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Open Access
Impact of prominent KAU rice varities on the economic status of farmers in Kerala and Karnataka
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2016) Dhruthiraj, B S; KAU; Chitra Parayil
The present study entitled “Impact of prominent KAU rice varieties on the economic status of farmers in Kerala and Karnataka” was conducted with the objectives of working out the costs and returns of prominent rice varieties, Jyothi and Uma, released from KAU, to find out the relationship between varietal adoption and net farm income, to identify specific reasons for adoption of KAU varieties and to analyze profitability of the KAU varieties in the states of Kerala and Karnataka by comparing with with local non-KAU varieties cultivated by farmers. The survey was conducted by collecting both primary data and secondary data. The area of study were major rice growing districts of Kerala (Palakkad and Alappuzha) and Karnataka (Mysore and Mandya). These districts were selected on the basis of prominence in adoption of rice varieties released from KAU. The primary data were collected by means of pre-tested interview schedule. The farmers in the study area were categorized into two groups on the basis of variety grown as: KAU variety adopting farmers and local popular non KAU variety adopting farmers. Forty farmers each cultivating at least one acre and adopting KAU variety and 40 farmers cultivating a local popular non-KAU variety were randomly selected and surveyed in each state making a total sample size of 160. The cost-return structure was worked out both for KAU and non KAU variety production using cost concepts. The average cost of cultivation (Cost C2) of KAU varieties was found to be lesser in Palakkad (Rs.73,213 per hectare) compared to Karnataka (Rs.75,731 per hectare ) and Alappuzha (Rs. 81,915 per hectare) and in case of local non KAU varieties, the average cost of cultivation was Rs.83,981 per hectare, Rs.83,634 per hectare and Rs.94,526 per hectare in Karnataka, Palakkad and Alappuzha respectively. The net income obtained by cultivating KAU varieties was found to be higher in Palakkad (Rs.48, 143 per hectare), followed by Alappuzha (26,356 per hectare) and Karnataka (Rs.11, 746 per hectare. The benefit – cost ratio (BCR) at the C2 and explicit cost level was found to be positive for KAU varieties in both the states. This implies that cultivation of KAU varieties was profitable for farmers in both the states. Garrett ranking technique was used to determine the reasons for adoption of KAU varieties. The possible reasons for adoption of KAU varieties in Karnataka were identified as high market price, high yield potential, high tillering capacity and resistance to pests and diseases while in Kerala, Farmers highlighted high yield potential, high market price, high tillering capacity, suitability, to the location, consumption purpose, resistance to pests and diseases and short duration of the variety as major reasons for adoption. Probit model was used to find out the factors affecting adoption of KAU rice varieties. In Kerala, Organizational membership and gross income of the farmers while in Karnataka, education, organizational membership, area and gross income of the farmers were identified as the major factors affecting the adoption of KAU varieties. The average cost of cultivation (cost C2) for seed production of KAU varieties was found to be higher in Karnataka (Rs. 88,176 per hectare), compared to Kerala (Rs.86, 355 per hectare). The average gross income was found to be higher in Kerala (Rs.1, 56,223 per hectare) compared to Karnataka (Rs.1, 17,513 per hectare). The net income at cost C2 was found to be positive for both the states whereas the amount was found to be higher in Kerala was compared to Karnataka. The marketing channels identified Kerala were Channel 1: Farmer- Supplyco - Rice millers - Public distribution system (PDS) – Consumers, Channel 2: Farmer - Rice millers – Retailers- Consumers and Channel 3: Farmer- Middlemen- Rice milers - Retailers - Consumers. The marketing channels identified in Karnataka were Channel 1: Farmer – Rice milers- Kerala marketing channels identified in Karnataka were Channel 1: Farmer - Rice millers- Kerala rice market - Wholesaler/Local trader - Retailer -Consumer, Channel 2: Farmer - Local trader – Kerala rice market- Rice millers -Retailer - Consumer, Channel 3: Farmer - Kerala rice market - Wholesaler/Rice millers/Local agents – Retailers - Consumers, Channel 4: Farmer - APMC -middlemen -Kerala rice market - Wholesaler/Rice millers/Local agents - Retailers - Consumer. For both KAU and non KAU rice varieties, labour cost accounted for highest share in the cost A1 components in both the states; therefore, efforts have to be made for mechanizing paddy cultivation. Also initiatives have to be taken to attract the younger generation towards agriculture and more importantly paddy cultivation.
Open Access
Economic valuation of mangrove ecosystems in Kerala
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2013) Hema, M; KAU; Indira Devi, P.
Mangroves are invaluable treasure o f our biodiversity with immense ecological and economic significance. But mangroves wealth of the world is depleting at an annual rate of -0. 34 per cent. Mangroves in Kerala, constitute 0.3 per cent o f that in India, is reported to be high in species diversity. The available reports indicate the depleting status o f the ecosystem in Kerala too. The socio-economic and ecological significance o f this ecosystem is to be studied in detail for assisting policy decisions when confronted with the conservation-development debate. This study was undertaken in this background. The study identified the stakeholders o f mangrove ecosystems o f Kerala and quantified the level o f dependence o f local communities for their livelihood and estimated the aggregate demand for products and services. Further, it identified and quantified the relative influence o f socioeconomic, institutional, climatic and anthropogenic forces on the destruction of mangroves and finally assessed the Total Economic Value (TEV) o f mangrove system and suggested policy prescriptions for the conservation and management of mangroves in Kerala. The study was conducted in the mangrove areas o f Emakulam and Kannur districts of Kerala. These two districts accounted for nearly 65 per cent o f the mangroves o f the state. The study was based on primary and secondary data. The primary data was gathered from 480 respondents belonging to four identified stakeholder groups (residents, fishermen, paddy farmers and general public), selected through simple random sampling method. Data was collected through personal interview using structured pretested interview schedule along with direct observation. The major tools of data analysis were Contingent Valuation Method (CVM) and Choice experiment. The data collection was conducted during June 2012 to January 2013. I Four stakeholder groups o f the mangrove ecosystem in the study area were residents living close to mangroves (<1 km from mangroves), fishermen (inland fishermen and women, engaged in shell mining and clam collection, shrimp farmers), paddy farmers (Pokkali and Kaippad) and general public (resides away from the mangroves). The residents were depending on the mangroves for extraction o f fuel wood, fodder and poles. On an average the level o f extraction was 307 kg o f fuel wood, 1024 kg of fodder and 14(no.) o f poles per year valued at X 4628/household. This amounted to 3 per cent o f their annual household income. The major species o f fish catch by the fishermen were Etroplus, shrimp, crab and Tilapia which was quantified at 1553 kg/ year valued at X 1,41,045. Shell mining which was found to be a major economic activity in Kannur region could generate an income of X 30,000/annum through the extraction and sale o f 7500 kg o f shells. Clam collected was quantified at 225 kg/year valued at X 5625. Thus, the average gross income from these activities was estimated at X 1,77,164 per year which was the main source o f income for the household. About 8 per cent of the fishermen were involved in shrimp farming and were mainly from Kannur district. The size o f the farm varied from 0.4 to 2 ha. The input cost/ha was X 2.8 lakhs which includes cost o f seed, feed, lime and water management. Labour cost was estimated at X 77,000. Hence total cost and returns o f shrimp farming/ha was X 3.27 and 4.75 lakhs respectively with net income o f ? 1.48 lakhs. Pokkali and Kaippad agricultural systems are proved to be closely interconnected with the:.mangrove ecosystem and the per hectare gross returns was X 60,007 and X 40,935 respectively. This amounted to average 30 per cent o f their household income. The respondents’ perception on the pattern of change and the major factors that effected the change in mangrove ecosystem was studied based on their responses. 46 per cent o f the respondents were o f the opinion that the mangrove ecosystem has declined over years and facing threat. The major factors responsible for the same were reported as anthropogenic, climatic forces and status o f property rights. The 11 developmental interventions like LNG Petronet Terminal, Puthuvypeen and ICTT Vallarpadam has resulted in large scale conversion o f mangrove areas. The contradictory forces o f development and conservation led to destruction of mangrove ecosystem. One fifth respondents opined that climatic factors were responsible for the decline. Nearly 85 per cent of the mangroves in the state were reported to be under private ownership and rest under public. The property right status along with economic status influences the rate o f depletion. The legal interventions and community and institutional efforts also influence the status of mangroves, most often positively. The economic valuation of ecological benefits o f mangroves was attempted employing the Contingent Valuation Method. The respondents expressed their willingness to contribute towards conservation both in cash and kind (cash payment and manual participation as labour and as volunteer in awareness programmes) and in combination. The average WTP expressed by the respondents was f 2308/annum the range being ? 50-28,870. The TEV of the mangrove ecosystem of the state was thus ? 1,17,947 million, which was 0.14 per cent ofthe GSDP (2011-12). A socially preferred management plan was identified among a set of alternatives, employing the choice experiment method. Among the management options given, the stakeholders preferred community management (41.6%) followed by public management (29.2%) and status quo (21.4%). The community management of the mangrove ecosystem provides opportunity for the local community to participate in management decision process. At the same time, the importance o f public funding for such activities is revealed in the analysis. The study suggests initiating scientific attempts on realistic area estimation and mapping o f the mangrove resources in the state. There should be attempts to identify and classify the species and document the traditional wisdom associated with them. Region specific studies are needed to establish and quantify the extent of association between mangrove ecosystem and the livelihood activities of local communities. The TEV justifies the increased resources allocation for the conservation efforts. Further, the implementation of community management system as institutional form for mangrove management in the state is suggested.
Open Access
Price behaviour of natural rubber in India.
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2011) Reeja, Varghese; KAU; Satheesh Babu, K
Natural rubber, a product of vital commercial importance is recovered from the latex of the rubber tree, Hevea braziliensis. The present study entitled “Price behaviour of natural rubber in India” was conducted during 2010-11 based on the secondary data. The changes in area, production and productivity status of natural rubber in the world, India and Kerala were studied using the index numbers and compound growth rates. The compound growth rates in area, production and productivity of natural rubber in India were below the global growth rates, while that of Kerala was above the national level. India is emerging as the second largest consumer of natural rubber in the world. Consumption status of natural rubber in India showed that there is a growing deficit between domestic production and consumption of natural rubber in India. India was not a regular exporter of natural rubber, and therefore considerable fluctuations were observed in the export status depending on the domestic production level. The deficit in demand was met by imports. The import of natural rubber by Indian automobile industries grew annually by 12.37 per cent during the study period. The secular, seasonal, cyclical and irregular variations in rubber prices were studied using the techniques of classical decomposition of time series analysis. The trend in rubber prices in the domestic market at Kottayam and international market at Bangkok were captured by the single exponential smoothing model satisfactorily. The analysis showed that the RSS-4 prices in the Bangkok as well as the Kottayam markets were stagnant from January 1995 to April 2001, after which the prices showed an upward trend. The rubber prices were subjected to considerable seasonal variations due to the seasonality in production. In the international market, the peak price was observed in June and the trough price during the month of July, whereas in Kottayam market, the peak price was observed during May and the lowest price in the month of February. The rubber prices in the international as well as domestic markets were not subjected to pronounced price cycles. There were considerable irregular variations in rubber prices in both the markets. The rubber prices exhibited considerable instability in both the markets. Out of the different price forecasting models used to develop a reliable price forecasting model, the artificial neural network (ANN) model was found to be more reliable for predicting the price of RSS-4 in Kottayam market. However, no model could capture the underlying dynamics of rubber prices in the international market at Bangkok satisfactorily. The export competitiveness of Indian natural rubber was measured using nominal protection coefficient (NPC) under exportable hypothesis. It was found that Indian natural rubber was not export competitive during the study period. The market integration studies showed that Kottayam and Bangkok markets were integrated and there was a unidirectional influence of Bangkok market on the prices of natural rubber in Kottayam market, while the influence of Kottayam market on Bangkok market could not be established. The policy interventions suggested based on the study include efforts to increase the area under natural rubber in the non traditional rubber growing areas like North Eastern states, evolving technologies for enhancing the productivity of natural rubber in India to increase the income of farmers per unit cultivated area, improved tapping techniques to extend the tapping days, and to develop a multivariate price forecasting model. A reliable, regional market intelligence system for the natural rubber growers in the country to provide timely and reliable market information and intelligence is also suggested.
Open Access
Economic feasibility of vegetable production under polyhouse cultivation
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2016) Swathylakshmi, P V; KAU; Prema, A
Polyhouse cultivation of vegetables is emerging as a specialized production technology to overcome biotic and abiotic stresses and to break the seasonal barrier to production. It also ensures round the year production of high value vegetables especially, during off-season. Recent statistics show that about 115 countries in the world are into polyhouse vegetable production. The area under polyhouse vegetable cultivation in India is around 2000 hectares. Since polyhouse production is a capital intensive technology requiring substantial initial investment, cost is the major issue in sustaining this technology. The present study was undertaken to assess the economic feasibility of polyhouse cultivation of vegetables in Kerala. The profitability and resource use efficiency of vegetable production in polyhouse and open field situations and the factors which influence the decision making of farmers with regard to adoption of precision farming was also found. The major challenges faced by polyhouse farmers of Kerala were also enlisted. Out of the five agro ecological zones of Kerala, central and high range zones were selected as the study area, as these zones accounted for the maximum number of polyhouses in the state. In the high range zone both Idukki and Wayanad districts and from the central zone, the districts of Emakulam, Thrissur and Palakkad were selected. Twenty polyhouse and 20 open field vegetable farmers selected randomly from each zone formed the respondents of the study. The number of respondents in a district was fixed proportional to the total number of farmers in the district concerned. Thus the total sample size comprises of 40 polyhouse vegetable farmers and 40 open field vegetable farmers. Data were collected by personal interview method using pre-tested structured interview schedules. The survey indicated that majority of the farmers owned polyhouses of area 400m2' . Salad cucumber and cowpea were the commonly cultivated polyhouse crops in the study area. Hence, economic analyses were conducted for the crops m 2 salad cucumber and cowpea and for a polyhouse of standard size 400m . Comparative studies were done for cowpea alone, as farmers cultivating salad cucumber in open field were not available. Economic feasibility of vegetable production analyzed using Capital Productivity Analysis revealed that production of salad cucumber in polyhouse and cowpea in open field is highly feasible and profitable. Production of cowpea in polyhouse indicated unfavourable Benefit Cost Ratio, negative Net Present Value and low Internal Rate of Returns. When the resource use of cowpea production in polyhouse and open field was compared, production and net returns per unit area was found significantly high in cowpea cultivated in polyhouse. Nevertheless, the significantly higher value of seeds, quantity of soil ameliorants, manures, and bio control agents applied contributed to higher cost of cultivation along with the huge initial investment in polyhouse. The resource use efficiency of production was estimated using Cobb- Douglas production function. The best fit model for salad cucumber production in polyhouse could explain 59 per cent of the variations in the net returns per m . Value of seeds, value of hired labour, quantity of soil ameliorants and fertilizers applied were the significant variables. The best model for cowpea in polyhouse could explain 57 per cent of variations in the net returns per m2. Value of hired labour and quantity of manures applied were the significant variables. Ninety four per cent of the variations in net returns per m could be explained by the selected functional model for cowpea production in the open field. The significant variables obtained were value of seeds, quantity of manures, fertilizers, plant protection chemicals and bio control agents applied. Increasing Returns to Scale was observed in the production of salad cucumber in polyhouse (1.60), cowpea in polyhouse (1.57) and cowpea in open field (2.01) conditions. The efficiency ratio of vegetable cultivation in polyhouse and open field estimated revealed that resources are not efficiently utilized in polyhouse cultivation of vegetables to the maximum economic advantage. When judged against the economic efficiency of the same inputs (fertilizers and growth promoters) used in polyhouse cultivation of cowpea, the economic efficiency in open field cultivation is seem advantageous. There was high level of agreement between the polyhouse farmers of the central and high range zone in enlisting the high initial investment involved, followed by farmer’s lack of technical knowledge, non availability of technical experts in local area and non availability of premium price for produce as the major challenges faced. The major benefits of polyhouse farming as perceived by the respondents included the possibility of growing and consuming safe vegetables, possibility of growing off season vegetables, better quality produce, higher yield and income obtained from polyhouse cultivation. The factors leading to a decision by the farmers towards shifting to polyhouse cultivation from open field cultivation subject to the extreme conditions of weather were found to be family income, size of land holding and education of the farmer, with odds ratios of 0.74, 0.72 and 0.68 respectively. Though polyhouse cultivation is a promising new technology, its suitability in Kerala conditions has to be studied extensively. Even though, institutional credit and subsidy schemes are well implemented to promote the technology, farmers are still in dilemma when it comes to cultivation aspects, for most of them it is a new venture. Higher Returns to Scale in polyhouse signifies its economic potential in large scale cultivation. Research efforts aimed at reducing the establishment cost of polyhouse should be initiated. The extension linkage has to be strengthened to aid the polyhouse farmers in selection of crops, cultivation, post harvest handling and marketing of produce.
Open Access
Analysis of supply chain management of horticultural nurseries
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2016) Rajasree, P; KAU; Prema, A
Success of any horticultural production programme mainly depends on the quality of seeds and planting materials used for the production. Unavailability of adequate quantity of quality seeds and planting materials is one of the most important problems affecting the development of the horticulture sector. Even though plant nursery industry is considered as a sunrise industry in our country, only less attention is given in monitoring its activities, quality control and also in evaluating its role in the economy. The present study attempted to understand the supply chain management, income and employment potential and constraints of horticultural nursery business in the study area. Thrissur district, which is considered as the hub of nursery business in Kerala, was purposively selected as the location of study. 40 nurseries were selected by simple random sampling method. The sample nurseries were classified on the basis of their operational area as C-1 (<0.5 acre), C-2 (0.5 acre- 2 acre) and C-3 (>2 acre). Accordingly, 52.5 per cent of the nurseries in the study area come under the category C-2, followed by C-1(25%) and C-3(22.5%). Pre-tested interview schedules were used to collect information from sample nurseries. Secondary data were collected from Krishi Bhavan, Principal Agricultural Office and various published sources. The nursery registration status in the study area showed that only 27.5 per cent of the sample nurseries were registered nurseries. All the nurseries under the category C-1, 66.66 per cent of the nurseries under C-2 and 55.55 per cent of the nurseries under C-3 were not registered.
Open Access
Economic impact of microbial inoculants on vegetable production in Thiruvanathapuram district
(Department of Agricultural Economics, College of Agriculture, Vellayani, 2016) Jitendra, Ajagol; KAU; Elsamma, Job
The research entitled “Economic impact of microbial inoculants on vegetable production in Thiruvananthapuram district” was undertaken in Neyyattinkara and Nedumangad taluks. The objectives were to study the extent of use of microbial inoculants (MI) in vegetable cultivation, to work out the economics and efficiency of microbial inoculants in vegetable production and to make a comparative analysis with the conventional vegetable production. The crops selected for study were yard long bean and amaranthus. The required information was collected from 30 each of MI using and conventional farmers of yard long bean and amaranthus by simple random sampling so that the sample size became 120. Percentage analysis was used to measure extent of use of MI and economics of vegetable production. Resource use efficiency was estimated using Cobb-Douglas production function and constraints were ranked using Garrett‟s ranking technique. A mixed cropping system was observed in study area. Annual crops like vegetables, tapioca and banana and perennial crop like coconut were cultivated along with yard long bean and amaranthus. Average size of holding of the selected farmers was 46.03 cents. The average area under yard long bean was 17.46 cents and 11.56 cents respectively for MI using and conventional farmers. In case of amaranthus, average area for MI using farmers was 10.83 cents and for conventional farmers it was 6.86 cents. Fifty per cent of respondent farmers purchased MI from agricultural college and about 42 per cent from KVK. Analysis of the extent of use of MI revealed that only 27 and 17 per cent of the respondents were following the recommended rate respectively in yard long bean and amaranthus, whereas, 53 and 70 per cent were applying MI above the recommended rate. 126The total cost of cultivation of yard long bean per hectare was more for conventional farmers than that of MI using farmers. Cost A 1 was estimated as Rs. 1,42,016 ha -1 and Rs. 1,24,611 ha -1 respectively for conventional and MI using farmers and cost C was Rs. 2,60,493 ha -1 and Rs. 2,39,860 ha -1 respectively. The corresponding B-C ratios were 1.46 and 1.51 and net returns were Rs. 51,072 ha -1 and Rs. 1,22,716 ha -1 respectively. Major share of the cost was accounted for hired labour which was 57 and 56 per cent respectively of cost A 1 for conventional and MI using farmers. In the case of amaranthus, cost A 1 estimated for conventional farmers was Rs. 74,113 ha -1 and for MI using farmers it was Rs. 61,730 ha -1 and cost C was Rs. 1,24,947 ha -1 and Rs. 1,05,597 ha -1 respectively. The corresponding B-C ratios were 1.17 and 1.19 and net returns were Rs. 21,469 ha -1 and Rs. 48,662 ha -1 respectively for conventional and MI using farmers. Here also hired labour occupied the highest share for both the categories of farmers which accounted for 68 and 69 per cent respectively of cost A 1 . The yield of yard long bean was found to be more for MI using farmers (6498 kg ha -1 ) and it was 6098 kg ha -1 for conventional farmers. The corresponding cost of production was Rs. 19 per kg and Rs. 23 per kg respectively at cost A 1 . In case of amaranthus also, MI using farmers obtained more yield (7835 kg ha -1 ) compared to conventional farmers (7306 kg ha -1 ) and the respective cost of production were Rs. 7 per kg and Rs. 10 per kg at cost A 1 . The production function analysis revealed that area had positive and significant impact on returns in all the cases. Expenditure on MI showed a negative and significant impact on returns, which may be due to over adoption of MI. Cost of seeds, cost of panthal material and pest and disease incidence were identified as major constraints in vegetable production. Present study revealed that by using MI, cost of cultivation per hectare of yard long bean and amaranthus can be reduced considerably when compared to 127conventional cultivation and profits can be increased. Since over adoption of MI was observed among respondents, extension machinery must be strengthened to give proper guidance to the farmers on the application of recommended dose of MI.
Open Access
Determinants and dynamics of lease land farming in pineapple
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2015) Judy, Thomas; KAU; Indira, Devi P
Land is considered as the most valuable and dependable fixed asset in all economies particularly in developing economies like India. In such economies, due to mismatch in ownership and farming interests, the agricultural production was done under lease arrangements .At the same time the system of lease land farming is prohibited in many states of India including Kerala. But concealed tenancy is widely prevalent in all these states. Under this background, an in-depth study primarily focusing on lease land farming in pineapple was undertaken. The study identified the details on structure and dynamics of lease land farming market and determined the important factors that influence the decision to lease out. It also assessed the management differences between owner operated farms and leased-in farms. The problems faced by the lessors and lessees were identified as well. The study was conducted in the Muvattupuzha Block Panchayath of Ernakulam district, which is the major centre for pineapple farming. The samples were selected following a Multi stage Random Sampling method and data was collected from 120 respondents of three identified groups viz., own farm cultivators, lessors and lessees, with 40 members in each group. A pretested, structured interview schedule prepared separately for each group was used for data collection. The major tools for data analysis were Garrett Ranking Technique, Logit model and Discriminant Analysis. In the study area, pineapple was mainly being taken as an intercrop in rubber plantations. As such, there are two situations of lease land pineapple farming. Situation I- pineapple is grown in land where rubber is proposed to grow for the first time. Situation II- pineapple cultivated in slaughter tapped rubber plantations. Under situation II, three rent payment systems were noticed viz., cash alone, planting and management of rubber and management of rubber along with a cash payment. Half of the lessees were paying the rent as cash alone. The average rent for different situations ranged from Rs.67,031 to 88,888 per hectare. The average leasing period was 3.5 years, which included the time for clearing the field. Mostly, the payment was effected in advance, in the beginning of each year. The lessors (90 per cent) insist on signing a written agreement following the pattern of civil contracts, though it is not formally registered. In 10 per cent cases there was only verbal agreements. The decision of lessor to lease out was influenced by several factors, of which the size of holding was identified as the most important one, as revealed by the statistical analysis employing the logistic regression model. As the size of holding increases, the land owners tend to lease out their land. There was considerable difference in the management practices followed in the owner operated and leased-in farms. In the owner operated farms, more of organic inputs were used and as such they were more inclined towards sustainable line of farming whereas chemical fertilisers were intensively used in leased-in farms. By employing the Discriminant Analysis, out of the seven significant factors, total operational holdings, fertiliser cost and organic input cost were identified as the important factors that differentiate the owner operated and leased-in farms. The cost of cultivation (Cost C2) in leased-in farms was estimated at Rs.4,22,114 as compared to the owned farms (Rs.3,86,139). Similarly, the yield obtained from leased-in farms was 20 per cent higher than the owner operated farms and the net income realised was nearly 12 per cent higher. Though lease land farming is extensively being practiced in the area, both the land owners and the lessees face several problems. In case of the lessors, the anxiety on probable land degradation due to soil erosion, intensive chemical usage causing environmental hazards and abandoning the crop at low price situations were found to be the major ones. On the other hand, difficulty in availing quality land, social resistance on application of poultry waste, exorbitant rent rates and difficulty in availing agricultural credit and subsidies were the serious problems faced by the lessees. The social situation in the area demands promotion of lease land farming by providing legal support. At the same time, stringent conditions should be specified on the lease agreement to ensure sustainable management. To facilitate compliance of the same, a monitoring and supervisory mechanism also needs to be formulated. The need for a dispute resolution mechanism is also underlined. Thus, it can be summarised that, the lease land farming system can facilitate to bridge the gap between the demand and supply of land and supplement the agricultural production in the state.
Open Access
Economic analysis of production and marketing of kaipad paddy in kannur district
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2014) Radhika, A M; KAU; Anil, Kuruvila
The present study entitled “Economic analysis of production and marketing of Kaipad paddy in Kannur district” was conducted with the objectives of working out the costs and returns of Kaipad paddy cultivation, estimating the magnitude and the factors contributing to the yield gap, identifying the marketing channels and the price spread in different channels, finding out the constraints in production and marketing of Kaipad paddy and documenting the cultural practices of Kaipad paddy cultivation. The study was based on both primary and secondary data. The study was conducted in Kaipad tracts of Kannur district and primary data were collected by means of formal interviews from farmers, traders and market-intermediaries. The farmers in the study area were categorised into five groups on the basis of farming practices followed as farmers growing traditional variety, farmers growing traditional Kaipad and shrimp in sequence, farmers growing HYV (Ezhome-l/Ezhome-2), farmers growing HYV (Ezhome-1 / Ezhome-2) and shrimp in sequence and paddy farmers from non-saline areas adjacent to Kaipad. From each of the five categories, l5 farmers were selected from each of the Panchayat. A sample of 30 farmers was randomly selected from each group, thus making a total sample size of 150 farmers. Cost-return structure was worked out both for Kaipad and conventional paddy production using percentage analysis and cost concepts. The cost of cultivation (Cost C2- Rs.67128) was highest in the case of farmers growing HYV without shrimp in sequence. The cost of production of HYV was higher than the costs incurred for growing traditional varieties and the average income from the HYV was more than the income from traditional varieties. The highest average gross income of Rs.61741/ha was obtained by farmers growing HYV and shrimp in sequence while it was lowest for the farmer respondents growing traditional variety without shrimp in sequence. Family labour income was estimated to be negative in the category of farmers growing traditional variety. The net income and Benefit Cost Ratio indicated that the farming is a loss making business in Kaipad region, especially when the value of the family labour, the land value and the managerial cost were accounted in the cost. Yield gap was estimated and factors contributing to the yield gap were analysed using regression analysis. Among the farmers growing Ezhome-1without shrimp in sequence, the total yield gap was 747 Kg, which was 21 per cent of the potential yield whereas for farmers growing Ezhome-2 without shrimp in sequence, the total yield gap added to 847 Kg and it accounted for about 26 per cent of the potential yield. When Ezhome-1 and Ezhome-2 were grown with shrimp in sequence, the total yield gap was 601 and 497 respectively. The share of yield gap II in the total yield gap was found to be 38 per cent and 43 per cent respectively for Ezhome-1 and Ezhome-2 with shrimp in sequence, while it was 78 and 91 per cent for Ezhome 1 and Ezhome 2 without shrimp in sequence. In farms growing traditional varieties age was influencing yield gap positively while labour use in man days was found to be negatively influencing the yield gap. In the case of farms growing HYV, seed rate and education were significantly reducing yield gap. For the fitted log-linear yield function for all farms, age was found to be positively influencing yield gap while the seed rate and education were negatively influencing yield gap. The four marketing channels identified were, (i) farmer – rice miller – retailers -consumer (ii) farmer - local agent - rice miller- retailer - consumer (iii) farmer - local agent - Padasekhara-samithis - consumer (iv) farmer - consumer. The price spread was estimated as Rs.16.3 in channel I, Rs.17.51 in channel II, Rs.2.97 in channel III and Rs.3.85 in channel IV respectively. The marketing efficiency was found to be highest in channel III. Various constraints in production and marketing of paddy were identified and ranked using Garret’s ranking technique. Among the various constraints faced by farmers, high wage cost and scarcity of hired labour were the major ones. Low price realized for the produce was the foremost constraint faced in marketing of paddy. Since labour cost accounted for the major share in cost of cultivation and labour scarcity was the major constraint, efforts have to be made for mechanisation in Kaipad cultivation. The production must be increased by bridging the yield gap and thereby increasing the marketable surplus. Taking advantage of the GI status of Kaipad paddy, efforts are to be made for marketing it as a premium priced branded organic produce.
Open Access
Market access for smallholder tomato farmers in Mashonaland East Province of Zimbabwe: an economic analysis
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2014) Emmanuel Zivenge; KAU; Jesy Thomas, K
Linking small primary producers with markets has been identified as one of the major issues in policy and practice in improving livelihoods for millions of poor in Zimbabwe. Hence this study assessed the current market situation as a way of tracking and tracing efficacy and efficiency failures leading to more informed decision making with regard to redesigning of the matching market for smallholder farmers. The objectives of the study were to identify the tomato supply chains, analyse the price behaviour of tomato, assess the economic performance of the major supply chains, evaluate the institutional innovations in the supply chains and suggest viable supply chain options for smallholder tomato farmers in Zimbabwe. Tomato crop was chosen for the study as it is among the most important vegetables grown by smallholder. The study was based on both primary and secondary data. The study was conducted in Mashonaland East Province. Primary data were collected by means of formal interviews and structured questionnaire from farmers, market-intermediaries and government officials. Multi-stage random sampling technique was used for sample selection. Descriptive analysis was employed to provide a snap shot of the situation under study, which consisted of household level information. The Random Utility Model was employed to determine the factors which significantly influence the market accessibility. The price behaviour was studied using the techniques of classical time series. The Supply chain mapping was done to identify the actors. The study employed Data envelopment analysis to assess economic performance of supply chains and allocation of resources. Volume mapping results indicated that the supply chain, which involved hawkers, was handling the largest volume of tomatoes approximately 409.4 tonnes in one production cycle in 2013 season. The chain that included wholesalers/processors was the least in terms of quantity handled (39.4 tons) showing that it was not accessible. Data envelopment analysis results indicated that the chain that included wholesalers and processors was the only efficient chain when constant return to scale was assumed. Supermarket chain was efficient when variable returns to scale was assumed. The chains that included passers-by and hawkers were inefficient under both constant returns to scale and variable returns to scale technologies. The seasonal index results showed that the tomato prices were highest and lowest in July and November respectively when prices were 31 percent higher than the annual average price and 43 percent below the annual average' price. Spatial markets were not efficient in the short run although showing stable equilibrium in the long run. The price changes were transmitted from one market to another at a rate between 22 percent and 24 percent in the short run which proved to be low. There was no centre market among six municipal markets since price changes were to be set around more than one market. Random Utility model results showed that credit, greenhouse and cooperative membership were significantly influencing participation of smallholder farmers in formal markets. Data envelopment analysis results showed that farmer, on average could reduce input consumption by 12 percent and 27 percent at production and marketing stages respectively. The study concluded that the opportunities to improve profits lie in the marketing perspectives rather than production for tomato producers under study. Farmers can gain better income by reducing consumption of inputs without necessarily asking for high prices. The higher market price cannot compensate the value loss incurred by the high level of transaction costs. Tomato producers should pursue the low transaction costs marketing chains rather than ask for a higher market price. The chain that included hawkers should be given due attention and modem matket infrastructures should be established in rural areas in order to relay reliable, relevant and correct information to the farmers.

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