ANALYSIS AND MANAGEMENT OF RISK IN DAIRY AND COCONUT PRODUCTION IN COASTAL KERALA
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Date
2018
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Publisher
ICAR-NDRI, KARNAL
Abstract
Indian agriculture is faced with a number of risks and uncertainties, and Kerala is not an
exception for this. Coconut and dairy farming are two major livelihood activities of small
and marginal farmers in the state. The present study examined the risks in dairy and
coconut production in Kerala, the effect of risk on adoption of management practices by
the farmers, and the efficacy of institutional arrangements in managing risk. The study
was based on both secondary and primary data. The secondary data were collected for all
districts of Kerala, while primary survey was carried out in Kozhikode and Malapuram
districts of Kerala. The instability in area, production and productivity of coconut was not
high during 1985-2016 making it a low risk enterprise, but very low growth rates for three
decade period suggested that coconut farmers are highly vulnerable to income stagnation.
Farm wholesale price of coconut showed comparatively high growth rates, but it was
accompanied by high instability also. In case of dairy production, instability in crossbred
yield and milk production was low in most districts except Malappuram and Kozhikkode.
The dairy farmers were not vulnerable to price risk as milk purchase price by
cooperatives were found to be stable along with high growth rate in the state. Risk factor
was found to have significant influence on farmers adoption behaviour of better
management practices like irrigation in coconut cultivation and mineral mixture usage in
dairy. Probabilities of downside risk and extreme events were found hindering farmers
adoption of these management practices. If the farmers get more awareness through
education and more extension visits, it was found to have favourable effect on adoption of
better management practices. Membership in cooperative societies or producer companies
were found to help farmers in effectively managing income risk over time. Value
addition, farm diversification and not stopping spending on management practices during
times of losses were the other factors found helping the farmers in managing income risk.
The study emphasised on the need for better risk coping mechanisms, awareness creation
among the farmers, and also to make available necessary inputs on credit basis in times of
risk events so that farmers may adopt better management practices and it will stabilize
and augment their income.