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ThesisItem Unknown Groundwater irrigation: management, adaptation and economic costs under declining resource conditions(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2017) Seenath Peedikakandi; KAU; Indira Devi, PGroundwater is the major source of domestic use and irrigation in Kerala, accounting for 39 per cent of net irrigated area. Irrigated agriculture in the state shows continuous increase over years. At the same time Kerala is reported as third among the states with highest depletion of groundwater. This situation poses challenges in agricultural production. The study ‘Groundwater irrigation: Management, adaptation and economic costs under declining resource conditions’ was undertaken, in this background. The objectives of the study were to analyse the extent of decline in groundwater resources and farmers’ understanding of the same, to analyse the extraction practices, management and economic efficiency of groundwater irrigation and coping (short term) and adaptation (long term) strategies towards management of groundwater decline and the economic cost of adaptation strategies. The study was conducted in Palakkad district of Kerala. Based on the stage of ground water development, three Block Panchayats viz., Chittur (over exploited), Malampuzha (critical) and Pattambi (semi-critical) were selected for the study. 50 Open Well (OW) irrigated and 50 Bore Well (BW) irrigated farms from each BP were randomly selected from the Grama Panchayats (GPs) where observational wells of the GWD (Ground Water Department- Kerala) are situated. Primary data was collected from the sample farms through field visits using pre-tested structured interview schedule and through direct observation. PRA (Participatory Rural Appraisal) was also conducted in each BP to draw the time line of changes in ground water status and social perceptions. Secondary data on monthly water levels of Groundwater Monitoring Wells (GMWs) maintained by GWD (Palakkad),rainfall data and published reports were used for the study. Statistical tools like descriptive analysis, regression and Stochastic Frontier Function were employed for analysis of the data. In most of the GMWs in the study area, the Water Level from Ground (WLG) has been declining over the years. The trend was more predominant during early summer (Dec.–Jan.) in Chittur and Malampuzha and in late summer in Pattambi BP. Regression analysis showed that WLG was significantly influenced by one year lagged rainfall in Chittur and current year rainfall in Malampuzha and Pattambi. The average well density was 205/km2 with highest in Pattambi. Density of defunct wells was highest (45/km2) and the average functional age of bore wells was lowest (7 years) in Chittur. The depth of well was highest in Chittur where bore well depth (136 mbgl- meters below ground level) was double than that of Pattambi. Coconut based cropping system was prevalent in most of the farms except in Malampuzha where paddy was the major crop. Flood, basin and sprinkler irrigations were found to be more common in Malampuzha and Pattambi BPs, while drip irrigation was prevalent in Chittur. Cost of irrigation in Chittur was about Rs. 29,000/ha/year which accounted for 37 per cent of cost of cultivation. Annual net return per ha. of farm was lowest (Rs. 17,640/-) in Chittur due to low cropping intensity. Stochastic Frontier Analysis indicated that mean economic efficiency was high (99.9%) in Chittur as most of the farms were functioning along the cost frontier. The variability among the farms in Chittur was low. Respondents opined that groundwater is declining over the years irrespective of the region. It has been so, for more than a decade in Chittur affecting socio-economic well-being of farmers. They attributed intensive extraction through bore wells and low rainfall as the major reasons for the decline. Farm level adaptations to water scarcity are classified under ‘supply management’ (methods that facilitated increase in quantity of water available for irrigation) and ‘demand management’ (methods that tried to use the water effectively through minimizing the use) strategies. The supply management strategies were mainly exploitative in nature which included digging new bore well (52-58%), improved draft technology with compressor pumps (58%), taking pits for water conservation (7%), coconut husk burial (12%), coconut leaf mulching (18%) and dependence on water markets (8%). Digging new bore well was the most common supply management strategy in Chittur which is highly capital intensive. The average cost amounted to Rs. 8,520/ha/year. Intensive extraction was done by excessive use of subsidized electricity. Adoption of drip irrigation (60%) was the most widely practiced demand management strategy which cost about Rs. 22,000/ha/year. Cropping pattern change from paddy and sugarcane to coconut was also observed. About 18 per cent of the land area in Chittur was kept fallow due to water scarcity. The study brings out results that suggest policy interventions in regulating bore well digging and revisiting the power subsidy system. In Chittur area, where the rainfall is scanty, extension of the Right Bank Canal of the Chittur River irrigation project is the most feasible solution. Taking up on-farm research trials in the area to suggest efficient farming systems and practices may also be done. Simultaneously water resource conservation strategies are to be popularized through awareness creation, capacity building programmes and subsidy support.ThesisItem Unknown 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.ThesisItem Unknown Supply chain analysis of marine fish marketing system in Kerala(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2017) Jeyanthi, P; KAU; Jesy Thomas, KFisheries is a major allied sector of agriculture contributing about 0.8 per cent to the Gross Domestic Product (GDP) and 5.15 per cent to agricultural GDP in India. Marine fisheries supports around 10 million people providing livelihood and employment directly or indirectly. Fish also provides more than one billion people living below the poverty line with most of their daily animal protein requirement globally. Kerala is a state known for its fish consumption which is more than four times the national average. However, the marine domestic fish marketing system faces several challenges in the process of distributing fish from the producer to the consumer. The study was conducted in Kerala state, which is the fourth largest fish producer in the country, and covered coastal and land locked (non-coastal) regions. The objectives of the study were to identify the supply chain of selected fish species, to assess the structure and performance of domestic fish markets, to examine the market integration and price transmission among the markets and to assess the consumer perception and suggest policy guidelines for improved fish marketing in Kerala. Two coastal districts viz., Ernakulam (E) and Kollam (K) and two land locked districts, Idukki (I) and Pathanamthitta (P) were selected and data was collected using simple random sampling from various marketing functionaries (producers, wholesalers, retailers and consumers). Since the species composition of marine fish landings is varied, the study focused on four high value (seer fish, shrimp, pomfret and tuna) and four low value but commonly consumed fish species (sardine, mackerel, anchovies, threadfin bream). Supply chain of the selected fish species was identified using the framework of Feller et al, 2006. Market performance of producers, wholesalers and retailers were assessed using Data Envelopment Analysis. The co-integration test was used to analyses the market integration of selected market pairs. Conjoint analysis was used to determine the attributes responsible for their fish purchasing behaviour. The constraints faced by the market functionaries were ranked using Rank Based Quotient. The generic supply chain of fish identified involved the auctioneer, wholesaler, retailers, secondary retailers, between the producer and the consumer. This is almost similar to the supply chain of other perishable like fruits, vegetables and flowers. The supply chain for sardine, tuna and thread fin bream also involved extra nodes in their supply chain due to industry specific demands like feed and other specialized products. The market structure of domestic fish markets was not efficient. The main reason being lack of infrastructure such as cold storage, well planned display and assemblage platforms, potable water and weighing balance. Market performance of producers was measured at the five landing centres in Ernakulam and Kollam and it was observed that only one market was efficient in each of the districts. It was revealed that the nature of inefficiency was due to scale rather than technology. In both Ernakulam and Kollam, only one wholesale market each was efficient and all other markets showed high technical efficiency i.e., above 0.80. In both wholesale and retail markets, the technical efficiency was relatively low in Idukki and Pathanamthitta with it being least in Idukki. It was revealed that the markets in the coastal regions showed relatively high technical efficiency than the land locked regions because of the higher volumes handled in the markets due to proximity with the landing centres, viz, the primary production centres, which is not so easily accessible to the land locked districts. Among wholesale markets, one market pair in Ernakulam, one in Idukki and one in Pathanamthitta showed co-integration and among retail one each in Ernkulam and Pathanamthitta showed co-integration. This indicates that in these markets there is a possibility of long run equilibrium in prices. The existence of low short run market integration (SRMI) at both wholesale as well as retail market levels was observed among the co-integrated market pairs. Consumer preference was for fresh fish in all the four districts studied in cleaned and cut form from retailers, wholesalers or wholesaler-cum-retailer. Sardine was the most preferred species in both coastal and landlocked regions of Kerala with more than 75 and 72 per cent of respondents, respectively, consuming it daily. The relative importance of attributes that consumer in Ernakulam and Kollam looked at while purchasing fish was fish species in fresh form and income. In Idukki and Pathanamthitta, availability and income were the relatively important attributes. Based on the pooled response of market functionaries in the selected districts the domination of middlemen was the major constraint for producers, wholesalers and retailers. Safety and quality of fish was the major constraint of consumers. The studies on efficiency of fish supply chain in line with the changing consumer preference are the future line of work towards sustainable fisheries development.ThesisItem Unknown Groundwater Irrigation: management, adaptation and economic costs under declining resource conditions(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2017) Seenath Peedikakandi; KAU; Indira Devi, PGroundwater is the major source of domestic use and irrigation in Kerala, accounting for 39 per cent of net irrigated area. Irrigated agriculture in the state shows continuous increase over years. At the same time Kerala is reported as third among the states with highest depletion of groundwater. This situation poses challenges in agricultural production. The study ‘Groundwater irrigation: Management, adaptation and economic costs under declining resource conditions’ was undertaken, in this background. The objectives of the study were to analyse the extent of decline in groundwater resources and farmers’ understanding of the same, to analyse the extraction practices, management and economic efficiency of groundwater irrigation and coping (short term) and adaptation (long term) strategies towards management of groundwater decline and the economic cost of adaptation strategies. The study was conducted in Palakkad district of Kerala. Based on the stage of ground water development, three Block Panchayats viz., Chittur (over exploited), Malampuzha (critical) and Pattambi (semi-critical) were selected for the study. 50 Open Well (OW) irrigated and 50 Bore Well (BW) irrigated farms from each BP were randomly selected from the Grama Panchayats (GPs) where observational wells of the GWD (Ground Water Department- Kerala) are situated. Primary data was collected from the sample farms through field visits using pre-tested structured interview schedule and through direct observation. PRA (Participatory Rural Appraisal) was also conducted in each BP to draw the time line of changes in ground water status and social perceptions. Secondary data oh monthly water levels of Groundwater Monitoring Wells (GMWs) maintained by GWD (Palakkad),rainfall data and published reports were used for the study. Statistical tools like descriptive analysis, regression and Stochastic Frontier Function were employed for analysis of the data. In most of the GMWs in the study area, the Water Level from Ground (WLG) has been declining over the years. The trend was more predominant during early summer (Dec.—Jan.) in Chittur and Malampuzha and in late summer in Pattambi BP. Regression analysis showed that WLG was significantly influenced by one year lagged rainfall in Chittur and current year rainfall in Malampuzha and Pattambi. • The average well density was 205/km2 with highest in Pattambi. Density of defunct wells was highest (45/km2) and the average functional age of bore wells was lowest (7 years) in Chittur. The depth of well was highest in Chittur where bore well depth (136 mbgl- meters below ground level) was double than that of Pattambi. Coconut based cropping system was prevalent in most of the farms except in Malampuzha where paddy was the major crop. Pattambi BPs, while drip irrigation was prevalent in Chittur. Cost of irrigation in Chittur was about Rs. 29,000/ha/year which accounted for 37 per cent of cost of cultivation. Annual net return per ha. of farm was lowest (Rs. 17,640/-) in Chittur due to low cropping intensity. Stochastic Frontier Analysis indicated that mean economic efficiency was high (99.9%) in Chittur as most of the farms were functioning along the cost frontier. The variability among the farms in Chittur was low. Respondents opined that groundwater is declining over the years irrespective of the region. It has been so, for more than a decade in Chittur affecting socio-economic well-being of farmers. They attributed intensive extraction through bore wells and low rainfall as the major reasons for the decline. Farm level adaptations to water scarcity are classified under ‘supply management’ (methods that facilitated increase in quantity of water available for irrigation) and ‘demand management’ (methods that tried to use the water effectively through minimizing the use) strategies. The supply management strategies were mainly exploitative in nature which included digging new bore well (52-58%), improved draft technology with compressor pumps (58%), taking pits for water conservation (7%), coconut husk burial (12%), coconut leaf mulching (18%) and dependence on water markets (8%). Digging new bore well was the most common supply management strategy in Chittur which is highly capital intensive. The average cost amounted to Rs. 8,520/ha/year. Intensive extraction was done by excessive use of subsidized electricity. Adoption of drip irrigation (60%) was the most widely practiced demand management strategy which cost about Rs. 22,000/ha/year. Cropping pattern change from paddy and sugarcane to coconut was also observed. About 18 per cent of the land area in Chittur was kept fallow due to water scarcity. The study brings out results that suggest policy interventions in regulating bore well digging and revisiting the power subsidy system. In Chittur area, where the rainfall is scanty, extension of the Right Bank Canal of the Chittur River irrigation project is the most feasible solution. Taking up on-farm research trials in the area to suggest efficient farming systems and practices may also be done. Simultaneously water resource conservation strategies are to be popularized through awareness creation, capacity building programmes and subsidy Flood, basin and sprinkler irrigations were found to be more common in Malampuzha and support.ThesisItem Unknown 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, KLinking 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.ThesisItem Unknown 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.ThesisItem Unknown Ecosystem valuation of wetlands: a case study of Vellayani lake(Department of Agricultural Economics, College of Agriculture, Vellayani, 2015) Aswathy, Vijayan; KAU; Elsamma, JobThe 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.
