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Open Access
Economic valuation of mangrove ecosystems in Kerala
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2013) Hema, M; KAU; Indira Devi, P.
Mangroves are invaluable treasure o f our biodiversity with immense ecological and economic significance. But mangroves wealth of the world is depleting at an annual rate of -0. 34 per cent. Mangroves in Kerala, constitute 0.3 per cent o f that in India, is reported to be high in species diversity. The available reports indicate the depleting status o f the ecosystem in Kerala too. The socio-economic and ecological significance o f this ecosystem is to be studied in detail for assisting policy decisions when confronted with the conservation-development debate. This study was undertaken in this background. The study identified the stakeholders o f mangrove ecosystems o f Kerala and quantified the level o f dependence o f local communities for their livelihood and estimated the aggregate demand for products and services. Further, it identified and quantified the relative influence o f socioeconomic, institutional, climatic and anthropogenic forces on the destruction of mangroves and finally assessed the Total Economic Value (TEV) o f mangrove system and suggested policy prescriptions for the conservation and management of mangroves in Kerala. The study was conducted in the mangrove areas o f Emakulam and Kannur districts of Kerala. These two districts accounted for nearly 65 per cent o f the mangroves o f the state. The study was based on primary and secondary data. The primary data was gathered from 480 respondents belonging to four identified stakeholder groups (residents, fishermen, paddy farmers and general public), selected through simple random sampling method. Data was collected through personal interview using structured pretested interview schedule along with direct observation. The major tools of data analysis were Contingent Valuation Method (CVM) and Choice experiment. The data collection was conducted during June 2012 to January 2013. I Four stakeholder groups o f the mangrove ecosystem in the study area were residents living close to mangroves (<1 km from mangroves), fishermen (inland fishermen and women, engaged in shell mining and clam collection, shrimp farmers), paddy farmers (Pokkali and Kaippad) and general public (resides away from the mangroves). The residents were depending on the mangroves for extraction o f fuel wood, fodder and poles. On an average the level o f extraction was 307 kg o f fuel wood, 1024 kg of fodder and 14(no.) o f poles per year valued at X 4628/household. This amounted to 3 per cent o f their annual household income. The major species o f fish catch by the fishermen were Etroplus, shrimp, crab and Tilapia which was quantified at 1553 kg/ year valued at X 1,41,045. Shell mining which was found to be a major economic activity in Kannur region could generate an income of X 30,000/annum through the extraction and sale o f 7500 kg o f shells. Clam collected was quantified at 225 kg/year valued at X 5625. Thus, the average gross income from these activities was estimated at X 1,77,164 per year which was the main source o f income for the household. About 8 per cent of the fishermen were involved in shrimp farming and were mainly from Kannur district. The size o f the farm varied from 0.4 to 2 ha. The input cost/ha was X 2.8 lakhs which includes cost o f seed, feed, lime and water management. Labour cost was estimated at X 77,000. Hence total cost and returns o f shrimp farming/ha was X 3.27 and 4.75 lakhs respectively with net income o f ? 1.48 lakhs. Pokkali and Kaippad agricultural systems are proved to be closely interconnected with the:.mangrove ecosystem and the per hectare gross returns was X 60,007 and X 40,935 respectively. This amounted to average 30 per cent o f their household income. The respondents’ perception on the pattern of change and the major factors that effected the change in mangrove ecosystem was studied based on their responses. 46 per cent o f the respondents were o f the opinion that the mangrove ecosystem has declined over years and facing threat. The major factors responsible for the same were reported as anthropogenic, climatic forces and status o f property rights. The 11 developmental interventions like LNG Petronet Terminal, Puthuvypeen and ICTT Vallarpadam has resulted in large scale conversion o f mangrove areas. The contradictory forces o f development and conservation led to destruction of mangrove ecosystem. One fifth respondents opined that climatic factors were responsible for the decline. Nearly 85 per cent of the mangroves in the state were reported to be under private ownership and rest under public. The property right status along with economic status influences the rate o f depletion. The legal interventions and community and institutional efforts also influence the status of mangroves, most often positively. The economic valuation of ecological benefits o f mangroves was attempted employing the Contingent Valuation Method. The respondents expressed their willingness to contribute towards conservation both in cash and kind (cash payment and manual participation as labour and as volunteer in awareness programmes) and in combination. The average WTP expressed by the respondents was f 2308/annum the range being ? 50-28,870. The TEV of the mangrove ecosystem of the state was thus ? 1,17,947 million, which was 0.14 per cent ofthe GSDP (2011-12). A socially preferred management plan was identified among a set of alternatives, employing the choice experiment method. Among the management options given, the stakeholders preferred community management (41.6%) followed by public management (29.2%) and status quo (21.4%). The community management of the mangrove ecosystem provides opportunity for the local community to participate in management decision process. At the same time, the importance o f public funding for such activities is revealed in the analysis. The study suggests initiating scientific attempts on realistic area estimation and mapping o f the mangrove resources in the state. There should be attempts to identify and classify the species and document the traditional wisdom associated with them. Region specific studies are needed to establish and quantify the extent of association between mangrove ecosystem and the livelihood activities of local communities. The TEV justifies the increased resources allocation for the conservation efforts. Further, the implementation of community management system as institutional form for mangrove management in the state is suggested.
Open Access
Price behaviour of natural rubber in India.
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2011) Reeja, Varghese; KAU; Satheesh Babu, K
Natural rubber, a product of vital commercial importance is recovered from the latex of the rubber tree, Hevea braziliensis. The present study entitled “Price behaviour of natural rubber in India” was conducted during 2010-11 based on the secondary data. The changes in area, production and productivity status of natural rubber in the world, India and Kerala were studied using the index numbers and compound growth rates. The compound growth rates in area, production and productivity of natural rubber in India were below the global growth rates, while that of Kerala was above the national level. India is emerging as the second largest consumer of natural rubber in the world. Consumption status of natural rubber in India showed that there is a growing deficit between domestic production and consumption of natural rubber in India. India was not a regular exporter of natural rubber, and therefore considerable fluctuations were observed in the export status depending on the domestic production level. The deficit in demand was met by imports. The import of natural rubber by Indian automobile industries grew annually by 12.37 per cent during the study period. The secular, seasonal, cyclical and irregular variations in rubber prices were studied using the techniques of classical decomposition of time series analysis. The trend in rubber prices in the domestic market at Kottayam and international market at Bangkok were captured by the single exponential smoothing model satisfactorily. The analysis showed that the RSS-4 prices in the Bangkok as well as the Kottayam markets were stagnant from January 1995 to April 2001, after which the prices showed an upward trend. The rubber prices were subjected to considerable seasonal variations due to the seasonality in production. In the international market, the peak price was observed in June and the trough price during the month of July, whereas in Kottayam market, the peak price was observed during May and the lowest price in the month of February. The rubber prices in the international as well as domestic markets were not subjected to pronounced price cycles. There were considerable irregular variations in rubber prices in both the markets. The rubber prices exhibited considerable instability in both the markets. Out of the different price forecasting models used to develop a reliable price forecasting model, the artificial neural network (ANN) model was found to be more reliable for predicting the price of RSS-4 in Kottayam market. However, no model could capture the underlying dynamics of rubber prices in the international market at Bangkok satisfactorily. The export competitiveness of Indian natural rubber was measured using nominal protection coefficient (NPC) under exportable hypothesis. It was found that Indian natural rubber was not export competitive during the study period. The market integration studies showed that Kottayam and Bangkok markets were integrated and there was a unidirectional influence of Bangkok market on the prices of natural rubber in Kottayam market, while the influence of Kottayam market on Bangkok market could not be established. The policy interventions suggested based on the study include efforts to increase the area under natural rubber in the non traditional rubber growing areas like North Eastern states, evolving technologies for enhancing the productivity of natural rubber in India to increase the income of farmers per unit cultivated area, improved tapping techniques to extend the tapping days, and to develop a multivariate price forecasting model. A reliable, regional market intelligence system for the natural rubber growers in the country to provide timely and reliable market information and intelligence is also suggested.
Open Access
Determinants and dynamics of lease land farming in pineapple
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2015) Judy, Thomas; KAU; Indira, Devi P
Land is considered as the most valuable and dependable fixed asset in all economies particularly in developing economies like India. In such economies, due to mismatch in ownership and farming interests, the agricultural production was done under lease arrangements .At the same time the system of lease land farming is prohibited in many states of India including Kerala. But concealed tenancy is widely prevalent in all these states. Under this background, an in-depth study primarily focusing on lease land farming in pineapple was undertaken. The study identified the details on structure and dynamics of lease land farming market and determined the important factors that influence the decision to lease out. It also assessed the management differences between owner operated farms and leased-in farms. The problems faced by the lessors and lessees were identified as well. The study was conducted in the Muvattupuzha Block Panchayath of Ernakulam district, which is the major centre for pineapple farming. The samples were selected following a Multi stage Random Sampling method and data was collected from 120 respondents of three identified groups viz., own farm cultivators, lessors and lessees, with 40 members in each group. A pretested, structured interview schedule prepared separately for each group was used for data collection. The major tools for data analysis were Garrett Ranking Technique, Logit model and Discriminant Analysis. In the study area, pineapple was mainly being taken as an intercrop in rubber plantations. As such, there are two situations of lease land pineapple farming. Situation I- pineapple is grown in land where rubber is proposed to grow for the first time. Situation II- pineapple cultivated in slaughter tapped rubber plantations. Under situation II, three rent payment systems were noticed viz., cash alone, planting and management of rubber and management of rubber along with a cash payment. Half of the lessees were paying the rent as cash alone. The average rent for different situations ranged from Rs.67,031 to 88,888 per hectare. The average leasing period was 3.5 years, which included the time for clearing the field. Mostly, the payment was effected in advance, in the beginning of each year. The lessors (90 per cent) insist on signing a written agreement following the pattern of civil contracts, though it is not formally registered. In 10 per cent cases there was only verbal agreements. The decision of lessor to lease out was influenced by several factors, of which the size of holding was identified as the most important one, as revealed by the statistical analysis employing the logistic regression model. As the size of holding increases, the land owners tend to lease out their land. There was considerable difference in the management practices followed in the owner operated and leased-in farms. In the owner operated farms, more of organic inputs were used and as such they were more inclined towards sustainable line of farming whereas chemical fertilisers were intensively used in leased-in farms. By employing the Discriminant Analysis, out of the seven significant factors, total operational holdings, fertiliser cost and organic input cost were identified as the important factors that differentiate the owner operated and leased-in farms. The cost of cultivation (Cost C2) in leased-in farms was estimated at Rs.4,22,114 as compared to the owned farms (Rs.3,86,139). Similarly, the yield obtained from leased-in farms was 20 per cent higher than the owner operated farms and the net income realised was nearly 12 per cent higher. Though lease land farming is extensively being practiced in the area, both the land owners and the lessees face several problems. In case of the lessors, the anxiety on probable land degradation due to soil erosion, intensive chemical usage causing environmental hazards and abandoning the crop at low price situations were found to be the major ones. On the other hand, difficulty in availing quality land, social resistance on application of poultry waste, exorbitant rent rates and difficulty in availing agricultural credit and subsidies were the serious problems faced by the lessees. The social situation in the area demands promotion of lease land farming by providing legal support. At the same time, stringent conditions should be specified on the lease agreement to ensure sustainable management. To facilitate compliance of the same, a monitoring and supervisory mechanism also needs to be formulated. The need for a dispute resolution mechanism is also underlined. Thus, it can be summarised that, the lease land farming system can facilitate to bridge the gap between the demand and supply of land and supplement the agricultural production in the state.
Open Access
Economic analysis of production and marketing of kaipad paddy in kannur district
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2014) Radhika, A M; KAU; Anil, Kuruvila
The present study entitled “Economic analysis of production and marketing of Kaipad paddy in Kannur district” was conducted with the objectives of working out the costs and returns of Kaipad paddy cultivation, estimating the magnitude and the factors contributing to the yield gap, identifying the marketing channels and the price spread in different channels, finding out the constraints in production and marketing of Kaipad paddy and documenting the cultural practices of Kaipad paddy cultivation. The study was based on both primary and secondary data. The study was conducted in Kaipad tracts of Kannur district and primary data were collected by means of formal interviews from farmers, traders and market-intermediaries. The farmers in the study area were categorised into five groups on the basis of farming practices followed as farmers growing traditional variety, farmers growing traditional Kaipad and shrimp in sequence, farmers growing HYV (Ezhome-l/Ezhome-2), farmers growing HYV (Ezhome-1 / Ezhome-2) and shrimp in sequence and paddy farmers from non-saline areas adjacent to Kaipad. From each of the five categories, l5 farmers were selected from each of the Panchayat. A sample of 30 farmers was randomly selected from each group, thus making a total sample size of 150 farmers. Cost-return structure was worked out both for Kaipad and conventional paddy production using percentage analysis and cost concepts. The cost of cultivation (Cost C2- Rs.67128) was highest in the case of farmers growing HYV without shrimp in sequence. The cost of production of HYV was higher than the costs incurred for growing traditional varieties and the average income from the HYV was more than the income from traditional varieties. The highest average gross income of Rs.61741/ha was obtained by farmers growing HYV and shrimp in sequence while it was lowest for the farmer respondents growing traditional variety without shrimp in sequence. Family labour income was estimated to be negative in the category of farmers growing traditional variety. The net income and Benefit Cost Ratio indicated that the farming is a loss making business in Kaipad region, especially when the value of the family labour, the land value and the managerial cost were accounted in the cost. Yield gap was estimated and factors contributing to the yield gap were analysed using regression analysis. Among the farmers growing Ezhome-1without shrimp in sequence, the total yield gap was 747 Kg, which was 21 per cent of the potential yield whereas for farmers growing Ezhome-2 without shrimp in sequence, the total yield gap added to 847 Kg and it accounted for about 26 per cent of the potential yield. When Ezhome-1 and Ezhome-2 were grown with shrimp in sequence, the total yield gap was 601 and 497 respectively. The share of yield gap II in the total yield gap was found to be 38 per cent and 43 per cent respectively for Ezhome-1 and Ezhome-2 with shrimp in sequence, while it was 78 and 91 per cent for Ezhome 1 and Ezhome 2 without shrimp in sequence. In farms growing traditional varieties age was influencing yield gap positively while labour use in man days was found to be negatively influencing the yield gap. In the case of farms growing HYV, seed rate and education were significantly reducing yield gap. For the fitted log-linear yield function for all farms, age was found to be positively influencing yield gap while the seed rate and education were negatively influencing yield gap. The four marketing channels identified were, (i) farmer – rice miller – retailers -consumer (ii) farmer - local agent - rice miller- retailer - consumer (iii) farmer - local agent - Padasekhara-samithis - consumer (iv) farmer - consumer. The price spread was estimated as Rs.16.3 in channel I, Rs.17.51 in channel II, Rs.2.97 in channel III and Rs.3.85 in channel IV respectively. The marketing efficiency was found to be highest in channel III. Various constraints in production and marketing of paddy were identified and ranked using Garret’s ranking technique. Among the various constraints faced by farmers, high wage cost and scarcity of hired labour were the major ones. Low price realized for the produce was the foremost constraint faced in marketing of paddy. Since labour cost accounted for the major share in cost of cultivation and labour scarcity was the major constraint, efforts have to be made for mechanisation in Kaipad cultivation. The production must be increased by bridging the yield gap and thereby increasing the marketable surplus. Taking advantage of the GI status of Kaipad paddy, efforts are to be made for marketing it as a premium priced branded organic produce.
Open Access
Market access for smallholder tomato farmers in Mashonaland East Province of Zimbabwe: an economic analysis
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2014) Emmanuel Zivenge; KAU; Jesy Thomas, K
Linking small primary producers with markets has been identified as one of the major issues in policy and practice in improving livelihoods for millions of poor in Zimbabwe. Hence this study assessed the current market situation as a way of tracking and tracing efficacy and efficiency failures leading to more informed decision making with regard to redesigning of the matching market for smallholder farmers. The objectives of the study were to identify the tomato supply chains, analyse the price behaviour of tomato, assess the economic performance of the major supply chains, evaluate the institutional innovations in the supply chains and suggest viable supply chain options for smallholder tomato farmers in Zimbabwe. Tomato crop was chosen for the study as it is among the most important vegetables grown by smallholder. The study was based on both primary and secondary data. The study was conducted in Mashonaland East Province. Primary data were collected by means of formal interviews and structured questionnaire from farmers, market-intermediaries and government officials. Multi-stage random sampling technique was used for sample selection. Descriptive analysis was employed to provide a snap shot of the situation under study, which consisted of household level information. The Random Utility Model was employed to determine the factors which significantly influence the market accessibility. The price behaviour was studied using the techniques of classical time series. The Supply chain mapping was done to identify the actors. The study employed Data envelopment analysis to assess economic performance of supply chains and allocation of resources. Volume mapping results indicated that the supply chain, which involved hawkers, was handling the largest volume of tomatoes approximately 409.4 tonnes in one production cycle in 2013 season. The chain that included wholesalers/processors was the least in terms of quantity handled (39.4 tons) showing that it was not accessible. Data envelopment analysis results indicated that the chain that included wholesalers and processors was the only efficient chain when constant return to scale was assumed. Supermarket chain was efficient when variable returns to scale was assumed. The chains that included passers-by and hawkers were inefficient under both constant returns to scale and variable returns to scale technologies. The seasonal index results showed that the tomato prices were highest and lowest in July and November respectively when prices were 31 percent higher than the annual average price and 43 percent below the annual average' price. Spatial markets were not efficient in the short run although showing stable equilibrium in the long run. The price changes were transmitted from one market to another at a rate between 22 percent and 24 percent in the short run which proved to be low. There was no centre market among six municipal markets since price changes were to be set around more than one market. Random Utility model results showed that credit, greenhouse and cooperative membership were significantly influencing participation of smallholder farmers in formal markets. Data envelopment analysis results showed that farmer, on average could reduce input consumption by 12 percent and 27 percent at production and marketing stages respectively. The study concluded that the opportunities to improve profits lie in the marketing perspectives rather than production for tomato producers under study. Farmers can gain better income by reducing consumption of inputs without necessarily asking for high prices. The higher market price cannot compensate the value loss incurred by the high level of transaction costs. Tomato producers should pursue the low transaction costs marketing chains rather than ask for a higher market price. The chain that included hawkers should be given due attention and modem matket infrastructures should be established in rural areas in order to relay reliable, relevant and correct information to the farmers.
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
Ecosystem valuation of wetlands: a case study of Vellayani lake
(Department of Agricultural Economics, College of Agriculture, Vellayani, 2015) Aswathy, Vijayan; KAU; Elsamma, Job
The study entitled “Ecosystem Valuation of Wetlands: A Case Study of Vellayani Lake” was conducted during the year 2013- 2014 at College of Agriculture, Vellayani. The major objective of the study was to assess the Total Economic Value (TEV) of the Vellayani lake. The main ecosystem services provided by the lake system were provisioning services such as drinking water, fishing, duck rearing, lotus collection, irrigation, bathing and washing; regulatory services such as ground water recharge, stabilising microclimate; cultural services such as bird watching, photography, boat race, religious rituals and training centres in water sports and finally supporting function such as biodiversity conservation. Based on the ecosystem services, relevant stakeholders were identified and valuated using suitable techniques. The income generation activities of the lake such as fishing, lotus collection and duck rearing were valuated using the market price method and it accounted to Rs.1.83 crores year-1. The drinking water supply schemes installed by Kerala Water Authority, Central Public Works Department and College of Agriculture, Vellayani draws nearly 98,677 lakh litres of water from the lake per year, the value of which is Rs. 370.05 crores year-1. Provision of irrigation water by the lake valuated using opportunity cost method accounted to Rs. 20.69 crores year-1. The economic value of bathing and washing in the lake estimated using opportunity cost method was Rs. 0.009 crore year-1. The lake is also a part of religious activities, cultural activities, and recreational activities. The ecosystem service use by Centralized Sports Hostel for Canoeing, Kayaking and Rowing and Ayyankali Boat Race, valuated using public pricing method accounted to Rs.0.24 crore year-1 and Rs.0.07 crore year-1 respectively. People visit the lake for bird watching, photography, enjoying the scenic beauty, enjoy annual boat race and to attend religious ritual, Karkidaka vavubali. The value of recreational and spiritual services valuated using Travel Cost Method was Rs.0.56 crore year-1. The estimation of aesthetic value of the lake employing Hedonic Pricing Method revealed that, the marginal implicit price of getting one cent of land with lake view evaluated at mean property price of Rs. 2,44250/- was Rs. 79171/- and the aesthetic value of the lake was Rs.275.92 crores year-1. This illustrates the preference given by individuals for land with lake view. The monetary valuation of supporting and regulating functions of the lake was done using a double bounded dichotomous choice contingent valuation method. The mean stated Willingness to Pay (WTP) was Rs.225.22 year-1 for local residents. The economic value of the lake estimated using Contingent Valuation Method was Rs.2.91 crores year-1. Thus the Total Economic Value, which is the total value of ecosystem service use of the Vellayani lake estimated by summating the value of goods and services provided by the lake was Rs. 672.28 crore year-1. Analysis of temporal variation in area of the water body indicated a drastic reduction in area from 558.73 ha in 1973 to 243.39 ha in 2011. The reduction in area was not the result of natural geological process alone, but the major reason is irrational human activities due to demographic pressures. Based on the study it was concluded that the major reason for degradation and loss of wetland services provided by Vellayani lake is the lack of awareness on the value of its ecosystem services, non enforcement of property rights and lack of lake management policies. The major anthropogenic stressors on lake are unsustainable agricultural and fishing activities, watershed impact due degradation and destruction of canals carrying water to the lake and habitat modification. Vellayani lake management policy was formulated based on the study suggests the proper enforcement of property rights by bringing the lake under single management authority with statutory powers including members from line department and stakeholders. The authority may address the present threats on the sustainability of the lake and also chalk out action plan for prevention of further degradation. The low WTP by people indicated that conserving the lake with contribution of stakeholders alone is not practical and so at least one rupee per 70 litres may be fixed as cess to realize a minimum of 13.97 crores per year for the lake conservation. This amount is meager when compared to the TEV of the lake per year. Today’s critical need is to recognize the benefits that could be obtained if the lake is managed in an integrated manner. If not properly managed and degradation and loss continue in the same manner, we are going to lose the invaluable services provided by the lake which cannot be replaced by any other means. Management of lake is a very challenging task and requires actions at many levels and involvement of many stakeholders. The recommendations of the study, along with the values of the ecosystem services of the lake, if properly taken care of, may help in developing sustainable strategies for conservation of this unique freshwater source.

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