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ThesisItem 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 ParayilThe 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.ThesisItem Open Access Price behaviour of nendran banana in Kerala: an economic analysis(Department of Agriculture Economics, College of Horticulture, Vellanikkara, 2019) Shana, K K; KAU; Jesy Thomas, KIndia is the leading producer of banana in the world with an annual production of 30 million tons from 0.8 million hectares (2017-18). Nendran is one of the most important commercial varieties of banana grown in Kerala, occupying about 50 per cent of the total area under banana. Wide fluctuations have been observed in the price of Nendran, resulting in income variability of farmers. Hence the present study has been carried out with the objectives of analysing the price behaviour and volatility in prices of Nendran banana in Kerala. The study was mainly based on secondary data collected from the major markets of Kozhikode, Ernakulam, and Thiruvananthapuram. Trend analysis was carried out to understand the growth in area, production and productivity of banana both at national and state levels from 1980-81 to 2017-18. In India, the area, production and productivity of banana showed a significant growth. The area and production in Kerala showed an increasing trend but the productivity was found decreasing. Even with a growth in area of 4.83 per cent, the production increased only by 1.27 per cent due to the negative growth rate of -3.4 per cent in productivity per annum. The price behaviour of Nendran banana in major markets of Kerala viz., Kozhikode, Ernakulam, and Thiruvananthapuram for a duration of 16 years (20032018) was analyzed by decomposing the monthly price data into four components such as secular trend, seasonal variation, cyclical variation and irregular variation assuming a multiplicative model. Prices in all the three markets showed increasing trend. The seasonal variation of Nendran banana price in the markets showed a similar pattern, with peak price in the month of August because of increased demand during Onam season. Price cycles with length varying from six to seven years were noted in the market price. xix Pairwise and multiple co-integration analysis of Nendran banana prices in the above markets were carried out after confirming the stationarity of price series using Augmented Dickey Fuller (ADF) test. The results showed that the markets were integrated, inferring the presence of price association among the markets. In order to provide additional evidence as to whether and in which direction price transmission occurred, Granger causality test was carried out and the existence of unidirectional causality from Kozhikode market to Ernakulam market and from Thiruvananthapuram market to Kozhikode and Ernakulam markets was proved. Correlation co-efficient between monthly market arrivals and prices of Nendran banana in Kozhikode, Ernakulam, and Thiruvananthapuram markets from 2013 to 2018 was computed to evaluate the pattern of association between them. In all the three markets, the prices and quantity of arrivals were found to be negatively correlated implying that prices decreased with increase in arrival of Nendran banana. The variability in Nendran banana arrivals and prices was studied computing the coefficient of variation and maximum variability in arrivals was found in Ernakulam market (42.52 per cent) and maximum variability in prices was found in Thiruvananthapuram market (24.41 per cent). Intra-annual volatility and inter-annual volatility of monthly prices of Nendran banana from 2003 to 2018 were estimated and the prices were found to be highly volatile. The intra-annual volatility showed no distinct pattern in all the three markets. The magnitude of inter-annual volatility was decreasing throughout and the divergence between the volatility of prices were found to be decreasing towards the latter end. Instability in annual prices worked out using suitable indices showed that prices in Thiruvananthapuram market were more volatile than other markets as it was influenced by prices in the markets of Tamil Nadu. xx Major constraints identified in the study area were wide fluctuations in prices, high labour and transportation costs, unavailability of institutional credit and lack of reliable information about prices. Price fluctuations and volatility creates uncertainty in the planting and marketing decisions of the farmer. Unavailability of reliable price information makes marketing difficult and farmers become more vulnerable to price risk. Therefore, suitable strategies for developing market intelligence for Nendran banana including price forecasting and provision to farmers, price stabilization through year round procurement and introduction of support price were suggested as policy interventions.ThesisItem Open Access Water crisis in Coastal area: Domestic adaptation strategies and impact on agriculture sector(Department of Agriculture Economics, College of Horticulture, Vellanikkara, 2019) Swathy Sugathan, P; KAU; Indira Devi, PDespite rich endowments of water resources, availability of water in Kerala is dwindling and inadequate for the growing population. Several regions in the state experience seasonal drought like condition, every year. The coastal areas of Kerala become most vulnerable region with respect to water scarcity due to quantitative and qualitative aspects. The study on ‘Water crisis in coastal areas: domestic adaptation strategies and impact on agriculture sector’ was undertaken in this background in coastal areas of Thrissur district in Kerala. The main objectives of the study were to analyse the dimensions of water scarcity and the level of understanding of the same among coastal communities and to identify the strategies to address the issue. Further, economic burden on households were estimated and the impact of scarcity on agriculture sector was also analysed. The study was conducted in Chavakkad, Thalikulam, Mathilakam, and Kodungallur regions of Thrissur district by a two stage random sampling of 120 respondents. The study was based on both primary and secondary data and the data was analysed using statistical tools like descriptive analysis, regression analysis, scaling technique and Shannon-Wiener diversity index. The major water sources in the study area were own sources such as wells, ponds, and public sources like house connections and public taps. Wells are the major source for domestic sector and ponds serve the irrigation purpose. The volume of water in the wells, which was a major water source in the region, declined by an average of 62 per cent by summer season. Thus, the dependence on dug wells for household consumption reduced to 27 per cent, compared to monsoon season (77 per cent). This was also due to the water quality problems, in certain cases. The water quality issues in the area was reflected as colour change, odour, salinity and hardness. Aquatic weeds was reported as a major threat in the coastal belt. Correspondingly, the average household water consumption level also declined. The volume of water in the well and family size influenced the household consumption. Coconut based cropping system was prevalent in the study area with arecanut and banana as major intercrops. Ponds were the major source of irrigation water. Most of the farms were irrigated (40 per cent) at an interval of three days. In regions of severe water scarcity, an irrigation schedule of once in ten days (15 per cent of the farms) was followed. The decision to irrigate the farm was significantly influenced by number of water sources and agricultural income. The irrigation investment amounted to `33,781 per ha per year which constituted 45 per cent of cost of cultivation while accommodating the fixed cost component. Most of the respondents reported a gradual reduction in agricultural yield over the years and 60 per cent respondents attribute it to water scarcity. Digging new ponds, installation of efficient pumpsets, roof water harvesting and filtering of water for domestic purpose were the adaptation strategies opted by the farmers to address the water scarcity. Farming experience was proved to be the most influential factor that determined the adaptation behaviour. The study brings out results that suggest policy interventions for implementing rain water recharge efforts and scientific water quality monitoring system in Kodungallur and Mathilakam regions where water quality problems were more severe. Simultaneously water resource conservation strategies, as well as models developed by KAU for improving crop diversity are to be popularised.ThesisItem Open Access Price behaviour of natural rubber in India.(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2011) Reeja, Varghese; KAU; Satheesh Babu, KNatural 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.ThesisItem Open Access Mitigating production vulnerability of banana through weather based crop insurance: An economic analysis(Department of Agricultural Economics, College of Agriculture, Vellayani, 2019) Ajmal, S; KAU; Paul LazarusThe research entitled “Mitigating production vulnerability of banana through weather based crop insurance: an economic analysis” was conducted in the Palakkad and Wayanad districts of Kerala during 2017-19. The objectives of the study were to assess vulnerability of agriculture in general and banana farmers in particular to climate change in Palakkad and Wayanad districts. To evaluate economic benefits of Weather Based Crop Insurance Scheme (WBCIS) for banana farmers and to study the problems and suggest measures for scaling up of WBCIS. Primary data was collected from the farmers of both the districts for the agricultural year 2017-18. Secondary data regarding weather parameters, socio-economic and physiographic factors were collected from various sources. Climate change vulnerability in both districts was assessed by constructing a composite index. It consists of three major component indices: adaptive capacity, sensitivity and exposure and those components were constituted of 27 sub components based on the secondary data collected. The adaptive capacity index, sensitivity index and exposure index obtained for Palakkad district were 0.481, 0.312 and 0.136 and for Wayanad district they were 0.543, 0.345 and 0.166 respectively. The climate change vulnerability index for Palakkad district was 0.322 and for Wayanad it was 0.365. Higher the value of index higher is the vulnerability to climate change. All the indices were more for Wayanad district compared to Palakkad. Same methodology was used to analyse the vulnerability of banana farmers to climate change in the study area. The 14 sub components of vulnerability index were selected based on the primary data collected during the survey. The adaptive capacity index, sensitivity index and exposure index obtained for Palakkad district were 0.618, 0.425 and 0.566 for Wayanad district were 0.622, 0.458 and 0.609 respectively. The vulnerability index obtained for Palakkad was 0.552 and Wayanad was 0.572. The banana farmers in Palakkad district exhibited slightly more vulnerability change when compared to Wayanad districts. To evaluate economic benefits of WBCIS for banana farmers, comparison of was done using cost concepts. At Cost C, insured farmers had incurred more cost (₹ 3,86,021 ha-1) than uninsured farmers (₹3,50,910.06 ha-1). The net returns at Cost C for insured farmers were ₹3,56,261 ha-1 and for uninsured farmers it was ₹3,24,197 ha-1. Insured farmers had 9.89 per cent higher net return at Cost C than uninsured farmers. The BC ratio obtained for insured farmers (2.01) at Cost C were more than that of uninsured farmers (1.92). It was found that the insured farmers were having more economic benefits than uninsured farmers from banana cultivation. The results of Cobb-Douglas production function revealed that R2 value for insured and uninsured farmers was 0.87 and 0.79 respectively, which indicated a good fit. The analysis of allocative efficiency for insured and uninsured farmers revealed that quantity of hired labour, family labour and quantity of manures, fertilizers and soil ameliorants were underutilized. Furthermore, quantity of plant protection materials was overutilized by both categories of farmers. Binary logit regression was fitted to understand the influence of socioeconomic variables on the adoption of WBCIS. From the analysis it was understood that number of years of experience in banana farming had a positive and significant effect, which indicates that the probability of taking insurance increases with increase in the number of years of experience in banana farming. Odds ratio was found as 1.1, meaning that the likelihood of adoption of insurance by more experienced farmers was 1.1 times that of farmers having less experience. Response of insured and uninsured farmers was studied to analyse different aspects associated with WBCIS. Regarding the awareness of insured farmers, majority of farmers were aware about the premium rate and subsidies available, still the overall awareness level was poor. It was found that 51.86 per cent of insured farmers showed involuntary participation in the scheme. Moreover, majority (51.67 per cent) had perception of premium rate as high. Majority of insured farmers expressed willingness to pay only up to 3 per cent of sum insured as premium. About 56.67 per cent of insured farmers were found dissatisfied with the scheme. The financial institution’s compulsion was ranked first among the factors influencing adoption of the scheme. Information from financial institutions was ranked the first as source of information about the scheme among the farmers. Insured farmers unanimously suggested the quick settlement of claims and increase in the indemnity level as a solution to improve the scheme. The main constraint in the adoption of WBCIS was ‘less satisfaction with the indemnity level’ and then ‘lack of awareness about the scheme’. Among the uninsured farmers about 15 per cent farmers adopted the scheme in the previous years. Less indemnity level was the most common reason (75 per cent) for not availing the scheme among the uninsured farmers followed by lack of awareness about the scheme (68.33 per cent). Thus, it can be concluded that Banana farmers in Wayanad district were more vulnerable to climate change compared to Palakkad district. Similar pattern was observed in the vulnerability of agriculture in general to climate change for both districts. WBCIS can be used as a good institutional mechanism for the farmers to adapt to vulnerability due to changes in climate.ThesisItem Open Access Economic analysis of agricultural input subsidies for coconut cultivation in Kozhikode district(Department of Agricultural Economics, College of Agriculture, Vellayani, 2019) Priyanga, V; KAU; Paul Lazarus, TThe study entitled “Economic analysis of agricultural input subsidies for coconut cultivation in Kozhikode district” was carried out with the objectives of analyzing the growth of input subsidies for coconut cultivation, to analyse the impact of input subsidies on coconut production and also to identify the constraints faced by the farmers in availing the input subsidies. The relevant secondary data regarding the progress of Coconut Development Scheme and other areas of input subsidies such as fertilizer, credit and electricity in Kozhikode district were collected from the concerned institutions. Primary data were collected from Balussery and Kattipara panchayat of Kozhikode district for the agricultural year 2018-19. Random sampling technique was adopted and the total sample size was 80, out of which 40 were small farmers (≤ 2 ha of land) and 40 were large farmers (>2 ha of land). The results of Compound Annual Growth Rate revealed that the total expenditure of Coconut Development Scheme (2009-14) was much lower (11.75 per cent per annum) when compared to that of Keragramam scheme (14.66 per cent per annum) by the Government of Kerala (2015-19). The total amount of electricity subsidy (2013-18) was recorded to have slow growth rate (0.48 per cent per annum) whereas credit subsidy (2008-18) was found to have faster rate (14.15 per cent per annum). The growth rate of total amount of fertilizer subsidy was found to be negative (-8.80 per cent). Cost of cultivation was worked out using the ABC cost concept. The total cost of coconut cultivation (Cost C) incurred by the small farmers was ₹ 1.23 lakh ha-1 which was more than that of large farmers (₹ 1.07 lakh ha-1). It was found that profitability was more for large farmers with a B:C ratio of 1.36 while small farmers had a comparatively smaller B:C ratio of 1.17. The results of Cobb-Douglas production function revealed that the R2 value for small farmers and large farmers was 0.71 and 0.59 respectively which indicated a good fit. The analysis of allocative efficiency for small farmers and large farmers revealed that only two components viz., quantity of manures and fertilizers and soil ameliorants were underutilized. While small farmers had underutilized quantity of 144 hired labour, family labour and machine power, the large farmers had overutilized these resources. Almost 54 per cent of respondents obtained the information about input subsidies from Krishi Bhavan. All the respondent small farmers were beneficiaries of Keragramam scheme implemented by the State Department of Agriculture, while large farmers were not eligible. A total of 29 farmers (27 per cent) and 22 farmers (36 per cent) were beneficiaries of electricity and credit subsidy respectively. The total area covered by the sample farmers of Balussery and Kattipara panchayat was 99.47 acres and a total amount of ₹ 6.61 lakhs was availed under Keragramam scheme. The input subsidy under Keragramam scheme ensured cheap inputs for coconut farming as perceived by 67.5 per cent of the respondents. Nearly 55 per cent of beneficiaries perceived that input subsidies were sufficient under Keragramam scheme. The total amount of credit subsidies availed by the beneficiaries was ₹ 2.16 lakh, of which 59 per cent was availed by small farmers and 41 per cent by large farmers. The total amount of electricity subsidy availed by the beneficiaries was ₹ 36,330 of which 39 per cent was availed by small farmers and 61 per cent by large farmers. The statistical analysis of the impact of agricultural input subsidies in coconut production revealed that the amount of subsidy for organic manure and electricity significantly increased the yield at 1 per cent and 5 per cent level of significance, respectively. The coefficient of multiple determination (R2) was 0.94, which indicated that 94 per cent of the variation in yield was explained by the independent variables such as amount of subsidies for organic manure, soil ameliorants, credit subsidy and electricity subsidy. The timely availability and limited quantity of subsidized input were the major constraints faced by the beneficiaries under Keragramam scheme whereas complex administrative procedure was the major constraint faced by the beneficiaries of both electricity and credit subsidy. Large farmers were not eligible to receive the subsidy under Keragramam scheme. As the study indicated better utilization of available resources by the large farmers, it is recommended to follow fair degree of equity in the distribution of 145 subsidy to all farm- size categories. If more amount of subsidy were given to environmentally sustainable components such as organic manures and bio-fertilizer, it could enhance the use of these components by the farmers. This will considerably reduce the externalities due to chemical fertilizers. If more amount of subsidies were given to solar pumpset and micro-irrigation components, it will reduce the externalities from electric pumpset and enhance the conjunctive use of scarce resources such as water. Conjunctive use of water comprises of harmoniously combining the use of both surface and groundwater in order to minimize the undesirable physical, environmental and economic effects of each solution and to optimize the water demand/supply balance. Thus the study can be a guide for planners and policy makers.ThesisItem Open Access Economic analysis of watersheds in Wayanad district(Department of Agricultural Economics, College of Agriculture, Vellayani, 2019) Neethu Mol Jacob; KAU; Paul Lazarus, TThe research work entitled “Economic analysis of watersheds in Wayanad district” was carried out during 2017-19 with the objectives to assess the impact of watershed development programme on cropping pattern and farm income, to examine the variation in benefits in upper, middle and lower reaches of watershed and to ascertain the problems of farmers in the watershed. Secondary data was collected from the Office of the Assistant Director of Soil Conservation, RVP Kabani, Kaniambetta sub division, Meenangadi. The treated watershed (beneficiaries) selected for the study was Poothadi watershed in Poothadi Panchayat and untreated watershed (non-beneficiaries) was Aavayal watershed in Meenangadi Panchayat of Wayanad district. Primary data were collected randomly from 45 farmers each from the treated and the untreated watershed comprising 15 farmers each from upper, middle and lower reaches and thus the total sample size was 90. Poothadi watershed project (Ka4f Poothadi) was a River Valley Project (RVP) during 2010-13 with an area of 4,428 ha. The total expenditure of the project was ₹93,44,025 and major portion was spent for construction of farm ponds, WHS (Water Harvesting Structures) and contour bunds. The project had generated an employment of 9,060 man days during the project period. The beneficiary respondents had more annual income, family size, land holdings, area under different crops and irrigation when compared to that of non-beneficiaries. Major crops cultivated in watershed area were coffee, black pepper and arecanut. There was no much variation in cropping pattern between the treated and untreated watersheds. Area under irrigation was more in treated watershed than the untreated and the average area under irrigation was more in coffee (2.98 ha). Cost of cultivation of coffee, black pepper and arecanut was worked out using the cost concepts and total cost was more for beneficiaries than the non-beneficiaries. The profitability was found using the B:C ratio and at Cost C, B:C ratio was more for beneficiaries in case of coffee (1.79) and black pepper (1.19), whereas in the case of arecanut (1.42) it was more for non-beneficiaries. From the results of regression analysis it was evident that the coefficient of multiple determination of beneficiaries and non-beneficiaries had values ranging from 0.89-0.99 and 0.31-0.99 respectively, indicating 89-99 and 31-99 per cent of the variation in the gross returns was due to the independent variables considered. Positive impact of the watershed development programme was reflected in the increase in the number of beneficiaries adopting soil and water conservation measures such as construction of rain pits, trenching, live fencing, terracing and mulching. Adoption of such measures by non-beneficiaries was less compared to that of beneficiaries of treated watershed. Several market and non-market benefits derived from treated watershed resulted in increase in income due to increase in yield and livestock rearing, increased groundwater recharge and increase in aesthetic value of watershed. The analysis of impact of watershed development programme on farm income revealed that the length of contour bund had increased the farm income at 1 per cent level of significance. The coefficient of multiple determination (R2) was 0.92, which indicated that 92 per cent of the variation in farm income was explained by the independent variables such as length of contour bund, soil moisture content, organic matter content and region of the watershed. Organic matter content (4.23 per cent), soil moisture content (18.26 per cent) and depth of water column in wells (4.31 m) were more in treated watershed than the untreated watershed. In treated watershed organic matter and soil moisture content was more in upper reaches followed by lower and middle reaches. Height of water column in the wells of treated watershed was higher in lower reaches (5.13 m) followed by middle (4.83 m) and upper reaches (2.97m). Major constraints faced by the beneficiaries in treated watershed were lack of supervision, follow-up and technical guidance by the authorities. Suggestions given by the beneficiaries to improve the project were to ensure need based activities in farm, continuity and follow-up of development and maintenance activities in watershed, marketing and infrastructural facilities and biodiversity conservation. Watershed development programme improved the livelihood of the farmers in the treated watershed. Hence watershed development programmes and strategies like rain water harvesting structures should be extended to the untreated watersheds.ThesisItem Open Access Crop insurance scheme for paddy in palakkad district -an economic analysis(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2019) Anirudh, K C; KAU; Anil KuruvilaAgriculture in India has become an inherently risky venture due to uncertainty in production and price volatility of agricultural commodities triggered by increased climatic aberrations and globalization. Hence, crop insurance plays an important role in stabilizing farm income, ensuring credit flow in agriculture and decreasing over dependence on public exchequer for relief measures. Various insurance products along with stringent measures to enforce them were taken to enroll the maximum number of farmers in crop insurance. In spite of all these efforts, the adoption rate of crop insurance was still low and Kerala is one of the states with lowest growth rate of voluntary subscription of crop insurance. With this background, the present study was undertaken to analyse the performance and progress of crop insurance schemes in Kerala, estimate the impact of crop insurance on paddy cultivation, assess the viability of crop insurance schemes, identify constraints in the adoption of crop insurance and estimate the willingness to pay for crop insurance schemes. The study is based on both primary and secondary data. The time series data on area, production and productivity of rice in Kerala and Palakkad district from 1980-81 to 2017-18 was analysed. It was found that the area and production exhibited a decreasing trend whereas productivity showed an increase over the years. Primary data was collected from 180 selected farmers of Palakkad district using pretested interview schedule by personal interview method. Time series data on the area insured, number of farmers insured, gross premium collected and claims settled for a period from 2002 to 2019 were collected from the Directorate of Agriculture, Government of Kerala. From the analysis, it was observed that the crop insurance coverage also displayed an increasing trend. The distribution of crop insurance subscribers during Kharif 2017 and Rabi, 2017-18 highlighted the fact that more than 97 per cent of the subscribers were borrower farmers suggesting that the growth in subscription was attributed to bundling of insurance schemes with crop loans. The claims to premium ratio, which should ideally be less than one, showed a cumulative average of 1.31 for the period under consideration and reflected the un-sustainable nature of the design of crop insurance products. The cost of cultivation of paddy in the study area was found to be ₹78,819/ha and the major constraint faced by the farmers in crop production was inadequate supply of irrigation water. The other constraints encountered were excess growth of weeds, delay in procurement and abrupt weather changes. The most preferred method of coping with income variations was availing gold loans and the major reason for subscribing to crop insurance scheme was compulsory enrolment. Delay in settlement of claims, inadequate compensation and dissatisfaction with area based approach were the major constraints in voluntary adoption of crop insurance schemes. Logit regression model was employed to ascertain the factors affecting voluntary subscription of crop insurance programmes using gross cropped area, education, income, cost of cultivation and farm experience as independent variables. Levels of education showed significant influence over the decision of voluntary adoption of crop insurance schemes. The odds of a farmer with graduate level of education, that he subscribes to crop insurance voluntarily than due to compulsion, was found to be 16 times higher compared to a farmer with primary education. The Willingness To Pay (WTP) for a crop insurance scheme with features of timely settlement of claims, usage of drones and satellite imageries for crop loss assessment and claims based on procurement price of the produce was elicited using single bounded contingent valuation method. The WTP was estimated to be ₹1753/ha using probit model employing maximum likelihood method. The suggestions for improving the existing crop insurance schemes were identified and ranked. Majority of the farmers assigned first, second and third ranks respectively to timely settlement of claims, ensuring adequate compensation and introducing individual coverage. Ensuring claims based on procurement price of the produce; using drones, satellite imageries and other advanced technology for quicker crop loss assessment and implementing schemes based on individual coverage are recommended to address the constraints faced by farmers in adopting crop insurance. Administering the crop insurance schemes through Krishi Bhavans will make it easier for the farmers to have access to information related to the schemes as they are more acquainted with KBs than banks. The farmers’ share of premium may be raised as high as ₹1753/ ha with the suggested improvements over the existing schemes.ThesisItem Open Access Economic analysis of production, marketing and price bahaviour of nutmeg in Kerala(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2019) Reshama Sara, Sabu; KAU; Anil KuruvilaNutmeg is an importaEit spice crop cultivated for its two distinct products, nutmeg and mace. India is one of the largest producers of nutmeg in the world, with an area of 21,456 ha and production of 14,280 tonnes in Triennium Ending (TE) 2016-17. Kerala accounts for 97.2 per cent of the area and 98.2 per cent of the total production of nutmeg in India. During the period from 2000-01 to 2016-17, the area and production of nutmeg in Kerala increased by 217.5 per cent and 619.4 per cent respectively. The objectives of the present study were to analyse the trend in area, production, productivity and price behaviour of nutmeg; estimate the economics and resource use efficiency of nutmeg production; study the marketing practices and economics of marketing, and determine the major constraints in production and marketing of nutmeg in Kerala. The study was based on both primary and secondary data. The time series data on area, production and productivity of nutmeg in Kerala for the period from 2006-07 to 2017-18 were collected to study the trend and growth rates. Monthly average prices of nutmeg in Kochi market of Kerala for the period from 1993 to 2018 were collected to analyse the price behaviour of nutmeg. Primary data was collected from 120 selected fanners of Thrissur and Emakulam districts using a pretested interview schedule by personal interview method. It was evident from the trend analysis that the area and production of nutmeg in Kerala has shown an increasing trend, while the productivity exhibited a varying pattern. The price of nutmeg with shell, without shell and mace were analyzed by decomposing the monthly prices into four components viz., trend, seasonal, cyclical and irregular variations, assuming a multiplicative model of the time series. The prices of all the three products of nutmeg showed an increasing trend and considerable seasonality. The declining phase of nutmeg prices was observed from March to July, coinciding with the pre-harvest and peak harvesting months. The prices of nutmeg with shell and without shell showed considerable similarity in cyclical variations. One large cycle was observed in the prices from July 1994 to July 2001 and was followed by a short cycle upto May 2007. The next large price cycle which commenced from May 2007 reached the trough in November 2017 and thereafter started increasing. Since nutmeg is a perennial crop, its yielding phase was assumed to be 60 years, with a non-bearing period of three years. The cost and returns were estimated for both the districts and also for the overall sample by separately working out the establishment and maintenance costs. The cost of establishment and maintenance were found to be higher in Emakulam district. The aggregate establishment cost was estimated as ? 1,74,425 and the aggregate annual maintenance cost were ?65,299, ^83,112 and ^48,268 per hectare in the yield increasing, yield stabilizing and yield declining phases, respectively. Human labour contributed about 50 per cent of total maintenance cost and was followed by manures accounting for about 38 per cent. The cost of cultivation per hectare of the crop was estimated as ^1,00,196 and the net return was ^44,447. The average cost of production in the yielding phase was estimated as ?225 per kg. To estimate the resource use efficiency in nutmeg cultivation, Cobb-Douglas production function was fitted. Human labour and manures were found to be significantly contributing towards the returns. Moreover, a decreasing returns to scale in nutmeg production was observed in the study area. The most common marketing channel identified in the study area was Channel II, comprising of the producer, wholesaler, retailer and consumer, with the highest marketing efftciency of five for nutmeg and 14.88 for mace. The major constraints faced by the farmers in nutmeg cultivation were low price of the produce, occurrence of diseases, high wage rate, non-availability of drying and storage facilities, climate change and difficulty in harvesting. In order to overcome these constraints, strengthening the market intelligence, fonnation of Farmer Producer Companies, provision of assistance for mechanical dryers, training the farmers on improving the quality of produce, product diversification and value addition, promotion of warehousing and use of warehouse receipts as negotiable instrument for availing credit were recommended.
