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ThesisItem Open Access Coffee economy of Kerala-an analytical study(Department of Agricultural Economics, College of Agriculture, Vellanikkara, 2021) Abhinav, M C; KAU; Anil KuruvilaCoffee is considered as the favourite drink of civilized world and the second largest traded commodity after petroleum. For many nations in the tropic, coffee is a major source of foreign exchange. India is the third largest producer and exporter of coffee in Asia. The trade liberalization policies have brought challenges as well as opportunities for plantation crops including coffee because of the increased integration of the country with the world, with serious implications for price stability and trade competitiveness. In this context, the present study was undertaken with the objectives; to study economics of coffee cultivation and marketing, asses the implications of changes in prices at farm level and constraints in production, analyse the price behaviour, formation and transmission between Indian and international markets, study the magnitude and determinants of volatility in prices of coffee and analyse India’s export performance and competitiveness in coffee trade. The total cost of cultivation and production of coffee in Kerala state were estimated as ₹1,51,877 per hectare and ₹67 per kg respectively, while the net return was worked out as ₹41,652 per hectare. The major marketing channels identified for coffee were, Channel I: Farmer-Wayanad Social Service Society (WSS) - Consumer; Channel II: Farmer-Village Trader-Wholesaler- Up-country Wholesaler-Retailer-Consumer; Channel III: Farmer-Brahmagiri Development Society-Consumer (BDS); Channel IV: Farmer-Exporter-Consumer and Channel V: Farmer-Exporter-Export Agent-Consumer. Majority of the farmers (52 per cent) sold their produce to the WSS, while 21 per cent farmers sold to village traders. The marketing efficiency was relatively high in channel I because of the highest producer’s share in consumer’s rupee, while it was lowest in channel V. The changes in farmgate prices of coffee influence the farm level decisions of coffee farmers by affecting their decisions on inputs, special benefits provided to farm labourers, health care expenses, savings and borrowings. Among the ii constraints faced by coffee farmers, low farmgate price, climatic issues and lack of irrigation facilities were critically constraining coffee cultivation in Kerala. The intra-annual volatility of Indian and international monthly prices of coffee declined marginally in period II and III, while the inter-annual volatility of Indian and international monthly prices of coffee increased in period II and III. The results of the instability analysis in annual coffee prices showed that the magnitude of volatility indices have increased in period II, while it decreased in period III. The determinants of price volatility of coffee were identified as production and consumption at national level, Rupee-US Dollar exchange rate and climatic factors such as temperature, rainfall and relative humidity. The co-movement between the coffee prices in the Indian and international markets was confirmed in period I, II and overall periods, while there was decreased integration in period III. The Error Correction Model (ECM) indicated the presence of short-run disequilibrium between the Indian and international prices, which got corrected with varying speeds of adjustment. The Granger causality tests confirmed that the price transmission was from international market to Indian market in the long-run. The rate of growth and instability in coffee export decreased in the post-WTO period as compared to the pre-WTO period. The export unit value contributed 108.20 per cent growth in the export value of coffee between pre- and post-WTO period. Nearly 83 per cent of change in the export value variance between pre- and post-WTO period was found to be due to the changes in the variability of export unit value variance. The geographic concentration of coffee exports from India was high in preWTO period, while it decreased in the post-WTO period. There was a changing pattern in the stable export markets for Indian coffee and Germany, Italy and, Japan were found to be the most stable markets in the post-WTO period. The Nominal Protection Coefficient (NPC)) was greater than one (1.25) in the post-WTO period, indicating lower export competitiveness of Indian coffee. iii The challenges in coffee cultivation can be addressed by implementing awareness programmes on optimal input usage and providing irrigation development subsidy to the farmers. A market intelligence system with the crop specific price stabilization mechanism is needed to tackle the high volatility in coffee prices. A stable income for coffee farmers could be ensured by value addition and branding of coffee at the farm level or in cooperative lines. More transparency is required in the marketing channels to reduce the asymmetric information flow to the farmers. In order to promote the export and improve India’s competitiveness, farmers should be encouraged to produce high quality coffee at reduced cost and the country also needs to formulate trade policies for stable export markets and develop strategies for entry into non-traditional export marketsThesisItem 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 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 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 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 Implications of geographical indications for rice in Kerala(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2019) Radhika, A M; KAU; Jesy Thomas, SThe present study entitled “Implications of Geographical Indications for rice in Kerala” was conducted with the objectives of assessing the impact of GI rice on income and welfare of the producer households, identifying the major supply chains, evaluating the institutional innovations in the supply chains, proposing viable supply chain options and examining the export prospects and market access of the registered GI rice. The rice GIs of Kerala viz., Navara, Pokkali, Jeerakasala, Gandhakasala, Palakkadan Matta and Kaipad were selected for the study. From each of the six categories, fifty farmers each were randomly selected making a total sample of 300 farmers. Data was also collected from market intermediaries and producer societies in each GI tract. Cost-return structure was worked out for the selected GI rice using percentage analysis and cost concepts. The highest cost of cultivation (Cost C2) was found in the case of Jeerakasala (`.131082/ha) followed by Gandhakasala (`.127308/ha). The highest average yield was realised for Palakkadan Matta (4498 kg/ha) and lowest yield was realised for Pokkali (1835 kg/ha). Accordingly, the cost of production was highest for Pokkali and lowest for Palakkadan Matta. The highest average gross income of `.155568/ha was obtained for Navara while it was lowest for Pokkali (`.75036/ha). The net income and BC ratio indicated that farming was a loss making business for farmers growing Pokkali, Jeerakasala and Gandhakasala, especially when the value of the family labour, land value and managerial cost were imputed and accounted in the cost. The BC ratio worked out to be more than one in the case of Navara (1.31), Palakkadan Matta (1.05) and Kaipad (1.02). The producer’s performance was assessed using one output and four inputs using DEA model. All the GIs showed low technical efficiency (<40 per cent). The estimated mean technical efficiency for producers of Gandhakasala was highest (90.5 per cent) and the least efficient producers were seen in Pokkali. The scale efficiency results showed that all the GIs were scale inefficient which could be attributed to low operational scale of units. The impact of GI on income and welfare of producer households was measured using the method of treatment effect analysis. The average treatment effects were worked out for the outcome variables; yield per hectare, net income, marketed surplus, and value of marketed surplus. Even though the yield of Navara was comparatively lower than that of Palakkadan Matta, Jeerakasala and Gandhakasala, the net income, marketed surplus and value of marketed surplus were higher for Navara. The yield per hectare was higher for Jeerakasala when compared to Gandhakasala while the net income, marketed surplus and value of marketed surplus were higher for Gandhakasala. Palakkadan Matta recorded the highest yield among these categories, but net income, marketed surplus and value of marketed surplus were comparatively low. The marketed surplus of Pokkali was comparatively higher than Kaipad even though yield, net income and value of marketed surplus were comparatively very less. Three marketing systems were prevalent in the study area. Some farmers market paddy through market intermediaries, some resource rich farmers cultivate and process their produce to meet the requirements of high end consumers and other resource poor farmers sell off their produce to local consumers after processing in nearby mills. The Palakkadan Matta farmers were marketing their produce through Supplyco at the rate of `.22.50/kg. Institutional Analysis and Development Framework (IAD) was used to explore the performance of GIs. Efforts were made for studying the institutional innovations strategies for enhancing profitability and effectiveness of the GI mechanism, to propose viable supply chain options and to examine the export prospects and market access of the registered GI rice. Producer societies play a lead role in the registration process of a GI. The other actors include GI registry, IPR cell, KAU and Producers of the respective GIs. The average prices of all these speciality rice have increased after GI registration. Group-farming can be adopted as an option to bring more area under production. Despite having ample scope for enhancing the income of farmers through diversification, lack of facilities for value addition is a major hurdle. Processing units and storage facilities should be established near major producing areas to overcome this problem. Taking advantage of the GI status, efforts are to be made for marketing GI products as a premium priced branded organic produce. An effective institutional arrangement should be constituted to ensure quality production and efficient marketing of GI rice.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 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 Open Access Market access for smallholder tomato farmers in Mashonaland East Province of Zimbabwe: an economic analysis(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2014) Emmanuel Zivenge; KAU; Jesy Thomas, 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.
