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ThesisItem Open Access Economics of production and marketing of tuber crops in Palakkad district(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 1997) Sheena, P A; KAU; Thomas, E KThe present investigation on the economics of production and marketing of tuber crops viz. coleus, sweet potato and tapioca in Palakkad district was undertaken during the year 1994-95. The study focussed on estimation of cost and returns and marketing system. Data for the study was generated through a sample survey of farmers, village traders, wholesalers and retailers. Two stage sampling technique was adopted for the study, with panchayats selected purposively and sample farmers by random sampling method. The sample size for each crop was 50 making a total of 150 sample respondents. The results of the cost structure analysis revealed that the largest single item of expense was rental value of own land for coleus and tapioca and for sweet potato chemical fertilizer had the highest expense. Among the explicit cost items male labour accounted the highest share in coleus while rental value of own land and farmyard manure were the most important item in sweet potato and tapioca respectively. Cost A1, Cost A2, Cost B1, Cost B2, Cost C1 and Cost C2 per hectare was Rs.10101.74, Rs.13016.86, Rs.10101.74, Rs.17593.80, Rs.10743.99 and Rs.18236.05 respectively for coleus and Rs.8124.94, Rs.8124.94, Rs.13304.05, Rs.8852.50 and Rs.14031.61 respectively for tapioca and Rs.6733.13, Rs.6733.13, Rs.6733.13 and Rs.9079.94, Rs.7311.04 and Rs.9654.84 respectively for sweet potato. The average per hectare yield of coleus, sweet potato and tapioca were 9154 kg, 8801 kilogram and 7398.73 kilogram respectively. Benefit-cost ratio for coleus was Rs.2.27, Rs.1.76, Rs.2.27, Rs.1.30, Rs.2.13 and Rs.1.25 based on costs A1, A2, B1, B2, C1 and C2 where as the corresponding figures for sweet potato were Rs.1.74, Rs.1.74, Rs.1.74, Rs.1.29, Rs.1.60 and Rs.1.21 respectively. In the case of tapioca Benefit cost ratio was Rs.3.19, Rs.3.19, Rs.3.19, Rs.1.95, Rs.2.93 and Rs.1.85. The income measures in relation to different cost concepts, in coleus cultivation such as gross income, farm business income, family labour income, net income and farm investment income were Rs.22884.72, Rs.12782.98, Rs.5290.92, Rs.4648.67 and Rs.12140.73 respectively and Rs.11734.04, Rs.5000.91, Rs.2654.10, Rs.2076.20 and Rs.4423.00 respectively for sweet potato and Rs.25895.56, Rs.17770.62, Rs.12591.51, Rs.11863.95 and Rs.17043.06 respectively for coleus. Functional analysis was carried out using Cobb-douglas production function and the results revealed that for coleus fertilizer was found to be negative and significant. The production elasticity of labour was negative and insignificant. Farmyard manure and planting material were found to be insignificant. With regard to sweet potato labour was found to be negative and significant and the production elasticity of fertilizer was found to be negative though insignificant. Farmyard manure and planting material was found to be significantly influencing production. Regarding tapioca the production elasticity of labour and farmyard manure was found to be negative though insignificant. The high value of production elasticity of area indicated the dominance of this particular factor. Marginal value product of farmyard manure and planting material for coleus and sweet potato were greater than their factor cost ratio and was negative for labour and fertilizer. In the case of marketing of coleus and sweet potato more than 95 per cent of the produce was sold to wholesalers through commission agents. The producer’s share was only 34.53 per cent and 31.76 per cent of the consumers’ rupee for coleus and sweet potato respectively. The index of marketing efficiency was 0.53 for coleus and 0.47 for sweet potato. Regarding tapioca the tubers who performed the role of commission agent and from them produce is taken by mill owners of Salem and Dindigul. Since there is a product diversification the marketing of tapioca tubers was studied only upto the intermediary level.ThesisItem Open Access Economic impact of minor irrigation in Palakkad district(Department of Agricultural Economics College of Horticulture, Vellanikkara, 1996) Aji, George C.; Thomas, E KThesisItem Open Access Socio-economic status of traditional fisherfolk in kerala - a study in Thiruvanathapuram District(Department of Agricultural Economics, College of Agriculture, Vellayani, 1997) Jinraj, P V; KAU; Raviraman, KThe study, "Socio-economic status of traditional fisherfolk in Kerala - A study in Thiruvananthapuram district" was undertaken with the following objectives. 1. To understand the present socio-economic status of the traditional fisherfolk in Kerala with particular emphasis on the income and expenditure pattern of the community concerned. 2. To analyse the levels of living of the fisherfolk with respect to food intake, shelter, educational status and sanitary conditions. Thiruvananthapuram, which is one of the districts with the highest fishermen population in the State, was selected for the study. From Thiruvananthapuram district Vizhinjam and Anjuthengu villages were selected due to their larger size compared to the other fishing villages and variation in fishing activity. A sample size of 50 traditional fisherfolk families from each village was selected using stratified random sampling technique, taking motorised and non-motorised fisherfolk families as two strata. A well structured and pre-tested questionnaire, was used for collecting data from the selected sample households. Data collected was analysed using suitable statistical tools such as mean, percentage analysis, correlation coefficient and regression analysis. The variables used in the study included general information on households, educational level, employment status, income and expenditure pattern, extent of credit availed and indebtedness, food intake, health status, housing conditions, social participation and other relevant characteristics which are useful in measuring the socio- economic status of a household. The study revealed that the average family size of the fisherfolk was 5.19. It was 5.58 in Vizhinjam village and 4.8 in Anjuthengu village. It was also seen that the majority of the fishermen under study were in the age group of 21-35 years. The female to male ratio was found to be 784 females for 1000 males. Landless fisherfolk families constituted 37 per cent and among land owners 55 per cent had less than 5 cents of land. The literacy rate of the fisherfolk was found to be 63 per cent in which males had a lower literacy rate (53 %) than females (68 %). It was noted that about 85 per cent of the workforce in the study area were engaged in fishing and about 14.41 per cent were engaged in fish vending. The average monthly income of a fisherfolk family was found to be Rs. 1918.94. In Vizhinjarn village it worked out to be Rs. 2160.20 as against Rs. 1677.68 in Anjuthengu village. Of the total monthly household expenditure, 62.52 % was spent on food, 12.52 % on arrack and 8.5 % on fuel and lighting. The percentage expenditure on betel chewing, clothing, medicinal purposes and recreation were 7.58 %, 4.24 %,2.11 % and l. 92 % respectively. The expenditure on education was observed to be very meager. It was revealed from the study that the fisherfolk were mainly utilising money lenders for availing credit. The majority of the loans availed were used for production purposes such as the purchase of fishing equipment (54%) and fish vending (5.3%). About 19.5 % of loans were used for marriage purposes and the rest for home consumption and for other purposes. The household food consumption pattern showed that the cereal food consumption was 45% of the total requirement. They consumed large quantities of fish. It was also observed that the intake of vegetables other than tubers, milk and fat and oils were inadequate when compared to the recommendations of the ICMR. The intake of pulses was found to be very meagre. It was revealed that 12 % of the fisherfolk families did not own houses and lived in houses belonging to their friends or relatives. •It was also noticed that 54% of the families resided in huts, 24% in pucca houses, 2% in concrete houses and one per cent in asbestos house. It was also seen that 65 % of the wage earners lived in huts. About sixty nine per cent of the houses were non-electrified and about 76 % did not have a latrine. Among the total fisherfolk respondents selected for the study only 15% utilised news papers as sources of information. Respondent s utilising television and radio were 9% and 17% respectively.ThesisItem Open Access Economics of paddy cum prawn culture in pokkali lands of Ernakulam District(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 1998) Mary Vijaya, K; KAU; Mukundan, KThe present investigation on the economics of paddy cum prawn culture in Pokkali lands of Ernakulam district was undertaken during the year 1995-96. The study focussed on estimation of cost and returns, measuring productivity of farm resources and identifying constraints in paddy cum prawn production. Data for the study was generated through a sample survey of farmers. Two stage sampling technique was adopted for the study with villages as the primary sampling units and prawn farmers as secondary sampling units, selected by random sampling method. The results of the cost structure analysis revealed that the largest single item of cost of operation was land preparation in paddy cum traditional prawn culture; and in paddy cum improved prawn culture, intercultural operations required the highest expenses. Among the explicit costs, labour accounted the highest share in paddy cum traditional prawn production and cost of materials was the most important item in paddy cum improved prawn production. Classwise analysis showed that cost A1, cost A2, cost BI, cost B2, cost C1 and cost C2 per hectare in class I were Rs.17490.43, Rs.l7490.43, Rs.17604.95, Rs.25104.95, RS.18591.53 and Rs.26091.53 respectively. In class II, these costs were Rs.21421.30, Rs.21421.30, Rs.21530.10, Rs.29030.10, Rs.23434.27 and Rs.30934.27. In class Ill, corresponding costs were Rs.25942.78, Rs.25942.78, Rs.16063.88, Rs.33563.88, RS.28646.63 and Rs.36146.63. In class IV, the costs were worked out to be Rs.39321.78, Rs.39321.78, Rs.39492.17, Rs.46992.17, Rs.41314.60 and Rs.48814.60 respectively. In class V, these costs were Rs.55782.10, Rs.55782.10, Rs.55950AI, Rs.63450AI, Rs.59433.92 and Rs.66933.92 respectively. For class VI, these costs were estimated to be Rs.79121.36, Rs.79121.36, Rs.79284.25, Rs.86784.25, RS.84700A2 and RS.92200A2 respectively. The average yield from main products of paddy and prawn were 2138.59 kg/ha and 385.25 kg/ha respectively. In class II their yields were 2189.30 kg/ha and 498.67 kg/ha respectively, while in class III the yields estimated to be 2211.25 kg/ha and 655.92 kg/ha from paddy and prawn. The yield obtained from paddy and prawn were 2143.33 kg/ha and 553.20 kg/ha respectively in class IV, and 2174.90 kg/ha and 865.21 kg/ha respectively in class V. In class VI the yield estimated to be 2272 kg/h~ and 1246.26 kg/ha from paddy and prawn respectively. Benefit-cost ratios based on cost A1, A2, B1, B2, C1 and C2 for class I were 1.56, 1.56, 1.54, 1.08, 1.46 and 1.04. In class II, benefit-cost ratios based on these costs were 1.61, 1.61, 1.60, 1.18, 1.47 and 1.12 respectively. For class Ill, benefit-cost ratio were 1.65, 1.65, 1.64, 1.27, 1.50 and 1.19 respectively. In class IV, these were computed to be 1.68, 1.68, 1.67, 1.40, 1.60 and 1.35 respectively, while for class V, these ratios were 1.74, 1.74, 1.73, 1.53, 1.63 and1.45. In class VI, they were estimated to be 1.75, 1.75, 1.74, 1.59, 1.64 and 1.50 respectively based on corresponding costs. The income measures in relation to different cost concepts such as gross income, farm business income, family labour income and net income at cost C1 in class I were Rs.27238.69, Rs.9788.26, Rs.2133.74 and RS.8647.16. These measures were Rs34510.17, Rs.13088.87, Rs.5480.07 and Rs.lI075.90 in class H. In class III they were computed as RsA2912.36, Rs.16964.58, RS.9348A8 and Rs.14265.73. For class IV these income measures were worked out to be Rs65941.55, Rs.26619.77, Rs.18948.38 and Rs.24626.95. In class V, the corresponding figures were Rs.96984.45, Rs.4l200.35, RS.33532.04 and Rs.37548.53 respectively. These incomes were Rs.138544.08, Rs.59422.72, Rs.51759.83 and RS.53843.66 in class VI respectively. Production function analysis was carried out using Cobb-Douglas production function seperately for paddy cum traditional prawn production and paddy cum improved prawn production on per farm and per hectare basis. Per farm estimates of production function for paddy cum improved prawn production revealed that the regression coefficient of only one independent variable, viz., area, was estimated to be positive and significant. The production elasticity of labour, seed, feed, eradicants and manures were found to be positive but non-significant. Analysis of per hectare estimates of production function showed that elasticities of production for labour and seed were negative and non-significant. In both per farm and per hectare functional analysis the two dummy variables and also the intercept of the function were found to be significant which indicate that paddy cum 3 crops of improved prawn culture is more profitable than paddy cum for I and 2 crops of Improved prawn culture. Regarding paddy cum traditional prawn culture per farm estimates of the functions revealed that only the regression coefficient of area was found to be positive and significant. The elasticities of production of labour and seed were estimated to be negative and non-significant. Per hectare estimates of the function revealed that the production elasticity of labour was found to be negative and non- sigrnficant. The production elasticity of seed was found to be significant with negative sign which indicates over use of this input. In both per farm and per hectare functional analysis, the two dummy variables and the intercept of the function found to be significant which indicates the paddy cum 3 crops of traditional prawn culture IS more profitable than paddy cum 1 or 2 crops of traditional prawn culture. Non-availability of labour and their increased cost formed the major constraint to both paddy cum improved prawn culture and paddy cum traditional prawn culture. Problem of submergence followed by higher price of inputs and salinity and acidity were the next important constraints in paddy cum traditional prawn culture. Non-availability of prawn seed/fry followed by submergence and high cost of inputs formed second, third and fourth important constraints in paddy cum improved prawn culture. Salinity and acidity formed the fifth important constraint in the case of paddy cum improved prawn culture.ThesisItem Open Access Economics of production and marketing of selected medicinal plants in Thrissur district(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 1996) Mayadevi, A; KAU; Mukundan, KThe present investigation on the production and marketing of selected medicinal plants (Kacholam and Koduveli) in Thrissur district was undertaken during the year 1994-1995. The study aimed at estimating the cost of cultivation, cost of production, benefit-cost ratio, study the market structure and look into to the various uses to which these medicinal plants are put and the problems encountered in medicinal plants cultivation. Multi stage random sampling design was adopted for the study. The largest single item of input was human labour in Koduveli and seeds in Kacholam. Cost A1, Cost A2, Cost B1, Cost B2, Cost C1 and Cost C2 per hectare were Rs.26,678.09; Rs.26,678.09; Rs.27,534.09; Rs.27,534.09; Rs.52,534.09; Rs.31,549.59 and Rs.56,550.59 respectively for Koduveli and Rs.49,332.5; Rs.49,332.5; Rs.50,609.30; Rs.50,609.30 and Rs.75,609.30 respectively for Kacholam. The income measures in relation to different cost concepts in medicinal plants cultivation such as gross income, farm business income, family labour income, net income at Cost C1 and Cost C2 and were Rs.130400.69, Rs.81068.19, Rs.54791.39, Rs.79791.39 and Rs.54791.39 for Kacholam and Rs.136003.69, Rs.109325.6, Rs.83469.6, Rs.104454.1 and Rs.79452.8 respectively for Koduveli. Input-output ratio based on Cost A1, Cost A2, Cost B1, Cost B2, Cost C1 and Cost C2 were Rs.2.62, Rs.2.62, Rs.2.55, Rs.1.71, Rs.2.55 and Rs.1.71 for Kacholam and Rs.5.10, Rs.5.10, Rs.4.90, Rs.2.59, Rs.4.30 and Rs.2.40 for Koduveli respectively. The average per hectare yield in the district for Kacholam was 1862.9 kilogram (dried) and for Koduveli 6476.3 kilogram (green). Production function analysis done separately for the two medicinal plants revealed that area and seeds towards gross income were found to have positive effect on gross income. The sum of elasticities of production function for Kacholam (1.0862) and for Koduveli were (1.0228) respectively which indicated constant returns to scale. The major marketing channels identified in Thrissur market for marketing of medicinal plants was Producer-dealer-manufacturer. The producers’ net share on dealer rupee was Rs.69 per kilogram (92 per cent) for Kacholam and Rs.20 per kilogram (83.3 per cent) for Koduveli. The index of marketing efficiency was 11.5 for Kacholam and 7 for Koduveli. The analysis of marketing efficiency revealed that the efficiency of marketing of Kacholam was higher when compared to Koduveli. Non availability of good materials in sufficient quantities, unawareness of farmers about their cultivation, high post-harvest losses and unorganized trade are the main constraints encountered in medicinal plant cultivation.ThesisItem Open Access Income savings and capital formation in farm households of Kodakara development block(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 1996) Prema, A; KAU; Thomas, E KThe present investigation on income, savings and capital formation in farm households of Kodakara development block was undertaken during the agricultural year 1994-95. The study aimed at analyzing the various sources and amounts of income, estimating the costs and associated variables influencing the income and savings pattern, to assess the capital output ratio on farms and to identify the constraints influencing capital formation. Data for the study was generated through a sample survey of 120 farm households. Three stage random sampling was adopted for the study. Suitable statistical techniques were employed in the analysis of data. The average income of the sample households worked out to Rs.39019.30 of which 27.60 per cent was from farm income and 72.40 was contributed by non farm income. Farm income comprised of income from crop (78.05 %), livestock (20.00 %) and others like sale of farm assets etc. (1.95 %). Services (88.55 %) and business (10.07 %) contributed to the non-farm income of the households. Gross farm income, farm business income, family labour income and net income were Rs.16061.20, Rs.9368.85, Rs.7890.70 and Rs.8743.55 respectively. The benefit –cost ratio of the farms worked out to 1.79 and the capital output ratio was 3.08. Average expenditure of farm households was Rs.29507.70 of which crops accounted for 22.70 per cent, livestock 10.50 per cent and consumption 64.80 per cent. Food items accounted for 69.05 per cent of the consumption expenditure of farm households and it was observed that as the farm size and family size increased, the percentage expenditure on food decreased. The disparity in non-farm income was observed to be higher than the disparity in farm income and it decreased with increase in farm size. The saving pattern showed that 81.67 per cent, 67.5%, 56.87 per cent, 35.83 per cent and 76.07 per cent of the farm households had accounts (transaction with) in co-operatives, commercial banks, post offices, LIC, kurries and chitties. Savings of sample household amounted to Rs.9511.60 which was 24.40 per cent of the total income. Path analysis identified non-farm income, net farm income and family expenditure as the three important variables with substantial direct effect on savings. The asset structure of the sample farm households showed that land was the major item of asset. If land, residential building and household durables were excluded, wells and tanks followed by livestock occupied the major portion of his asset. Purchase of irrigation appliances and livestock were the major item of capital formation in the farms. The rate of capital formation increased as the farm size increased. High consumption expenditure, followed by non-availability of labour and high wage rate were perceived by the respondents as the important constraints to capital formation in the study area. High price of inputs followed by low product price formed the fourth and fifth important constraints. Unemployment of educated youth and lack of irrigation facilities were also remarked as constraints to capital formation.ThesisItem Open Access Orchid and anthurium industry in Kerala -A study of homescale units(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 1999) Prakash Kumar Karn; KAU; Indira Devi, POrchid and anthurium are identified as the most important flowers with commercial potential suitable for the state. Present study was aimed to investigate the economics of commercial production and marketing of orchid and anthurium in Kerala and to identify the constraints and analyze future prospects of these two crops in the State. The study was conducted with a sample of 80 growers for each crop. Percentage analysis and capital productivity analysis were used to analyze the data. Orchid and anthurium growing units have been studied across three scales of operation, viz., small (upto 500 plants: G-I), medium (500 to 1000 plants: G-II) and large (above 1000 plants: G-I1I) for a standard of 100 plants in each categories. 1. Orchid Total cost of cultivation for five years was estimated to be Rs. 17,471 of which about 57.28 per cent was the establishment cost. Per unit cost of cultivation is found increasing towards smaller scale of operation. The total return realized over crop life is found to be about Rs. 36,088. Higher returns were realized from larger scale of operation - varying from Rs. 33,240 to Rs. 40,060. The estimated project worth parameters were well above acceptance level in all the groups. On an average, pay back period was estimated as three years, net present value as Rs. 9,345, benefit cost ratio as 1.61 and the internal rate of return as 39 per cent. 2. Anthurium. Per unit cost of cultivation of anthurium was little higher than that of orchid and showed similar cost structure and increasing pattern towards smaller groups. Total cost of cultivation for five years was estimated to be Rs. 19,153, about 57.28 per cent of which was the establishment cost. The total return realized over crop life was found to be Rs. 46,236. It varied from Rs. 43,474 to Rs. 53,037 in different scales of operation. The pay back period of anthurium enterprise was also estimated to be between two and three years, net present worth as Rs. 13,767, benefit . cost ratio as 1.82 and internal rate of return as 43 per cent. Capital productivity analysis of orchid and anthurium showed both the enterprises to be profitable at all the levels (scale of operation), however, larger units were seen comparatively more efficient and profitable than smaller ones. In both orchid and anthurium, on an average, female labour force contributed about two-third of the tota1labour use. Proportions of female labour as well as family labour were found higher towards smaller scale of operation. Sensitivity analysis revealed that orchid and anthurium farming are capable of remaining profitable even if the costs increase by 20 per cent. A decline of 20 per cent in benefits turned the smallest sized group (G-I) of orchid uneconomic, though all other groups in both flower crops performed well. A decline in benefit is observed to have more adverse influence on project worthiness of both the crops than increase in costs by same percentage. Marketing of both the flowers was almost similar as they were usually sold together. Out of four marketing channels identified, the most important one was "Producer ---+ Local florist ---+ Consumers", through which bulk of the produce moved. The most significant problem faced by orchid and anthurium growers, especially smaller sized units, was irregular market for their products. High level of intra-farm varietal diversity resulted in non- uniform flowers which are in inadequate quantity. Effective production planning and marketing management are the key sectors of development.ThesisItem Open Access Rural unemployment in Palakkad district(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 1998) Pradeep, K S; KAU; Radhakrishnan, VThe study was carried out in Palakkad district during the agricultural year 1994-95 to assess the magnitude of unemployment of various types and to bring out a detailed socio-economic profile of the unemployed. Data for the study was generated through a sample survey using multistage random sampling technique. Suitable statistical techniques were employed in the analysis of data. The economic status of family members indicated that the maximum number of earners per household was in Alathur taluk which was 3.2 per cent and the least in Ottappalam taluk which was only 2.7 per cent. It was found that 64.67 per cent of the total population was the potential labour force and 85.26 per cent of the potential labour force were working. The labour force participation rate was 92.90 per cent and 77.33 per cent for males and females respectively. The occupational status of working population revealed that about 60 per cent of the total working labour force had agriculture as their primary occupation. It was also revealed that 69.40 per cent of the working population had one or other type of secondary activity. The results on the kind and extent of unemployment showed that 14.95 per cent of the total labour force were unemployed and this ranged from 7.8 per cent in males to 22.67 per cent in females. Results on underemployment showed that the underemployment was highest among female cultivators which accounted to 212.27 days and the lowest among males in trade and commerce which was only 1.96 days. The results on seasonal unemployment revealed that cultivators, agricultural labourers and those in construction industries were affected by this. The study also revealed that the real problem in rural area is not one of unemployment but of underemployment and the main cause of this underemployment is the seasonal nature of agriculture.ThesisItem Open Access Institutional credit supply and repayment behaviour of farmers in Kerala: a policy persepective(Division of Agricultural Economics, I A R I, New Delhi, 1998) Sathees Babu, K; KAU; Singh, R PCapital has been one of the most limiting factors in crop production in India. Hence, institutional credit was evolved in India from the angle of liberating farmers from the clutches of private moneylenders by providing cheap, adequate and timely source of credit. With the advent of the high- yielding varieties programme, credit was expected to play the role Of production enhancement through the adoption of the modern technology. The credit policy in India had given special emphasis in giving preference to the small and marginal farmers and agricultural labourers in providing institutional credit. Kerala ranked first among the Indian states with regards to the growth in the flow of production credit. However, the increased flow of institutional credit at concessional rates was accompanied by many related issues such as inadequacy, misutilization and diversion of loan, lack of timeliness in credit delivery and high credit transaction costs. The mounting overdues level of the credit institutions has been a matter of growing concern, which has directly or indirectly influenced the repayment behaviour of the borrowers. It is in this context that the present study attempted to examine the institutional credit supply and repayment behaviour of farmers in Kerala. The specific objectives of the study were : 1. to examine the growth in credit institutions, their disbursement and recovery performance in Kerala 2. to study the economic characteristics of the borrowers and the extent of their credit need in crop production 3. to examine the pattern of credit supply, timeliness. repayment behaviour and overdues of the borrowers. and 4. to identify the factors influencing the overdues in order to screen the potential defaulters and suggest suitable policy prescription. Kottayam district in Kerala was purposively selected for the study because he district topped in the institutional credit disbursal to agriculture. Among the eleven blocks in the district, Madappally block was chosen for detailed investigation because of the higher target, achievement and credit absorption capacity with regards to crop loans. Finally, a cluster of four villages, viz., Changanasserry. Madappally, Trikkodithanurn and Vazhappally were selected based on concentration of lending, and a total of 160 crop loan borrowers were selected by stratified random sampling. Primary as well as secondary data were used for examining the objectives of the study. The time series data on agency-wise disbursal of credit to agriculture was collected from the State Level Bankers' Committee, Trivandrum to study the growth in the functioning of the credit institutions in the state. Primary data on the various aspects of credit at the household level were collected through personal interview of the sample respondents with the help of a pre-tested, structured survey schedule. The secondary data pertained to the period from 1985-86 to 1996-97. The primary data pertained to the agricultural year 1996-97. The economic characteristics of the borrowers like farm size and family composition, educational status. size group status, farming status, investment pattern on capital assets, cropping pattern, working capital requirements, gross income, gross margin and overdues level were examined by tabular analysis. Compound growth rates were worked out in nominal as well as real terms to study the growth in the functioning of the credit institutions in terms of number, deposits, advances and recovery levels. Production function analysis was carried out, using the Cobb-Douglas production function, to analyse the resources productivity among the various borrower groups and their allocative efficiencies were compared. Frequency distribution analysis was carried out to quantify the farmers' perception to different dimensions of credit. The factors influencing the repayment behaviour of crop loan borrowers were examined using a logit model based on logistic cumulative distribution function. Growth in Credit Institutions, Disbursement and Recovery Performance in Kerala The commercial banks were the major purveyors of agricultural credit in Kerala, accounting for more than half of the total credit disbursed to the farm sector. They could achieve a high growth rate in deposit mobilisation and credit delivery through the proliferation of their branches in the state during the eighties and the early nineties. On the other hand, the growth in lending by the cooperatives appeared to be less attractive than that of other financial institutions. The relative share of the cooperatives in agricultural lending has been declining over the years. This amounted to a role reversal considering the major role visualised for the cooperatives in the multi-agency credit prpgramme in rural lending. The inter-regional and inter-temporal variations in the flow of all forms of institutional• credit, resulted in regional imbalances in credit delivery. Inter-regional differences existed in credit deepening also. Eventhough the state received a high credit receipt of Rs. 2027 per hectare of cropped area, only the districts of Kottayam, Alappuzha, Idukki, Ernakulam, Palakkad, Kozhikkode, Wayanad and Kollam experienced credit deepening in real terms. The recovery of overdues to demand has been fluctuating from year to year. On an average, the financial institutions in the state had an overdues of 23 per cent to demand, with a loan recovery rate of 77 per cent. The recovery performance of the PACSs were better (79 per cent) than that of the commercial banks and regional rural banks (68 per cent) on account of the peer group pressure exerted by their democratic mode of management. Economic Characteristics of the Borrowers and the Extent of Their Credit Need in Crop Production There was not much pronounced variation in the size of family, gender composition, experience in farming, educational status, size group composition and cropping intensity among the defaulter and non-defaulter group of farmers. However, the average size of operational holdings, share of irrigated area, share of cash crops in the cropping pattern, investment on fixed assets, and intensity of modern input use of the non-defaulter borrowers were higher than that of the defaulter borrowers. The resource productivity varied widely among the borrower groups. Production of major crops like paddy, coconut, banana and rubber were labour intensive, and they utilised the labour resource more productively. The better managerial skills of the non-defaulter borrowers helped them in harnessing higher yield and thereby higher gross profit. They depended more on agriculture for the gross income (69 and 51 percentage of shares respectively), and hence placed more importance on maintaining better customer relationship with the credit institutions. On an average, 88 per cent of the non-defaulter borrowers were the small and marginal farmers while 94 per cent of the defaulter borrowers formed small and marginal farmers. It amply illustrated the free access of small and marginal farmers to institutional form of credit, thereby indicating the effectiveness of the agricultural credit policy that placed greater thrust on progressive improvement in accessibility of credit and inputs to the small and marginal farmers. However, the estimation of the working capital requirement and comparison with the scale of finance showed that it fell short of the credit needs of the farmers, particularly that of the small and marginal farmers. It underlined the need for working out the scale of finance in a more realistic and scientific manner, keeping the production requirements of the farmers in the area. Pattern of Credit Supply, Timeliness, Repayment Behaviour and Overdues of the Borrowers The analysis of the pattern of credit supply showed that not only the scale of finance was inadequate with respect to the credit needs of the borrowers, there was widespread credit rationing practised by both commercial banks and PACSs from the level of approved scale of finance as well. This led to acute shortage in working funds among all the categories of borrowers who were driven to the private moneylenders to meet the shortfalls. Thus, the basic objective of providing institutional credit to wean away the cultivators from the clutches of village moneylenders was defeated. While 10 per cent of the non-defaulters depended on non-institutional sources of fund to meet the short fall caused by credit rationing, it was as high as 35 per cent in the case of defaulters. Another interesting finding that emerged out of the analysis was the disbursal of kind components in proportions lower than the norm prescribed by the scale of finance. There was considerable delay in the disbursal of credit to the farmers by all sources of institutional credit to the farmers. However, the delay was more pronounced in the case of cooperative lending. It resulted in agricultural illusion among the borrowers, who indulged in the diversion of loan availed for agricultural production at concessional rate of interest for other non-productive purposes. The extent of diversion was more in the case of defaulters than the non- defaulters. The credit acquisition cost of the defaulters were also higher than that of the non-defaulters. The defaulters had to spend nearly Rs. 15/- for transacting Rs. 100/- as loan while the non-defaulters could transact a loan amount of Rs. 100 for Rs. 13/-. The commercial banks could ensure credit to its borrowers at a lower credit transaction cost than the cooperatives. The cooperatives could not dispense cheaper loans to its member borrowers in spite of their interest subsidy facility. The repayment obligation of the non-defaulter borrowers were higher than that of the defaulters, indicating the higher volume of credit made available to them. They could generate higher repayment capacity also, thereby having a higher financial surplus after debt servicing. The analysis also revealed that more than half of credit delinquency was due to wilful default. Among the factors perceived by the borrower farmers that influenced their non-repayment decision, crop failure and diversion of loan for non- productive purposes were the most important one. The agricultural debt relief scheme, 1989 had given an impression of similar loan write-offs in future also, thereby vitiating the recovery climate. Factors Influencing the Overdues and Screening the Potential Defaulters The analysis of the factors influencing the repayment behaviour of crop loan borrowers using logistic regression showed that the repayment behaviour of the borrowers were conditioned by a host of factors like operational expenses, per capita consumption expenditure, loan amount, amount diverted to non-productive uses and credit acquisition cost. There were differences in the economic characteristics and their relative importance in influencing the repayment behaviour among the borrowers of commercial banks and cooperatives. Higher share of cash crops in the cropping pattern resulted in better recovery of commercial bank loans whereas the experience in institutional credit, loan amount diverted for other purposes resulted in lower recovery. On the other hand, the per capita consumption expenditure resulted in better recovery of cooperative credit. Higher credit acquisition cost, more delay in credit delivery, more advanced age and more educational status contributed to lower repayment of cooperative loans. The farmers perception of improving the recovery performance of credit institutions also showed that there were differences in the factors influencing the repayment behaviour of borrowers of commercial bank and PACSs. The borrowers of PACSs viewed that timeliness in credit disbursal, l.V":' followed by the adequacy of loan amount and lower interest rates were the more important factors influencing their repayment decision. The borrowers of commercial banks, on the other hand perceived that the adequacy of loan amount, followed by the timeliness in credit supply and proper supervision of loans improved the recovery performance. Rigid formalities in credit transaction was the most important limiting factor faced by borrowers while dealing with the financial institutions. Cumbersome procedures and pre-occupation with paper works were other factors that made the agricultural banking less customer-friendly to the borrower farmers. Policy Implications Based on the insights provided by the study, the following policy measures are being suggested that could make the crop loan scheme more efficient and meaningful. Firstly, in view of the regional imbalances in credit delivery, concerted efforts are required to reduce the regional imbalances in credit delivery in the different districts of the state. Secondly, the cooperatives played only a supplementary role to the commercial banks in credit dispensation to the agricultural sector. Keeping in view of the democratic nature of cooperative credit, they are to be revitalised and geared to play the major role in the multi-agency approach in agricultural finance. Thirdly, the small and marginal farmers were receiving inadequate credit matching to their credit requirement. Policy interventions are needed to correct credit gaps so created. Scale of finance shall also be evolved in a more realistic and scientific manner to meet the credit needs of the farmers, particularly that of the small and marginal size groups adequately. Fourthly, credit rationing practiced by the financial institution defeated the very purpose of weaning the farmers away from the clutches of village moneylenders. Hence, policy perspectives need to be farmed to overcome this pitfall. Fifthly, considering the higher incidence of diversion of production credit to non-productive purposes, effective supervision and followup of loans are needed to keep agricultural illusion at minimal levels. Lastly, the practices and procedures followed by the financial institutions were cumbersome and rigid. It needs simplification to offer more customer –friendly banking facilities to the farmer borrowers.
