curing. Corporate and institutional interventions have played a significant role in advancing sustainable fuelwood practices. Notably, ITC Limited, through its Social Investment Programme (SIP) on Sustainable Tobacco Cultivation, has facilitated large-scale agroforestry and energy plantation development in Karnataka. Over the past decade, such initiatives have contributed to the expansion of sustainable fuelwood plantations in major tobacco-growing regions, improving fuel security while promoting environmental conservation and climate resilience. Despite the growing emphasis on sustainability, empirical evidence on fuelwood usage patterns, species composition, sourcing mechanisms, and the economic impact of GOF adoption at the farm level remains limited. Understanding these aspects is crucial for designing policies and interventions that enhance both profitability and sustainability in FCV tobacco production systems. Against this backdrop, the present study undertakes a comprehensive assessment of fuelwood usage, species composition, traceability, and sustainability initiatives in FCV tobacco curing in the Mysuru and Hassan districts of Karnataka. Specifically, the study evaluates the type of fuelwood used for curing and quantifies the economic impact of the Grow Own Fuel (GOF) initiative on the cost of production of cured tobacco. The findings are expected to provide valuable insights for policymakers, farmers, and stakeholders to promote sustainable, cost-effective, and resilient fuelwood management strategies in the FCV tobacco sector.

Methodology Study Area:

The study was conducted in Mysuru and Hassan districts of Southern Karnataka, selected for their prominence in Flue-Cured Virginia (FCV) tobacco cultivation and concentration of curing barns. To understand regional fuelwood dynamics, supplementary information was collected from Mandya, Ramanagar, and Kodagu districts. Analytical Tools: Descriptive statistics, including means, percentages, and tabular analysis, were used to summarize socio-economic characteristics, fuelwood usage, and sourcing patterns. Garrett's ranking technique was applied to identify factors influencing GOF adoption. As per the Garrett's ranking technique, the percentage positions were calculated by the following formula:

Sampling and Data

Where, Rij= Rank given for the i th item by the j th individual, and Nj= Number of items ranked by the j th individual Economic Analysis: The impact of GOF adoption on costs and returns was evaluated using standard cost-return analysis. Costs were categorized into fixed (including www.extensionjournal.com depreciation and interest on curing barns) and variable (labour, inputs, fuelwood, and interest on working capital) components. Depreciation was estimated using the straightline method over a 20-year lifespan. Gross returns were calculated based on cured tobacco output and market prices, while net returns and returns per rupee of expenditure were used to assess economic efficiency.

Results and Discussion

This section presents a comprehensive analysis of fuelwood usage, sourcing patterns, species composition, motivational factors for adoption of Grow Own Fuel (GOF), and the economic implications of GOF adoption in Flue-Cured Virginia (FCV) tobacco cultivation in Mysuru and Hassan districts. The discussion integrates quantitative and qualitative insights to highlight patterns, farmer strategies, and implications for sustainable tobacco production.

Fuel types used for tobacco curing

The study revealed that fuelwood remains the predominant energy source for curing FCV tobacco, with 91.81% of the sample farmers relying on it (Table 1). Although the unit price of fuelwood (₹4,783 per tonne) was marginally higher than that of alternative fuels such as coffee husk (₹3,700 per tonne), farmers continued to prefer fuelwood due to its higher calorific value, ease of handling, and ability to provide sustained and uniform heat essential for consistent leaf curing. Similar dominance of fuelwood in FCV tobacco curing has been widely reported in earlier studies, which emphasize its superior combustion characteristics and reliability compared to agricultural residues (Shankar et al., 2017) [13] . Only a small proportion of respondents reported using alternative fuels, with .04% using coffee roots, 0.76% using coffee husk, and 5.37% using mixed fuels. Mixed fuels typically comprised combinations of fuelwood, coffee residues, or coconut fronds, used primarily to reduce costs or modify combustion behaviour. However, the limited adoption of these alternatives suggests that technical suitability and consistency of heat output are prioritized over marginal cost savings. Previous studies have similarly noted that agricultural residues often suffer from lower energy density, higher moisture content, and inconsistent combustion, which can adversely affect curing efficiency and leaf quality (Reddy and Prakash, 2021) [12] . The minimal use of coffee residues and mixed fuels further reflects logistical challenges associated with collection, storage, and handling, as well as concerns over smoke generation and uneven heat distribution during curing. Kumar et al., (2020) [5] reported that such fuels may lead to fluctuations in barn temperature and potential deterioration in cured leaf quality, discouraging their widespread adoption. Overall, the findings underscore farmers' strong preference for proven, high-energy fuelwood sources to maintain curing efficiency, product quality, and operational reliability, consistent with earlier research on energy use patterns in FCV tobacco curing systems.

Fuelwood supply sources

Fuelwood supply patterns in the study area indicate a gradual shift towards self-sufficiency through Grow Own Fuel (GOF) initiatives. Nearly half of the surveyed farmers (48.85%) sourced fuelwood from their own plantations, while 42.20% depended on commercial vendors and 8.95% obtained fuelwood from neighbouring or fellow farmers (Table 2). This distribution suggests that although market dependence remains substantial, an increasing proportion of farmers are adopting on-farm fuelwood production to reduce exposure to supply constraints and escalating fuelwood prices. The growing reliance on GOF reflects not only economic considerations but also a deliberate risk-management strategy. Farmers producing their own fuelwood are better insulated from uncertainties associated with commercial suppliers, such as price volatility, inconsistent quality, and delayed availability during peak curing periods. Similar shifts towards self-reliant fuelwood systems have been reported in FCV tobacco-growing regions of Karnataka and Andhra Pradesh, where on-farm fuelwood plantations were found to significantly reduce dependence on external markets and enhance energy security (Shankar et al., 2017) [13] .

The relatively low dependence on neighbouring farmers for fuelwood suggests a declining role of informal sharing arrangements, likely due to increasing fuel demand and the prioritization of self-produced resources. This observation is consistent with findings by Singh and Kumar (2020) [5] , who noted that as fuelwood scarcity intensifies, farmers tend to retain on-farm biomass for their own use rather than sharing or selling it locally. Overall, the observed fuelwood sourcing pattern highlights a strategic balance between selfreliance and market dependence, reinforcing the role of GOF as a viable approach for improving energy security and stabilizing production costs in FCV tobacco cultivation. These results are in conformity with earlier studies emphasizing the importance of grower-managed fuelwood systems in reducing vulnerability to fuelwood market fluctuations and ensuring sustainable curing operations (Kumar et al., 2020) [5] .

Species composition of fuelwood

Farmers practicing Grow Own Fuel (GOF) predominantly planted fast-growing, high-calorific-value tree species to meet the substantial energy demand associated with FCV tobacco curing (Table 3). Among the species planted, www.extensionjournal.com eucalyptus accounted for the highest share (26.58%), followed by silver oak (17.41%) and melia dubia (14.24%).

Other species such as pongamia, hercules, casuarina, tamarind, and neem were planted in relatively small proportions, primarily serving as supplementary fuelwood sources or providing additional agro-ecological benefits. The predominance of eucalyptus and silver oak reflects farmers' preference for species with rapid biomass accumulation, high calorific value, and consistent combustion characteristics, which are essential for maintaining uniform heat during the intensive curing process. Similar species preferences have been documented in FCV tobacco-growing regions of Southern India, where eucalyptus and silver oak were identified as the most efficient and reliable fuelwood species for curing barns (Shankar et al., 2017 and Rao et al., 2018) [13,11] . The increasing adoption of melia dubia further aligns with findings by Kumar et al. (2020) [5] , who highlighted its fast growth, high fuel efficiency, and adaptability to diverse agro-climatic conditions. The inclusion of multipurpose and slower-growing species such as pongamia, casuarina, neem, and tamarind indicates a diversification strategy aimed at enhancing long-term sustainability (Fig. 1). Previous studies have reported that integrating nitrogen-fixing and multipurpose tree species within agroforestry systems contributes to improved soil fertility, biodiversity conservation, and resilience of farm energy systems (Singh and Kumar, 2020) [5] . Thus, the observed species composition suggests that farmers strategically balance short-term energy requirements with long-term ecological and resource management objectives.

Overall, the species selection pattern observed in the study area demonstrates a pragmatic approach to fuelwood management, enabling farmers to ensure a reliable energy supply during peak curing periods while simultaneously addressing soil health and sustainability concerns. These findings are in conformity with earlier research emphasizing the role of species diversification in strengthening the economic and environmental performance of GOF and agroforestry-based energy systems in tobacco cultivation.

Motivational factors for GOF adoption

Economic considerations emerged as the primary drivers of GOF adoption among FCV tobacco growers (Fig. 2). Garrett's ranking analysis revealed that reduction in fuelwood costs was the most influential factor motivating adoption, with the highest Garrett Mean Score of 63.63, followed by availability of land for plantation (59.12) and subsidy support (43.21) (Table 4). Ease of access to quality saplings received the lowest score (33.03), indicating that input availability was a relatively minor constraint in comparison to economic incentives. These findings clearly suggest that farmers perceive GOF primarily as a costsaving strategy rather than an environmentally driven intervention. The dominance of fuel cost reduction as a motivating factor is consistent with earlier studies, which reported that rising energy prices and uncertainty in fuelwood supply significantly influence farmers' decisions to adopt on-farm fuelwood and agroforestry systems (Rao et al., 2018 and Singh and Kumar, 2020) [11,5] . Similarly, Patil et al. (2019) www.extensionjournal.com [9] observed that land availability plays a crucial enabling role in the adoption of tree-based interventions in FCV tobacco systems, particularly where marginal lands and field bunds can be utilized without affecting crop area. The positive influence of subsidies on adoption aligns with findings by Kumar et al. (2020) [5] , who emphasized that financial incentives and institutional support lower initial establishment barriers and encourage wider participation in fuelwood plantation programmes. Overall, the results indicate that GOF adoption is largely pragmatic in nature, driven by the objective of achieving self-reliance in fuelwood supply and reducing operational costs rather than by purely ecological considerations. Nevertheless, the facilitating role of subsidies and land availability underscores the importance of supportive policy frameworks, targeted incentives, and institutional backing in promoting wider and sustained adoption of GOF practices.

Economic performance of GOF adoption

The comparative analysis of costs and returns between GOF adopters and non-adopters reveals substantial economic advantages associated with the initiative (Table 5). The total cost of cultivation for GOF adopters was ₹ 92,009 per acre, which was considerably lower than that of non-adopters (₹ 1,07,722 per acre). The cost reduction of ₹ 15,713 per acre was primarily attributed to decreased dependence on purchased fuelwood, highlighting the role of on-farm fuelwood production in stabilizing input costs. Similar costsaving effects of self-sourced fuelwood systems have been reported by earlier studies on tobacco curing and agroforestry-based energy systems (Rao et al., 2018 and Singh and Kumar, 2020) [11,5] . Fuelwood expenditure constituted only 2.35% of the total cultivation cost among GOF adopters, compared to 15.83% for non-adopters, indicating a substantial improvement in cost efficiency. Variable costs accounted for 71.14% of total costs for GOF adopters, which was lower than the 75.50% observed for non-adopters, while fixed costs were marginally higher among adopters (28.86%) than nonadopters (24.50%). The relatively higher expenditure on farmyard manure among GOF adopters reflects greater investment in soil fertility management and sustainable production practices, a trend consistent with findings reported by Patil et al. (2019) [9] in FCV tobacco-based farming systems. [13,12] . Furthermore, the return per rupee of expenditure was markedly higher for GOF adopters (1.82) compared to nonadopters (1.53), underscoring the superior economic efficiency and cost-effectiveness of self-sourced fuelwood systems. Overall, the results clearly indicate that GOF adoption not only reduces production costs but also enhances farm profitability, reaffirming its economic viability as a sustainable energy strategy for FCV tobacco cultivation. These findings are in conformity with earlier research emphasizing the role of grower-managed fuelwood resources in improving income stability and reducing vulnerability to market-driven energy price fluctuations (Kumar et al., 2020) [5] .

Conclusion and policy implications

The study reveals that FCV tobacco curing in the Mysuru and Hassan districts remains highly dependent on fuelwood, sourced primarily from Grow Own Fuel (GOF) plantations, neighbouring farmers, and commercial vendors. Adoption of GOF significantly lowers fuelwood expenditure, enhances net returns, and improves the overall cost efficiency of tobacco cultivation. However, continued reliance on external fuelwood sources, limited diversification of fuelwood species, and regulatory constraints pose challenges to the long-term sustainability of the system.

Acknowledgement

AcknowledgementThe authors gratefully acknowledge ITC Limited, Agri-Business Division, ILTD, Guntur, Andhra Pradesh for providing financial assistance and support for this study.

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