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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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ThesisItem Open Access Price behaviour of nendran banana in Kerala: an economic analysis(Department of Agriculture Economics, College of Horticulture, Vellanikkara, 2019) Shana, K K; KAU; Jesy Thomas, KIndia is the leading producer of banana in the world with an annual production of 30 million tons from 0.8 million hectares (2017-18). Nendran is one of the most important commercial varieties of banana grown in Kerala, occupying about 50 per cent of the total area under banana. Wide fluctuations have been observed in the price of Nendran, resulting in income variability of farmers. Hence the present study has been carried out with the objectives of analysing the price behaviour and volatility in prices of Nendran banana in Kerala. The study was mainly based on secondary data collected from the major markets of Kozhikode, Ernakulam, and Thiruvananthapuram. Trend analysis was carried out to understand the growth in area, production and productivity of banana both at national and state levels from 1980-81 to 2017-18. In India, the area, production and productivity of banana showed a significant growth. The area and production in Kerala showed an increasing trend but the productivity was found decreasing. Even with a growth in area of 4.83 per cent, the production increased only by 1.27 per cent due to the negative growth rate of -3.4 per cent in productivity per annum. The price behaviour of Nendran banana in major markets of Kerala viz., Kozhikode, Ernakulam, and Thiruvananthapuram for a duration of 16 years (20032018) was analyzed by decomposing the monthly price data into four components such as secular trend, seasonal variation, cyclical variation and irregular variation assuming a multiplicative model. Prices in all the three markets showed increasing trend. The seasonal variation of Nendran banana price in the markets showed a similar pattern, with peak price in the month of August because of increased demand during Onam season. Price cycles with length varying from six to seven years were noted in the market price. xix Pairwise and multiple co-integration analysis of Nendran banana prices in the above markets were carried out after confirming the stationarity of price series using Augmented Dickey Fuller (ADF) test. The results showed that the markets were integrated, inferring the presence of price association among the markets. In order to provide additional evidence as to whether and in which direction price transmission occurred, Granger causality test was carried out and the existence of unidirectional causality from Kozhikode market to Ernakulam market and from Thiruvananthapuram market to Kozhikode and Ernakulam markets was proved. Correlation co-efficient between monthly market arrivals and prices of Nendran banana in Kozhikode, Ernakulam, and Thiruvananthapuram markets from 2013 to 2018 was computed to evaluate the pattern of association between them. In all the three markets, the prices and quantity of arrivals were found to be negatively correlated implying that prices decreased with increase in arrival of Nendran banana. The variability in Nendran banana arrivals and prices was studied computing the coefficient of variation and maximum variability in arrivals was found in Ernakulam market (42.52 per cent) and maximum variability in prices was found in Thiruvananthapuram market (24.41 per cent). Intra-annual volatility and inter-annual volatility of monthly prices of Nendran banana from 2003 to 2018 were estimated and the prices were found to be highly volatile. The intra-annual volatility showed no distinct pattern in all the three markets. The magnitude of inter-annual volatility was decreasing throughout and the divergence between the volatility of prices were found to be decreasing towards the latter end. Instability in annual prices worked out using suitable indices showed that prices in Thiruvananthapuram market were more volatile than other markets as it was influenced by prices in the markets of Tamil Nadu. xx Major constraints identified in the study area were wide fluctuations in prices, high labour and transportation costs, unavailability of institutional credit and lack of reliable information about prices. Price fluctuations and volatility creates uncertainty in the planting and marketing decisions of the farmer. Unavailability of reliable price information makes marketing difficult and farmers become more vulnerable to price risk. Therefore, suitable strategies for developing market intelligence for Nendran banana including price forecasting and provision to farmers, price stabilization through year round procurement and introduction of support price were suggested as policy interventions.ThesisItem Open Access Dynamics in prices and trade of Indian small cardmom and its implications on producers(Department of Agriculture Economics, College of Horticulture, Vellanikkara, 2019) Indhushree, A; KAU; Anil, KuruvilaIndian small cardamom is known worldwide for its quality and is exported to many countries around the world. Formerly, India enjoyed a monopoly in the production and export of small cardamom in the world. Since 1980s, the country lost its share in the international market to Guatemala due to comparatively higher price and increasing domestic demand for the commodity. The present study on “Dynamics in prices and trade of Indian small cardamom and its implications on producers” was undertaken with the objectives, to study the economics of small cardamom cultivation and marketing, analyse the price formation and transmission between Indian and international markets, study the supply response of cardamom, analyse India’s export performance and competitiveness and assess the implications of changes in price and trade at the farm level. The study was based on both primary and secondary data. In order to estimate the economics of cultivation and marketing of small cardamom, primary data were collected from 160 selected farm households in Idukki district of Kerala and from 52 market intermediaries in Kerala and Tamil Nadu. The secondary data on area, production, prices and exports of small cardamom published by various institutions for the period from 1970-71 to 2017-18 were collected in order to study the price formation and transmission between the international and domestic markets, to find out the export performance and competitiveness of Indian small cardamom and supply response of cardamom to prices. The economics of small cardamom cultivation in Idukki district of Kerala was estimated using the concepts of establishment cost and maintenance cost. The total cost of cultivation and production of small cardamom in Idukki district were estimated as ₹4,79,040 per hectare and ₹375 per kg respectively, while the net returns earned by the farmers was ₹9,18,366 per hectare. The major marketing channels identified for small cardamom were, Channel I: Producer-Village trader-Auctioneer-Wholesaler-Retailer-Consumer; Channel II: Producer-Auctioneer-Wholesaler-Retailer-Consumer; Channel III: Producer-Village trader-Auctioneer-Exporter-Consumer and Channel IV: Producer-Auctioneer-Wholesaler-Upcountry wholesaler-Retailer-Consumer. Majority of the farmers (49 per cent) were selling their produce to the village traders, while 32 per ii cent of the farmers were selling to auctioneers. The marketing efficiency was found to be highest in channel II because of the low marketing cost and margin, and high producer’s share in consumer’s rupee. The marketing efficiency was found to be lowest in channel III. The co-movement between the cardamom prices in the Indian and international markets was confirmed in the post-WTO period, while there was no integration in the pre-WTO period. The transmission of price signals between Indian and international markets was also established for period I, period III and period IV. The price series of different grades of cardamom in the domestic market were found to be moving together in almost all the periods considered. Thus, the price of cardamom in one market was found to be having considerable influence on the price prevailing in the other market after the liberalisation of trade. The Error Correction Model (ECM) indicated the presence of short-run disequilibrium between the Indian and international prices, and between the prices of different grades of cardamom, which got corrected with varying speed of adjustment. Granger causality test confirmed that the price transmission was from the international market to the Indian market in the long-run. The elasticity of supply of small cardamom with respect to its own price lagged by two years was positive and significant in both the short-run (0.39) and long-run (0.96). The rate of growth in the export of small cardamom from India increased, while the instability in export declined in the post-WTO period as compared to the pre-WTO period. The export quantity contributed to about 80 per cent growth in the export value of small cardamom in the post-WTO period. Nearly 85 per cent of change in the variance of export value in the post-WTO period was due to the change in the variability of export unit value of small cardamom. Among the different periods considered for the study, period I recorded a higher growth rate of export and lower instability in terms of value and unit value, while period II witnessed the lowest and negative growth rate with high instability in the export of small cardamom. Geographic concentration of small cardamom export from India always remained high and it further increased in the post-WTO period. Over the years from period I to period V, there was a steady and gradual increase in the geographic concentration of export. There was a changing pattern in the stability of export markets for Indian small cardamom, and the probability of retention of major countries was iii declining over the years with the exception of Saudi Arabia. It was found that Saudi Arabia, Malaysia, Japan and UAE were the stable markets in both pre-WTO and post-WTO periods. Even though India gained considerable market share of new markets viz., UK, Iran and Bangladesh, it lost some of the traditional export markets viz., Kuwait, UAE and Qatar. The export demand for Indian small cardamom was determined by the GDP per capita in the importing countries in both pre-WTO and post-WTO periods, while the export supply was influenced by the ratio of export price to domestic price and the domestic production. The indices of export competitiveness viz., the Nominal Protection Coefficient (NPC) and Effective Protection Coefficient (EPC) values were greater than one (1.33) indicating lower export competitiveness of Indian small cardamom. Domestic Resource Cost Ratio (DRCR) was less than one (0.22) which indicated India’s comparative advantage in the production of small cardamom. Variance in producer prices influences the welfare of the farmers by affecting their income. The variance in exchange rate was found to be the major source of variation in producer prices in the pre-WTO period and period II, while the variance in export unit value was the major determinant in the post-WTO period, period I and period III. The challenges in small cardamom cultivation need to be addressed by introducing varieties that are both pest resistant and high yielding, formulating effective organic inputs and providing replanting subsidy at a reasonable rate to the farmers. Regarding the price and trade of cardamom, crop specific price stabilization mechanism is needed to tackle the excessive volatility in cardamom prices. More transparency is required in the e-auction system to reduce re-pooling by traders and ensure faster payment to the farmers. In order to promote export and improve India’s competitiveness, farmers should be encouraged to follow Good Agricultural Practises (GAP) that will help to reduce the input usage, which will in turn improve the quality of the commodity and reduce the cost of production. Effective ban on toxic chemicals at the national level is necessary to keep the residual toxic content in small cardamom within the permissible limits. Branding of Indian small cardamom which is of superior quality could also help in promotion of the commodity in the international market.ThesisItem Open Access Water crisis in Coastal area: Domestic adaptation strategies and impact on agriculture sector(Department of Agriculture Economics, College of Horticulture, Vellanikkara, 2019) Swathy Sugathan, P; KAU; Indira Devi, PDespite rich endowments of water resources, availability of water in Kerala is dwindling and inadequate for the growing population. Several regions in the state experience seasonal drought like condition, every year. The coastal areas of Kerala become most vulnerable region with respect to water scarcity due to quantitative and qualitative aspects. The study on ‘Water crisis in coastal areas: domestic adaptation strategies and impact on agriculture sector’ was undertaken in this background in coastal areas of Thrissur district in Kerala. The main objectives of the study were to analyse the dimensions of water scarcity and the level of understanding of the same among coastal communities and to identify the strategies to address the issue. Further, economic burden on households were estimated and the impact of scarcity on agriculture sector was also analysed. The study was conducted in Chavakkad, Thalikulam, Mathilakam, and Kodungallur regions of Thrissur district by a two stage random sampling of 120 respondents. The study was based on both primary and secondary data and the data was analysed using statistical tools like descriptive analysis, regression analysis, scaling technique and Shannon-Wiener diversity index. The major water sources in the study area were own sources such as wells, ponds, and public sources like house connections and public taps. Wells are the major source for domestic sector and ponds serve the irrigation purpose. The volume of water in the wells, which was a major water source in the region, declined by an average of 62 per cent by summer season. Thus, the dependence on dug wells for household consumption reduced to 27 per cent, compared to monsoon season (77 per cent). This was also due to the water quality problems, in certain cases. The water quality issues in the area was reflected as colour change, odour, salinity and hardness. Aquatic weeds was reported as a major threat in the coastal belt. Correspondingly, the average household water consumption level also declined. The volume of water in the well and family size influenced the household consumption. Coconut based cropping system was prevalent in the study area with arecanut and banana as major intercrops. Ponds were the major source of irrigation water. Most of the farms were irrigated (40 per cent) at an interval of three days. In regions of severe water scarcity, an irrigation schedule of once in ten days (15 per cent of the farms) was followed. The decision to irrigate the farm was significantly influenced by number of water sources and agricultural income. The irrigation investment amounted to `33,781 per ha per year which constituted 45 per cent of cost of cultivation while accommodating the fixed cost component. Most of the respondents reported a gradual reduction in agricultural yield over the years and 60 per cent respondents attribute it to water scarcity. Digging new ponds, installation of efficient pumpsets, roof water harvesting and filtering of water for domestic purpose were the adaptation strategies opted by the farmers to address the water scarcity. Farming experience was proved to be the most influential factor that determined the adaptation behaviour. The study brings out results that suggest policy interventions for implementing rain water recharge efforts and scientific water quality monitoring system in Kodungallur and Mathilakam regions where water quality problems were more severe. Simultaneously water resource conservation strategies, as well as models developed by KAU for improving crop diversity are to be popularised.ThesisItem Open Access Dynamics and competitiveness of agricultural trade polices on coconut economy of Kerala(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2019) Thasnimol, F; KAU; Prema, ACoconut is a crop of economic importance in many Asian and Pacific countries. India is the largest producer of coconut in the world contributing 23798.23 million nuts from an area of 2.09 million ha (CDB, 2018). The economic reforms of the 1990s and the subsequent trade liberalization policies have brought challenges and prospects to Indian agriculture including the coconut industry. In this context, the present study was undertaken with the objectives to trace and assess the impact of trade policies in edible oil on coconut economy of Kerala, to analyse the price transmission in the markets, to estimate the efficiency of selected coconut markets and finally to suggest appropriate policy measures for improving the performance of coconut trade. Both primary and secondary data were used for examining the specific objectives of the study. The primary data were collected using well-structured and pretested schedules through a survey of 90 farmers, 45 market intermediaries and 15 exporters in the selected districts of Kerala. Secondary data was mainly collected from authentic sources like CDB, EXIM data bank, DGCI&S, DGFT and FAO statistics. Though trade liberalization adversely affected the coconut farmers during the initial phase of liberalization, it subsequently increased the opportunities of the Indian coconut sector to compete in the world market. The export growth rate of coconut products has increased during the study period (1980-81 to 2016-17) while instability index, a measure of export stability was found to have decreased. The high growth rates of coconut products together with low instability indices in the export revealed the prospects for Indian coconut sector in the global market. Hence stream lining the production through Good Agricultural Practices to fulfill the export market requirements with regard to quality and safety would boost the trade. The comparative advantage in coconut trade analysed using the Revealed Symmetric Comparative Advantage (RSCA) indicated that coconut oil and desiccated coconut did not possess any comparative advantage in global trade, while coconut (fresh and dried) and copra have comparative advantage. It was obvious from the result that rather than focusing on the export of coconut oil and desiccated coconut, India must give much effort to increase our export share of coconut, copra and other value-added coconut products to augment the foreign earnings. The trade policies concerning edible oils at the national level were found to have an impact on the coconut oil prices in Kerala too. Exponential growth rates were computed to compare the growth of edible oil imports and coconut oil prices in Kerala. The significant improvement in the growth rates of edible oil import and decline in the growth rates of coconut oil price confirmed that trade liberalisation and further Free Trade Agreements (FTAs) facilitated the huge import of edible oil from other countries which unfavorably affected the domestic coconut economy. The result of the Policy Analysis Matrix (PAM) unveiled that coconut oil production in Kerala was competitive at the given level of technologies, prices of inputs and outputs and current policy stipulations. However, social profitability, a measure of efficiency or comparative advantage was observed to be negative. The result depicted that coconut oil production in Kerala lacks comparative advantage in production and the state was not able to use the available resources efficiently. The efficiency of selected coconut markets studied using Shepherd’s index indicated that the presence of more number of marketing intermediaries and high marketing cost and margin have reduced the producer’s share in consumer’s rupee. Besides, high wage rates, shortage of skilled labour, lack of processing technologies, adverse climatic conditions, etc., obstruct the farmers in performing even the primary level processing and thereby it reduces the producer’s share in consumer’s rupee. The cointegration analysis using Johansen Cointegration method revealed that the liberalisation policies and further free trade agreements have resulted in the transmission of price signals between domestic and international edible oil markets and it led to the integration of these markets during the post-liberalisation period. The result of Vector Error Correction Model (VECM) also depicted that changes in the international prices of edible oils would cause changes in price in the domestic coconut oil market in the long-run. High wage rate, labour shortage and incidence of pest and diseases were the major production constraints faced by the farmers. Inclusion of agricultural operations also under MGNREGA has been suggested by farmers as an option for bringing down the cost of cultivation. Shortage of skilled labours can be lessened through the adoption of programmes like Friends of Coconut Tree (FoCT). The problems related to pest and disease attacks can be addressed by developing resistant and hybrid varieties and better plant protection measures. Price fluctuation, high transportation cost, inadequate storage and processing facilities were the major marketing constraints faced by the farmers. Long-term policies for the price stabilization of coconut and other coconut products are inevitable to reduce the price fluctuation. The government should continue the procurement operation through Krishi Bhavans as it is found to be beneficial for the farmers. Shortage of raw nuts, lack of exclusive market for coconut and high domestic price were the major constraints reported by the domestic traders and upcountry traders. The recent surge in the domestic price could be attributed mainly to the short supply coupled with high domestic and industrial demand. Shortage of raw nut due to lower production, productivity and pests and diseases needs to be addressed seriously. In the era of trade liberalisation and FTAs, the interests of farmers also need to be safeguarded while concentrating on trade opportunities. Given the present trade scenario, the coconut sector in Kerala needs strong support from the government to revive and retrieve its premier role performed in the past.ThesisItem Open Access Mitigating production vulnerability of banana through weather based crop insurance: An economic analysis(Department of Agricultural Economics, College of Agriculture, Vellayani, 2019) Ajmal, S; KAU; Paul LazarusThe research entitled “Mitigating production vulnerability of banana through weather based crop insurance: an economic analysis” was conducted in the Palakkad and Wayanad districts of Kerala during 2017-19. The objectives of the study were to assess vulnerability of agriculture in general and banana farmers in particular to climate change in Palakkad and Wayanad districts. To evaluate economic benefits of Weather Based Crop Insurance Scheme (WBCIS) for banana farmers and to study the problems and suggest measures for scaling up of WBCIS. Primary data was collected from the farmers of both the districts for the agricultural year 2017-18. Secondary data regarding weather parameters, socio-economic and physiographic factors were collected from various sources. Climate change vulnerability in both districts was assessed by constructing a composite index. It consists of three major component indices: adaptive capacity, sensitivity and exposure and those components were constituted of 27 sub components based on the secondary data collected. The adaptive capacity index, sensitivity index and exposure index obtained for Palakkad district were 0.481, 0.312 and 0.136 and for Wayanad district they were 0.543, 0.345 and 0.166 respectively. The climate change vulnerability index for Palakkad district was 0.322 and for Wayanad it was 0.365. Higher the value of index higher is the vulnerability to climate change. All the indices were more for Wayanad district compared to Palakkad. Same methodology was used to analyse the vulnerability of banana farmers to climate change in the study area. The 14 sub components of vulnerability index were selected based on the primary data collected during the survey. The adaptive capacity index, sensitivity index and exposure index obtained for Palakkad district were 0.618, 0.425 and 0.566 for Wayanad district were 0.622, 0.458 and 0.609 respectively. The vulnerability index obtained for Palakkad was 0.552 and Wayanad was 0.572. The banana farmers in Palakkad district exhibited slightly more vulnerability change when compared to Wayanad districts. To evaluate economic benefits of WBCIS for banana farmers, comparison of was done using cost concepts. At Cost C, insured farmers had incurred more cost (₹ 3,86,021 ha-1) than uninsured farmers (₹3,50,910.06 ha-1). The net returns at Cost C for insured farmers were ₹3,56,261 ha-1 and for uninsured farmers it was ₹3,24,197 ha-1. Insured farmers had 9.89 per cent higher net return at Cost C than uninsured farmers. The BC ratio obtained for insured farmers (2.01) at Cost C were more than that of uninsured farmers (1.92). It was found that the insured farmers were having more economic benefits than uninsured farmers from banana cultivation. The results of Cobb-Douglas production function revealed that R2 value for insured and uninsured farmers was 0.87 and 0.79 respectively, which indicated a good fit. The analysis of allocative efficiency for insured and uninsured farmers revealed that quantity of hired labour, family labour and quantity of manures, fertilizers and soil ameliorants were underutilized. Furthermore, quantity of plant protection materials was overutilized by both categories of farmers. Binary logit regression was fitted to understand the influence of socioeconomic variables on the adoption of WBCIS. From the analysis it was understood that number of years of experience in banana farming had a positive and significant effect, which indicates that the probability of taking insurance increases with increase in the number of years of experience in banana farming. Odds ratio was found as 1.1, meaning that the likelihood of adoption of insurance by more experienced farmers was 1.1 times that of farmers having less experience. Response of insured and uninsured farmers was studied to analyse different aspects associated with WBCIS. Regarding the awareness of insured farmers, majority of farmers were aware about the premium rate and subsidies available, still the overall awareness level was poor. It was found that 51.86 per cent of insured farmers showed involuntary participation in the scheme. Moreover, majority (51.67 per cent) had perception of premium rate as high. Majority of insured farmers expressed willingness to pay only up to 3 per cent of sum insured as premium. About 56.67 per cent of insured farmers were found dissatisfied with the scheme. The financial institution’s compulsion was ranked first among the factors influencing adoption of the scheme. Information from financial institutions was ranked the first as source of information about the scheme among the farmers. Insured farmers unanimously suggested the quick settlement of claims and increase in the indemnity level as a solution to improve the scheme. The main constraint in the adoption of WBCIS was ‘less satisfaction with the indemnity level’ and then ‘lack of awareness about the scheme’. Among the uninsured farmers about 15 per cent farmers adopted the scheme in the previous years. Less indemnity level was the most common reason (75 per cent) for not availing the scheme among the uninsured farmers followed by lack of awareness about the scheme (68.33 per cent). Thus, it can be concluded that Banana farmers in Wayanad district were more vulnerable to climate change compared to Palakkad district. Similar pattern was observed in the vulnerability of agriculture in general to climate change for both districts. WBCIS can be used as a good institutional mechanism for the farmers to adapt to vulnerability due to changes in climate.ThesisItem Open Access Economic analysis of agricultural input subsidies for coconut cultivation in Kozhikode district(Department of Agricultural Economics, College of Agriculture, Vellayani, 2019) Priyanga, V; KAU; Paul Lazarus, TThe study entitled “Economic analysis of agricultural input subsidies for coconut cultivation in Kozhikode district” was carried out with the objectives of analyzing the growth of input subsidies for coconut cultivation, to analyse the impact of input subsidies on coconut production and also to identify the constraints faced by the farmers in availing the input subsidies. The relevant secondary data regarding the progress of Coconut Development Scheme and other areas of input subsidies such as fertilizer, credit and electricity in Kozhikode district were collected from the concerned institutions. Primary data were collected from Balussery and Kattipara panchayat of Kozhikode district for the agricultural year 2018-19. Random sampling technique was adopted and the total sample size was 80, out of which 40 were small farmers (≤ 2 ha of land) and 40 were large farmers (>2 ha of land). The results of Compound Annual Growth Rate revealed that the total expenditure of Coconut Development Scheme (2009-14) was much lower (11.75 per cent per annum) when compared to that of Keragramam scheme (14.66 per cent per annum) by the Government of Kerala (2015-19). The total amount of electricity subsidy (2013-18) was recorded to have slow growth rate (0.48 per cent per annum) whereas credit subsidy (2008-18) was found to have faster rate (14.15 per cent per annum). The growth rate of total amount of fertilizer subsidy was found to be negative (-8.80 per cent). Cost of cultivation was worked out using the ABC cost concept. The total cost of coconut cultivation (Cost C) incurred by the small farmers was ₹ 1.23 lakh ha-1 which was more than that of large farmers (₹ 1.07 lakh ha-1). It was found that profitability was more for large farmers with a B:C ratio of 1.36 while small farmers had a comparatively smaller B:C ratio of 1.17. The results of Cobb-Douglas production function revealed that the R2 value for small farmers and large farmers was 0.71 and 0.59 respectively which indicated a good fit. The analysis of allocative efficiency for small farmers and large farmers revealed that only two components viz., quantity of manures and fertilizers and soil ameliorants were underutilized. While small farmers had underutilized quantity of 144 hired labour, family labour and machine power, the large farmers had overutilized these resources. Almost 54 per cent of respondents obtained the information about input subsidies from Krishi Bhavan. All the respondent small farmers were beneficiaries of Keragramam scheme implemented by the State Department of Agriculture, while large farmers were not eligible. A total of 29 farmers (27 per cent) and 22 farmers (36 per cent) were beneficiaries of electricity and credit subsidy respectively. The total area covered by the sample farmers of Balussery and Kattipara panchayat was 99.47 acres and a total amount of ₹ 6.61 lakhs was availed under Keragramam scheme. The input subsidy under Keragramam scheme ensured cheap inputs for coconut farming as perceived by 67.5 per cent of the respondents. Nearly 55 per cent of beneficiaries perceived that input subsidies were sufficient under Keragramam scheme. The total amount of credit subsidies availed by the beneficiaries was ₹ 2.16 lakh, of which 59 per cent was availed by small farmers and 41 per cent by large farmers. The total amount of electricity subsidy availed by the beneficiaries was ₹ 36,330 of which 39 per cent was availed by small farmers and 61 per cent by large farmers. The statistical analysis of the impact of agricultural input subsidies in coconut production revealed that the amount of subsidy for organic manure and electricity significantly increased the yield at 1 per cent and 5 per cent level of significance, respectively. The coefficient of multiple determination (R2) was 0.94, which indicated that 94 per cent of the variation in yield was explained by the independent variables such as amount of subsidies for organic manure, soil ameliorants, credit subsidy and electricity subsidy. The timely availability and limited quantity of subsidized input were the major constraints faced by the beneficiaries under Keragramam scheme whereas complex administrative procedure was the major constraint faced by the beneficiaries of both electricity and credit subsidy. Large farmers were not eligible to receive the subsidy under Keragramam scheme. As the study indicated better utilization of available resources by the large farmers, it is recommended to follow fair degree of equity in the distribution of 145 subsidy to all farm- size categories. If more amount of subsidy were given to environmentally sustainable components such as organic manures and bio-fertilizer, it could enhance the use of these components by the farmers. This will considerably reduce the externalities due to chemical fertilizers. If more amount of subsidies were given to solar pumpset and micro-irrigation components, it will reduce the externalities from electric pumpset and enhance the conjunctive use of scarce resources such as water. Conjunctive use of water comprises of harmoniously combining the use of both surface and groundwater in order to minimize the undesirable physical, environmental and economic effects of each solution and to optimize the water demand/supply balance. Thus the study can be a guide for planners and policy makers.ThesisItem Open Access Economic analysis of watersheds in Wayanad district(Department of Agricultural Economics, College of Agriculture, Vellayani, 2019) Neethu Mol Jacob; KAU; Paul Lazarus, TThe research work entitled “Economic analysis of watersheds in Wayanad district” was carried out during 2017-19 with the objectives to assess the impact of watershed development programme on cropping pattern and farm income, to examine the variation in benefits in upper, middle and lower reaches of watershed and to ascertain the problems of farmers in the watershed. Secondary data was collected from the Office of the Assistant Director of Soil Conservation, RVP Kabani, Kaniambetta sub division, Meenangadi. The treated watershed (beneficiaries) selected for the study was Poothadi watershed in Poothadi Panchayat and untreated watershed (non-beneficiaries) was Aavayal watershed in Meenangadi Panchayat of Wayanad district. Primary data were collected randomly from 45 farmers each from the treated and the untreated watershed comprising 15 farmers each from upper, middle and lower reaches and thus the total sample size was 90. Poothadi watershed project (Ka4f Poothadi) was a River Valley Project (RVP) during 2010-13 with an area of 4,428 ha. The total expenditure of the project was ₹93,44,025 and major portion was spent for construction of farm ponds, WHS (Water Harvesting Structures) and contour bunds. The project had generated an employment of 9,060 man days during the project period. The beneficiary respondents had more annual income, family size, land holdings, area under different crops and irrigation when compared to that of non-beneficiaries. Major crops cultivated in watershed area were coffee, black pepper and arecanut. There was no much variation in cropping pattern between the treated and untreated watersheds. Area under irrigation was more in treated watershed than the untreated and the average area under irrigation was more in coffee (2.98 ha). Cost of cultivation of coffee, black pepper and arecanut was worked out using the cost concepts and total cost was more for beneficiaries than the non-beneficiaries. The profitability was found using the B:C ratio and at Cost C, B:C ratio was more for beneficiaries in case of coffee (1.79) and black pepper (1.19), whereas in the case of arecanut (1.42) it was more for non-beneficiaries. From the results of regression analysis it was evident that the coefficient of multiple determination of beneficiaries and non-beneficiaries had values ranging from 0.89-0.99 and 0.31-0.99 respectively, indicating 89-99 and 31-99 per cent of the variation in the gross returns was due to the independent variables considered. Positive impact of the watershed development programme was reflected in the increase in the number of beneficiaries adopting soil and water conservation measures such as construction of rain pits, trenching, live fencing, terracing and mulching. Adoption of such measures by non-beneficiaries was less compared to that of beneficiaries of treated watershed. Several market and non-market benefits derived from treated watershed resulted in increase in income due to increase in yield and livestock rearing, increased groundwater recharge and increase in aesthetic value of watershed. The analysis of impact of watershed development programme on farm income revealed that the length of contour bund had increased the farm income at 1 per cent level of significance. The coefficient of multiple determination (R2) was 0.92, which indicated that 92 per cent of the variation in farm income was explained by the independent variables such as length of contour bund, soil moisture content, organic matter content and region of the watershed. Organic matter content (4.23 per cent), soil moisture content (18.26 per cent) and depth of water column in wells (4.31 m) were more in treated watershed than the untreated watershed. In treated watershed organic matter and soil moisture content was more in upper reaches followed by lower and middle reaches. Height of water column in the wells of treated watershed was higher in lower reaches (5.13 m) followed by middle (4.83 m) and upper reaches (2.97m). Major constraints faced by the beneficiaries in treated watershed were lack of supervision, follow-up and technical guidance by the authorities. Suggestions given by the beneficiaries to improve the project were to ensure need based activities in farm, continuity and follow-up of development and maintenance activities in watershed, marketing and infrastructural facilities and biodiversity conservation. Watershed development programme improved the livelihood of the farmers in the treated watershed. Hence watershed development programmes and strategies like rain water harvesting structures should be extended to the untreated watersheds.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 Crop insurance scheme for paddy in palakkad district -an economic analysis(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2019) Anirudh, K C; KAU; Anil KuruvilaAgriculture in India has become an inherently risky venture due to uncertainty in production and price volatility of agricultural commodities triggered by increased climatic aberrations and globalization. Hence, crop insurance plays an important role in stabilizing farm income, ensuring credit flow in agriculture and decreasing over dependence on public exchequer for relief measures. Various insurance products along with stringent measures to enforce them were taken to enroll the maximum number of farmers in crop insurance. In spite of all these efforts, the adoption rate of crop insurance was still low and Kerala is one of the states with lowest growth rate of voluntary subscription of crop insurance. With this background, the present study was undertaken to analyse the performance and progress of crop insurance schemes in Kerala, estimate the impact of crop insurance on paddy cultivation, assess the viability of crop insurance schemes, identify constraints in the adoption of crop insurance and estimate the willingness to pay for crop insurance schemes. The study is based on both primary and secondary data. The time series data on area, production and productivity of rice in Kerala and Palakkad district from 1980-81 to 2017-18 was analysed. It was found that the area and production exhibited a decreasing trend whereas productivity showed an increase over the years. Primary data was collected from 180 selected farmers of Palakkad district using pretested interview schedule by personal interview method. Time series data on the area insured, number of farmers insured, gross premium collected and claims settled for a period from 2002 to 2019 were collected from the Directorate of Agriculture, Government of Kerala. From the analysis, it was observed that the crop insurance coverage also displayed an increasing trend. The distribution of crop insurance subscribers during Kharif 2017 and Rabi, 2017-18 highlighted the fact that more than 97 per cent of the subscribers were borrower farmers suggesting that the growth in subscription was attributed to bundling of insurance schemes with crop loans. The claims to premium ratio, which should ideally be less than one, showed a cumulative average of 1.31 for the period under consideration and reflected the un-sustainable nature of the design of crop insurance products. The cost of cultivation of paddy in the study area was found to be ₹78,819/ha and the major constraint faced by the farmers in crop production was inadequate supply of irrigation water. The other constraints encountered were excess growth of weeds, delay in procurement and abrupt weather changes. The most preferred method of coping with income variations was availing gold loans and the major reason for subscribing to crop insurance scheme was compulsory enrolment. Delay in settlement of claims, inadequate compensation and dissatisfaction with area based approach were the major constraints in voluntary adoption of crop insurance schemes. Logit regression model was employed to ascertain the factors affecting voluntary subscription of crop insurance programmes using gross cropped area, education, income, cost of cultivation and farm experience as independent variables. Levels of education showed significant influence over the decision of voluntary adoption of crop insurance schemes. The odds of a farmer with graduate level of education, that he subscribes to crop insurance voluntarily than due to compulsion, was found to be 16 times higher compared to a farmer with primary education. The Willingness To Pay (WTP) for a crop insurance scheme with features of timely settlement of claims, usage of drones and satellite imageries for crop loss assessment and claims based on procurement price of the produce was elicited using single bounded contingent valuation method. The WTP was estimated to be ₹1753/ha using probit model employing maximum likelihood method. The suggestions for improving the existing crop insurance schemes were identified and ranked. Majority of the farmers assigned first, second and third ranks respectively to timely settlement of claims, ensuring adequate compensation and introducing individual coverage. Ensuring claims based on procurement price of the produce; using drones, satellite imageries and other advanced technology for quicker crop loss assessment and implementing schemes based on individual coverage are recommended to address the constraints faced by farmers in adopting crop insurance. Administering the crop insurance schemes through Krishi Bhavans will make it easier for the farmers to have access to information related to the schemes as they are more acquainted with KBs than banks. The farmers’ share of premium may be raised as high as ₹1753/ ha with the suggested improvements over the existing schemes.
