Economic impact of an extreme weather event on the production of cardamom in Idukki district of Kerala
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Date
2020
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Department of Agricultural Economics, College of Horticulture, Vellanikkara
Abstract
The study entitled ‘the economic impact of an extreme weather event on the production of cardamom in Idukki district of Kerala’ was carried out with objective to assess the loss in production of cardamom due to extreme weather event of 2018, to analyse its effect on farm income, and to examine the adaptation strategies to mitigate the loss. Primary data were collected from Santhanpara and Senapathy gramapanchyats of Idukki district with a pre-tested well-structured survey schedule. From each gramapanchayat twenty five cardamom farmers were selected and the total sample size was fifty. The relevant secondary data regarding climatic variables, area, production and productivity of cardamom in Idukki district were collected from the concerned institutions. The study followed damage and loss assessment methodology given by FAO to assess the major objective. It also followed ABC cost concepts, percentage analysis, Garrett’s ranking technique to find meaningful results. The annual maintenance cost of cardamom for the pre disaster year 2017-18 was calculated using ABC cost concept. The total cost (Cost C) of cultivation incurred by farmers was ₹6,83,366.06 ha-1. B:C ratio at Cost C was calculated as 1.29 which indicated that the cardamom cultivation is profitable. The heavy rainfall during 2018 had resulted in severe landslides and erosion causing the death of several people and considerable damage to dwellings and the crops cultivated. There was a huge loss of 404.25 kg per ha of cardamom in Santhanpara gramapanchayat and 349.61 kg per ha in Senapathy gramapanchayat to an expected yield of 901.21 kg per ha and 889.57 kg per ha cardamom respectively. It was revealed that due to extreme weather event 42.09 per cent of expected yield was lost to farmers and only 518.49 kg per ha of cardamom was the harvested yield. The total area covered by respondents were 57.41 ha. The value of total loss that occurred among the respondents were ₹ 2.50 crores. Out of which 84.67 per cent was due to the yield loss. Short run expenses and replacement costs were 10.26 per cent and 5.06 per cent respectively. The loss incurred per hectare in cardamom was ₹ 4.37 lakhs and loss accounted per farmer was ₹ 5.02 lakhs. The disaster loss per hectare was extrapolated to the total area of cardamom in Idukki district, it was a whooping sum of around ₹1362 crores. Cardamom contributed more than 90 per cent of farm income during year 2017-18. The income from cardamom of respondents in Santhanpara gramapanchayat and Senapathy gr mapanchayat in 2017-18 were ₹ 2.4 crores and ₹ 2.5 crores respectively which formed a total of ₹ 5.04 crores. After the incidence of extreme weather event farmers faced about 42.08 per cent of shortage in farm income from cardamom. The total farm income from cardamom during disaster year was reduced to ₹ 2.92 crores. Most of the farmers regularly follows weather updates. However, none of the farmers insured their crops against natural calamities. Through crop insurance scheme, natural calamity affected cardamom plantations get an assistance of ₹ 60000 per hectare. Natural calamity assistance was given by government of Kerala through Krishi bhavans and farmers who suffered crop loss were got a compensation of ₹ 25000 per hectare. Adaptation strategies were followed by farmers in order to reduce the vulnerability to extreme weather events. Most of the farmers practiced prophylactic spraying of fungicides as an adaptation strategy. Around 22 per cent of farmers were not following any adaptation strategies. The other adaptation strategies such as mulching, cultivation of different varieties and construction of shallow ditches to facilitate water flow were followed. Most of them followed crop diversification, livestock rearing, aquaculture to avert risk. The study examined the problems faced by farmers of cardamom cultivation in the post disaster scenario. Constraints for production of cardamom faced by farmers were high cost plant protection chemicals and high incidence of pest and diseases. Fluctuation in market price and delay in payment of sale proceeds were identified as the major marketing constraints. The major barriers to adaptation were lack of knowledge about adaptation practices, lack of disease resistant varieties and high cost of adaptation. Marginal farmers were not eligible to receive crop insurance there exists a ceiling of one hectare productive cardamom land to receive the indemnity amount. Hence as a policy matter the government may consider reducing the existing ceiling of one hectare productive cardamom land. The farmers can reduce the risk through diversification of crops and mixed farming. It reduces the extent of loss at times of disaster. Better maintenance of farm with proper phyto sanitary measures will help the farmers in reducing the incidence of pests and disease and therefore the cost on plant protection chemicals can be reduced. Delayed payment for the produce and high volatility in prices is a matter of concern which point outs the need for urgent institutional interventions in cardamom marketing. Farmers need more varieties of cardamom resistant to pest and diseases without compromising on high yield. Future researches can be directed towards this goal. Thus, the study can be a reference for planners and policy makers.
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174981