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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
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
Socio-economic vulnerability and adaptive strategies to environmental risk: a case study of water scarcity in agriculture
(Department of agricultural economics, College of horticulture, Vellanikkara, 2012) Rinu T, Varghese; KAU; Indira Devi, P
Water stress is predicted as one of the most pronounced risk of climate change in countries like India. Kerala is reported as moving from wetness to dryness. Management of risks of climate change necessitates scientific estimates of the level of potential damage, accommodating for the vulnerability and adaptive mechanisms of the communities. The study entitled ‘Socio-Economic Vulnerability and Adaptive Strategies to Environmental Risk: A Case Study of Water Scarcity in Agriculture’ was undertaken with the objectives of measuring farmers’ vulnerability to water stress in agriculture and its impact on household welfare and to identify and assess the relative influence of various factors on the level of vulnerability. Further, short term and long term adaptive strategies to water stress among farmers of different socioeconomic conditions were also analysed. The most backward district of the state of Kerala, Wayanad was selected as the study area. Multistage random sampling method was adopted for sample selection. Nine panchayats from four Community Development Blocks were selected, from each of which, 15 farmers were selected. Thus the total sample size was 135. Primary data regarding the socio-economic status, land use pattern and production, sources of water for domestic use and irrigation, perceptions and adaptive strategies to water scarcity were gathered using pretested interview schedule. Indicator based approach was used for constructing the composite vulnerability index to assess the vulnerability level of the farmers. Logit model was employed to identify the factors influencing vulnerability. Apart from these, conventional tabular analysis was also used. The cropping pattern in Wayanad shows a clear shift in favour of commercial crops like arecanut, banana and rubber. The conversion of paddy lands for these crops was to the tune of 41 per cent during the last decade. The area under pepper shows a decline (54 %) and that of other commercial crops show an increase. Among other reasons, climate change is perceived as one of the major reasons for this decision by the farmers. The analysis of weather parameters and climate predictions for Wayanad also supports the farmer level observation. The rainfall and temperature pattern of the district during past years indicate an increasing level of water stress. Climate change models project very high variation in the rainfall pattern of the district in future years. An increase in the average annual rainfall coupled with lower levels of summer showers are predicted. By 2020, summer showers may decline to 43.6 mm as against the present, 70 mm. High intensity rains with low duration will be the major characteristic. A gradual increase in annual temperature by about 1.5ºC is also predicted. In this background, a composite vulnerability index considering social, economical and agronomic factors of the farmers was constructed to measure the vulnerability. More than 50 per cent of farmers were highly vulnerable and the proportion of the farmers in that group was found to be increasing during the past five years. An inverse relationship was observed between the land holding size and vulnerability level, three- fourth of the marginal farmers were vulnerable while most of the small and large farmers (41.27 % and 34.78 % respectively) belonged to the other group. Thavinjal panchayat of Manathavady block was found to be the most vulnerable and Muppainad and Vythiri panchayats of Kalpetta block were found to be the least vulnerable. The results of the logit model shows that five out of eight factors viz. diversity index, cropping intensity, percentage of irrigated area to total cropped area, net cropped area and education as having significant influence on the probability of an agricultural household being vulnerable, of which the diversity index and cropping diversity are the most influential factors. Farmers often have their own adaptive mechanism to cope with the water stress condition within the constraints. In general, adaptation strategies followed in domestic and agricultural sector can be classified into supply management strategies and demand regulating strategies or long term and short term strategies. The supply management programme includes those activities which ensure the steady supply of water and the demand side management mainly focus on more efficient use of available water resources and improving water resources. Among the respondents, a gradual shift from the dependence on external sources of water to owned sources has occurred. The dependence on external sources increases the time spent and drudgery of women folk in such households. Common adaptation strategies followed by the farmers include irrigation, varietal selection, mixed cropping, crop diversification, organic farming, soil and water conservation measures (mulching, earthen bunds and rain pits) and migration (geographical and sectoral). About 39 percent of the sample respondents were adopting irrigated farming and the average expenditure was found to be Rs 18187 per household which is nearly nine percent of the total household income. Only a few farmers were adopting micro-irrigation methods because of its high investment. This cost of adaptation, further reduces their consumption expenditure leading to household welfare loss. The study suggests research interventions in developing a sustainable cropping pattern and scientific validation with location specific studies on the impact of climate change on major crops. The need for empowering the farmers through technology, infrastructure, financial and extension support to adapt to water stress is also underlined. It highlights the importance of water resource development and the need for identifying the constraints in the adoption and develop/modify the technologies to suit local conditions. Further the implementation of weather based crop insurance programmes with localised meteorological stations as reference points is also stressed.
Open Access
Price behaviour of turmeric in India
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2011) Jyothi, T; KAU; Jesy Thomas, K
The present study on the "Price behaviour of turmeric in India" was undertaken with the specific objective of investigating the secular trend, seasonality, cyclical and irregular movements in the price of turmeric in India and to evolve a reliable price forecasting model for turmeric.' The study was conducted during the year 2010-11 with reference to three major markets in the country viz., Kochi, Nizamabad and Erode markets employing secondary data. With reference to CGR of area, production and productivity of turmeric at All- India level, compared to pre- WTO regime, the rate of growth in area and productivity of turmeric showed declining trend during post- WTO regime and hence, growth rate in production also showed declining trend. Both in Kerala and Andhra Pradesh, the crop has not received due attention during post- WTO regime compared to pre- WTO regime, as indicated by the declining trends in terms of area, production and productivity. However, in Tamil Nadu, the crop witnessed insignificant growth rates in terms of area, production and productivity of turmeric during both pre- WTO and post- WTO regimes. Despite slow growth in production of turmeric in the era of liberalized regime, India enjoyed favourable net trade position, as indicated by the significant positive growth rates in the exports of turmeric in terms of quantity, value and unit price compared to import scenario. Further, the instability in exports of turmeric declined during post- WTO regime compared to pre- WTO regime, as indicated by the fall in CV. However, there is much scope to increase the export prospects ofturmeric, as even today, India's export basket comprises of fresh produce only rather than processed products. This favourable net trade position is further confirmed by the low NPCsindicating that, India enjoys more export competitiveness for turmeric in the international market. Regarding price behaviour, the analysis based on single exponential method revealed that, in Kochi and Erode markets, turmeric prices showed greater degree of fluctuations up to September 2007 and the period beyond October, 2007 represents growth phase in turmeric prices. For turmeric (bulb) and turmeric (finger) in Nizamabad market, prices have not shown a specific trend, implying a greater degree of price volatality for these commodities. Market integration study was conducted considering the spot prices of turmeric at the selected markets by employing the Johansen multiple eo integration analysis. The two eo-integration equations were found to be significant at five per cent level, indicating that, the selected markets are having long run equilibrium relationship. Seasonal indices of turmeric prices computed through employing ratio to moving average method revealed that, the domestic prices of turmeric exhibited considerable seasonality in all the selected markets. The seasonal price behaviour further inferred that, it was almost similar among Kochi and Erode markets because of their proximity, while it was totally different for the Nizarnabad market, as it is distantly separated compared to the earlier two markets. Cyclical variations in turmeric prices are more pronounced in all the selected markets. In Kochi market, the length of the cycle lasted for about six years, seven years for turmeric bulb and finger prices in Nizamabad market and six to seven years in Erode market. Turmeric prices were subjected to considerable irregular variations and these are due to supply shocks on account of climatic variations or market shocks on account of demand shocks or high speculative factors. Different pnce forecasting methods were employed VlZ., double exponential smoothing (Nizamabad and Erode markets) and Winters' multiplicative method and Winters' additive method (Ko chi market) for price forecasting of turmeric during the months of March, April and May, 2011 and the findings revealed that, the modal prices of three months fall in the range of forecasted prices across all the markets indicating that, the price forecasts were reliable. The accuracy percentage of turmeric price forecast ranges from 90 to 99 per cent. The prices so forecasted across the markets are validated for the same period and the findings revealed that, the monthly modal prices of selected commodity fall within the range of predicted prices. The accuracy percentage of price forecast is above 90 for the reference commodity and this implies that the forecast is reliable in all the selected markets. Considering the above findings with reference to production and trading scenarios of turmeric, it is essential to formulate multi-pronged strategy such as strengthening R&D to develop and release HYV of turmeric and fine tune the crop production strategies with reference to different agro-ecological situations, strengthening processing, storage and market information network, effective implementation of Market Intervention Scheme, improving the acces:; of farmers towards futures markets to overcome price risk, quality enhancement of turmeric on the lines of SPS standards fixed by the importing countries, price forecasting to regulate area and production of turmeric in tune of its export prospects etc., so as to enhance both domestic and export competitiveness and to gain due share in the international market.
Open Access
Changing scenario of the cut flower industry in central Kerala - an economic analysis
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2011) Lisma, Steephan; KAU; Prema, A
Floriculture is fast emerging as a lucrative profession in the world scenario and is a potential money spinner for many countries. In terms of production, floriculture in the world is growing at an average rate of 10 per cent per year. Floriculture is a multi-crore industry in India which contributes 0.6 per cent to global floriculture trade. In 2009-10 the total area under floriculture was estimated to be 1,83,000 hectare with an estimated production of 1021 metric tonnes of loose flowers and about 6667 million numbers of cut flowers. Cut flowers like orchid and anthurium are identified as the most important flowers with commercial potential suitable for Kerala. The present study was done to investigate the economics of cut flower enterprises, marketing channel and marketing efficiency of cut flower trade and to identify the constraints of cut flower industry in Central Kerala. Orchid and anthurium were the major cut flowers included in the study. The study was conducted with a sample of 120 cut flower growers. Percentage analysis, ABC cost concept, Capital productivity analysis and Shepherd’s formula were used to analyze the data. Orchid and anthurium growing units have been studied across three scales of operation, viz., small (less than 500 plants: C-I), medium (500 to 1000 plants: C-II) and large (above 1000 plants: C-III) for a standard of 100 plants in each categories. Anthurium Per unit cost of cultivation of anthurium showed increasing pattern towards smaller groups. According to ABC cost concept cost of cultivation for five years for C-1, C-11 and C-111was estimated to be Rs. 15,164, Rs.11,486 and Rs.9,963 respectively. The establishment cost was found out to be Rs.13,116 (C-1), Rs.12,008 (C-11) and Rs.11,330 (C-111). Recurring cost ranged from Rs.2,500 in C-111 to Rs.6,315 in C-111. The total return realized over crop life varied from Rs.32,790 to Rs.41,152 in different scales of operation. The estimated project worth parameters were well above acceptance level in C-11 and C-111. Orchid According to ABC cost concept cost of cultivation for five years for C-1, C- 11 and C-111 was estimated to be Rs. 15,932, Rs.13,017 and Rs.11,199 respectively. The establishment cost was found out to be Rs.13,397 (C-1), Rs.12,607 (C-11) and Rs.13,092 (C-111). Recurring cost was Rs.2,450 in C-111, Rs.3,835 in C-11 and Rs.6,025 in C-1. Per unit cost of cultivation was found to be decreasing as the scale of operation increases. The total return realized over the economic life of the crop was found to Rs.27,640 in C-1, Rs.30,461 in C-11 and Rs.35,474 in C-111.Higher returns were realized from larger units. The estimated project worth parameters were well above acceptance level in all the categories. Capital productivity analysis of orchid and anthurium showed that larger units were seen comparatively more efficient and profitable than smaller ones. In anthurium cultivation only family labour was utilized for all operations in three scales of operation. But in case of orchid, hired labour was employed for potting and planting in C-111. Marketing channels and efficiency Six marketing channels were identified for anthurium. The direct channel i.e. Producer Consumer was found to be more efficient. Out of the three marketing channels identified for orchid, Producer Local florists’ Consumer was identified as the most efficient channel. Constraints in cut flower trade The most serious problem faced by orchid and anthurium growers, especially smaller sized units, was low market price for their products. Irregular markets followed by delay in getting sale proceeds were identified as the other major constraints faced by the growers. Short supply of flowers, lack of government support, lack of storage facilities etc. were the major problems faced by cut flower traders. Effective production planning and marketing management were identified as the key factors for the development of the sector.
Open Access
Export and price behaviour of cashewnut in India
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2012) Jeethu M, Gopalan; KAU; Jesy Thomas, K
India among the 28 other cashew growing countries is the largest area holder (9.53 lakh ha), processor and importer of cashewnuts. India holds a major share of around 54 percent in the global trade from 21 percent of its cashew area. The Indian cashew industry, apart from being a prominent national exchequer, provides sustainable employment opportunities to 5.5 lakh workers annually, mostly women. As any violent price fluctuations can have adverse effects on the industry, reliable price information is an urgent need for all stakeholders. Hence, the present study “Export and price behaviour of cashewnut in India” was taken up with the objective of analyzing the export and price behaviour of cashew in India and evolving a reliable price forecasting model for cashew kernel prices in the domestic (Kollam) and international (London) markets. The study was conducted based on the secondary data published by various institutions. The Compound Growth Rate (CGR) and the trend indices for the post liberalization period (1993-2011) indicated that area under cashew has been steadily increasing but production and productivity showed wide fluctuations in certain years. During the study period, Kerala registered negative growth rates in area, production and productivity because farmers have shifted to more remunerative crops like rubber. The CGR analysis of cashew trade in the pre and post-liberalisation periods revealed that exports of cashew kernels and import of raw nuts fell in the post-liberalization periods. But export of CNSL rapidly grew in the post-liberalisation period indicating its versatile need as raw-material in many industries. An analysis of the net export earnings revealed that earnings have been falling since 2000 stressing the need to boost Indian cashew production to meet the export requirement. The price behaviour of cashew kernels was studied using the techniques of classical decomposition of time series analysis. The monthly average price data on cashew kernels in domestic (Kollam) and international (London) markets were decomposed in to its four components viz., secular trend, seasonal, cyclical and irregular variations. The analysis showed that the cashew kernel prices in both domestic and international markets widely fluctuated during the period 1999 to 2009 February after which an increasing trend in prices was noticed. The prices of cashew kernels in both markets generally increased from 2009 onwards due to global supply constraints but the prices in the domestic market abruptly fell in 2011 July. Seasonal indices revealed that the buoyant phase was observed during June to July with the highest price index in July and the trough period was observed during March to April with the lowest index in the month of April. In the international market, the buoyant phase was observed during June to August with the peak price in August and the trough period was observed from February to May. The cyclical indices for the international and domestic markets showed that no price cycles could be identified in prices for both markets. The irregular indices revealed that there were considerable irregular variations in cashew prices in both the markets. The instability in cashew prices was studied using the coefficient of variation (CV) which was 23.87 per cent for domestic market and 26.46 per cent for international market. The export competitiveness of Indian cashew kernels was measured using NPC under exportable hypothesis. The mean NPC value for the period was 1.02, which is slightly more than unity indicating that the commodity was not export competitive as a whole but a trend towards gain in export competitiveness from 2008 was noticed. Various price forecasting models viz., moving average, single exponential smoothing, double exponential smoothing, ANN and ARIMA models were tried to develop a reliable price forecasting model for cashew kernel prices in both domestic (Kollam) and international (London) markets. While ARIMA model proved to be the best in predicting international kernel prices, no model could suitably forecast the prices in the domestic market. The market integration studies using the co integration technique showed that both domestic and international markets were integrated. The pair wise Granger Causality test indicated that there was influence of domestic kernel prices on international kernel prices and not vice versa. This result is of utmost importance as cashew kernels from Kerala sets the benchmark quality in the world market. Even though India is the largest area-holder under cashew, it lags behind in productivity. Development of new technology and their efficient transfer holds the key to increase productivity and become self-sufficient in raw nut production. More efforts need to be taken to improve cashew plantations in non-traditional areas like West Bengal and other north-eastern states which has contributed to 3 lakh MT of the total cashew production in 2010-11. By maintaining quality standards, India can remain a major player in the export scenario.
Open Access
Access to institutional credit-an economic analysis of tenant farming in east Godavari district of Andhra Pradesh
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2012) Haritha, Chitturi; KAU; Satheesh Babu, K
The formal financial system plays an important role in financing the needs of the agricultural sector in India. In order to facilitate timely and adequate credit flow to agriculture, the sector has been targeted as a part of the priority sector for the lending programmes in 1969 with an emphasis on ‘social banking’. Domestic commercial banks have been directed to allocate 18 per cent of net bank credit to agriculture and allied activities. The directed credit programme has clearly resulted in a significant increase in the amount of credit allocated to agriculture over the years. According to the Reserve Bank of India, an amount of Rs.4,76,550 crores was pumped into the agricultural sector as institutional credit as on 31-03-2012 against a target of Rs.4,75,550. However, the increased amount of agricultural credit and its outreach over the years are accompanied by several qualitative issues like timeliness, adequacy, cost and access. Inclusive financing, ie., the delivery of financial services at affordable costs to sections of disadvantaged and low income segments of the society on par with access to any public good needs more scrutiny as banks look into the total quantity of credit disbursed in a financial year only. The growing spectra of financial exclusion in agriculture, providing livelihood to more than two third of our population, particularly of small and marginal holders, and tenant farmers merit more attention in this context. The inability to offer collaterals stands between them and the institutions despite many state initiatives. The present study entitled “Access to institutional credit: An economic analysis of tenant farming in East Godavari District of Andhra Pradesh” was carried against this background with the specific objective of investigating the operational problems faced by both the tenants and bankers in credit delivery, and to suggest policy fine tuning to overcome the bottlenecks. According to the Andhra Pradesh (Andhra area) tenancy act, 1956, tenancy is permitted in the state, but it is regulated. Informal tenancy system was very prevalent in the district of East Godavari and it covered nearly 50 to 60 per cent of the cultivated area. The total operating expenses on rabi paddy was found to be higher (Rs.49510/ha) on leased land as compared to the owned land (Rs. 40926/ha). This difference was accounted due to higher level of input use on leased land, besides the cost incurred towards paying rent (Rs. 7776/ha) to the land owner. Also, the scale of finance (Rs. 41990/ha) was found to be inadequate in meeting the working expenses of a tenant farmer, while it was sufficient in case of owner cultivated lands. Even though the gross income realized from the leased land was higher than that of owned land, the gross margin of the tenant cultivator was found to be relatively low. This was due to the additional costs incurred by the tenant farmer towards the land rent. The subsidies provided by the Government could not be availed in full by the tenant cultivators. Hence, the tenant farmers usually borrowed farm inputs from the input dealers and village traders who exploited them by charging high prices for the inputs advanced. Due to their indebtedness towards the moneylenders and village traders, the farmers resorted to distress sales at low prices at the village market itself. The Government interventions in marketing of the produce were found to be inefficient. Non availability of institutional credit and the high interest rate charged by the money lenders were the two major constraints experienced by the tenant farmers. The moneylenders exploited the tenant farmers by charging usurious rates of interest which varied from 24 per cent to 32 per cent. The scheme of financing tenant farmers through Joint Liability Groups (JLGs), introduced by National Bank for Agriculture and Rural Development (NABARD) was not successfully implemented in the study area. The logit regression analysis illustrated that the scheme of LEC introduced by the Andhra Pradesh Loan and Allied Benefits Eligibility Card (for permissive cultivation) Act was successful in providing formal credit to the tenant farmers. The possession of Loan Eligibility Card by the tenant farmers was found to be the most significant determinant in accessing credit from institutional sources. These cards enabled the tenant cultivators to access credit from public financial institutions and to claim input subsidy, crop insurance and compensation for damages to crop. Co-operatives were the agencies to implement the LEC scheme in a better way and advanced credit to the tenant farmers without any demand of collateral security due to more government support and political will. The other formal institutions like commercial banks and Regional Rural Banks (RRBs) were reluctant to implement the scheme due to the complicated documentation procedures involved in credit delivery to tenant farmers. Based on the findings of the study, policy measures like government intervention to strengthen the marketing system, credit linked marketing facilities, fixing realistic scale of finance with due considerations for the fair rent component, group initiatives in production and marketing, the universalisation of loan eligibility card, and simplification of bank procedures are being suggested.
Open Access
Economic analysis of production and marketing of organic vegetables in Wayanad District
(Department of Agricultural Economics, College of Agriculture, Vellayani, 2014) Gurram, Jayanth Reddy; KAU; Paul Lazarus, T
The research entitled "Economic analysis of production and marketing of organic vegetables in Wayanad district'' was conducted in Sultan Bathery block of Wayanad district. The research was undertaken with the objective to study the economics of organic vegetable production, consumer preference and marketing of organic vegetables in Wayanad district. Cost of cultivation was worked out using A B C cost concepts. The crops selected for study were yard long bean and bitter gourd. The cost of production of both crops was worked out. Resource use efficiency was carried out using Cobb- Douglas production function. For organic yard long bean, cost A was Rs 1,50,277 ha-1. Cost B1, B2, C1, C2 and C3 were Rs 1,82,078 ha-1, Rs 4,68,975 ha-1, Rs 2,50,413 ha-1, Rs 5,37,311 ha-1 and Rs 5,91,042 ha-1. For conventional yard long bean crop, cost A was Rs 1, 46,277 ha-1. Cost B1, B2, C1, C2 and C3 were Rs 1,63,255 ha-1, Rs 3,75,334 ha-1, Rs 2,16,556 ha-1, Rs 4,28,635 ha-1and Rs 4,71,498 ha-1. For organic bitter gourd, cost A was Rs 1,59,077 ha-1. Cost B1, B2, C1, C2, and C3 were Rs 2,03,570 ha-1, Rs 6,07,172 ha-1, Rs 3,10,403 ha-1, Rs 7,14,004 ha-1 and Rs 7,85,405 ha-1 respectively. For conventional bitter gourd crop, cost A was Rs. 2,04,964 ha-1. Cost B1, B2, C1, C2 and C3 were Rs 2,43,709 ha-1, Rs. 7,27,684 ha-1, Rs. 3,87,940 ha-1, Rs. 8,71,914 ha-1 and Rs 9,59,106ha-1 respectively. The B-C ratio of organic yard long bean and bitter gourd were 2.02 and 1.15, for conventional yard long bean and bitter gourd it was 1.68 and 0.95. Consumer preference towards organic vegetables was studied by carrying an opinion survey. Seventy three per cent of the consumers prefer organic vegetables due to health oriented motives. Six major marketing channels used by the farmers for marketing of their produce were identified. Recently, organic farmers were using fair trade centres as a new channel for the marketing their produce. Organic farming can be practised in the future with the government support of creating special market for organic producers with a premium price which helps in promoting organic farming.

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