Adequacy of procurement price for paddy farmers in Kerala
Loading...
Files
Date
2015
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
College of Agriculture, Vellayani
Abstract
The study entitled “Adequacy of procurement price for paddy farmers in Kerala” was conducted at Alappuzha and Palakkad districts. The objectives of the study were to analyze the adequacy of procurement price of paddy in relation to its cost of production, to compare the procurement price of paddy with its farm harvest price and to study the scale of procurement of paddy in Kerala and constraints experienced by the stakeholders in the procurement. The study was based on both secondary and primary data. Secondary data on cost of production, farm harvest price, procurement price and quantity of paddy procured for the period of ten years from 2003-04 to 2013-14 were collected from Department of Economics and Statistics and Food and Civil Supplies Department, Kerala. Primary data on cost of production of paddy was collected from 30 farmers selected from both the districts using a structured interview schedule. Trend analysis on area, production and productivity was done to have an understanding of rice scenario of Kerala. Even though area and production showed a significant negative growth rate of 4.27 and 1.88 per cent per annum respectively, the productivity showed a positive significant growth rate of 2.38 per cent per annum. Comparing the trend analysis of farm harvest and procurement price of paddy, there was more significant growth rate for procurement price (10.94 per cent) than farm harvest price at the rate of 7.25 per cent per annum. The study also revealed that there was a sharp increase in the growth rate of scale of procurement of paddy at the rate of 20.03 per cent annum with increase in its procurement price. Season wise analysis was done to find the adequacy of procurement price in relation to its cost of production. Analysis on adequacy of procurement price in relation to cost of production for the period of 2004-05 to 2013-14 in autumn season revealed that at cost A procurement price of paddy was adequate in all the years except 2007-08. At cost B inadequacy was seen in all the years except 2006-07. The procurement price was also inadequate in all the years at cost C. The analysis on adequacy in winter season and summer season revealed that at cost A, procurement price was found adequate in all the years in the study period. At cost B and cost C the ratio was inadequate in all the years. Similarly the measurement of adequacy using primary data revealed that the procurement price of paddy was inadequate at cost B2, cost C2 and Cost C3 on estimating the cost of production of paddy. Cost of cultivation and cost of production were found higher in Palakkad district with B-C ratio of 1.47 than Alappuzha district with a B-C ratio of 1.60. Hired labour contributed more to cost A followed by machine labour in both the districts. Cobb- Douglas production function was used to study resource use efficiency. By calculating resource use efficiency, machine labour cost, seed cost and plant protection chemicals cost are found under utilized in Alappuzha and only fertilizer was found under utilized in Palakkad. The major constraints faced by the paddy farmers selling paddy to procurement agency was the amount for procurement available only in installments and difficulty as amount is not available in time. Rice being the staple food of Kerala, the decreasing trend in area and production is a matter of concern. It is appreciable that the cost of production is atleast at cost A is covered by procurement price. The state is having high competitiveness of crops and for people who depend on farming, the present procurement price is not adequate to sustain them. Moreover the receipts due to farmers on account of procurement should be made available without any delay. Assurance of a remunerative price regime is essential for sustained rice production for meeting the food security of the state.
Description
Keywords
null