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ThesisItem Open Access Impact of prominent KAU rice varities on the economic status of farmers in Kerala and Karnataka(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2016) Dhruthiraj, B S; KAU; Chitra ParayilThe present study entitled “Impact of prominent KAU rice varieties on the economic status of farmers in Kerala and Karnataka” was conducted with the objectives of working out the costs and returns of prominent rice varieties, Jyothi and Uma, released from KAU, to find out the relationship between varietal adoption and net farm income, to identify specific reasons for adoption of KAU varieties and to analyze profitability of the KAU varieties in the states of Kerala and Karnataka by comparing with with local non-KAU varieties cultivated by farmers. The survey was conducted by collecting both primary data and secondary data. The area of study were major rice growing districts of Kerala (Palakkad and Alappuzha) and Karnataka (Mysore and Mandya). These districts were selected on the basis of prominence in adoption of rice varieties released from KAU. The primary data were collected by means of pre-tested interview schedule. The farmers in the study area were categorized into two groups on the basis of variety grown as: KAU variety adopting farmers and local popular non KAU variety adopting farmers. Forty farmers each cultivating at least one acre and adopting KAU variety and 40 farmers cultivating a local popular non-KAU variety were randomly selected and surveyed in each state making a total sample size of 160. The cost-return structure was worked out both for KAU and non KAU variety production using cost concepts. The average cost of cultivation (Cost C2) of KAU varieties was found to be lesser in Palakkad (Rs.73,213 per hectare) compared to Karnataka (Rs.75,731 per hectare ) and Alappuzha (Rs. 81,915 per hectare) and in case of local non KAU varieties, the average cost of cultivation was Rs.83,981 per hectare, Rs.83,634 per hectare and Rs.94,526 per hectare in Karnataka, Palakkad and Alappuzha respectively. The net income obtained by cultivating KAU varieties was found to be higher in Palakkad (Rs.48, 143 per hectare), followed by Alappuzha (26,356 per hectare) and Karnataka (Rs.11, 746 per hectare. The benefit – cost ratio (BCR) at the C2 and explicit cost level was found to be positive for KAU varieties in both the states. This implies that cultivation of KAU varieties was profitable for farmers in both the states. Garrett ranking technique was used to determine the reasons for adoption of KAU varieties. The possible reasons for adoption of KAU varieties in Karnataka were identified as high market price, high yield potential, high tillering capacity and resistance to pests and diseases while in Kerala, Farmers highlighted high yield potential, high market price, high tillering capacity, suitability, to the location, consumption purpose, resistance to pests and diseases and short duration of the variety as major reasons for adoption. Probit model was used to find out the factors affecting adoption of KAU rice varieties. In Kerala, Organizational membership and gross income of the farmers while in Karnataka, education, organizational membership, area and gross income of the farmers were identified as the major factors affecting the adoption of KAU varieties. The average cost of cultivation (cost C2) for seed production of KAU varieties was found to be higher in Karnataka (Rs. 88,176 per hectare), compared to Kerala (Rs.86, 355 per hectare). The average gross income was found to be higher in Kerala (Rs.1, 56,223 per hectare) compared to Karnataka (Rs.1, 17,513 per hectare). The net income at cost C2 was found to be positive for both the states whereas the amount was found to be higher in Kerala was compared to Karnataka. The marketing channels identified Kerala were Channel 1: Farmer- Supplyco - Rice millers - Public distribution system (PDS) – Consumers, Channel 2: Farmer - Rice millers – Retailers- Consumers and Channel 3: Farmer- Middlemen- Rice milers - Retailers - Consumers. The marketing channels identified in Karnataka were Channel 1: Farmer – Rice milers- Kerala marketing channels identified in Karnataka were Channel 1: Farmer - Rice millers- Kerala rice market - Wholesaler/Local trader - Retailer -Consumer, Channel 2: Farmer - Local trader – Kerala rice market- Rice millers -Retailer - Consumer, Channel 3: Farmer - Kerala rice market - Wholesaler/Rice millers/Local agents – Retailers - Consumers, Channel 4: Farmer - APMC -middlemen -Kerala rice market - Wholesaler/Rice millers/Local agents - Retailers - Consumer. For both KAU and non KAU rice varieties, labour cost accounted for highest share in the cost A1 components in both the states; therefore, efforts have to be made for mechanizing paddy cultivation. Also initiatives have to be taken to attract the younger generation towards agriculture and more importantly paddy cultivation.ThesisItem Open Access Price behaviour of nendran banana in Kerala: an economic analysis(Department of Agriculture Economics, College of Horticulture, Vellanikkara, 2019) Shana, K K; KAU; Jesy Thomas, KIndia is the leading producer of banana in the world with an annual production of 30 million tons from 0.8 million hectares (2017-18). Nendran is one of the most important commercial varieties of banana grown in Kerala, occupying about 50 per cent of the total area under banana. Wide fluctuations have been observed in the price of Nendran, resulting in income variability of farmers. Hence the present study has been carried out with the objectives of analysing the price behaviour and volatility in prices of Nendran banana in Kerala. The study was mainly based on secondary data collected from the major markets of Kozhikode, Ernakulam, and Thiruvananthapuram. Trend analysis was carried out to understand the growth in area, production and productivity of banana both at national and state levels from 1980-81 to 2017-18. In India, the area, production and productivity of banana showed a significant growth. The area and production in Kerala showed an increasing trend but the productivity was found decreasing. Even with a growth in area of 4.83 per cent, the production increased only by 1.27 per cent due to the negative growth rate of -3.4 per cent in productivity per annum. The price behaviour of Nendran banana in major markets of Kerala viz., Kozhikode, Ernakulam, and Thiruvananthapuram for a duration of 16 years (20032018) was analyzed by decomposing the monthly price data into four components such as secular trend, seasonal variation, cyclical variation and irregular variation assuming a multiplicative model. Prices in all the three markets showed increasing trend. The seasonal variation of Nendran banana price in the markets showed a similar pattern, with peak price in the month of August because of increased demand during Onam season. Price cycles with length varying from six to seven years were noted in the market price. xix Pairwise and multiple co-integration analysis of Nendran banana prices in the above markets were carried out after confirming the stationarity of price series using Augmented Dickey Fuller (ADF) test. The results showed that the markets were integrated, inferring the presence of price association among the markets. In order to provide additional evidence as to whether and in which direction price transmission occurred, Granger causality test was carried out and the existence of unidirectional causality from Kozhikode market to Ernakulam market and from Thiruvananthapuram market to Kozhikode and Ernakulam markets was proved. Correlation co-efficient between monthly market arrivals and prices of Nendran banana in Kozhikode, Ernakulam, and Thiruvananthapuram markets from 2013 to 2018 was computed to evaluate the pattern of association between them. In all the three markets, the prices and quantity of arrivals were found to be negatively correlated implying that prices decreased with increase in arrival of Nendran banana. The variability in Nendran banana arrivals and prices was studied computing the coefficient of variation and maximum variability in arrivals was found in Ernakulam market (42.52 per cent) and maximum variability in prices was found in Thiruvananthapuram market (24.41 per cent). Intra-annual volatility and inter-annual volatility of monthly prices of Nendran banana from 2003 to 2018 were estimated and the prices were found to be highly volatile. The intra-annual volatility showed no distinct pattern in all the three markets. The magnitude of inter-annual volatility was decreasing throughout and the divergence between the volatility of prices were found to be decreasing towards the latter end. Instability in annual prices worked out using suitable indices showed that prices in Thiruvananthapuram market were more volatile than other markets as it was influenced by prices in the markets of Tamil Nadu. xx Major constraints identified in the study area were wide fluctuations in prices, high labour and transportation costs, unavailability of institutional credit and lack of reliable information about prices. Price fluctuations and volatility creates uncertainty in the planting and marketing decisions of the farmer. Unavailability of reliable price information makes marketing difficult and farmers become more vulnerable to price risk. Therefore, suitable strategies for developing market intelligence for Nendran banana including price forecasting and provision to farmers, price stabilization through year round procurement and introduction of support price were suggested as policy interventions.ThesisItem Open Access Dynamics in prices and trade of Indian small cardmom and its implications on producers(Department of Agriculture Economics, College of Horticulture, Vellanikkara, 2019) Indhushree, A; KAU; Anil, KuruvilaIndian small cardamom is known worldwide for its quality and is exported to many countries around the world. Formerly, India enjoyed a monopoly in the production and export of small cardamom in the world. Since 1980s, the country lost its share in the international market to Guatemala due to comparatively higher price and increasing domestic demand for the commodity. The present study on “Dynamics in prices and trade of Indian small cardamom and its implications on producers” was undertaken with the objectives, to study the economics of small cardamom cultivation and marketing, analyse the price formation and transmission between Indian and international markets, study the supply response of cardamom, analyse India’s export performance and competitiveness and assess the implications of changes in price and trade at the farm level. The study was based on both primary and secondary data. In order to estimate the economics of cultivation and marketing of small cardamom, primary data were collected from 160 selected farm households in Idukki district of Kerala and from 52 market intermediaries in Kerala and Tamil Nadu. The secondary data on area, production, prices and exports of small cardamom published by various institutions for the period from 1970-71 to 2017-18 were collected in order to study the price formation and transmission between the international and domestic markets, to find out the export performance and competitiveness of Indian small cardamom and supply response of cardamom to prices. The economics of small cardamom cultivation in Idukki district of Kerala was estimated using the concepts of establishment cost and maintenance cost. The total cost of cultivation and production of small cardamom in Idukki district were estimated as ₹4,79,040 per hectare and ₹375 per kg respectively, while the net returns earned by the farmers was ₹9,18,366 per hectare. The major marketing channels identified for small cardamom were, Channel I: Producer-Village trader-Auctioneer-Wholesaler-Retailer-Consumer; Channel II: Producer-Auctioneer-Wholesaler-Retailer-Consumer; Channel III: Producer-Village trader-Auctioneer-Exporter-Consumer and Channel IV: Producer-Auctioneer-Wholesaler-Upcountry wholesaler-Retailer-Consumer. Majority of the farmers (49 per cent) were selling their produce to the village traders, while 32 per ii cent of the farmers were selling to auctioneers. The marketing efficiency was found to be highest in channel II because of the low marketing cost and margin, and high producer’s share in consumer’s rupee. The marketing efficiency was found to be lowest in channel III. The co-movement between the cardamom prices in the Indian and international markets was confirmed in the post-WTO period, while there was no integration in the pre-WTO period. The transmission of price signals between Indian and international markets was also established for period I, period III and period IV. The price series of different grades of cardamom in the domestic market were found to be moving together in almost all the periods considered. Thus, the price of cardamom in one market was found to be having considerable influence on the price prevailing in the other market after the liberalisation of trade. The Error Correction Model (ECM) indicated the presence of short-run disequilibrium between the Indian and international prices, and between the prices of different grades of cardamom, which got corrected with varying speed of adjustment. Granger causality test confirmed that the price transmission was from the international market to the Indian market in the long-run. The elasticity of supply of small cardamom with respect to its own price lagged by two years was positive and significant in both the short-run (0.39) and long-run (0.96). The rate of growth in the export of small cardamom from India increased, while the instability in export declined in the post-WTO period as compared to the pre-WTO period. The export quantity contributed to about 80 per cent growth in the export value of small cardamom in the post-WTO period. Nearly 85 per cent of change in the variance of export value in the post-WTO period was due to the change in the variability of export unit value of small cardamom. Among the different periods considered for the study, period I recorded a higher growth rate of export and lower instability in terms of value and unit value, while period II witnessed the lowest and negative growth rate with high instability in the export of small cardamom. Geographic concentration of small cardamom export from India always remained high and it further increased in the post-WTO period. Over the years from period I to period V, there was a steady and gradual increase in the geographic concentration of export. There was a changing pattern in the stability of export markets for Indian small cardamom, and the probability of retention of major countries was iii declining over the years with the exception of Saudi Arabia. It was found that Saudi Arabia, Malaysia, Japan and UAE were the stable markets in both pre-WTO and post-WTO periods. Even though India gained considerable market share of new markets viz., UK, Iran and Bangladesh, it lost some of the traditional export markets viz., Kuwait, UAE and Qatar. The export demand for Indian small cardamom was determined by the GDP per capita in the importing countries in both pre-WTO and post-WTO periods, while the export supply was influenced by the ratio of export price to domestic price and the domestic production. The indices of export competitiveness viz., the Nominal Protection Coefficient (NPC) and Effective Protection Coefficient (EPC) values were greater than one (1.33) indicating lower export competitiveness of Indian small cardamom. Domestic Resource Cost Ratio (DRCR) was less than one (0.22) which indicated India’s comparative advantage in the production of small cardamom. Variance in producer prices influences the welfare of the farmers by affecting their income. The variance in exchange rate was found to be the major source of variation in producer prices in the pre-WTO period and period II, while the variance in export unit value was the major determinant in the post-WTO period, period I and period III. The challenges in small cardamom cultivation need to be addressed by introducing varieties that are both pest resistant and high yielding, formulating effective organic inputs and providing replanting subsidy at a reasonable rate to the farmers. Regarding the price and trade of cardamom, crop specific price stabilization mechanism is needed to tackle the excessive volatility in cardamom prices. More transparency is required in the e-auction system to reduce re-pooling by traders and ensure faster payment to the farmers. In order to promote export and improve India’s competitiveness, farmers should be encouraged to follow Good Agricultural Practises (GAP) that will help to reduce the input usage, which will in turn improve the quality of the commodity and reduce the cost of production. Effective ban on toxic chemicals at the national level is necessary to keep the residual toxic content in small cardamom within the permissible limits. Branding of Indian small cardamom which is of superior quality could also help in promotion of the commodity in the international market.ThesisItem Open Access Water crisis in Coastal area: Domestic adaptation strategies and impact on agriculture sector(Department of Agriculture Economics, College of Horticulture, Vellanikkara, 2019) Swathy Sugathan, P; KAU; Indira Devi, PDespite rich endowments of water resources, availability of water in Kerala is dwindling and inadequate for the growing population. Several regions in the state experience seasonal drought like condition, every year. The coastal areas of Kerala become most vulnerable region with respect to water scarcity due to quantitative and qualitative aspects. The study on ‘Water crisis in coastal areas: domestic adaptation strategies and impact on agriculture sector’ was undertaken in this background in coastal areas of Thrissur district in Kerala. The main objectives of the study were to analyse the dimensions of water scarcity and the level of understanding of the same among coastal communities and to identify the strategies to address the issue. Further, economic burden on households were estimated and the impact of scarcity on agriculture sector was also analysed. The study was conducted in Chavakkad, Thalikulam, Mathilakam, and Kodungallur regions of Thrissur district by a two stage random sampling of 120 respondents. The study was based on both primary and secondary data and the data was analysed using statistical tools like descriptive analysis, regression analysis, scaling technique and Shannon-Wiener diversity index. The major water sources in the study area were own sources such as wells, ponds, and public sources like house connections and public taps. Wells are the major source for domestic sector and ponds serve the irrigation purpose. The volume of water in the wells, which was a major water source in the region, declined by an average of 62 per cent by summer season. Thus, the dependence on dug wells for household consumption reduced to 27 per cent, compared to monsoon season (77 per cent). This was also due to the water quality problems, in certain cases. The water quality issues in the area was reflected as colour change, odour, salinity and hardness. Aquatic weeds was reported as a major threat in the coastal belt. Correspondingly, the average household water consumption level also declined. The volume of water in the well and family size influenced the household consumption. Coconut based cropping system was prevalent in the study area with arecanut and banana as major intercrops. Ponds were the major source of irrigation water. Most of the farms were irrigated (40 per cent) at an interval of three days. In regions of severe water scarcity, an irrigation schedule of once in ten days (15 per cent of the farms) was followed. The decision to irrigate the farm was significantly influenced by number of water sources and agricultural income. The irrigation investment amounted to `33,781 per ha per year which constituted 45 per cent of cost of cultivation while accommodating the fixed cost component. Most of the respondents reported a gradual reduction in agricultural yield over the years and 60 per cent respondents attribute it to water scarcity. Digging new ponds, installation of efficient pumpsets, roof water harvesting and filtering of water for domestic purpose were the adaptation strategies opted by the farmers to address the water scarcity. Farming experience was proved to be the most influential factor that determined the adaptation behaviour. The study brings out results that suggest policy interventions for implementing rain water recharge efforts and scientific water quality monitoring system in Kodungallur and Mathilakam regions where water quality problems were more severe. Simultaneously water resource conservation strategies, as well as models developed by KAU for improving crop diversity are to be popularised.ThesisItem Open Access Dynamics and competitiveness of agricultural trade polices on coconut economy of Kerala(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2019) Thasnimol, F; KAU; Prema, ACoconut is a crop of economic importance in many Asian and Pacific countries. India is the largest producer of coconut in the world contributing 23798.23 million nuts from an area of 2.09 million ha (CDB, 2018). The economic reforms of the 1990s and the subsequent trade liberalization policies have brought challenges and prospects to Indian agriculture including the coconut industry. In this context, the present study was undertaken with the objectives to trace and assess the impact of trade policies in edible oil on coconut economy of Kerala, to analyse the price transmission in the markets, to estimate the efficiency of selected coconut markets and finally to suggest appropriate policy measures for improving the performance of coconut trade. Both primary and secondary data were used for examining the specific objectives of the study. The primary data were collected using well-structured and pretested schedules through a survey of 90 farmers, 45 market intermediaries and 15 exporters in the selected districts of Kerala. Secondary data was mainly collected from authentic sources like CDB, EXIM data bank, DGCI&S, DGFT and FAO statistics. Though trade liberalization adversely affected the coconut farmers during the initial phase of liberalization, it subsequently increased the opportunities of the Indian coconut sector to compete in the world market. The export growth rate of coconut products has increased during the study period (1980-81 to 2016-17) while instability index, a measure of export stability was found to have decreased. The high growth rates of coconut products together with low instability indices in the export revealed the prospects for Indian coconut sector in the global market. Hence stream lining the production through Good Agricultural Practices to fulfill the export market requirements with regard to quality and safety would boost the trade. The comparative advantage in coconut trade analysed using the Revealed Symmetric Comparative Advantage (RSCA) indicated that coconut oil and desiccated coconut did not possess any comparative advantage in global trade, while coconut (fresh and dried) and copra have comparative advantage. It was obvious from the result that rather than focusing on the export of coconut oil and desiccated coconut, India must give much effort to increase our export share of coconut, copra and other value-added coconut products to augment the foreign earnings. The trade policies concerning edible oils at the national level were found to have an impact on the coconut oil prices in Kerala too. Exponential growth rates were computed to compare the growth of edible oil imports and coconut oil prices in Kerala. The significant improvement in the growth rates of edible oil import and decline in the growth rates of coconut oil price confirmed that trade liberalisation and further Free Trade Agreements (FTAs) facilitated the huge import of edible oil from other countries which unfavorably affected the domestic coconut economy. The result of the Policy Analysis Matrix (PAM) unveiled that coconut oil production in Kerala was competitive at the given level of technologies, prices of inputs and outputs and current policy stipulations. However, social profitability, a measure of efficiency or comparative advantage was observed to be negative. The result depicted that coconut oil production in Kerala lacks comparative advantage in production and the state was not able to use the available resources efficiently. The efficiency of selected coconut markets studied using Shepherd’s index indicated that the presence of more number of marketing intermediaries and high marketing cost and margin have reduced the producer’s share in consumer’s rupee. Besides, high wage rates, shortage of skilled labour, lack of processing technologies, adverse climatic conditions, etc., obstruct the farmers in performing even the primary level processing and thereby it reduces the producer’s share in consumer’s rupee. The cointegration analysis using Johansen Cointegration method revealed that the liberalisation policies and further free trade agreements have resulted in the transmission of price signals between domestic and international edible oil markets and it led to the integration of these markets during the post-liberalisation period. The result of Vector Error Correction Model (VECM) also depicted that changes in the international prices of edible oils would cause changes in price in the domestic coconut oil market in the long-run. High wage rate, labour shortage and incidence of pest and diseases were the major production constraints faced by the farmers. Inclusion of agricultural operations also under MGNREGA has been suggested by farmers as an option for bringing down the cost of cultivation. Shortage of skilled labours can be lessened through the adoption of programmes like Friends of Coconut Tree (FoCT). The problems related to pest and disease attacks can be addressed by developing resistant and hybrid varieties and better plant protection measures. Price fluctuation, high transportation cost, inadequate storage and processing facilities were the major marketing constraints faced by the farmers. Long-term policies for the price stabilization of coconut and other coconut products are inevitable to reduce the price fluctuation. The government should continue the procurement operation through Krishi Bhavans as it is found to be beneficial for the farmers. Shortage of raw nuts, lack of exclusive market for coconut and high domestic price were the major constraints reported by the domestic traders and upcountry traders. The recent surge in the domestic price could be attributed mainly to the short supply coupled with high domestic and industrial demand. Shortage of raw nut due to lower production, productivity and pests and diseases needs to be addressed seriously. In the era of trade liberalisation and FTAs, the interests of farmers also need to be safeguarded while concentrating on trade opportunities. Given the present trade scenario, the coconut sector in Kerala needs strong support from the government to revive and retrieve its premier role performed in the past.ThesisItem Open Access 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 Open Access 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 Open Access Mitigating production vulnerability of banana through weather based crop insurance: An economic analysis(Department of Agricultural Economics, College of Agriculture, Vellayani, 2019) Ajmal, S; KAU; Paul LazarusThe research entitled “Mitigating production vulnerability of banana through weather based crop insurance: an economic analysis” was conducted in the Palakkad and Wayanad districts of Kerala during 2017-19. The objectives of the study were to assess vulnerability of agriculture in general and banana farmers in particular to climate change in Palakkad and Wayanad districts. To evaluate economic benefits of Weather Based Crop Insurance Scheme (WBCIS) for banana farmers and to study the problems and suggest measures for scaling up of WBCIS. Primary data was collected from the farmers of both the districts for the agricultural year 2017-18. Secondary data regarding weather parameters, socio-economic and physiographic factors were collected from various sources. Climate change vulnerability in both districts was assessed by constructing a composite index. It consists of three major component indices: adaptive capacity, sensitivity and exposure and those components were constituted of 27 sub components based on the secondary data collected. The adaptive capacity index, sensitivity index and exposure index obtained for Palakkad district were 0.481, 0.312 and 0.136 and for Wayanad district they were 0.543, 0.345 and 0.166 respectively. The climate change vulnerability index for Palakkad district was 0.322 and for Wayanad it was 0.365. Higher the value of index higher is the vulnerability to climate change. All the indices were more for Wayanad district compared to Palakkad. Same methodology was used to analyse the vulnerability of banana farmers to climate change in the study area. The 14 sub components of vulnerability index were selected based on the primary data collected during the survey. The adaptive capacity index, sensitivity index and exposure index obtained for Palakkad district were 0.618, 0.425 and 0.566 for Wayanad district were 0.622, 0.458 and 0.609 respectively. The vulnerability index obtained for Palakkad was 0.552 and Wayanad was 0.572. The banana farmers in Palakkad district exhibited slightly more vulnerability change when compared to Wayanad districts. To evaluate economic benefits of WBCIS for banana farmers, comparison of was done using cost concepts. At Cost C, insured farmers had incurred more cost (₹ 3,86,021 ha-1) than uninsured farmers (₹3,50,910.06 ha-1). The net returns at Cost C for insured farmers were ₹3,56,261 ha-1 and for uninsured farmers it was ₹3,24,197 ha-1. Insured farmers had 9.89 per cent higher net return at Cost C than uninsured farmers. The BC ratio obtained for insured farmers (2.01) at Cost C were more than that of uninsured farmers (1.92). It was found that the insured farmers were having more economic benefits than uninsured farmers from banana cultivation. The results of Cobb-Douglas production function revealed that R2 value for insured and uninsured farmers was 0.87 and 0.79 respectively, which indicated a good fit. The analysis of allocative efficiency for insured and uninsured farmers revealed that quantity of hired labour, family labour and quantity of manures, fertilizers and soil ameliorants were underutilized. Furthermore, quantity of plant protection materials was overutilized by both categories of farmers. Binary logit regression was fitted to understand the influence of socioeconomic variables on the adoption of WBCIS. From the analysis it was understood that number of years of experience in banana farming had a positive and significant effect, which indicates that the probability of taking insurance increases with increase in the number of years of experience in banana farming. Odds ratio was found as 1.1, meaning that the likelihood of adoption of insurance by more experienced farmers was 1.1 times that of farmers having less experience. Response of insured and uninsured farmers was studied to analyse different aspects associated with WBCIS. Regarding the awareness of insured farmers, majority of farmers were aware about the premium rate and subsidies available, still the overall awareness level was poor. It was found that 51.86 per cent of insured farmers showed involuntary participation in the scheme. Moreover, majority (51.67 per cent) had perception of premium rate as high. Majority of insured farmers expressed willingness to pay only up to 3 per cent of sum insured as premium. About 56.67 per cent of insured farmers were found dissatisfied with the scheme. The financial institution’s compulsion was ranked first among the factors influencing adoption of the scheme. Information from financial institutions was ranked the first as source of information about the scheme among the farmers. Insured farmers unanimously suggested the quick settlement of claims and increase in the indemnity level as a solution to improve the scheme. The main constraint in the adoption of WBCIS was ‘less satisfaction with the indemnity level’ and then ‘lack of awareness about the scheme’. Among the uninsured farmers about 15 per cent farmers adopted the scheme in the previous years. Less indemnity level was the most common reason (75 per cent) for not availing the scheme among the uninsured farmers followed by lack of awareness about the scheme (68.33 per cent). Thus, it can be concluded that Banana farmers in Wayanad district were more vulnerable to climate change compared to Palakkad district. Similar pattern was observed in the vulnerability of agriculture in general to climate change for both districts. WBCIS can be used as a good institutional mechanism for the farmers to adapt to vulnerability due to changes in climate.ThesisItem Open Access Economic analysis of agricultural input subsidies for coconut cultivation in Kozhikode district(Department of Agricultural Economics, College of Agriculture, Vellayani, 2019) Priyanga, V; KAU; Paul Lazarus, TThe study entitled “Economic analysis of agricultural input subsidies for coconut cultivation in Kozhikode district” was carried out with the objectives of analyzing the growth of input subsidies for coconut cultivation, to analyse the impact of input subsidies on coconut production and also to identify the constraints faced by the farmers in availing the input subsidies. The relevant secondary data regarding the progress of Coconut Development Scheme and other areas of input subsidies such as fertilizer, credit and electricity in Kozhikode district were collected from the concerned institutions. Primary data were collected from Balussery and Kattipara panchayat of Kozhikode district for the agricultural year 2018-19. Random sampling technique was adopted and the total sample size was 80, out of which 40 were small farmers (≤ 2 ha of land) and 40 were large farmers (>2 ha of land). The results of Compound Annual Growth Rate revealed that the total expenditure of Coconut Development Scheme (2009-14) was much lower (11.75 per cent per annum) when compared to that of Keragramam scheme (14.66 per cent per annum) by the Government of Kerala (2015-19). The total amount of electricity subsidy (2013-18) was recorded to have slow growth rate (0.48 per cent per annum) whereas credit subsidy (2008-18) was found to have faster rate (14.15 per cent per annum). The growth rate of total amount of fertilizer subsidy was found to be negative (-8.80 per cent). Cost of cultivation was worked out using the ABC cost concept. The total cost of coconut cultivation (Cost C) incurred by the small farmers was ₹ 1.23 lakh ha-1 which was more than that of large farmers (₹ 1.07 lakh ha-1). It was found that profitability was more for large farmers with a B:C ratio of 1.36 while small farmers had a comparatively smaller B:C ratio of 1.17. The results of Cobb-Douglas production function revealed that the R2 value for small farmers and large farmers was 0.71 and 0.59 respectively which indicated a good fit. The analysis of allocative efficiency for small farmers and large farmers revealed that only two components viz., quantity of manures and fertilizers and soil ameliorants were underutilized. While small farmers had underutilized quantity of 144 hired labour, family labour and machine power, the large farmers had overutilized these resources. Almost 54 per cent of respondents obtained the information about input subsidies from Krishi Bhavan. All the respondent small farmers were beneficiaries of Keragramam scheme implemented by the State Department of Agriculture, while large farmers were not eligible. A total of 29 farmers (27 per cent) and 22 farmers (36 per cent) were beneficiaries of electricity and credit subsidy respectively. The total area covered by the sample farmers of Balussery and Kattipara panchayat was 99.47 acres and a total amount of ₹ 6.61 lakhs was availed under Keragramam scheme. The input subsidy under Keragramam scheme ensured cheap inputs for coconut farming as perceived by 67.5 per cent of the respondents. Nearly 55 per cent of beneficiaries perceived that input subsidies were sufficient under Keragramam scheme. The total amount of credit subsidies availed by the beneficiaries was ₹ 2.16 lakh, of which 59 per cent was availed by small farmers and 41 per cent by large farmers. The total amount of electricity subsidy availed by the beneficiaries was ₹ 36,330 of which 39 per cent was availed by small farmers and 61 per cent by large farmers. The statistical analysis of the impact of agricultural input subsidies in coconut production revealed that the amount of subsidy for organic manure and electricity significantly increased the yield at 1 per cent and 5 per cent level of significance, respectively. The coefficient of multiple determination (R2) was 0.94, which indicated that 94 per cent of the variation in yield was explained by the independent variables such as amount of subsidies for organic manure, soil ameliorants, credit subsidy and electricity subsidy. The timely availability and limited quantity of subsidized input were the major constraints faced by the beneficiaries under Keragramam scheme whereas complex administrative procedure was the major constraint faced by the beneficiaries of both electricity and credit subsidy. Large farmers were not eligible to receive the subsidy under Keragramam scheme. As the study indicated better utilization of available resources by the large farmers, it is recommended to follow fair degree of equity in the distribution of 145 subsidy to all farm- size categories. If more amount of subsidy were given to environmentally sustainable components such as organic manures and bio-fertilizer, it could enhance the use of these components by the farmers. This will considerably reduce the externalities due to chemical fertilizers. If more amount of subsidies were given to solar pumpset and micro-irrigation components, it will reduce the externalities from electric pumpset and enhance the conjunctive use of scarce resources such as water. Conjunctive use of water comprises of harmoniously combining the use of both surface and groundwater in order to minimize the undesirable physical, environmental and economic effects of each solution and to optimize the water demand/supply balance. Thus the study can be a guide for planners and policy makers.
