Kerala Agricultural University, Thrissur

The history of agricultural education in Kerala can be traced back to the year 1896 when a scheme was evolved in the erstwhile Travancore State to train a few young men in scientific agriculture at the Demonstration Farm, Karamana, Thiruvananthapuram, presently, the Cropping Systems Research Centre under Kerala Agricultural University. Agriculture was introduced as an optional subject in the middle school classes in the State in 1922 when an Agricultural Middle School was started at Aluva, Ernakulam District. The popularity and usefulness of this school led to the starting of similar institutions at Kottarakkara and Konni in 1928 and 1931 respectively. Agriculture was later introduced as an optional subject for Intermediate Course in 1953. In 1955, the erstwhile Government of Travancore-Cochin started the Agricultural College and Research Institute at Vellayani, Thiruvananthapuram and the College of Veterinary and Animal Sciences at Mannuthy, Thrissur for imparting higher education in agricultural and veterinary sciences, respectively. These institutions were brought under the direct administrative control of the Department of Agriculture and the Department of Animal Husbandry, respectively. With the formation of Kerala State in 1956, these two colleges were affiliated to the University of Kerala. The post-graduate programmes leading to M.Sc. (Ag), M.V.Sc. and Ph.D. degrees were started in 1961, 1962 and 1965 respectively. On the recommendation of the Second National Education Commission (1964-66) headed by Dr. D.S. Kothari, the then Chairman of the University Grants Commission, one Agricultural University in each State was established. The State Agricultural Universities (SAUs) were established in India as an integral part of the National Agricultural Research System to give the much needed impetus to Agriculture Education and Research in the Country. As a result the Kerala Agricultural University (KAU) was established on 24th February 1971 by virtue of the Act 33 of 1971 and started functioning on 1st February 1972. The Kerala Agricultural University is the 15th in the series of the SAUs. In accordance with the provisions of KAU Act of 1971, the Agricultural College and Research Institute at Vellayani, and the College of Veterinary and Animal Sciences, Mannuthy, were brought under the Kerala Agricultural University. In addition, twenty one agricultural and animal husbandry research stations were also transferred to the KAU for taking up research and extension programmes on various crops, animals, birds, etc. During 2011, Kerala Agricultural University was trifurcated into Kerala Veterinary and Animal Sciences University (KVASU), Kerala University of Fisheries and Ocean Studies (KUFOS) and Kerala Agricultural University (KAU). Now the University has seven colleges (four Agriculture, one Agricultural Engineering, one Forestry, one Co-operation Banking & Management), six RARSs, seven KVKs, 15 Research Stations and 16 Research and Extension Units under the faculties of Agriculture, Agricultural Engineering and Forestry. In addition, one Academy on Climate Change Adaptation and one Institute of Agricultural Technology offering M.Sc. (Integrated) Climate Change Adaptation and Diploma in Agricultural Sciences respectively are also functioning in Kerala Agricultural University.

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Open Access
Economic analysis of rice milling industry in central Kerala
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2018) Athira, B; KAU; Chitra Parayil
Rice milling is the oldest and the largest agro processing industry of the country. At present it has a turnover of more than Rs. 25,500/- crore per annum. It processes about 85 million tonnes of paddy per year and provides staple food grain and other valuable products required by over 60 per cent of the population. As demand for food grain increases with the growth of population, the need for efficient paddy processing units is felt in the country. Main challenges encountered by the rice processors are to find appropriate solutions for quality rice processing and meeting the demand of current population growth rate. This work provides the basic information about the economics of rice mills in Kerala, factors affecting the milling efficiency and also will study the stakeholder responses (farmers, traders, and millers) on the rice milling industry. The study was based on both Primary and secondary data. The primary was collected from stakeholders in milling industry in Palakkad and Ernakulam districts of Kerala. This includes millers, farmers and traders of Palakkad and Ernakulum districts. Data was collected from 40 mills (20 from each district), farmers and traders. The year 2016-17 is considered as the year of reference. Capital investment pattern of rice mills in Palakkad and Ernakulam districts were calculated and analysed. The results showed that from 1980 to 2017 investment on rice mills had increased from Rs. 30 lakh to 300 lakh. Capitallabour ratio of 40 rice mills were also calculated and showed an inverse relation between the ratio and capacity of rice mills. Low capital- labour ratio indicated a higher profitability and employment generation in rice mills. Response of the rice millers to the processing industry was analyzed. Millers purchase paddy from farmers in weekly, monthly seasonally and irregular time intervals. Major varieties preferred by the rice millers were Uma, Jaya, Jyothi and TK-9. They mainly procure the paddy varieties from Tamil Nadu and Karnataka farmers compared to the farmers in Palakkad and Alappuzha districts due to the low price. Milling, polishing, supply to the exporters, local trading and by product trading are the major processing activities in rice mills. Major buyers of rice from the rice mills were Traders, consumers, restaurants and public agencies with varying number. Efficiency analysis of rice mills was done using three tools such as percentage analysis, financial ratio and Data Envelopment Technique. Capacity utilization of rice mills were calculated using percentage analysis and found to be higher for large capacity rice mills followed by medium and small capacity rice mills. Financial ratios used were B:C ratio, Gross margin and Operating expense ratio and proved that all the rice mills in Palakkad and Ernakulam were running on a profitable basis. Data envelopment analysis showed the efficiency of rice mills with a mean technical efficiency of 0.95 in Palakkad and 0.96 in Ernakulam. Mean scale efficiency value of 0.91 and 0.93 was obtained from Palakkad and Ernakulam districts respectively. Peer count and input targets of both districts were also obtained from DEA analysis. Major constraints in the rice milling industry were identified using Garret ranking technique. Maintenance cost, labour shortage and irregularity in paddy supply were the main three hindrances to the smooth functioning of rice mills. With the increase in demand for processed rice in India and Kerala there is great need to improve the quality of rice and installed capacity of processing
Open Access
Economic analysis of production, marketing and prices of arecanut in Kasargod district of Kerala
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2018) Janeesa, K P; KAU; Anil Kuruvila
Arecanut is an important plantation crop grown in India, mainly by the small and marginal farmers. India is one among the leading producers of arecanut with an area of 4.55 lakh hectares and a production of 7.25 lakh tonnes in 2016-17. The study entitled “Economic analysis of production, marketing and prices of arecanut in Kasaragod district of Kerala” was conducted with the objectives of analysing the time series properties and formation of prices, estimating the economics and efficiency of arecanut production, identifying the marketing channels and the price spread in different channels and finding out the major constraints in production and marketing of arecanut in Kasaragod district of Kerala. The study was based on both primary and secondary data. The study was conducted in Kasaragod district, which has the largest area under arecanut cultivation in Kerala. Primary data was collected from 100 farmers, randomly selected from two blocks in the district. The data was also collected from 20 market intermediaries including wholesalers, retailers and Central Arecanut Marketing and Processing Co-operative Society (CAMPCO). Trend analysis revealed that area, production and productivity of arecanut in India exhibited increasing trend during the period from 1980-81 to 2015-16. Time series data on area, production and productivity of arecanut in Kerala over the years from 1980-81 to 2015-16 showed an increasing trend with regular ups and downs. Export and import of arecanut have also shown an increasing trend, both in quantity and value terms. The price behavior of ripe and dry arecanut in major markets of Kerala viz., Nedumangad, Telicherry, Kanhangad and Kozhikode were analyzed by decomposing the monthly prices into four components viz., trend, seasonal, cyclical and irregular variations, assuming a multiplicative model of time series. The prices of arecanut showed increasing trend in these markets. While analysing the seasonal variation, it was noticed that arecanut prices showed considerable seasonality. The increasing phase for ripe arecanut prices was observed from March to May, while for dry arecanut, the highest price was observed during April, May and November in Nedumangad, Calicut and Kanhangad markets respectively. Co-integration analysis of arecanut prices in the above markets revealed that the markets were cointegrated. Since arecanut is a perennial crop, its yielding phase was assumed to be 50 years, with a non-bearing phase of five years. The costs and returns were estimated by accounting the establishment and maintenance costs separately. The establishment cost was found to be ₹3,43,386 per hectare and the annual maintenance costs were ₹ 2,13,075, ₹ 2,06,925 and ₹1,58,608 per hectare in yield increasing, yield stabilising and yield declining phases respectively. The cost of cultivation per hectare of the crop was estimated as ₹ 2.67 lakh, while the net return was ₹ 1.30 lakh. It was found that human labour contributed 75 per cent of the total cost of cultivation. The average cost of production in the yielding phase was estimated as ₹ 150 per kg. To evaluate the resource use efficiency in arecanut cultivation, Cobb-Douglas production function was fitted. Plant protection chemicals and human labour were found to be significantly contributing towards the yield. The elastic coefficient for women labour charges was -0.13 indicating that the increase in expenditure on labour by one percent from the mean level. Moreover, a decreasing returns to scale in arecanut production was observed in the study area. The most common marketing channel identified in the study area was channel I (Producer- village trader- wholesaler- retailer- consumers). Even though marketing efficiency was highest in channel III (Producer- CAMPCO- retailers - consumers), farmers preferred channel I over channel III because of the immediate payment. Marketing costs were found to be ₹ 33.9, ₹ 29.44 and ₹ 28.44 per kg in channel I, II and channel III respectively. The highest price spread of ₹ 58.9 per kg was estimated in channel I, while it was lowest (44.94 per kg) in Channel III. Various constraints in production and marketing of arecanut were identified and ranked using Garret’s ranking technique. Among the various constraints faced by farmers in production, scarcity of skilled labour for harvesting and spraying, water scarcity, occurrence of pests and diseases were the major ones. Price fluctuation was the foremost constraint faced in marketing of arecanut. In order to tackle these constraints, mechanization of operations, value addition through product diversification, promoting the use of warehousing facilities and warehouse receipts as negotiable instruments for getting credit and strengthening market intelligence were recommended for ensuring better and stable prices for farmers.
Open Access
Assessment and management of risk at farmer's level in rice and banana cultivation
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2018) Anjana Vijayan; KAU; Indira Devi, P
Agriculture and allied sectors provide livelihood to nearly 40 per cent of the rural population in the state. But, the household income from agriculture is very low and is reported to be fluctuating. The study entitled “Assessment and management of risk at farmer’s level in rice and banana cultivation” was conducted with the objectives of analyzing the spatial and temporal dimensions of risk in agricultural income realization in Kerala and studying the economic cost of risk management strategies adopted by the farmers and the factors influencing it. The study was conducted based on primary and secondary data. Primary data was collected from rice and banana farmers in Thrissur district following Multistage Random Sampling method. Puzhakkal and Anthikkad were the two selected BPs under paddy and Kodakara and Chalakudy were the two selected BPs under banana. Ten farmers each were randomly selected from two GPs of each BP making a total sample size of 80 (40 each rice and banana farmers).The secondary data on agricultural income in Kerala was gathered for a period of 15 years (1999-00 to 2015-16) and was analyzed to assess the instability. Agricultural income was 9.94 per cent of the GDP of the state (2015-16) and it showed an increasing trend at current prices recording a growth rate of 10.6 per cent (1999-00 to 2015-16). However the real income showed declining trend recording a negative growth rate of 0.82 reflecting the welfare loss to farm households. The agricultural income being a function of prices and output, an attempt to analyse the price trend of agricultural commodities was made by looking at the index of prices received and price paid by the farmers. The prices paid by them were at a higher level than price received and the gap was observed to be getting widened though they were both showing an increasing trend. The index of agricultural production of prominent crops of Kerala including food crops and non-food crops (1999-00 to 2015-16) halved from 107.85 (1999-00) to 49.30 over these years, highlighting the severe set-back in agricultural production. To quantify the changes in agricultural income during the period, and to understand the performance of districts, the Compound Annual Growth Rate (CAGR) was estimated at the state level and district level. The growth rate of the state income was estimated as 10.6 per cent at current prices and -0.8 per cent at constant prices during the year 1999-00 to 2015-16. The growth rate in current prices was obviously high due to the price factors and its inflationary trends. All the districts in Kerala showed positive growth in agricultural income at current prices but it recorded a negative growth at constant prices except in the case of a few districts. Highest positive growth rate was observed in Palakkad (12.6 per cent) followed by Idukki (11.7 per cent) and Kasargod (11.6 per cent). At constant prices, majority of the districts showed negative growth rate except Palakkad, Kasargod and Kottayam, in that order. The level of agricultural risk was measured through the estimation of instability index which was found to be 0.086 at current prices and 0.067 at constant prices. Alappuzha (0.225), Wayanad (0.210) and Kasargod (0.288) were the high risk districts and Thiruvanathapuram (0.068) and Ernakulam (0.082) were in the low risk ones. Palakkad, Idukki and Kottayam are the agriculturally most important districts in terms of contribution to state agricultural income (2015-16) while Idukki, Kottayam and Malappuram in that order were the ones that showed consistent high share over a span of 15 years. Sample based field studies showed that rice farmers are facing a number of constraints, viz., production, finance, marketing and institutional factors. The production ranged from 5719kg/ha to 4181kg/ha and price Rs.22.50 to Rs.7/kg. Most of them depended on institutional sources of credit. Institutional risk on account of delayed procurement/payment of produce and the problems associated with DBT system were also highlighted. Statistical analysis identified expenditure on machines and fertilizers and age of the farmer as favouring the production while higher expenditure on fertilizers and plant protection chemicals increased the risk. Higher levels of labour involvement and larger holdings are found to be less risky. Generally, aged and experienced farmers were found to be opting for crop insurance protection. More cultivated area also influenced rice farmer’s decision to subscribe to crop insurance On analyzing the risk in banana cultivation, the production ranged between 22330kg/ha to 14342kg/ha and price Rs.50/kg to Rs.15/kg. Majority of the respondents depended on borrowed capital source from institutional agencies. Statistical analysis identified size of land holding, human labour involvement and expenditure on manures as the factors that favoured banana production while higher human labour involvement and better education of the farmer reduced the risk. Education, years of experience and land holding size are the factors that influenced the banana farmers decision to adopt crop insurance as a risk management tool. The findings highlight the need for a microlevel analytical study to identify the reasons for unstable income in the agriculturally important regions of the state. There should be special risk management tools designed for the risky regions. The constraints with respect to payment for the procured produce and the subsidy delivery needs to focused and efforts to address the same needs to be initiated. The study underlines the need for regulating the use of chemical inputs as it increases the risk, though adds to the rice output. The production and price risk factors in banana cultivation are to be properly addressed through the activities of institutions like VFPCK. There is a need for sensitizing the young farmers on crop insurance.
Open Access
Performance analysis of kisan credit card scheme in Thiruvananthapuram district
(Department of Agricultural Economics, College of Agriculture, Vellayani, 2018) Kshama, A V; KAU; Santha, A M
The research entitled ‘Performance analysis of Kisan Credit Card in Thiruvananathapuram district’ was conducted with the objectives of examining the progress and performance of Kisan Credit Card at macro and micro level and to identify the constraints faced by beneficiaries. The secondary data were collected regarding the number of cards issued and the amount sanctioned at all India level and Kerala state level from various government institutions and banking publications for a period of 10 years. Primary data were collected from Parassala panchayat of Neyyattinkara taluk. The information was collected from 30 KCC beneficiaries and 30 non-beneficiaries randomly selected from the major commercial and co-operative banks of the locality. Thus the total sample size was 60. For the number of cards issued, Kerala recorded a lower Compound Annual Growth Rate (CAGR) than all India which was 3.03 and 13.74 per cent per annum respectively. Whereas for the amount sanctioned the performance of Kerala state was better (22 per cent per annum) compared to all India (18 per cent per annum). The amount per card sanctioned by the banking sector showed a growth rate at of 19 per cent and 4 per cent per annum for Kerala and India state respectively which indicates a tendency of credit deepening in Kerala rather than credit widening. Binary logit regression was done to know the socio economic variables influencing the respondents of the scheme. Analysis showed that cropping pattern and eductaion of the respondents were found to have positive influence indicating, a respondent who is following a particular cropping pattern is 1.3 times more likely to join KCC when compared to the once who are not following any cropping pattern. Similarly in case of education, education the odds ratio was found to be 1.61 indicating that as the education level of the respondents increases then they are 1.61 times more likely to join the scheme rather than the respondents who have not done any formal schooling. The total cost of cultivation was estimated using ABC Cost concept, considering both fixed and variable costs. The most profitable crop was banana, followed by yard long bean, cucumber, tapioca and amaranthus and the B:C ratios were 1.10, 1.06, 1.03, 1.03 and 1.02 respectively at Cost C. From the results of regression analysis it was evident that the coefficient of determination had values ranging from 0.68-0.80 indicating 68-80 per cent of the variation in the gross returns was due to the independent variables under consideration. It was found that 50 per cent of the respondents joined the scheme during 2009-13 and 40 per cent joined during 2006-09. About 50 per cent of respondents obtained information from Krishi Bhavan followed by 33 per cent from banks as a source and 13 per cent from Horticorp. The average amount applied for the loan was ₹60,666.66 and it was more in case of beneficiaries of SBI (₹69,333) than co-operative bank (₹52,000). The average number of renewal of the accounts was found to be 5.73 times. While considering repayment, 73 and 86 per cent of the beneficiaries of SBI and Co-operatives respectively were able to repay the loan amount completely. The average amount of loan sanctioned was more for beneficiaries of SBI but the repayment was better for the loanees of co-operative bank. Scale of finance was compared with Cost A2 and Cost C for the various crops. Invariably for all crops the credit was adequate while considering paid out costs (Cost A2). At Cost C, credit was found adequate for all crops except tapioca. The total cost of credit was found to be higher for beneficiaries of Co-operative bank (7.4 per cent) compared to beneficiaries of SBI (7.2 per cent). It was evident from the ordinary least square estimates that cost of cultivation and loan requirement for non-farming operations were influencing the credit requirement of the respondents positively. The major constraints as perceived by the beneficiaries were with respect to procedural formalities which include time delay and formalities for obtaining the land records from village office and multiple visits to the bank for the sanction. Moreover the credit limit under the scheme was not considering the consumption needs and also respondents found difficulty in annual renewal of the KCC account. The amount per card issued in Kerala state was low when compared to all India level eventhough the growth rate was more which warrants for expansion of credit for agricultural development. The beneficiaries of KCC were able to purchase better quantity and quality of inputs thereby leading to higher profitability from various crops. The inputs were found to be over utilized, which shows that the respondents can increase their income by rational use of inputs. In the opinion of respondents, the consumption needs are more prominent than production credit and if family size is considered as criteria for fixing consumption credit limit the KCC scheme would be more attractive. The linking of KCC with storage and warehousing facility and marketing agencies would avoid indebtedness of farming community.
Open Access
Economic impact of subicsha on SHG members of Kozhikode district
(Department of Agricultural Economics, College of Agriculture, Vellayani, 2018) Abhinav, M C; KAU; Paul Lazarus, T
The research entitled "Economic impact of SUBICSHA on SHG members of Kozhikode district" was conducted in Perambra block of Kozhikode district. SUBICSHA means Special project for Sustainable Business Development of Innovative Coconut Based Micro-Enterprises for Holistic Growth and Poverty Alleviation. The objective of the study was to analyze the economics and marketing of major coconut products produced by SUBICSHA, to assess the economic impact of SUBICSHA on SHG members and to study the constraints faced by SUBICSHA and SHG members. Both primary and secondary data were used for the analysis of this study. Secondary data regarding SUBICSHA were collected from the SUBICSHA headquarters located at Nochad in Kozhikode district. Data on production and price of coconut based products and data on capital investment, fund distribution, machinery and details of cost incurred in the production and establishment of the firm were collected for the period 2003-2017. Primary data were collected from 120 SHG members associated with SUBICSHA. The respondents were classified into Group I (SHG generating more than 4 lakh per annum), Group II (SHG generating 2- 4 lakh per annum) and Group III (SHG generating less than 2 lakh per annum). Financial analysis were done to understand the profitability of four major products by SUBICSHA viz; 1) coconut oil 2) virgin coconut oil 3) chutney powder 4) sandal soap. Marketing channels of SUBICSHA were identified and cost of production of four major products was computed. Percentage analysis and paired ttest were done to identify the economic impact of SUBICSHA on SHG members. Garret's ranking technique was used to rank the constraints faced by SHG members associated with SUBICSHA and constraints faced by SUBICSHA were listed out. Compound annual growth rate was calculated for the quantity produced and average unit prices over the years (2003-17) to know the growth trend. Among the 59 products developed by SUBICSHA, 25 products were exclusively from coconut. All the products analyzed were found to have positive growth trend for price and quantity produced over the years. Among 4 major products virgin coconut oil showed the maximum growth of 5.04 per cent per annum for quantity produced. The annual turnover of SUBICSHA from all the products produced in 2016-17 was 5.47 Cr. Out of this 83.4 ( 4,56,40,496) and 8.57 ( 47,07,576) per cent were contributed respectively by coconut products and by products. In the year 2016-2017 SUBICHA producer company received an annual net profit of 8,51,035. SUBICSHA was initiated with the supporting and revolving fund from Swarnajayanthi Gram Swarozgar Yojana (SGSY) of GOI, 1999. SGSY scheme endured 66.5 per cent of the total establishment and developmental cost of the project. The cost incurred for the production of 1 kg of coconut oil, virgin coconut oil, chutney powder and sandal soap were 202.72, 303, 167 and 264 respectively. Firm sells coconut oil, virgin coconut oil, chutney powder and sandal soap with an average price of 220, 560, 245 and 270 per kg. The net returns obtained from four major products of SUBICSHA per year was 15,10,850 with a B-C ratio of 1.02. From financial analysis, it was found that the net present value of coconut oil, virgin coconut oil, chutney powder and sandal soap were 85,25,413, 9,64,523, 1,21,009 and 2,81,754 respectively and benefit cost ratios of these products were respectively 1.50, 1.10, 1.24 and 1.12. The estimated internal rate of return of coconut oil, virgin coconut oil, chutney powder and sandal soap were 44.70, 16.61, 26.27 and 20.39 per cent respectively. SUBICSHA had only two channels for marketing all its products. More than 90 per cent of the SUBICSHA products were sold through SUBICSHA outlets itself. Less than 10 per cent of the quantity sold through other retailer shops. SUBICSHA had a high marketing efficiency due to its direct selling pattern in the market. Economic impact of SUBICSHA on SHG members was analysed based on before and after status using paired t-test. It was found that the income levels, overall expenditure pattern, saving habit, borrowing power and asset creation of SHG members were significantly improved after joining SUBICSHA. Garrett ranking technique was used to rank the major constraints faced by the SHG members associated with SUBICSHA. In constraints related to participation in SHGs, weak financial status of the SHGs was the prominent constraint faced by Group I and III while lack of stability and unity among members were ranked as first constraint by Group II. In constraints related to participation in SUBICSHA, inadequate technical training was ranked as first by Group I (high income generating SHGs) members while wage problem was ranked first by Group II (middle income generating SHGs) and Group III(low income generating SHGs) members. Regarding socio economic constraints, benefit sharing problem was given as first rank by Group I member while low returns was given as first rank by Group II and Group III members. Among the constraints faced by SUBICSHA, coordination of more than 522 SHG groups, inefficient handling of the technology, unavailability of raw material (coconut) were the prominent constraints in formation, developmental and nurturing stages respectively. Summing up, it can be concluded that SUBICSHA as a women empowerment and poverty alleviation programme was successfully implemented in Kozhikode district and SUBICSHA had significant economic impact on SHG members associated with it. Hence such initiatives may be replicated and promoted in the other districts of Kerala.
Open Access
Economic assessment of the use of microbial inoculants in black pepper (Piper nigrum L.) in Idukki district
(Department of Agricultural Economics, Vellayani, 2017) Salma Muslim; KAU; Santha, A M
The research entitled ‘Economic assessment of the use of microbial inoculants in black pepper (Piper nigrum L.) in Idukki district. The objectives of the study were to quantify the extent of use of microbial inoculants (MI) used in black pepper, assess the economics of microbial inoculants (MI) application and identify the constraints of microbial inoculants adoption in pepper cultivation. At the first stage two blocks namely Kattappana and Nedumkandam were selected purposively and Irattayar and Nedumkandam panchayat were selected respectively from the 2 development blocks. The required information was collected from 30 MI using farmers and 30 non-MI farmers of black pepper by simple random sampling from the two panchayats. Thus the total sample size was 60. Percentage analysis was done to analyze socio economic variables and extent of adoption of MI. Cost ABC concept was used to calculate the cost of cultivation of MI using farmers and non-MI farmers separately. Resource use efficiency was calculated using Cobb Douglas production function and constraints were ranked by Garret’s ranking technique. Black pepper occupied about 45 per cent of cropped area and 30 per cent area occupied by cardamom. Plantation crops like cocoa, coffee, spices like nutmeg clove, vanilla and annuals like banana and vegetables were also cultivated in this area. Major varieties of black pepper cultivated were Panniyur I, Panniyur 4, local varieties like Karimunda, Neelamundi, Vellamundi, Kottanadan, Kuthiravaly, Kalluvallyand major standards for trailing pepper were Murukku, Silver Oak and Kilinjil. Average size of land holding was 1.85 ha for MI using farmers and 2.10 ha for non-MI farmers. Seventy three per cent of MI using farmers and 56 per cent of non-MI farmers had holdings ranging from 0.4-1.2 ha under pepper. Forty percent of high income farmers were following non-MI pepper farming. Analysis of extent of use of microbial inoculants revealed that only 33 per cent were following the recommended rate of MI whereas 46.6 per cent of farmers used in excess.Total cost of cultivation of black pepper per hectare was more for non-MI farmers when compared to MI using farmers. Cost A1 of MI adopted farmers was Rs. 133797.24 ha-1 and that for non-MI was Rs. 155720.64 ha-1. Cost C was calculated as Rs. 295050.13 ha-1 and Rs. 439399.87 ha-1 for MI using famers and non-MI respectively. Major share of cost A1 was contributed by cost of hired labourfor both categories followed by cost of manures, fertilizers and soil ameliorants. Yield of black pepper did not show much difference, but the farmers using MI were mostly following organic farming, fetches a higher price of Rs.700 per kg against the price ofRs.680 per kg for the non-MI famers. Net returns at cost C for MI using farmers was Rs. 135749.75 which was higher than that of non-MI farmers. BC ratios were 1.8 and 1.23 for MI adopters and non-MI farmers respectively at cost C. The Cobb Douglas production function analysis showed that number of bearing pepper vines had a positive and significant impact on yield in both the cases. In case of MI using farmers along with number of bearing vines, quantity of manures had positive and significant impact on yield. Quantity of MI showed positive coefficient but was non-significant. For the non-MI pepper farmers, number of hired labour and quantity of manures showed positive and significant impact in addition to number of bearing pepper vines. Difficulty in proper identification of pests and diseases in the study area, less availability of microbial inoculants other than Pseudomonas and Trichoderma, Lack of knowledge about recommended method, dose and time of application of MI and climate change were the major constraints observed. Present research revealed that by using MI, farmers could reduce the use of chemical fertilisers and pesticides; thereby they could reduce the cost of cultivation and increase profitability. Excess adoption of MI was prominent among the users and proper guidance is required to the farmers on the application of recommended dose of microbial inoculants along with adequate availability of all microbial inoculants.
Open Access
Market access to quality paddy seed in Kerala
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2017) Fathimath Nufaisa, P; KAU; Prema, A
Seed is the basic and critical input in agricultural production. It helps to enhance production without adding much to the extent of land under cultivation. Area under rice in Kerala fell from 2.34 Lakh hectares in 2009-10 to 1.99 lakh hectares in 2015-16, the production corresponding to the above period registered a reduction of only 0.49 Lakh tones. Availability and access to quality seeds is one of the important aspect in maintaining at least the current level of production of rice in the state. Hence the present study was carried out to document the major rice seed supply chains in Kerala and to assess their economic performance, to elucidate the demand - supply gap in rice seed production and to conduct a SWOC analysis of the rice seed market in the state. The study was conducted in three major rice growing districts in Kerala viz., Palakkad, Alappuzha and Thrissur. From each district one block having maximum area under rice cultivation was selected and from each block two panchayaths were randomly selected. Primary data collection was done from 60 rice farmers and 60 rice seed growers in the selected panchayaths. Relevant data were also collected from Kerala State Seed Development Authority (KSSDA), Kerala Agricultural University (KAU) research stations and National Seeds Corporation (NSC). Rice seed supply chains in Kerala could be broadly classified into formal and informal system. The informal system constitutes farm saved seed and seed exchange among farmers, friends and relatives. The formal rice seed supply system constitutes institutionalized rice seed supply mechanisms. Major formal rice seed supply chains identified were KSSDA rice seed supply chain, KAU rice seed supply chain and NSC rice seed supply chain. Economic performance of rice seed production under the identified supply chains was analyzed using Commission on Agricultural Costs and Prices (CACP) cost concepts and Benefit Cost Ratio (BCR). BCR of rice seed production in KAU research farm was 0.76 followed by 0.89 for KSSDA and 1.04 for participatory rice seed production in KAU. Seed production systems in KAU research farms and KSSDA was found to be economically inefficient as indicated by the BCR values. Demand- supply gap in rice seed production was worked out as the difference between the quantity of high yielding variety seed required for the area reported and the quantity of seeds distributed through the formal supply chains. The demand supply gap over the years (2012 to 2016) ranged from 30 per cent to 50 per cent of the total demand indicating that 50-70 per cent of total rice seed demand was met through formal rice seed supply system. KSSDA was found to be the major source of rice seed supply (88.97 per cent) followed by NSC ( 8.57per cent) and KAU (2.46 per cent). Constraints faced by rice farmers in access to quality rice seed was analyzed using Garrett ranking technique. Timely availability of rice seed was the major constraint followed by poor rice seed quality. Analysis of constraints faced by seed growers have shown that lack of timely procurement and payment was the major constraint. Strengthening of seed production system with establishment of separate seed certification agency and sufficient seed storage and processing facilities at seed growers’ level was suggested.
Open Access
Economics and risk mitigation measures for nendran banana cultivation in Thiruvananthapuram district
(Department of Agricultural Economics, College of Agriculture, Vellayani, 2018) Stephy, M A; KAU; Santha, A M
The research entitled " Economics and risk mitigation measures for Nendran banana cultivation in Thiruvananthapuram district" was conducted in Neyyatinkara taluk of Thiruvananthapuram district. Risks are inherent in farming business and it can be explained in terms of production risk, price risk and credit risk. The risks are there with regards to weather parameters, yield, price, government policies, global markets and several other factors that can cause a wide swing in farm income. Risk mitigation includes a series of techniques that can eliminate or reduce the negative impact of risk. In this context, the main objectives were to study the economics of banana cultivation, identification of risks and relative advantages of risk mitigation measures and constraints in their adoption. Neyyatinkara taluk was purposively selected which is having the maximum area under banana, from which four panchayats were selected at random. From each panchayat 20 respondents were taken randomly. Thus the total sample size was 80. Further the farmers were classified into insured and uninsured by considering crop insurance as a formal risk mitigation measure. Percentage analysis was done to analyze the socio economic variables and extent of adoption of crop insurance. Cost ABC concept was used to compute the cost of cultivation of insured farmers and uninsured farmers. Resource use efficiency was calculated using Cobb Douglas production function and constraints were ranked by Garret’s ranking technique. Majority (72.5 per cent) of farmers belonged to the middle age group and the average age of the selected respondents was 48.7 years. Considering the educational status, 90 per cent of insured farmers had formal education whereas in case of uninsured farmers the per cent was 86. More than 50 per cent of farmers belonged to medium size family with 4 to 6 members. The average size of land holding was 71.09 cents for insured farmers and 76.08 cents for uninsured farmers. Area under cultivation of banana was 9.53 ha (area under insurance scheme) for insured farmers and 8.12 for uninsured farmers. The average annual income of insured farmers was ₹ 1,39,955.08 and it was ₹ 96,007.80 for uninsured farmers. Out of 80 respondents, 53.75 per cent of the farmers adopted crop insurance as a risk mitigation tool. Most of the insured farmers (88.3 per cent) adopted Kerala state crop insurance scheme and only few farmers resorted to VFPCK scheme. Comparatively high indemnity (₹ 300/ plant) was the reason to attract farmers towards the Kerala state crop insurance scheme. Among the uninsured farmers 35.2 per cent were not aware about crop insurance scheme. The premium per plant was ₹ 3 for SCIS and ₹ 5.50 for VFPCK. Apart from production risk, farmers also considered the price risk and credit risk. For mitigating the price risk, the farmers sold their products through more than one marketing agency (46.25 per cent). The respondents used the institutional agencies (42.5 per cent) as the major source to overcome credit risk. The cost of cultivation of Nendran banana of insured farmers was ₹ 4, 28, 086.70 ha-1 and for uninsured farmers it was ₹ 3, 99, 796.5 ha-1 at Cost C. In both cases, the manures and fertilizers cost accounted the highest share followed by hired labour in the variable cost. The average yield was 259.7 q ha-1 and 220. 9 q ha-1 for insured and uninsured farmers respectively. The price of Nendran banana was ₹ 37 Kg-1 at the time of the survey. BC ratio was more for insured farmers (2.25) than uninsured farmers (2.04) at Cost C. The family labour contribution to total labour cost was 36 per cent for insured farmers and 39 per cent for uninsured farmers. The results of Cobb Douglas production function analysis showed positive and significant co efficient for quantity of manures and fertilizers on yield for both insured and uninsured farmers. Hired labour days was also positive and statistically significant for insured farmers. The estimated allocative efficiency was more than one for quantity of manures and fertilizer, quantity of propping and hired labour for both type of farmers indicating underutilization of these resources and it can be increased to enhance the allocative efficiency in production. There are various constraints faced by the banana growers while adopting different risk mitigation measures. Complicated procedure of crop insurance was the major constraint for mitigation of production risk. For mitigating price risk glut of product in the market scored the highest and payment of rent in advance for leased in land scored the highest in the case of constraints for mitigation of credit risk. To conclude, the farmers adopting crop insurance had incurred higher cost of cultivation and obtained better yield and BC ratio from Nendran banana. The analysis revealed that there is scope for efficient utilization of the resources. Lack of awareness was prevalent among the uninsured farmers and complicated procedure of crop insurance was cited as the major constraints for mitigation of production risk by insured farmers. Crop insurance acted as a tool for enhancing the risk taking capacity of farmers for investing more to increase the profitability
Open Access
Economic analysis of production, marketing and price behavior of tapioca
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2018) Athira, E; KAU; Jesy Thomas, K
Tapioca (Manihot esculenta Crantz) is a staple food crop cultivated in several developing countreis around the globe. Among the tropical root and tuber crops, tapioca stands first in terms of area and production. India is the tenth largest producer of tapioca with production of 8.10 million tonnes from an area of 2.17 lakh hectares. India acquires its significance in global tapioca economy due to highest productivity in the world (36.4 t/ha). Among Indian states Kerala stands second in production of tapioca. The area under tapioca was showing a declining trend from the eighties which has resulted in stagnant production. In the above background, the present study was carried out with the objective of analysing the trend in area, production and productivity and price behaviour of tapioca, estimating the economics and resource use efficiency of tapioca production, identifying the marketing channels, estimating marketing costs, margins and marketing efficiency and finding out the major constraints in production and marketing of tapioca in Kerala. The study is based on both primary and secondary data. The time series data on area, production and productivity of tapioca in Kerala and India for a period of 1950-51 to 2016-17 were collected to study the trend and growth rate. Monthly average prices of tapioca in various markets of Kerala were collected to evaluate the trend and price behaviour of tapioca over the period 2002 to 2018. Primary data was collected form 120 selected farmers of Kollam district and Malappuram district using pretested interview schedule by personal interview method. Trend analysis was done to understand the growth pattern of tapioca in terms of area, production and productivity both at national and state level from 1950-51 to 2016-17. In India production and productivity of tapioca showed an increasing trend but the area was showing a declining trend. In the case of Kerala, similar trend was observed with negative growth in area for the entire period of study, but the growth for the entire period of study, but the growth rate in production was positive due to high and positive growth rate in productivity. The price behavior of tapioca in major markets of Kerala viz., Kozhikode, Ernakulam and Chalai were analyzed by decomposing the monthly price data into four components viz., secular trend, seasonal variation, cyclical variation and irregular variation assuming a multiplicative model of time series. The price of tapioca in these markets showed an increasing trend in the long run. While analyzing the seasonal variation it was noticed that during the entire study period (2002 to 2018), price of tapioca showed wide fluctuations in all the three markets. Due to high fluctuations in price no definite cycles were seen in the market prices. Co-integration analysis of tapioca prices in the above three markets were carried out and it was revealed all the three markets were integrated. In order to provide additional evidence on the direction of price transmission, Granger causality test was carried out and the results proved the existence of causality between Kozhikode and Ernakulam markets in the long run in both the directions. Unidirectional causality was found between Kozhikode and Chalai markets and Ernakulam and Chalai markets. The cost and returns were estimated using ABC cost concepts. The cost of cultivation per hectare was Rs.1, 54,619 with a net return of Rs. 43,190. It was noted that human labour accounted for 48.50 per cent of the total cost. To evaluate resource use efficiency in tapioca cultivation, Cobb-Douglas production function was fitted. Human labour and experience in farming were found to be significantly and experience in tapioca cultivation, Cobb-Douglas production function was fitted. Human labour and experience in farming were found to be significantly contributing towards the yield. Moreover, an increasing returns to scale in tapioca production was observed in the study area which implies that there is ample scope to increase the profit of farmers by proper adoption of technology and by optimal allocation of resources. Marketing plays a predominant role in agricultural development and is as important as production to any producer. Thus, an efficient marketing system can increase the level of income of producers and raise the satisfaction of cosumers. The most common marketing channel identified in the study area was channel I (Producer-village trader-wholesaler-retailer-consumer) with a marketing efficiency of 2.0, while channel IV (Producer-consumer) was found to be the most efficient channel (6.45) as there were no intermediaries. Major production constraints identified were high labour cost and labour shortage and the marketing constraints were low price and distress sale to traders. The future of tapioca lies in the promotion of diversified uses of tapioca, especially in the industrial sector so policy intervention to encourage potential entrepreneurs to start industries to produce diverse value added products from tapioca is needed to tackle these problems.

Kerala Agricultural University, Thrissur

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