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ISSN 0971-3441
Online ISSN 0974-0279
Published by:
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Printed at:
Cambridge Printing Works, B-85, Phase II, Naraina Industrial Area, New Delhi 110 028
ISSN 0971-3441
Volume 29
Number 1
January-June 2016
CONTENTS
Research Articles
Patterns and Drivers of Dairy Development in India: Insights from Analysis of Household
and District-level Data
Avinash Kishore, Pratap S. Birthal, P.K. Joshi, Tushaar Shah and Abhishek Saini
Adoption Status and Influencing Factors of Mobile Telephony in Dairy Sector: A Study in
Four States of India
Prakashkumar Rathod, Mahesh Chander and D. Bardhan
15
TFP Growth of Wheat and Paddy in Post-Green Revolution Era in India: Parametric and
Non-Parametric Analysis
Surya Bhushan
27
Total Factor Productivity Growth and Returns from Research Investment on Soybean in India
Purushottam Sharma and B.U. Dupare
41
Issues Limiting the Progress in Negotiable Warehouse Receipt (NWR) Financing in India
Shalendra, M.S. Jairath, Enamul Haque and Anu Peter V.
53
61
Farm Business Income across Land-size Classes and Land Tenure Status: A Field Study in
Assam Plains
Binoy Goswami
69
83
93
105
Contd....
Contents contd....
Is Sustainable Sugarcane Initiative (SSI) Technology More Profitable than Conventional
Method for Sugarcane Production? An Economic Analysis
Arthi K., V. Saravanakumar and R. Balasubramanian
117
Effect of Change in Indian Rice Price on Nepalese Rice Market: A Partial Equilibrium
Model
Bhawani Mishra, Krishna L. Poudel and Dilli Raj Mishra
127
135
Research Notes
Crop Diversification in Gadag District of Karnataka
N.D. Basavaraj, T.M. Gajanana and M. Satishkumar
151
Impact of Integrated Farming of Water Chestnut and Cat Fish on Livelihood of Farmers in
Seasonal Waterlogged Areas of Odisha
Souvik Ghosh, S. Roy Chowdhury, R.K. Mohanty and P.S. Brahmanand
159
Book Review
167
169
Author Index
Adhikari, Anup
135
Goswami, Binoy
69
Rahaman, S.M.
Ananthan, P.S.
105
Haldar, S.
83
Ramasubramanian, V.
105
Arthi K.
117
Haque, Enamul
53
Rathod, Prakashkumar
15
Balasubramanian, R.
117
Jairath, M.S.
53
Roy Chowdhury, S.
Bardhan, D.
Basavaraj, N.D.
15
151
Joshi, P.K.
Kaur, Manjeet
1
135
Saini, Abhishek
83
159
1
Saravanakumar, V.
117
Satishkumar, M.
151
Bera, B.K.
83
Kishore, Avinash
Bhushan, Surya
27
Malangmeih, L.
83
Sekhon, M.K.
135
Birthal, Pratap S.
Mishra, Bhawani
127
Shah, Tushaar
Brahmanand, P.S.
159
Mohanty, R.K.
159
Shalendra
53
Chander, Mahesh
15
105
41
Nandi, S.
83
Sharma, Purushottam
41
93
Sowmyashree B.V.
83
Peter, V. Anu
53
Suresha Adiga, M.
105
Gajanana, T.M.
151
Poudel, Krishna L.
127
Talukdar, Udeshna
61
Ghosh, Souvik
159
127
Vatta, Kamal
61
Abstract
Traditionally, Indian farmers kept bovines, especially cattle, for draught purposes in agriculture and
transportation with milk as an adjunct. However, with increasing farm mechanization and rising demand
for milk, the bovine functions have shifted more towards dairying. While bovine population has been
increasing, the chronic scarcity of feed and fodder reinforces the need for optimization of bovine population
for sustainable growth of dairying. In this paper, using district-level data from 1997 to 2007, we show
that this transformation from draught to dairying is underway in some parts of the country, and further
using household-level data, we find that smallholders have contributed disproportionately more to this
transformation. This transformation or intensification of dairying is demand-driven with urbanization
having a strong positive influence on dairy development. On the supply-side, factors like farm
mechanization, improved access to groundwater irrigation and crop diversification away from cereals,
are associated with a shift in the bovine economy from draught to dairying.
Key words: Dairy development, smallholders, urbanization, mechanization, crop diversification
JEL Classification: Q12, O18, P25
Introduction
India holds more than a quarter of worlds bovine
population, and with a production of more than 133
million tons in 2012-13 it is the largest producer of
milk in the world (GoI, 2014). Between 1981-82 and
2011-121, milk production increased more than fourfold, making it the largest agricultural commodity in
quantity as well as value terms (Birthal and Negi,
2012). Milk now accounts for over a quarter (26.4%
in 2011-12) of the total value of agricultural output2
and two-thirds of the total value of livestock
production. Every second rural household in India
owns at least one dairy animal, either cattle or buffalo,
* Author for correspondence
Email: avinash.kishore@gmail.com
Vol. 29 (No.1)
January-June 2016
Per cent
operating
households
Per cent
cattle
Per cent
buffalo
Per cent
in-milk
crossbreds
Per cent
in-milk
buffaloes
Per cent
in-milk nondescript
cows
Herd
Efficiency
Ratio
(HER)
69.60
16.30
9.10
5.10
15.40
52.90
21.30
14.75
11.05
8.58
50.01
20.88
15.37
13.78
11.96
59.68
18.03
12.44
10.37
17.10
55.09
18.54
14.00
12.68
10.60
49.63
20.56
15.22
14.45
12.90
0.203
0.159
0.167
0.163
0.229
1971-72
1981-82
1991-92
2002-03
Households with
marginal holdings
as per cent of
total rural
households
20.0
31.0
44.0
52.0
32.9
41.1
48.3
47.9
Table 3. Herd efficiency ratio (HER) across landholding classes, 1971-72 to 2002-03
Year
1971-72
1981-82
1991-92
2002-03
2007
Marginal farmers
(<1 ha)
Small farmers
(1-2 ha)
Medium farmers
(2-4 ha)
Large farmers
(>4.0 ha)
All farmers
0.190
0.164
0.231
0.237
0.176
0.134
0.213
0.214
0.187
0.159
0.222
0.225
0.215
0.160
0.256
0.260
0.21
0.16
0.22
0.23
0.25*
Vol. 29 (No.1)
January-June 2016
Age (years)
Scheduled castes
Other backward castes
Others
Constant
Observations (No.)
R-squared
HER
-0.0535***
(0.00870)
0.00309***
(0.00109)
0.000139
(0.000222)
0.000201***
(6.75e-05)
0.00875***
(0.00122)
0.000638***
(0.000204)
0.0816***
(0.00953)
0.116***
(0.00766)
0.147***
(0.00821)
0.150***
(0.0189)
25,959
0.048
Coefficient
44.84***
(9.916)
0.178***
(0.0161)
-0.415***
(0.134)
0.101***
(0.0175)
-0.000965***
(0.000178)
-0.142
(0.0932)
-0.525***
(0.133)
0.194
(0.125)
0.292**
(0.130)
0.261*
(0.155)
0.737***
(0.108)
-0.0745
(0.0787)
2.014***
(0.158)
-0.730***
(0.123)
0.417***
(0.0996)
-1.417**
(0.687)
-3.769***
(0.454)
16,366
YES
Yes
Vol. 29 (No.1)
January-June 2016
Table 6. Bovine and land ownership, herd size and herd efficiency ratio (HER) values across households of different
social categories in India in 2003
Social group
Scheduled tribes
Scheduled castes
Other backward castes
Others
Mean land
owned per
household
(ha)
52.57
38.57
49.15
50.55
0.79
0.31
0.76
1.01
HER
value
All households
Bovine-owning households
1.87
0.96
1.67
1.74
3.56
2.49
3.40
3.44
0.126
0.217
0.249
0.290
HER value
Eastern region
Assam
Chhattisgarh
Odisha
West Bengal
0.18
0.12
0.12
0.18
Western region
Gujarat
Rajasthan
Maharashtra
Madhya Pradesh
India
0.28
0.30
0.24
0.22
0.25
Northern region
Punjab
Haryana
Uttar Pradesh
0.39
0.32
0.30
Southern region
Andhra Pradesh
Karnataka
Kerala
Tamil Nadu
0.28
0.27
0.3
0.27
Haryana
Punjab
Andhra Pradesh
Gujrat
Uttar Pradesh
Rajasthan
4.99
3.48
2.01
1.77
1.67
1.18
4.92
3.28
2.08
1.77
1.83
1.28
Year
1997
2003
2007
Indigenous cows
Share in
Ratio of
Ratio of
total
female to
in-milk
bovine
total
to total
population animals
female
(%)
animals
57.00
53.00
52.00
0.52
0.54
0.56
0.35
0.35
0.37
Cross-breds
Share in
Ratio of
Ratio of
total
female to
in-milk
bovine
total
to total
population
female
population
(%)
animals
animals
9.00
10.45
13.02
0.72
0.75
0.76
0.39
0.40
0.41
Share in
total
bovine
animals
(%)
33.74
36.54
35.00
Buffaloes
Ratio of
female
to total
female
Ratio of
in-milk
to total
animals
0.75
0.77
0.76
0.38
0.40
0.40
Empirical Strategy
We use the district-level data on bovine
demography from three rounds of Livestock Censuses
pertaining to the years 1997, 2003 and 2007 (GoI, 2003;
2005; 2010), and combine these with variables on
human population, land uses and agricultural variables
such as farm size, cropping pattern, fertilizer-use
intensity, area under surface water and groundwater
irrigation, density of tractors and power tillers, etc.7
for the corresponding years to understand the emerging
pattern in bovine demography and its drivers.
First, we estimate a pooled OLS or POLS model
where we pool data from three rounds of Livestock
Censuses assuming that observations across years are
not correlated over time for the same district, i.e.
Yit = + Xit + it
(1)
(2)
Vol. 29 (No.1)
January-June 2016
10
Vol. 29 (No.1)
January-June 2016
Table 10. Determinants of variation in herd efficiency ratio (HER) across districts of India
Variable
Per cent urban population
Rural population density (population in 00/sq
km of geographical area)
Squared rural population density
Per cent sown area under cereals
Groundwater irrigated area (% of NSA)
Surface irrigated area (% of NSA)
Road density (km/sq km area)
NPK (kg/ha)
Average land size (ha)
Tractor density (No./ha of NSA)
Tractor_density squared
Literacy rate (percent)
Per cent area under barren land and pastures
(Pooled
Regression)
HER
0.11169***
(0.015)
0.02144***
(0.003)
-0.00126***
(0.000)
-0.07684***
(0.008)
0.06953***
(0.012)
-0.00924
(0.013)
0.00018
(0.000)
0.00016***
(0.000)
0.00979***
(0.002)
1.11495***
(0.151)
-3.22057***
(0.511)
0.11888***
(0.016)
0.06051*
(0.029)
0.07583***
(0.016)
0.02213***
(0.004)
-0.00086**
(0.000)
-0.04390***
(0.011)
0.04740***
(0.013)
-0.00350
(0.014)
-0.00016
(0.000)
0.00002
(0.000)
0.00494*
(0.002)
0.33969***
(0.090)
-0.70158*
(0.277)
0.12389***
(0.019)
0.02444
(0.035)
-0.00077
(0.000)
1.69336*
(0.852)
0.08504***
(0.016)
0.01562***
(0.004)
-0.00072*
(0.000)
-0.04595***
(0.010)
0.04551***
(0.012)
0.01465
(0.014)
0.00009
(0.000)
0.00002
(0.000)
0.00212
(0.002)
0.20612*
(0.088)
-0.60596*
(0.259)
0.08303***
(0.024)
0.00243
(0.036)
-0.00044
(0.001)
1.06425
(1.748)
807
807
Yes
No
Yes
Yes
Year
Constant
Observations (No.)
R-squared
State fixed effects
State-specific time trend
0.08323***
(0.015)
807
0.51721
bovine economy. Bovine economies are more milkoriented in more urban districts with greater population
density, higher rural literacy, better access to
groundwater irrigation and higher levels of farm
mechanization. On the contrary, districts with cerealcentric cropping pattern tend to have fewer in-milk
11
animals in their bovine herd. Diversification to noncereal crops goes with diversification or greater dairy
orientation of bovine economy too.
Zero (Minimum)
0.085
First
0.207
Second (Median)
0.265
Third
0.315
Fourth (Maximum)
0.463
Quartile
12
End Notes
1
http://www.nddb.org/English/Statistics/Pages/Indexnumber-of-Wholesale-prices.aspx
Acknowledgement
The author thank the referee for helpful suggestions
on the earlier draft of the paper.
References
Bhattarai, Madhusudan and Narayanamoorthy, A. (Undated)
Impact of irrigation on agricultural growth and poverty
alleviation: Macro level analyses in India. Water Policy
Vol. 29 (No.1)
January-June 2016
13
14
Vol. 29 (No.1)
January-June 2016
Appendix 1. Percentage of landless or near landless (< 0.02 ha) households across states in rural India who owned at least
one bovine in 2002-03
State
Andhra Pradesh
Assam
Bihar
Chhattisgarh
Gujarat
Haryana
Himachal Pradesh
Jammu & Kashmir
Jharkhand
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Odisha
Punjab
Rajasthan
Tamil Nadu
Uttar Pradesh
Uttarakhand
West Bengal
India
0.046
0.111
0.095
0.049
0.115
0.23
0.037
0.148
0.041
0.098
0.024
0.09
0.043
0.053
0.319
0.142
0.051
0.14
0.121
0.065
0.186
0.275
0.593
0.47
0.618
0.498
0.627
0.657
0.771
0.568
0.467
0.166
0.606
0.396
0.489
0.656
0.643
0.225
0.635
0.734
0.432
0.476
Abstract
The study has analysed the adoption status of mobile telephones in dairying, and enlisted the constraints
as perceived by the dairy farmers. It has also identified the factors affecting adoption of mobile telephones
in India through the primary data collected from 360 dairy farmers of four states of north India, viz.
Haryana, Punjab, Uttar Pradesh and Uttarakhand. The adoption status has revealed that the majority of
respondents have been using mobile phones partially in dairying since 3-6 years, followed by adoption
since 0-3 years. A significant difference (p < 0.001) has been observed among the respondents across the
states with regard to adoption of mobile phones in dairying. The application of multinomial logit model
has revealed that the model was highly significant and fit for explanation. The variables distance to
veterinary institution or animal healthcare centre, landholding size and scientific-orientation were
significantly associated with the probability that the respondent will be a full adopter of mobile phone in
dairying. The study has recommended that appropriate measures need be adopted for effective use of
mobile phones in dissemination of livestock-related information in general and dairying in particular to
the farming community.
Key words: Dairy sector, livestock technology, multinomial logit model, mobile phones, innovation,
adoption status
JEL Classification: Q16, Q18
Introduction
Information and communication technology (ICT)
has significant potential to help farmers in acquiring
and accessing information which can be utilized to
enhance agricultural and livestock production. At
present, a wide range of ICT platforms is available for
accessing and sharing agriculture-related information
and knowledge in the forms of web pages, audio, video
* Author for correspondence
Email: prakashkumarkr@gmail.com
The paper is based on Ph.D. thesis, Livestock Innovation
System: A Multi-stakeholder Analysis in Dairying submitted by the first author in 2015 to ICAR-Indian Veterinary
Research Institute, Izatnagar.
16
Vol. 29 (No.1)
January-June 2016
State
Bareilly
Udham Singh Nagar
Uttar Pradesh
Uttarakhand
Karnal
Haryana
Ludhiana
Punjab
Rathod et al.: Adoption Status and Influencing Factors of Mobile Telephony in Dairy Sector
17
18
Vol. 29 (No.1)
January-June 2016
Table 2. Variables used in multinomial logit model and their expected signs
Variable
Expected
sign
Age
Family size
Land
Livestock
Distance
Average distance from veterinary institution or animal healthcare centre (in km)
Information sources
Decision
Scientific
Economic
Risk
educnew=1
Illiteracy of respondent
educnew=2
ocupnew=1
ocupnew=2
partinew=1
partinew=2
Rathod et al.: Adoption Status and Influencing Factors of Mobile Telephony in Dairy Sector
19
Table 3. Socio-personal, economic and psychological characters of dairy farmers in four selected states
(N=360)
Variable
Category
Uttar Pradesh
Age (years)
Young
State
Uttarakhand Haryana
Pooled
Mean
S.D.
48.20
13.65
3.75
Punjab
22
(24.45)
48
(53.33)
20
(22.22)
68
(75.56)
21
(23.33)
52
(57.78)
17
(18.89)
61
(67.78)
20
(22.22)
57
(63.33)
13
(14.45)
70
(77.78)
19
(21.12)
49
(54.44)
22
(24.44)
64
(71.11)
82
(22.78)
206
(57.22)
72
(20.00)
263
(73.06)
03
(03.33)
05
(05.56)
01
(01.11)
13
(14.44)
0
(0)
06
(06.67)
71
(78.89)
13
(14.44)
09
(10.00)
26
(28.89)
52
(57.78)
03
(03.33)
02
(02..22)
01
(01.11)
05
(05.56)
03
(03.33)
19
(21.11)
01
(01.11)
09
(10.00)
73
(81.11)
08
(8.89)
17
(18.89)
16
(17.78)
50
(55.55)
07
(07.78)
01
(01.11)
06
(06.67)
05
(05.56)
01
(01.11)
08
(08.88)
0
(0)
15
(16.67)
64
(71.11)
11
(12.22)
02
(02.22)
18
(20.00)
62
(68.89)
08
(08.89)
03
(03.33)
09
(10.00)
08
(8.89)
06
(06.67)
03
(03.33)
0
(0)
05
(5.55)
77
(85.56)
08
(8.89)
03
(03.33)
08
(08. 89)
62
(68. 89)
17
(18.89)
01
(01.11)
19
(5.28)
23
(6.39)
11
(3.05)
43
(11.94)
01
(0.28)
35
(9.72)
285
(79.17)
40
(11.11)
31
(08.61)
68
(18.89)
226
(62.78)
35
(09.72)
07
(01.94)
78
( 86.67)
High
10
(11.11)
Social participation Nil
48
(53.34)
One organization
36
(40.00)
86
(95.56)
03
(0 3.33)
58
(64.44)
26
(28.89)
75
(83.34)
12
(13.33)
56
(62.23)
31
(34.44 )
64
(71.11)
25
(27.78)
16
(17.78 )
62
(68.89)
303
(84.17)
50
(13.89)
178
(49.44)
155
(43.06)
Middle
Old
Major occupation
Agriculture +
Animal
husbandry
Animal
husbandry
Business
Government
service
Labour
Any other
Small
Medium
Large
Landholding size
Landless
Small
Medium
High
Livestock
possession
(livestock units)
Low
Medium
31.8**
8.3
4.12
9.98
4.83
5.87
42.2**
4.59
3.55
25.0**
63.4**
Contd...
20
Vol. 29 (No.1)
January-June 2016
Table 3. Socio-personal, economic and psychological characters of dairy farmers in four selected states Contd
(N=360)
Variable
Category
Uttar Pradesh
Two or more
organization
Public leader
Distance from
veterinary
institution
Small
Medium
Long
Information
seeking behaviour
Low
Medium
High
Decision-making
ability
Low
Medium
High
Scientificorientation
Low
Medium
High
Economicorientation
Low
Medium
High
Risk-orientation
Low
Medium
High
State
Uttarakhand Haryana
Pooled
Punjab
03
(3.33)
03
(3.33)
0
(0)
06
(6.67)
0
(0)
0
(0)
03
(3.33)
0
(0)
30
( 33.33)
12
(13.33)
0
(0)
45
(50.0)
24
(06.67)
3
(0.83)
75
(20.83)
60
(66.67)
30
(33.33)
31
(34.45)
55
(61.11)
04
(4.44)
33
(36.67)
51
(56.67)
6
(6.66)
51
(56.67)
38
(42.22)
1
(01.11)
30
(33.33)
56
(62.22)
4
(4.45)
26
(28.89)
54
(60.0)
10
(11.11)
90
(100.0 )
0
(0)
24
(26.67)
58
(64.44)
08
(8.89)
20
(22.22)
59
(65.56)
11
(12.22)
16
(17.78)
55
(61.11)
19
(21.11)
29
(32.22)
56
(62.22)
5
(5.56)
31
(34.45)
56
(62.22)
03
(3.33)
60
(66.67)
0
(0)
12
(13.33)
65
(72.22)
13
(14.45)
18
(20.0)
56
(62.22)
16
(17.78)
06
(6.67)
55
(61.11)
29
(32.22)
18
(20.0)
46
(51.11)
26
(28.89)
22
(24.44)
44
(48.89)
24
(26.67)
45
(50.0)
0
(0)
02
(2.22)
59
(65.56)
29
(32.22)
12
(13.33)
62
(68.89)
16
(17.78)
0
(0)
49
(54.44)
41
(45.56)
0
(0 )
48
(53.33)
42
(46.67)
0
(0)
53
(58.89)
37
(41.11)
255
(70.84)
30
(8.33)
69
(19.16)
237
(65.84)
54
(15.0)
83
(23.06)
228
(63.33)
49
(13.61)
73
(20.28)
197
( 54.72)
90
(25.0)
77
(21.39)
206
(57.22)
77
(21.39)
79
(21.94)
207
(57.50)
74
(20.56)
Mean
S.D.
4.27
5.05
187.7**
19.37
1.92
56.3**
21.59
2.55
18.0**
14.22 127.6**
1.73
12.94
1.72
83.7**
11.52
1.28
67.0**
Rathod et al.: Adoption Status and Influencing Factors of Mobile Telephony in Dairy Sector
21
Table 4. Analysis of variance for socio-personal, economic and psychological characteristics of dairy farmers in
selected four states
(N=360)
Characteristics
Uttar Pradesh
Mean SD
Uttarakhand
Mean SD
Haryana
Mean SD
Punjab
Mean SD
F-statistic
Age
Family-size
Landholding- size
Livestock possession
Distance from veterinary institution
Decision-making ability
Scientific-orientation
Economic- orientation
Risk-orientation
48.17 14.34
9.40 5.78a
3.46 4.07b
4.25 4.11b
9.00 7.48a
20.57 2.86c
12.54 1.35d
12.06 1.22c
11.13 1.08c
48.43 13.50
7.63 3.09b
3.83 4.75b
3.71 1.93b
4.33 2.15b
21.49 2.29b
14.11 1.60c
12.18 1.35c
10.89 0.88c
47.93 12.67
8.04 3.88b
4.61 4.65b
4.30 3.22b
2.59 2.36c
21.88 2.53ab
14.79 1.46b
13.20 1.92b
11.70 1.53b
48.26 14.27
8.13 2.96b
7.42 8.30a
6.14 4.07a
1.17 1.35d
22.41 2.19a
15.43 0.97a
14.34 1.24a
12.36 1.05a
0.02NS
3.14*
8.89**
8.50**
61.51**
8.86**
74.20**
47.91**
28.40**
Notes: The means bearing different superscripts (a, b, c and d) differ significantly in the same row.
* and ** depict significance at 5 per cent and 1 per cent levels, respectively
Table 5. Adoption status of mobile phones at field conditions (N=360)
Adoption category
Uttar Pradesh
Non-adoption
Partial adoption
Full adoption
07 (7.78)
79 (87.78)
04 (4.44 )
State
Uttarakhand
Haryana
05 (5.55)
77 (85.56)
08 (8.89 )
01 (1.11 )
75 (83.33)
14 (15.56 )
Pooled
13 (3.61)
300 (83.33)
47 (13.06)
25.1**
Punjab
0 (0)
69 (76.67)
21(23.33)
Notes: Figures within the parentheses indicate percentage of the state; No respondent in all the four states belonged to the
Discontinued adopter category.
22
Vol. 29 (No.1)
January-June 2016
07
(7.78)
30
(33.33)
51
(56.66)
02
(2.22)
0
(0 )
State
Uttarakhand
Haryana
05
( 5.55)
21
( 23.34)
54
( 60.0)
08
( 8.89)
02
( 2.22)
01
(1.11)
22
(24.44)
56
(62.23)
10
(11.11)
01
(1.11)
Pooled
Punjab
0
( 0)
18
(20.0)
53
(58.89)
17
(18.89)
02
(2.22)
13
(3.61)
91
(25.27)
214
(59.44)
37
(10.28)
05
(1.39 )
32.4**
Rathod et al.: Adoption Status and Influencing Factors of Mobile Telephony in Dairy Sector
23
Table 7. Identification of factors influencing mobile phone-use in dairying using multinomial logit model
N = 360
Variable
(S.E)
Intercept
Age
Family size
Landholding- size
Herd-size
Distance
Information sources
Decision-making ability
Scientific-orientation
Economic-orientation
Risk-orientation
Educational level 1
Educational level 2
Main occupation-1
Main occupation-2
partinew=1
partinew=2
Wald chi2
Nagelkerke R2
log pseudo likelihood
25.189
(1692.45)
-0.003
(0.026)
-0.155
(0.072)
0.28
(0.197)
0.096
(0.131)
-0.019
(0.059)
0.065
(0.29)
-0.197
(0.16)
0.408
(0.272)
0.24
(0.314)
-0.168
(0.432)
-12.107
(664.114)
-10.55
(664.115)
1.291
(0.74)
0.201
(1.518)
-13.947
(1556.699)
-13.936
(1556.698)
Partial adoption
Wald
Odds ratio
0
0.015
0.997
4.613
0.856
2.007
1.323
0.535
1.101
0.106
0.981
0.051
1.067
1.513
0.821
2.26
1.504
0.584
1.271
0.152
0.845
5.52E-06
2.62E-05
3.042
3.638
0.018
1.223
8.77E07
8.87E07
(S.E)
7.012
(664.161)
-0.011
(0.029)
-0.091
(0.079)
0.277*
(0.199)
0.133
(0.138)
-0.123*
(0.078)
0.302
(0.305)
-0.217
(0.175)
0.395*
(0.304)
0.176
(0.34)
-0.178
(0.459)
-12.175
(664.115)
-9.485
(664.115)
0.903
(0.841)
0.552
(1.618)
-1.077
(0.798)
-1.123
(0)
Full adoption
Wald
Odds ratio
0
0.139
0.989
1.331
0.913
1.93
1.319
0.926
1.142
2.496
0.884
0.983
1.352
1.542
0.805
1.696
1.485
0.268
1.193
0.15
0.837
5.16E-06
7.60E-05
1.151
2.466
0.116
1.737
1.821
0.341
0.325
65.8
0.25
763.65
24
Vol. 29 (No.1)
January-June 2016
Conclusions
The study has revealed that the majority of
respondents use mobile phones only partially in
dairying and a small portion has their full adoption in
the study area. The majority of respondents have
adopted mobile phones in dairying during the past 3-6
years, followed by since 0-3 years. The variables
distance to veterinary institution, animal healthcare
centre, landholding-size and scientific-orientation
have been found significantly associated with the
probability that the respondent will be a full adopter
of mobile phone in dairying. Since the farmers faced
various problems leading to lesser use of mobile phones
in dairying, there is a need to address them for
increasing the use of mobile phones in dairying. The
study has also recommended that effective use of
mobile phones may be popularised for dissemination
of livestock-related information in general and dairying
in particular in India to the farming community.
Acknowledgements
The authors sincerely thank the Director, ICARIVRI, Izatnagar, for providing the necessary facilities
for conducting this research work. They are grateful
Rathod et al.: Adoption Status and Influencing Factors of Mobile Telephony in Dairy Sector
References
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communication technology among the dairy farmers
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Knowledge Management: Global Extension
Experiences. New Delhi. pp. 352 353.
Bhoj, S., Bardhan, D. and Kumar, A. (2013) Determinants
and implications of rural womens participation in
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Gakuru, M., Winters, K. and Stepman, F. (2009) Innovative
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Accessed on 21-04-2015.
Hayrol Azril, M.S., Md. Salleh, H. and Inon, B. (2009) Level
of mass media usage (television, radio and newspaper)
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Inigo, G.A.V., Chander, M., Thakur, D. and Bardhan, D.
(2014) Potential of mobile telephony in utilization of
dairy related information: Empirical evidence from
Tamil Nadu. Indian Journal of Dairy Science, 67 (1):
91-96.
Jensen, R. (2007) Digital provide: Information technology,
market performance and welfare in the South Indian
fisheries sector. The Quarterly Journal of Economics,
122 (3): 879-924.
Katke, K. and Padmalatha, N.A. (2012) Information need
of Indian farmer and role of mobile enabled agricultural
services. In: Proceedings of 4 th Conference on
25
26
Vol. 29 (No.1)
January-June 2016
Abstract
This paper has applied the parametric and non-parametric approaches to estimate the Total Factor
Productivity (TFP) growth for major wheat and paddy crop producing states in India for the period
19812010. Both the approaches have revealed that the shift due to technological adoption is a vital
source for overall productivity growth. Both the approaches used have produced almost similar results at
spatial and temporal directions, showing robustness in TFP estimation. Further, the high-yield states,
particularly Punjab, have depicted a decline in the TFP growth for wheat and paddy crops in recent times,
which raises an alarm on the long-term sustainability of paddy-wheat production system in this Green
Revolution star state. An obvious extension to this study would be the application of this approach to
incorporate more crops and states or at the district level. Another interesting work could be incorporating
higher order policy variables such as subsidies, government investment, variables representing resource
endowment, infrastructure, groundwater extraction, etc. in the efficiency equation of SFA.
Key words: TFP, Malmquist, DEA, SFA, India
JEL Classification: O13, O47, D24, Q10, Q18
Introduction
The agricultural productivity growth is most
significant among the key development challenges
before Indias economy, especially to such concerns
as food availability and rural poverty since the early1990s. Given the binding of land constraint, agricultural
growth in India depends on making land (for crops)
more productive. The TFP growth in agriculture
increases income for the rural communities, which
promotes their spending on the non-farm sector (Ellis,
2000; Himanshu et al., 2011). More specifically, it is
likely to lead the rural farm communities to support
* Author for correspondence
Email: surya.bhushan@gmail.com
This paper is drawn from my doctoral dissertation entitled,
Agricultural Productivity and its Environmental Impacts in
India: A Parametric and Non-Parametric Analysis, awarded
by Jawaharlal Nehru University, New Delhi in 2015.
28
Vol. 29 (No.1)
January-June 2016
adoption of Green Revolution technology during late1960s. The sources and effects of growth have been of
considerable interest to researchers, policy makers, and
practitioners. With the availability of micro-level farm
data, particularly of CACP, in India, few crop-specific
TFP studies have been conducted since early-1990s
(Sindhu and Byerlee, 1992; Kumar and Mruthyunjaya,
1992; Kumar and Rosegrant, 1994; Kumar et al., 1998;
Kumar, 2001; Joshi et al., 2003). However, the Indias
agricultural productivity estimates lack unanimity
(Table 1). This may be due to differences in the
estimation methods and the data used, which has
resulted into generating debates on the trend of Indias
agricultural productivity.
As can be seen from the Table 1, depending on the
methodology and level of aggregation, the results vary
substantially across studies, so careful scrutiny is
required to reconcile and interpret the findings. The
majority of studies have used Trnqvist Index to
estimate total factor productivity (TFP) growth, with
exceptions who used DEA based Malmquist Index. It
is also interesting to note that the three Trnqvist
approaches using FAO data from Table 1 examine the
same time periods but generate widely different TFP
growth estimates. Coelli and Raos (2005) average
Data
sources
Sectors
Method
Period
Indian
Indian
Indian
Indian
Crops (15)
Crops (18)
All agriculture
Rice
Trnqvist
Trnqvist
Trnqvist
Trnqvist
Malmquist
Trnqvist
Malmquist
Trnqvist
1975-1985
1977-1987
1973-2003
1980-1990
1990-1999
1980-1990
1990-1999
1980-2000
1980-2000
1981-2000
1971-2000
Malmquist
Trnqvist
Malmquist
Trnqvist
Malmquist
1981-2005
1981-2000
1980-2000
1985-2006
1980-2000
Wheat
Coelli and Rao (2005)
FAO
All agriculture
Bhushan (2005)
Kumar and Mittal (2006)
Indian
Indian
Bhushan (2009)
Avila and Evenson (2010)
Nin-Pratt et al. (2010)
Chand et al. (2011)
Fuglie (2012)
Indian
FAO
FAO
Indian
FAO
Wheat
Paddy
Wheat
Wheat
All agriculture
All agriculture
Crops & livestock
All agriculture
TFP growth
(%)
0.98
1.05
2.19
3.50
2.08
2.44
2.14
1.40
0.90
1.08
0.68
1.10
2.41
0.69
0.53
1.39
Bhushan : TFP Growth of Wheat and Paddy in Post-Green Revolution Era in India
29
30
Vol. 29 (No.1)
January-June 2016
Table 2. Summary of mean of inputs used per hectare in wheat and paddy crops in the selected states of India, 19812010s
State
Yield
(kg)
Chemical
fertilisers
(kg)
Punjab
Haryana
Rajasthan
Uttar Pradesh
Madhya Pradesh
3,879
3,663
2,955
2,908
1,768
205
170
85
133
71
Punjab
Andhra Pradesh
Karnataka
Haryana
West Bengal
Uttar Pradesh
Odisha
Bihar
Assam
Madhya Pradesh
5,640
4,571
4,059
3,911
3,214
3,042
2,608
2,149
2,191
1,700
189
179
178
175
82
100
62
62
6
49
Human
labour
(hours)
Wheat
309
342
557
524
361
Paddy
570
1,080
1,104
662.5
1,192
832
1,058
863
686
622
Machine
labour@
(hours)
Animal labour
(Pair hours)
Per cent
irrigated area$
516
485
314
378
189
9
25
57
65
72
96.6
97.9
93.8
92.3
62.1
442
286
208
338
71
170
34
85
22
51
10
79
123
13
160
55
227
127
256
126
99.2
95.5
63.2
99.4
37.5
58
37.6
43.0
21.8
18.8
Note: @For machine labour data, the cost of maintenance of farm machinery which included diesel, electricity, lubricants,
depreciation, repairs and other expenses, if any, was used. The machine labour was further indexed to machine labour input
price indices
$
The per cent irrigated area was calculated as the ratio of total irrigated wheat (paddy) area to total wheat (paddy) sown area
Bhushan : TFP Growth of Wheat and Paddy in Post-Green Revolution Era in India
uit = 0 + ilnxit + it
31
The above specification is somewhat restrictive. It has, though, following attractive features:
The input elasticities vary over time to capture changes in the production structure.
The specification of technological change is general in the sense that it allows one to test whether technical change is biased
towards particular inputs.
Technical (in)efficiency is allowed to vary over time.
32
Vol. 29 (No.1)
January-June 2016
Likelihood
function
LR test
statistics
Critical value
at 1% level#
Decision
307.027
251.637
110.781
20.001,16 = 38.566
Reject H0
269.346
75.362
20.001,7 = 23.551
Reject H0
291.825
30.404
20.001,5 =19.696
Reject H0
291.004
32.047
20.001,3 = 15.357
Reject H0
Note: #The correct critical values for the hypothesis involving =0 were taken from Table 1 in Kodde and Palm (1986: 1246).
and
Bhushan : TFP Growth of Wheat and Paddy in Post-Green Revolution Era in India
33
Parameters
Frontier function
Coefficient
Standard error
t-ratio
Coefficient
Standard error
t-ratio
Constant
-42.6871
0.9850
-43.34
-42.9622
13.3357
-3.22
lnCH
1.5219
1.2074
1.26
3.7574
1.9735
1.90
lnHL
10.3612
0.7040
14.72
9.9131
2.2975
4.31
lnM
2.5596
0.9641
2.65
1.1003
1.4616
0.75
lnAL
0.9332
0.4133
2.26
1.3008
0.6238
2.09
lnIRR
1.6747
0.8600
1.95
1.8684
4.8977
0.38
lnCH^2
0.1968
0.2465
0.80
-0.0845
0.2452
-0.34
lnHL^2
-0.7100
0.2260
-3.14
-0.7445
0.4086
-1.82
lnM^2
2.5791
0.3804
6.78
2.1357
0.6982
3.06
lnAL^2
-0.0134
0.0413
-0.32
-0.0383
0.0354
-1.08
lnIRR
10
5.1192
0.6722
7.62
3.8022
1.5987
2.38
lnCH*LnL
11
0.1540
0.4511
0.34
-0.2621
0.5560
-0.47
lnCH*lnM
12
-1.3357
0.5790
-2.31
-0.9580
0.6866
-1.40
lnCH*lnAL
13
-0.2078
0.2729
-0.76
-0.4440
0.1940
-2.29
lnCH*lnIRR
14
0.6750
0.6090
1.11
0.6373
0.9573
0.67
lnHL*lnM
15
-0.3327
0.4604
-0.72
-0.1845
0.6225
-0.30
lnHL*ln AL
16
0.0585
0.1371
0.43
-0.0468
0.1734
-0.27
lnHL*lnIRR
17
-2.4483
0.6315
-3.88
-1.8415
1.7127
-1.08
lnM*lnAL
18
0.0268
0.2051
0.13
0.1161
0.1706
0.68
lnM*lnIRR
19
-5.9817
0.7438
-8.04
-4.8729
1.8156
-2.68
lnAL*lnIRR
20
-0.2981
0.2609
-1.14
-0.1232
0.4082
-0.30
21
0.0585
0.1371
0.43
-0.0468
0.1734
-0.27
T^2
22
-2.4483
0.6315
-3.88
-1.8415
1.7127
-1.08
lnCH*T
23
0.0268
0.2051
0.13
0.1161
0.1706
0.68
lnHL*T
24
-5.9817
0.7438
-8.04
-4.8729
1.8156
-2.68
lnM*T
25
-0.2981
0.2609
-1.14
-0.1232
0.4082
-0.30
lnAL*T
26
-0.1463
0.0676
-2.17
-0.1530
0.0846
-1.81
lnIR*T
27
-0.0007
0.0003
-2.47
-0.0009
0.0004
-2.14
Constant
-1.26721
0.349403
-3.63
lnCH
-0.06321
0.040333
-1.57
lnM
-0.09271
0.099788
-0.93
lnIRR
0.48227
0.206038
2.34
Sigma
0.002242
0.00026
8.63
Gamma
1.25E-06
801840.6
Inefficiency Model
Variance parameters
Note: CH=Chemical fertiliser, HL= Human labour, AL=Animal labour, M= Machine labour, IRR=Irrigation, T=Time,
ln= Natural logarithm
34
Vol. 29 (No.1)
January-June 2016
Haryana
Punjab
Uttar Pradesh
Rajasthan
Madhya Pradesh
India
Output
growth
(%)
1.77
1.26
1.43
2.01
2.75
1.84
DEA
SFA
Efficiency Technical TFP
Input
Efficiency Technical TFP
change
change change contribution change
change change
(%)$
(%)$
(%)$
(%)
(%)$
(%)$
(%)$
0.00
0.00
0.10
0.00
0.00
0.02
1.30
6.90
0.80
2.30
-1.10
2.01
1.30
6.90
0.90
2.30
-1.10
2.03
0.46
-5.28
0.53
-0.29
3.89
-0.18
-0.14
-0.09
-0.01
0.08
-0.23
-0.08
1.43
1.30
0.92
1.93
-0.52
1.01
1.29
1.21
0.91
2.01
-0.75
0.93
Input
contribution
(%)
0.48
0.04
0.51
-0.01
3.52
0.90
Likelihood
function
LR test
statistics
Critical value
at 1% level#
Decision
389.029
158.299
461.458
20.001,16 =38.566
Reject H0
303.385
171.287
20.001,7 =23.551
Reject H0
334.700
108.658
20.001,5 =19.696
Reject H0
494.871
211.684
20.001,3 =15.357
Reject H0
463.464
62.814
20.001,3 =15.357
Reject H0
Note: # The correct critical values for the hypothesis involving =0 were taken from Table 1 in Kodde and Palm (1986:
1246).
Bhushan : TFP Growth of Wheat and Paddy in Post-Green Revolution Era in India
35
Parameters
Constant
0
lnCH
1
lnHL
2
lnM
3
lnAL
4
lnIRR
5
lnCH^2
6
lnHL^2
7
lnM^2
8
lnAL^2
9
lnIRR
10
lnCH*lnL
11
lnCH*lnM
12
lnCH*lnAL
13
lnCH*lnIRR
14
lnHL*lnM
15
lnHL*ln AL
16
lnHL*lnIRR
17
lnM*lnAL
18
lnM*lnIRR
19
lnAL*lnIRR
20
T
21
T^2
22
lnCH*T
23
lnHL*T
24
lnM*T
25
lnAL*T
26
lnIR*T
27
Assam_Dum
28
Punjab_Dum
29
Bihar_Dum
30
Inefficiency Model
Constant
0
lnCH
0
lnM
1
lnIRR
3
Variance parameters
Sigma
2
Inefficiency
Frontier function
Coefficient
Standard error
t-ratio
Coefficient
Standard error
t-ratio
-5.6640
2.1228
1.3081
-1.1653
0.0058
2.4724
0.1665
0.2758
0.0023
0.0030
0.6057
-0.4139
-0.1958
-0.2170
-0.1424
0.5620
-0.0681
-1.4715
-0.0702
-0.1245
0.4152
-0.0060
0.0000
0.0060
-0.0092
0.0046
0.0042
0.0015
0.5849
0.3839
-0.2086
1.1668
0.8018
0.9191
0.3255
0.4703
1.0416
0.0381
0.3079
0.0195
0.0393
0.1317
0.3046
0.0450
0.1039
0.2179
0.1505
0.2375
0.4219
0.0601
0.0829
0.1526
0.0365
0.0002
0.0026
0.0065
0.0014
0.0017
0.0032
0.0743
0.0280
0.0180
-4.85
2.65
1.42
-3.58
0.01
2.37
4.37
0.90
0.12
0.08
4.60
-1.36
-4.35
-2.09
-0.65
3.74
-0.29
-3.49
-1.17
-1.50
2.72
-0.17
-0.01
2.31
-1.42
3.38
2.52
0.47
7.88
13.72
-11.60
-4.6706
3.8986
0.3563
-1.8193
-0.0053
2.3731
0.1987
0.4740
-0.0018
-0.0115
0.5417
-0.8965
-0.2178
-0.2269
-0.2550
0.7432
-0.0528
-1.3786
-0.0908
-0.0433
0.4729
-0.0100
-0.0003
0.0024
-0.0062
0.0074
0.0024
0.0006
0.7083
0.3649
-0.1963
6.0049
0.9255
2.4046
0.3591
0.5667
0.8224
0.0447
0.5387
0.0211
0.0439
0.1529
0.3814
0.0505
0.1256
0.2439
0.1634
0.2902
0.3781
0.0601
0.0883
0.1709
0.0376
0.0002
0.0030
0.0071
0.0018
0.0020
0.0047
0.0913
0.0263
0.0163
-0.78
4.21
0.15
-5.07
-0.01
2.89
4.45
0.88
-0.08
-0.26
3.54
-2.35
-4.31
-1.81
-1.05
4.55
-0.18
-3.65
-1.51
-0.49
2.77
-0.26
-1.69
0.79
-0.88
4.01
1.23
0.13
7.76
13.88
-12.07
0.0543
0.0092
-0.0047
-0.0046
0.0195
0.0016
0.0013
0.0016
2.79
5.94
-3.60
-2.89
0.0044005
1
0.000496
7.61E-06
8.87
131492
Notes: CH=Chemical fertiliser, HL= Human labour, AL=Animal labour, M= Machine labour, IRR=Irrigation, T=Time,
ln= Natural logarithm
s are the estimated parameters of the selected variables
36
Vol. 29 (No.1)
January-June 2016
Andhra Pradesh
Assam
Bihar
Haryana
Karnataka
Madhya Pradesh
Odisha
Punjab
Uttar Pradesh
West Bengal
India
Output
growth
1.50
1.40
1.20
1.40
1.70
1.30
2.00
0.80
1.70
1.80
1.50
DEA
SFA
Efficiency Technical TFP
Input
Efficiency Technical TFP
change
change change contribution change
change change
(%)
(%)
(%)
(%)
(%)
(%)
(%)
0.10
0.00
0.10
0.00
-1.00
0.00
0.00
0.00
-0.10
0.40
-0.10
0.30
-9.60
-1.20
1.50
-0.80
0.10
-4.20
4.40
0.00
-0.70
-1.10
0.40
-9.60
-1.10
1.50
-1.80
0.10
-4.20
4.40
0.00
-0.30
-1.10
1.10
12.10
2.30
-0.10
3.60
1.20
6.50
-3.40
1.70
2.10
2.60
0.5
0.1
-0.1
0.2
-0.6
0.2
-0.4
-0.4
0.1
0.0
0.0
1.1
-1.6
-0.1
0.8
0.9
-0.2
-0.3
1.0
0.4
-0.1
0.2
1.5
-1.5
-0.2
1.0
0.3
0.0
-0.7
0.6
0.5
-0.1
0.1
Input
contribution
(%)
0.0
2.9
1.4
0.4
1.4
1.2
1.5
1.2
1.1
1.3
1.3
Barua and Das (1996) have also observed the persistence of regional inequality in India due to differences in agricultural
productivity and infrastructure.
Bhushan : TFP Growth of Wheat and Paddy in Post-Green Revolution Era in India
37
Table 9. Mean temporal and spatial DEA and SFA TFP growth for wheat
State
Haryana
Madhya Pradesh
Punjab
Rajasthan
Uttar Pradesh
India
1980s
SFA (%)
1990s
2000s
2.03
-1.61
1.27
2.37
0.84
0.97
2.13
-0.24
1.93
1.64
1.67
1.42
-0.03
0.21
0.35
2.50
0.27
0.65
1980s
DEA
1990s
2000s
0.80
-7.60
7.31
3.40
1.09
0.88
2.28
0.80
10.91
0.43
1.46
3.10
0.63
3.25
2.75
3.23
0.16
2.00
Table 10. Mean temporal and spatial DEA and SFA TFP growth for paddy
State
Andhra Pradesh
Assam
Bihar
Haryana
Karnataka
Madhya Pradesh
Odisha
Punjab
Uttar Pradesh
West Bengal
India
1980s
SFA
1990s
2000s
1980s
DEA
1990s
2000s
2.18
-2.68
-0.60
1.47
0.32
-2.79
-1.09
0.15
2.81
0.05
-0.04
1.50
-1.39
0.02
0.34
0.13
0.33
-1.18
1.45
-0.67
0.31
0.08
1.16
-0.51
-0.12
1.07
0.47
1.90
-0.37
-0.27
-0.48
-0.82
0.20
-0.98
-19.68
-4.93
-1.65
-4.62
-5.23
-8.67
3.72
0.18
0.48
-4.35
2.92
-4.70
1.46
-0.60
-1.09
1.61
-2.50
12.59
-0.12
-0.86
0.78
-0.79
-4.52
-0.20
6.68
0.04
3.64
-1.73
-2.67
-0.08
-0.49
-0.06
Banerjee (2008) has listed several possible reasons on the low level of intermediate input use, such as fertiliser, unwillingness
to take risks, unavailability of credit, lack of right internal or external incentives for long-range planning, distortions in the land
market or lack of understanding of the benets of fertiliser.
38
Vol. 29 (No.1)
January-June 2016
Acknowledgements
The author is grateful to Prof. Abhijit Sen, Prof.
Kirit Parikh, Prof. R S Deshpande, and the anonymous
referee of this journal for their helpful comments and
valuable insights and suggestions on the earlier draft.
The usual disclaimer applies.
References
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development: some facts and emerging issues. Indian
Journal of Agricultural Economics, 52(1): 1-27.
Afriat, S. (1972) Efficiency estimate of production functions.
International Economic Review, 13: 568-598.
Bhushan : TFP Growth of Wheat and Paddy in Post-Green Revolution Era in India
Aigner, D.J., Lovell C.A.K. and Schmidt, P. (1977)
Formation and estimation of stochastic frontier
production function models. Journal of Econometrics,
6: 21-37.
Avila, A.F. and Evenson, R.E. (2010) Total factor
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technological capital, In: Handbook of Agricultural
Economics, Eds: R.E. Evenson and P. Pingali. Elsevier
Science, Amsterdam. pp. 37693822.
Banerjee, A.V. (2008) Big answers for big questions: The
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on What Works in Development? Thinking Big and
Thinking Small. Accessed from: http://www.
brookings.edu/~/media/Events/2008/5/29%20
global%20development/2008_banerjee.PDF
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growth and liberalization: A study of the Indian
economy. Journal of Development Studies, 32(3): 364390.
Bayarsaihan, T. and Coelli, T.J. (2003) Productivity growth
in pre-1990 Mongolian agriculture: Spiralling disaster
or emerging success? Agricultural Economics, 28(2):
121137.
Bhushan, S. (2005) Total factor productivity growth of wheat
in India: A Malmquist approach. Indian Journal of
Agricultural Economics, 60(1): 32-48.
Bhushan, S. (2009) Non-parametric productivity growth of
wheat in India during post-green revolution. The Indian
Economic Journal, 56(4): 55-77.
Bhushan, S. (2015) Agricultural Productivity and
Environmental Impacts in India: A Parametric and
Non-parametric Analysis. PhD dissertation
(Unpublished). Jawaharlal Nehru University, New
Delhi.
Brooks, K., Guasch, J.L., Braverman, A. and Csaki, C.
(1991) Agriculture and the transition to the market.
Journal of Economic Perspectives, 5(4): 149-161.
CACP (Commission for Agricultural Costs and Prices)
(various issues) Comprehensive Scheme for the Study
of Cost of Cultivation of Principal Crops in India.
Department of Agriculture & Cooperation, Ministry of
Agriculture, Government of India, New Delhi.
Caves, D.W., Christensen, L.R. and Diewart, W.E. (1982)
The economic theory of index numbers and the
measurement of input, output, and productivity.
Econometrica, 50(6): 1393-1414.
Chand, R., Kumar, P. and Kumar, S. (2011) Total Factor
Productivity and Contribution of Research Investment
39
40
Vol. 29 (No.1)
January-June 2016
Abstract
The study has estimated total factor productivity growth of soybean and returns to research investment
on the crop in India. For study, time-series data on cost of cultivation of soybean in major states were
collected from the reports of Commission on Agricultural Costs and Prices for the period 1980-81 to
2011-12. The Tornqvist-Theil index has been used to compute input, output and TFP indices and compound
annual growth rates on triennium average datasets were estimated. The regression analysis was carried
out to identify the sources of TFP growth. The study has indicated moderate growth of TFP in soybean
(1.2% per year) with 10.5 per cent share in output growth. The decade-wise analysis has revealed that
TFP growth and the share of TFP in growth of output is increasing in the recent decade. The research
investment and irrigation have turned out to be the significant variables affecting TFP positively. Although,
marginal value output of research has been found less than one, the internal rate of return for research
investment is increasing in recent decades, suggesting enhancement in research allocation and irrigation
infrastructure for productivity improvement and edible oil security in the country.
Key words: Total factor productivity, Tornqvist-Theil index, returns to research investment, soybean,
India
JEL Classification: Q16, Q13, D24
Introduction
Productivity growth in agriculture is of paramount
importance as higher yields are associated with
declining rural poverty, suggesting that impact of
growth in agricultural production on poverty remains
high (Himanshu et al., 2010). The agricultural
productivity continues to be an important driver of rural
poverty reduction, especially it helps rise agricultural
* Author for correspondence
Email: purushottamji@gmail.com
The paper is drawn from the larger institutional research study
on Socio-Economic Analysis of Growth in Soybean Crop
Productivity and Impact of Research conducted by authors
at ICAR-Indian Institute of Soybean Research, Indore,
Madhya Pradesh. Authors would like to thank anonymous
referees of the journal for providing valuable comments on
the earlier version of the paper.
42
Vol. 29 (No.1)
January-June 2016
Sharma and Dupare : Total Factor Productivity Growth and Returns from Research Investment on Soybean
(1)
43
44
Vol. 29 (No.1)
January-June 2016
Andhra
Pradesh
Madhya
Pradesh +
Chhatisgarh
TE 1980
TE 1990
TE 2000
TE 2010
TE 2013
970.0*
953.8
1285.0
1719.4
777.3
760.2
1053.6
1125.8
1188.1
-2.7
2.3
2.5
0.01
1.9
5.3
1.6
1980s
1990s
2000s
1980-2013
Karnataka
Maharashtra
Rajasthan
Yield (kg/ha)
560.3
623.2
887.9
901.7
1280.6
1272.5
626.5
1021.0
1160.5
939.5
1446.3
1469.8
Compound annual growth rate (%)
8.0
7.0
5.2
2.6
-3.8
-3.4
5.1
2.2
3.1
2.5
Uttar Pradesh
+
Uttarakhand
Gujarat
India
467.5
902.6
717.6
1276.0
1439.6
696.4
813.2
647.1
855.5
766.0
764.4
1106.0
1096.4
1296.7
7.4
-8.5
8.1
1.5
7.3
-0.8
-2.7
2.0
0.6
2.6
3.0
1.8
Sharma and Dupare : Total Factor Productivity Growth and Returns from Research Investment on Soybean
45
1981-91
1991-01
2001-11
Traditional inputs
Land
Seed
Human labour
Animal labour
Manure
76.6
31.7
14.1
16.9
10.4
3.5
74.7
28.3
13.6
22.5
8.2
2.1
71.9
24.7
11.1
22.6
10.8
2.7
Modern inputs
Fertilisers
Pesticides
Irrigation
Machine labour
Othersa
9.6
5.5
0.2
0.5
3.4
13.8
14.5
6.5
0.9
0.3
6.8
10.8
17.8
4.2
2.3
0.4
10.9
10.3
46
Vol. 29 (No.1)
January-June 2016
Table 3. Average real cost and returns in soybean production in India, TE 1982-83 to TE 2011-12
(`/ha)
Real cost and returns
Gross returns
Operational cost
- Human labour
- Animal labour
- Machine labour
- Seed
- Fertilizers & manure
- Plant protection chemicals
- Irrigation charges
Fixed cost
Total cost
Net returns
Returns over operational cost
TE 1982-83
TE 1991-92
TE 2001-02
TE 2011-12
CAGR (%)
10727
3637
1297
813
90
805
523
13
10
3595
7232
3495
7091
13988
6139
1828
784
584
1531
1144
37
63
4663
10802
3186
7849
12792
8166
3071
1326
1000
1382
1009
107
70
3937
12103
689
4627
19903
10882
3917
1264
2051
1743
997
598
32
5550
16432
3471
9021
1.99
3.63
3.94
2.53
10.78
1.94
1.93
23.64
7.63
1.12
2.62
Sharma and Dupare : Total Factor Productivity Growth and Returns from Research Investment on Soybean
47
Figure 1. Input, output and TFP index of soybean cultivation, 1980-81 to 2011-12
Table 4. Annual growth rates of input-use, output and TFP index of soybean in India: 1980-81 to 2011-12
Decade
Output
Input-use
TFP index
Share of TFP
in output growth
9.94
10.19
5.82
8.28
10.79
4.23
1.66
-0.60
1.59
20.11
-5.61
37.63
19.60
9.52
9.08
11.40
19.44
7.89
6.47
10.20
0.16
1.62
2.61
1.20
0.83
17.06
28.72
10.52
Note: TFP for all India have been worked out from area weighted average input costs and returns data for different states
including Madhya Pradesh, Maharashtra, Rajasthan, Chhatisgarh and Uttar Pradesh for available data.
48
Regression coefficient
Pr > |t|
3.114**
0.227*
0.152
0.081
-0.082
0.055**
0.44
2.04
0.0230
0.0090
0.4285
0.8806
0.2686
0.0267
Intercept
Res_Stock
Rf_kharif
Market
Price_Parity
Area_Irrig
R2
Durbin-Watson D
Vol. 29 (No.1)
January-June 2016
Table 6. Estimated value of marginal product of research stock and marginal internal rate of returns to research
investment in soybean in India: 1980-81 to 2011-12
Decade
EVMP
IRR
(%)
Research investment to
value of output ratio
1981-1991
1991-2001
2001-2011
1981-2011
0.008
0.39
0.71
0.26
Negative
13.1
18.2
10.0
72.57
227.77
634.39
314.19
0.0016
0.0005
0.0004
0.0005
Note: VMP less than 1 indicates that research in the commodity is not generating enough output to justify investment.
Sharma and Dupare : Total Factor Productivity Growth and Returns from Research Investment on Soybean
49
Conclusions
The study has analysed the growth in total factor
productivity of soybean in India using Tornqvist-Theil
index approach from the data collected from reports
of Commission on Agricultural Costs and Prices, New
Delhi. Efforts have also been made to workout returns
from research investment in soybean in the country.
The analysis has indicated that the annual growth in
output index is higher than the inputs-use index, leading
to positive moderate growth in TFP for soybean in India
(1.2 % per annum) and higher in the recent decade.
The contribution of TFP to total output growth was
nearly 10.5 per cent.
The analysis of determinants for TFP has indicated
that expenditure on soybean research and proportion
of irrigated area under soybean have a positive and
significant impact on total factor productivity, implying
thereby that public expenditure on soybean research
and irrigation assumes a greater role in accelerating
the productivity of soybean in the country. The internal
rates of returns to soybean research investment are
moderate (10 %). The returns to research have
increased over time with increase in soybean research
investment, implying that higher investment on
soybean research will facilitate soybean supply at a
faster rate. Hence, to meet the fast growing demand
for edible oils and in turn oilseeds, higher investments
on research and creating irrigation infrastructure are
needed.
50
References
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Vol. 29 (No.1)
January-June 2016
Sharma and Dupare : Total Factor Productivity Growth and Returns from Research Investment on Soybean
in Vindhyan Plateau agro-climatic region of
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51
Abstract
Although the warehouse receipt system (WRS) has the potential to improve the access to institutional
credit of farming community, specially the smallholders lacking acceptable collateral for availing loan
from formal channels, the progress of loan against NWR is observed to be slow. The paper has analysed
the issues responsible for limited popularity of pledge finance amongst farmers. The agencies having
integration with the market like the collateral management service providers, APMCs, Agricultural
Marketing Board, etc., have been found to be a better window for disbursement of pledge finance. The
physical availability of warehouses, complicated procedure and poor awareness level are some of the
factors that limit the use of loan against a negotiable warehouse receipt (NWR). Awareness about
advantages of NWR loans needs to be generated by involving banks, Krishi Vigyan Kendras, State
Agricultural Marketing Boards, Regulated Market Committees, NGOs, co-operatives, FPOs and even
APMCs. In order to inculcate storage habit and promote storage among the producers, warehousing
should be encouraged under public-private partnership mode. There is a strong need to push NWR beyond
a negotiable instrument as it offers immense potential to trade, short-term loan to farmers, balanced
supply of agri-commodities and enhances farmers returns.
Key words: Negotiable warehouse receipt, agricultural finance, agricultural credit, pledge finance
JEL Classification: Q14, Q13
Introduction
Email: shalendra_cpsingh@rediffmail.com
The paper is based on the primary survey conducted for the
in-house research study on analysing the factors responsible
for slow growth of Negotiable Warehouse Receipt (NWR)
Finance in India
Credit is important for the present time technologyintensive agriculture. The availability of credit can help
in enhancing the use of inputs (Mishra, 1994), and
adoption of modern technologies (Rajeev and Dev,
1998), cultivation of remunerative crops, and
increasing cropping intensity (Rajendra et al., 1995),
improving net returns per unit area and generating more
capital stock at farms (Baba et al., 2014a;b).
Innovations in agricultural credit for its significance
54
Vol. 29 (No.1)
January-June 2016
Methodology
Shalendra et al. : Issues Limiting the Progress in Negotiable Warehouse Receipt Financing in India
55
Punjab
Andhra Pradesh
Rajasthan
Haryana
Karnataka
Madhya Pradesh
Tamil Nadu
Odisha
West Bengal
Kerala
Maharashtra
Gujarat
Total
Pledge
Per cent
finance
share
(in crore ` )
2915
1314
1169
974
450
312
241
109
76
57
39
21
7675
37.97
17.12
15.22
12.69
5.87
4.06
3.14
1.42
0.99
0.74
0.51
0.27
100.00
No. of
beneficiaries
358
19813
612
265
13107
895
5765
206
81
1516
390
62
43070
Figure 1. Share of different agencies in total pledge finance disbursed and number of beneficiaries, 2013-14
56
Vol. 29 (No.1)
January-June 2016
APMC = Agricultural Produce Market Committee; CWC = Central Warehousing Corporation; NBHC
= National Bulk Handling Corporation; NCML = National Collateral Management Services Limited
KCC
Cooperatives
Pledge
Moneylenders
Commission agents
96
76
17
24
2
41
30
22
Interest rate
(%)
Preference
4
8
8
93
7
0
Shalendra et al. : Issues Limiting the Progress in Negotiable Warehouse Receipt Financing in India
Table 3. Reasons behind farmers decision on storing
agricultural commodity
Reasons
Perception
of farmers
(%)
66
21
14
23
75
2
57
Commodity
sold
immediately
after harvest
(%)
Commodity
stored
(%)
Bajra
Guar
Mung
Mustard
Rice
Soybean
63
97
69
94
57
75
37
3
31
6
43
25
Chana
Mustard
Wheat
60
59
97
40
41
3
Average price
realized
immediately
after harvest
(` /q)
Average price
realized after
storage
(` /q)
Kharif crops
1108
1500
4272
5500
6433
5000
2843
3200
1300
1917
3250
4000
Rabi crops
2733
2600
2900
3500
1465
1983
Average
Accrued
Percentage
storage
benefit out
of farmers
cost*
of storage over availing
(` /q)
harvest period
storage
price
facility
(%)
(%)
72
163
178
106
76
115
28.9
25.0
-25.0
8.8
41.6
19.5
27.27
5.56
11.11
14.29
60.00
25.00
104
108
76
-8.7
16.9
30.1
14.29
14.29
23.08
Note: Here the cost included transportation, storage and interest opportunity. Interest opportunity was calculated by assuming
that a farmer sales immediately after harvest and puts the amount for a term-deposit at interest rate of 8 per cent per annum.
58
Response (%)
92
100
100
100
100
Perception of Bankers
It was observed that most of the leading private
banks offered loan against NWR. This business though
was skewed towards traders, as only around 8 per cent
applications were received from the farming
community. The loan against NWR was available to
producer-growers which varied in the range of 50-70
per cent. Such a variation was observed more in the
case of private banks where it was in the range of 4050 per cent based on the trade acceptance of the
commodity and extent of price fluctuations witnessed
during the past three years. In addition, high degree of
Vol. 29 (No.1)
January-June 2016
Shalendra et al. : Issues Limiting the Progress in Negotiable Warehouse Receipt Financing in India
Acknowledgements
The authors acknowledge the support and guidance
provided by the Director General, CCS-National
Institute of Agricultural Marketing, Jaipur, during the
research project. They are also thankful to the
anonymous referee for his valuable comments.
References
Baba, S.H., Wani, M.H, Wani, S.A., Zargar B.A. and N.A.
Qammer (2014a) Institutional credit to mountain
agriculture: Issues of structural changes and impact in
Jammu & Kashmir. Agricultural Economics Research
Review, 27 (Conference No.): 111-122.
Baba, S.H., Wani, M.H., Zargar, B.A., Malik, H.A. and
Showket, A. Mir (2014b) Institutional credit and capital
formation in mountain agriculture: Evidences from
Jammu & Kashmir. Indian Research Journal of
Extension Education, 14(02): 71-77.
GoI (Government of India) (2014) Pledge Finance. Ministry
of Agriculture and Farmers Welfare, New Delhi ( http:/
/agricoop.nic.in/Admin_Agricoop/Uploaded_File/
all_sta.pdf)
Jairath, M.S., Peter, V. Anu and Haque, Enamul (2014) An
imperative institutional innovation for addressing issues
of agricultural marketing A case study of
Warehousing Development Regulatory Authority.
Agricultural Economics Research Review,
27(Conference No.): 35-44.
59
Online search
http://agricoop.nic.in
http://agmarknet.nic.in/
http://agricoop.nic.in/NCF/NCF%20Report%20-%203.pdf
http://ageconsearch.umn.edu/bitstream/183449/2/
201400194.pdf
http://afraca.org
Received: February, 2016; Accepted: May, 2016
Abstract
The study has highlighted the role of a producers organisation, namely Farm Produce Promotion Society
(FAPRO), in improving farm economy in rural Punjab. The study conducted in the Hoshiarpur district of
Punjab during 2010-11, is based on the primary data collected from 140 farmers and has examined the
change in cropping pattern and increase in income and employment due to value addition at farm level,
as against cereals cultivation in the state. It has observed that turmeric as a high-value perennial crop
occupies 26.4 per cent area of GCA and the gross return of turmeric was almost double of the return from
rice and wheat. The establishment of FAPRO for value addition of turmeric has raised the farm income
and employment compared to rice-wheat cropping system. The FAPRO adds value through powder making
of turmeric and selling rhizomes for seed purpose. The Society has also been found to capitalize through
other value-added activities. Field study has indicated that FAPRO needs a strong policy intervention
with linkages between farm and the factory through skill development, increase of capacity utilization,
mechanization of processing process, development of storage facilities, increasing of operational efficiency
and reduction of overhead cost with proper post- harvest management. It will encourage farmers to
continue turmeric cultivation in the cropping system of Punjab. Such farmers organisations need to be
replicated in other parts of the country in the co-operative sector.
Key words: Producers organization, value addition, farm economy, turmeric crop, Punjab
JEL Classification: Q13, Q18, Q19
Introduction
The passive role of agri-institutions like processing
and marketing co-operatives adds value to agricultural
commodities, increases marketability of products and
strengthens farm economy. It has been identified as an
essential stage in the value chain of non-durable
* Author for correspondence
Email: udeshna_talukdar07@yahoo.com
The paper is a part of the unpublished MSc thesis entitled,
An Economic Analysis of Farm Produce Promotion Society (FAPRO) A Case Study, submitted by the first author to the Department of Economics and Sociology , Punjab
Agricultural University, Ludhiana in the year 2013.
62
Vol. 29 (No.1)
January-June 2016
produce of the district. With the objectives of selfmarketing and processing of farm produce, the society
established processing plants for honey and turmeric
in 2005 under the Rastriya Shram Vikas Yojana
(RSVY) of Government of India. It encourages
integration by combining production, processing,
value-addition and marketing of finished products for
increasing profitability in farming, generating
employment and increasing market power. The FAPRO
is generating direct or indirect employment for more
than 500 farm families in the area. The organization
has a special focus on helping the marginal and small
farmers, who are the most vulnerable section of the
farming community.
Apart from turmeric and honey, FAPRO is also
involved in processing and marketing of agricultural
products such as turmeric powder, honey, gram floor,
pulses, pakora, soybean products, jaggery and other
seasonal products such as groundnut and kinnow. The
organization intends to expand the quantity of marketed
products by onsite sales, outlets sales and participation
in farmers fairs and exhibitions in the nearby areas.
The organization aims to expand its operations by
increasing the coverage of their current activities and
starting some new activities such as packaging of
processed products, use of mobile units for marketing
of produce, production of cattle feed, etc. As the success
of such producers organizations can pave the way for
a significant rise in farm incomes and crop
diversification in the state, the present study was carried
out to find the economic viability of the FAPRO and
its overall impact on the farmers income in Punjab.
63
Turmeric
growers
Kharif crops
Rice
5.46
Turmeric
6.94
Sugarcane
1.36
Vegetables
3.04
Fodder
0.49
Sub-total
17.29
Rabi crops
Wheat
5.46
Vegetables
3.04
Fodder
0.49
Sub-total
9
Gross cropped area
26.29
Simpson Index (SID)
-
64
Vol. 29 (No.1)
January-June 2016
Table 2. Costs on cultivation of turmeric, rice and wheat of sample farmers, 2010-11
(`/ha)
Costs structure
Turmeric
Land preparation
Sowing
Fertilizer and weed control
Irrigation
Harvesting and threshing
454
49400
5063
1057
Cost on human labour
Land preparation
1143
Sowing
988
Fertilizer application and weed control
1817
Irrigation
988
Harvesting and threshing
7377
Transportation
988
Interest on variable costs @ 9 % for half crop period
3094
Total variable costs
71919
Gross returns
293930
Returns over variable costs
222011
(67.58)
Wheat
Rice
3396
1180
4853
741
2470
2852
686
5399
741
-
988
918
988
2470
247
123
827
19204
86697
67492
(20.54)
876
741
1111
4940
4720
864
1032
23966
62985
39018
(11.88)
Note: Figures within the parentheses indicate percentage share of total return over variable cost for all crops
Table 3. Quantity of input and output during valueaddition in turmeric at FAPRO
Steps
Raw material
Washing
Boiling
Drying
Polishing
Grinding
Quantity of starting
material (kg)
Quantity of end
material (kg)
100
100
98
100
20
18
100
98
100
20
18
16
Fixed costs
Depreciation on plant
2.
Land rent
3.
4.
Others
5.
6.
7.
Operational costs
Costs of raw turmeric (1200 q @ ` 7/kg)
Direct cost of labour (1200 human days
@ ` 200/ human day)
Packing, labelling and marketing
Value (`)
6582
(0.57)
2961
(0.26)
20886
(1.82)
8642
(0.75)
39071
(3.40)
840000
(73.27)
240000
(21.00)
26670
(2.33)
1106670
(96.60)
1145741
(100)
46
5760000
4614259
1:5.02
Notes
1. Figures within the parentheses indicate percentage to
total
2. Depreciation The plant was used for different activities
and the depreciation per quintal of turmeric powder
produced during the year was estimated proportionately
based on the total depreciation estimated by the
management (CA) of the Society.
3. Land rent Prevailing land rent at Ghugial village was
considered per unit of the produce
4. Salary of permanent workers Permanent workers were
engaged in the Society as workers and managers on fixed
pay basis. The total estimated cost for pay and wages by
the management was proportioned and was estimated
per quintal basis of turmeric.
5. Others These included expenses for electricity,
advertisement and market development, telephone,
travelling, news papers, repairs and maintenance and
miscellaneous expenses per unit of the produce.
65
Labour
use
0.4
(8.3)
2.0
(41.7)
0.8
(16.6)
1.6
(33.4)
4.8
672
1200
Drying
Polishing and grinding
Packaging and labelling
Total labour-use
Labour-use at FAPRO for turmeric powder
Labour-use at FAPRO for turmeric seed
production
Total employment generation at FAPRO
1872
66
Conclusions
The paper attempts to highlight the role of a
producers organization, namely Farm Produce
Promotion Society (FAPRO), in improving farm
economy in a village of Hoshiarpur district in Punjab.
The paper has studied value-addition and employment
generation through processing of raw turmeric in the
area. The value- addition is being done through
processing of raw turmeric to powder form and
marketing of seed rhizomes. The study has revealed
that the value of turmeric was raised to 174 per cent
through processing and other post-harvest operations.
The FAPRO could also generate a total of 1872
human days of labour in a year. Some other produces
for which value-addition was being undertaken by
FAPRO included mirch, dalia, papad, pokora and
warian. The field survey and economic analysis of
value addition at FAPRO indicated that the organisation
needs a strong policy intervention with linkages
between farm and the factory through skill
development, enhancing of capacity utilization,
installation of mechanical drier and scientific storage
facilities and reduction of overhead cost. Adoption of
high performance multipurpose machine and product
development strategies like better packing, labelling,
branding with HACCP certification and imposition of
national and international quality standards will create
additional marketability of the products with long-term
viability of FAPRO. This will encourage farmers to
continue turmeric as a high-value crop in the cropping
system of Punjab. Such farmers organisations need to
be replicated in other parts of the country in the
cooperative sector.
Vol. 29 (No.1)
January-June 2016
Acknowledgements
The authors are indebted to the unknown referee
for his critical evaluation and constructive suggestions
for improvement in the paper.
References
Acharya, S.S. and Agarwal, N.L. (2011) Agricultural Marketing in India. Oxford and IBH Publications, New Delhi.
Anonymous (2011) Ministry of Food Processing Industries.
Statistical data base:http:mofpi.nic.in.
Baviskar, S.B. (2009) Cooperatives in Maharashtra:
Challenges ahead. Economic and Political Weekly, 21:
4217-21.
Brahm P. (2000) Growth of fruit and vegetables processing
industry in India: A major technological change in
agricultural marketing. Indian Journal of Agricultural
Marketing 14: 72-79.
Chandrasekharam, D. (2001) Food processing industry and
geothermal: Indian scenario. Geo Heat Center Bulletin,
23: 8-12.
Dodamani, M.T. (2007) Production and Value-addition in
Naturally Coloured Cotton under Contract Farming
An Economic Analysis. MSc Thesis. University of
Agricultural Sciences, Dharwad.
Lokesh, G.B. and Chandrakanth, M.G. (2004) Economics
of production, marketing and processing of turmeric in
Karnataka. Indian Journal of Agricultural Marketing,
18: 32-44.
Sidhu, M.S. (2005) Fruits and vegetable processing industry
in India An appraisal of the post-reform period.
Economic and Political Weekly, 28: 3056-61.
Singh, K. (2004) Emerging trends in agro processing sector.
Indian Journal of Agricultural Marketing, 59: 655-68.
Talukdar, U. and Vatta, K. (2015) Producers organisation
and economics of cultivation of turmeric as a high-value
crop against rice-wheat cropping system for increasing
farm income: A case study in Hoshiarpur district of
Punjab. Economic Affairs, 60: 29-32.
Thorat, V.A, Tilekar, S.N. and Bhosale, S.S. (2003) Potential
of Kokum processing for employment and income
generation A case study. Indian Journal of
Agricultural Marketing, 58: 602.
Received: April, 2015; Accepted: December, 2015
67
Value
8
4
24
10
46
0.38
0.17
1.18
0.49
2.22
980
47.76
11
56
11
11
45
0.55
2.73
0.55
0.55
2.18
2
403
25
45
22
90
38
22
5
17
223
2006
2052
224
9
12
3
1:1.31
0.10
19.64
1.22
2.18
1.09
4.37
1.84
1.06
0.24
0.85
10.87
97.78
100
68
Vol. 29 (No.1)
January-June 2016
Quantity
marketed
(kg)
Purchase
price
(`/kg)
Sale price
(`/kg)
Value-added over
purchase price
(`/kg)
79
19221
48 bags
4404
7074
216
5445
4691
349
1780
49
294
3690
2278
280
2866
1494
47
108
2129
824
75
1805
1952
173
200
450
146
115
42
675
40
42
30
45
61
35
37
45
297
51
40
102
45
59
80
80
70
73
112
56
57
63
43
110
110
130
50
688
47
48
43
53
69
39
41
56
370
60
48
161
55
68
94
93
101
106
154
62
64
69
49
142
145
16
8
13
7
6
13
8
8
4
4
11
72
9
9
59
10
8
14
13
32
33
42
6
7
6
6
32
35
Abstract
Using farm level data from the plains of Assam, the paper has estimated farm business income across
different land-size classes and land tenure status. The analysis has been carried out at the aggregate level
as well as at disaggregate level for three specific crops, viz. winter paddy, summer paddy and winter
vegetables. It has been found that sharecropping and fixed rent tenancy contracts have a negative and
significant impact on farm business income. The lower level of farm business income on leased-in land,
especially under sharecropping, can be attributed to payment of a significant amount as rent, which is
higher than even that stipulated in the tenancy law. Accordingly, certain reforms in the existing tenancy
law have been suggested. The study has suggested a shift in the cropping pattern from the presently
predominant winter paddy to more remunerative crops such as vegetables, which is also desired for a
healthy transition of Assam agriculture from subsistence cultivation to a profitable venture.
Key words: Farm business income, land-size, land tenure, sharecropping, fixed rent tenancy, paddy,
Assam
JEL Classification: Q12, Q15
Introduction
The analysis of income generation through crops
cultivation has important implications. The knowledge
about differential levels of income from cultivation of
different crops may help the farmers to utilize their
often limited resources efficiently. This in turn may
contribute to increase in income level and uplifting of
living standard of the farmers. Moreover, understanding
of the factors that contribute to variations in income
levels across farm households may help the policy
makers to design policies on improving the economic
conditions of farmers in an effective manner. Against
this backdrop, the present paper, based on data
generated through a primary survey in the plains of
Assam, has estimated farm business income generated
through farming and from different crops individually.
* Author for correspondence
Email: binoygoswami@sau.ac.in
70
Vol. 29 (No.1)
January-June 2016
Line of Analysis
The paper has estimated two variants of farm
business income, viz.
(i) Farm business income1 (FBI-1) which denotes
return over variable costs per hectare of land
without considering cost of family labour, and
(ii) Farm business income2 (FBI-2) which is return
over variable costs plus the imputed costs of family
labour per hectare of land.
The farm business income from the overall
cultivation as well as from three individual crops, viz.
winter paddy, summer paddy and winter vegetables,
was analysed at two levels. At the first stage, FBI-1
and FBI-2 were analysed in terms of land-size classes
and land tenure status through tabular analysis. Then,
a multiple regression analysis was carried out to
examine the effect of land tenure status and land size
on FBI-1 and FBI-2 more rigorously by controlling
for interferences of other factors. Both FBI-1 and FBI2 were regressed on land-size and tenure status besides
certain control variables. Since farm business income
may depend on factors other than land-size and land
tenure status of farmers, it is important that the effects
of those variables are controlled for to isolate the effects
of land-size and tenure status. The theoretical
justifications for inclusion of these variables along with
their definitions are given below.
The independent and control variables considered
in the regression analysis were broadly divided into
five categories, viz., farmers characteristics, tenure
status, input intensity, enabling factors and locational
dummy. The farmers characteristics included his age
(AGE), education level1 (EDU) and land size in hectare
(FS). Since the age of a farmer reflects his experience,
it was expected to contribute positively to farm business
income. Likewise, education should also have a
positive impact. The land size could have either a
positive or negative effect2 (Goswami, 2012). The
tenure status included two variables, viz., area under
sharecropping as a percentage of operational holding
(ASC) and area under fixed rent as a percentage of
operational holding (AFR)3. Sharecropping is expected
to have a negative effect on income generation
(Marshall, 1920). However, the effect of fixed rent
contract on farm business income might be either
positive or negative positive as it might contribute
Goswami : Farm Business Income across Land-size Classes and Land Tenure Status
71
Sample
households
(%)
Sample
areas
(%)
38.01
38.46
16.30
3.62
2.71
0.90
16.59
36.27
26.78
8.64
8.48
3.24
72
Vol. 29 (No.1)
January-June 2016
Winterpaddy
Summerpaddy
Winter
vegetables
Rapeseed &
mustard
Potato
Jute
58.35
88.37
22.12
58.18
21.67
9.40
39.36
22.09
9.15
21.54
9.37
7.72
1.31
16.20
7.78
2.21
0.48
0.39
1.74
0.90
0.44
0.39
0.84
Note: (i) The figures represent the percentage shares of the crops in the total cropped area;
(ii) - means no farmer was available in that size class.
Source: Authors computation
Table 3. FBI-1 and FBI-2 under different tenure statuses across different size-classes of operational holdings
(`/ha)
Income type
FBI-1
FBI-2
Tenure status
Owner
Sharecropper
Fixed rent
Owner
Sharecropper
Fixed rent
0-1
1-2
28414
4377
27041
25530
575
23311
20281
3382
10081
17884
104
7002
19244
-1568
41019
16948
-2447
40033
4-5
5-6
13880
11975
-
33002
32278
-
Goswami : Farm Business Income across Land-size Classes and Land Tenure Status
73
74
Vol. 29 (No.1)
January-June 2016
Table 4. Tenure status-wise FBI-1 and FBI-2 from cultivation of winter paddy in different land-size classes
(`/ha)
Income type
Tenure status
0-1
FBI-1
FBI-2
Owner
Sharecropper
Owner
Sharecropper
2227
3088
377
-195
1322
-172
-
10385
-1334
8282
-2081
4-5
-5196
-5860
-
Goswami : Farm Business Income across Land-size Classes and Land Tenure Status
75
Table 5. Tenure status-wise FBI-1 and FBI-2 from cultivation of summer paddy in different land-size classes
(`/ha)
Income type
FBI-1
FBI-2
Tenure status
Owner
Fixed rent
Owner
Fixed rent
0-1
1-2
32013
18562
29606
15958
20961
-7237
19661
-8681
57359
21570
54112
20338
3-4
4-5
16740
16740
-
39759
39147
-
Tenure status
0-1
FBI-1
FBI-2
Owner
Fixed rent
Owner
Fixed rent
75894
43475
67145
39871
18413
18413
3-4
78815
76843
76
Vol. 29 (No.1)
January-June 2016
BP/CW test
Chi2 [1] = 64.28
Prob. = 0.0000
BP/CW test
Chi2 [1] = 69.76
Prob. =0.0000
FBI-1
FBI-2
Estimates of coefficients/values
76.51
(102.41)
1729.62
(1304.39)
-2067.69
(1581.06)
-150.94***
(28.17)
-97.66*
(58.01)
85.29
(57.09)
0.04
(0.52)
-0.03
(0.93)
159.12***
(53.02)
2.06
(22.81)
10450.39
(13472.5)
1285.80
(4072.06)
159.52**
(64.11)
-13171.28**
(5790.90)
-16738.16***
(4991.28)
-4547.38
(3832.89)
-3969.44
(7274.05)
0.35
6.73***
[16, 197]
84.22
(99.81)
1895.05
(1247.87)
-1624.27
(1561.45)
-159.52***
(27.96)
-105.83*
(55.09)
90.38
(56.21)
-0.11
(0.48)
-0.20
(0.90)
161.55***
(52.23)
3.49
(22.36)
11541.93
(13804.16)
1813.08
(4003.23)
152.57**
(63.68)
-10464.19*
(5736.15)
-14997.76***
(4955.59)
-3270.65
(3752.752)
-7230.30
(7211.68)
0.37
7.18***
[16, 197]
Goswami : Farm Business Income across Land-size Classes and Land Tenure Status
77
78
Vol. 29 (No.1)
5
10
Acknowledgement
The author is thankful to the anonymous referee
for his suggestions.
End-Notes
1
January-June 2016
Goswami : Farm Business Income across Land-size Classes and Land Tenure Status
79
References
Bezbaruah, M.P. (1994) Technological Transformation of
Agriculture A Study in Assam. Mittal Publications,
New Delhi.
Gautam, H.C. (1995) Agrarian relations: A study on some
aspects of land tenancy system in Assam. Indian Journal
of Agricultural Economics, 50 (4): 682-687.
Goswami, B. (2012) Economic Implications of Tenancy: A
Study in Assams Agrarian Set-Up. PhD Thesis
(unpublished), submitted to Gauhati University,
Guwahati, Assam.
Goswami, B. (2016) Overcoming land size induced
constraints through endogenous institutional
innovations: Findings from a field study in Assam
plains, India. Economics Bulletin, 36 (1): 411-428.
Goswami, B. and Bezbaruah, M.P. (2013) Incidence, forms
and determinants of tenancy in the agrarian set-up of
the Assam plains. Economic and Political Weekly,
XLVIII (42): 60-68.
GoA (Government of Assam) (2012) Economic Survey of
Assam. Directorate of Economics and Statistics.
GoA (Government of Assam) (2013) Profile of Agri-Horti
Sector of Assam. Department of Agriculture.
downloaded from www.agriassam.in on 27.06.2014.
Kuri, P.K. (2003) Factor market imperfections and
explanation of tenancy: Testing an econometric model
using evidence from Assam of North East India. Indian
Journal of Agricultural Economics, 58 (2): 234-245.
Lal Bahadur Shastri National Academy of Administration
(1994) Land Reforms in Assam: An Empirical Study
(1988-1991). Land Reforms Unit, Mussoorie.
Marshall, A. (1920) Principles of Economics. Macmillan,
London, UK.
Revised received: October, 2015; Accepted: May, 2016
80
Vol. 29 (No.1)
January-June 2016
Appendix Table 1: Land tenure status-wise expenditures on key inputs in overall cultivation in different land-size
classes in Assam
(`/ha)
Expenditure type
Yield per hectare
Labour
All inputs
Land tenure
status
0-1 ha
1-2 ha
Land-size class
2-3 ha
3-4 ha
4-5 ha
5-6 ha
Owner
45974
34812
34501
35056
36719
61686
Sharecropper
31078
31746
21077
Fixed rent
65858
50219
59759
83020
Owner
9303
7778
7679
7808
9058
12891
Sharecropper
7925
8266
6499
Fixed rent
12164
13626
15388
12158
Owner
34
37
31
40
26
Sharecropper
49
42
14
Fixed rent
37
26
12
7043
5414
5621
6765
6924
9822
Owner
Sharecropper
5318
5440
5673
Fixed rent
13175
11139
8601
8523
Owner
4097
3737
3877
3535
8763
6696
Sharecropper
1720
2063
813
Fixed rent
7333
8208
3481
12969
Owner
20443
16929
17177
18108
24745
29409
Sharecropper
14963
15769
12985
Fixed rent
32672
32973
27470
33650
Note: *Expenditures on the services of capital goods include costs of hiring the services of power tiller, tractor and pumpset.
Goswami : Farm Business Income across Land-size Classes and Land Tenure Status
81
Appendix Table 2: Land tenure status-wise expenditures on key inputs in winter paddy in different land-size classes
in Assam
(`/ha)
Expenditure type
Yield per hectare
Labour
% of family labour in total labour
Services of capital goods
Other purchased inputs
All inputs
Land tenure
status
0-1 ha
1-2 ha
Owner
Sharecropper
Owner
sharecropper
Owner
sharecropper
Owner
sharecropper
Owner
sharecropper
Owner
sharecropper
11748
24123
5022
7022
30
50
4181
3906
2167
1328
11370
12256
12988
25591
4428
6858
28
44
4229
4735
1690
1479
10347
13072
Land-size class
2-3 ha
3-4 ha
11209
4924
24
4698
1760
11382
20347
17928
4272
5528
34
14
6241
4826
1552
692
12065
11046
4-5 ha
9362
4084
16
5423
5715
15222
Appendix Table 3: Land tenure status-wise expenditures on key inputs in summer paddy in different land-size
classes in Assam
(`/ha)
Expenditure type
Land tenure
status
0-1 ha
1-2 ha
Owner
Fixed rent
Owner
Fixed rent
Owner
Fixed rent
Owner
Fixed rent
Owner
Fixed rent
Owner
Fixed rent
55776
56455
10715
11366
27
29
12344
6908
3110
11169
26169
29443
48202
45816
13341
17488
12
8
12158
7166
3042
14405
28541
39059
Land-size class
2-3 ha
3-4 ha
83663
59759
14477
15388
22
8
11247
4400
3827
7682
29551
27470
44820
12602
0
12378
3100
28080
-
4-5 ha
74699
17008
4
13606
4938
35552
-
82
Vol. 29 (No.1)
January-June 2016
Appendix Table 4: Land tenure status-wise expenditures on key inputs in winter vegetables in different land-size
classes in Assam
(`/ha)
Expenditure type
Land tenure
status
Owner
Fixed rent
Owner
Fixed rent
Owner
Fixed rent
Owner
Fixed rent
Owner
Fixed rent
Owner
Fixed rent
0-1 ha
Land-size class
1-2 ha
2-3 ha
3-4 ha
109402
90884
15204
11772
53
31
7892
6096
19162
25395
42258
43263
87253
112049
16859
21065
24
47
6815
6235
25781
35564
49455
62864
112049
7948
25
6588
16934
31470
77613
22410
0
4773
10540
37723
Abstract
The impact of non-farm activity on rural income inequality in the South 24 Parganas district of West
Bengal has been studied. The non-agricultural activities play a key role in shoring up income and
employment opportunities for the rural work force in this district. The average annual income of nonfarm
families (` 108662) is almost double to that of farm families (` 56081). The results of Gini coefficient
decomposition have indicated that nonfarm income is the largest component (44.05%) of total income,
followed by farm income (39.41%). The non-farm income contributes largest to the overall inequality
(58.27%) in which non-farm self-employment activity increases the total income inequality, while nonfarm wage employment decreases it. The analysis of factors influencing participation of households in
different income generating activity showed that human capital endowed with formal and informal
education are engaged more in nonfarm activities. The study has suggested development of both farm
and non-farm sectors simultaneously to reduce rural income inequality.
Keywords: Gini-coefficient, income inequality, nonfarm activity, rural income, probit model, West Bengal
JEL Classification: C35, E24, J21, J31, J43, O14, O15, Q12
Introduction
In India, the rural economy is predominantly based
on agriculture and allied activities, but various nonagricultural activities also play a significant role in
providing employment and income to the rural sector,
particularly to labour force that is largely semi-skilled
* Author for correspondence
Email: rkmvur@gmail.com
The paper is part of Ph.D. thesis entitled Economics of Farming Systems in Coastal Regions of West Bengal of the first
author, submitted to Department of Agricultural Economics,
Bidhan Chandra Krishi Viswavidyalaya, Nadia-741 252 in
2014 and degree awarded in 2015.
84
Vol. 29 (No.1)
January-June 2016
Rahaman et al.: Impact of Nonfarm Activity on Rural Income Inequality in West Bengal
85
Analytical Tools
To study the impact of non-farm income on rural
inequality, the non-farm income was considered as an
exogenous transfer. We decomposed the total
household income and studied the distribution of each
income source and its contribution to total income
inequality.
(i) Decomposition of Gini Index
86
(4)
where, P*i is the non-observed continuous latent
variable and Pi is the observed binary variable, with a
value of 1 if the household participates in the nonfarm
activity and 0 otherwise.
Vol. 29 (No.1)
January-June 2016
Number
of farmers
Marginal farmers
Small farmers
Semi-medium farmers
Total
79 (43.89)
73 (40.56)
28 (15.55)
180
Note: Figures within the parentheses indicate per cent to the total.
0.91
1.72
3.58
1.68
Cropping
intensity (%)
123.54
120.61
113.98
119.02
Rahaman et al.: Impact of Nonfarm Activity on Rural Income Inequality in West Bengal
87
All
households
Households that do
not participate in
nonfarm activity
Households that
participate in
nonfarm activity
94237 (78906)
37135 (34158)
41510 (55109)
15592 (33912)
56081 (39321)
33965 (19784)
22116 (43215)
108662 (85256)
38334 (38250)
57203 (57364)
13125 (29598)
3 (1)
1 (1)
1(1)
1 (1)
4.94 (4.19)
1 (1)
16.61 (7.91)
2.10 (0.57)
1.19 (0.85)
1.58 (1.06)
0.39 (1.15)
0.03 (0.09)
1.73 (1.04)
27
4 (2)
2 (1)
1 (1)
2 (2)
6.18 (4.07)
1 (1)
15.95 (7.99)
1.91 (0.54)
1.34 (1.35)
1.69 (1.22)
0.51 (0.75)
0.17 (0.79)
2.04 (1.80)
153
Characteristics of households
Average No. of working population
3 (2)
Males
2 (1)
Females
2 (1)
Number of dependents
2 (2)
Average number of schooling years of household-head
5.84 (4.12)
No. of members that have received some technical training
1 (1)
Distance from village centre to the nearest railway station (km) 16.13 (7.93)
Distance from village centre to the nearest bus stop (km)
1.96 (0.55)
Average ownership holding-size (acre)
1.32 (1.29)
Average net cropped area (acre)
1.68 (1.19)
Average leased-in land (acre)
0.49 (0.82)
Average leased-out land (acre)
0.15 (0.73)
Average gross cropped area (acre)
2.00 (1.71)
Number of observations
180
Note: Figures within the parentheses indicate standard deviation
88
Vol. 29 (No.1)
January-June 2016
Total income
Farm income
Agriculture
Livestock
Fishery
Agricultural labour
Nonfarm income
Self-employment
Non-agricultural labour income
Other incomes
Salary income
Pension, remittances, etc.
Land rent
Income share
(Sk)
Ginis
concentration
ratio (Gk)
Gini
correlation
(Rk)
Contribution
to
inequality
Relative
concentration
coefficient
100.00
39.41
19.47
7.29
6.69
5.95
44.05
30.94
13.11
16.55
11.51
3.76
1.28
0.39
0.39
0.37
0.18
0.69
0.77
0.61
0.76
0.34
0.31
0.90
0.93
0.92
0.89
0.73
0.88
0.45
0.94
0.84
0.79
0.91
0.47
0.23
0.14
0.40
33.07
13.70
2.90
5.33
11.13
58.27
47.87
10.39
8.67
6.15
1.31
1.21
0.90
0.70
0.40
0.80
1.87
1.32
1.55
0.79
0.38
0.53
0.35
0.94
overall income inequality. The nonfarm selfemployment income contributed to the increase in
income inequality, while non-farm wage employment
income decreased it, highlighting the importance of
distinguishing between self-employment and wageemployment income while assessing the effect of nonfarm income on income inequality. The results,
however, suggested the existence of entry barriers into
non-farm self-employment. The results also
corroborated the findings of Morduch and Sicular
(2002) on self-employment income, a dis-equalizing
effect on total income, whereas cultivation practices,
livestock-rearing and fishery activities decreased the
total income inequality.
Thus, it is clear that non-farm income has
potentially substituted farm income in many
households. Amongst the two major types of nonfarm
activities, participation in wage-paying activity is often
conditioned by the spatial mobility, as the members
concerned may leave their household and work outside;
while the self-employment activity is more likely to
be local family work (Mehta, 2002). In general,
participation in wage-paying activity is an individual
decision, while the participation in self-employment
activity is the choice of entire household.
Rahaman et al.: Impact of Nonfarm Activity on Rural Income Inequality in West Bengal
89
Regression 1:
Nonfarm activity
Regression 2:
Self-employment
activity
Regression 3:
Wage paying
activity
0.381**
(0.181)
0.259*
(0.133)
-0.03*
(0.015)
0.111**
(0.046)
0.802**
(0.407)
-0.02
(0.026)
0.554***
(0.209)
0.613**
(0.277)
1.18*
(0.69)
-1.026
(0.985)
0.221
123.447
134.514
-51.723
150.721
0.107
(0.12)
0.032
(0.074)
-0.01
(0.012)
0.08**
(0.036)
0.076
(0.295)
-0.027
(0.021)
0.076
(0.132)
-0.139
(0.17)
0.405
(0.51)
-0.213
(0.698)
0.072
161.666
172.734
-70.833
188.940
0.06
(0.148)
0.403***
(0.131)
-0.026*
(0.015)
-0.026
(0.042)
-0.19
(0.393)
0.024
(0.024)
0.634***
(0.187)
0.708***
(0.239)
-0.046
(0.637)
-1.935**
(0.898)
0.265
134.268
145.336
-57.134
161.542
90
Conclusions
The study has revealed that participation in nonfarm activities can provide opportunity to the
households with low farm productivity to supplement
their income. The households endowed with greater
human/ technical capital can opt for some skilled wage
earning activities including self-employment. Also,
with rising population, declining land-man ratio,
degraded soil fertility and dwindling land and labour
productivity, agriculture alone would not able to
provide adequate income and employment to the rural
households. Under such circumstances, to ensure a
regular flow of income for a decent living and to
achieve food and nutritional security, the household
members have to depend more on non-farm income
generating activities to supplement the farm income.
Thus, rather than raising inequality, the non-farm sector
can neutralise or atleast reduce income inequality in
the rural areas.
The study has observed the contribution of farm
sector to average family income as around 40 per cent
that can cater to the basic requirement of the family,
but a greater portion of household income is being
generated through non-farm sector. Therefore, it will
be appropriate to follow an integrated approach for the
development of both farm and non-farm sectors by
developing appropriate infrastructures and other
income-generating facilities in the non-farm sector.
Vol. 29 (No.1)
January-June 2016
References
Rahaman et al.: Impact of Nonfarm Activity on Rural Income Inequality in West Bengal
91
Abstract
The paper examines the structure and nature of cropping pattern, crop diversification, crop concentration,
productivity level and inter-districts disparity in the state of Odisha based on the secondary data collected
for the period 1980 2005 from different published sources. The study has used Herfindahl index,
location quotient, Gini coefficient and panel data regression for analysis. The study has revealed that
most of the districts in Odisha are experiencing a lateral movement towards crop specialization and crop
diversification is seen only in tribal-dominated / technologically less-developed districts. The study has
observed a reduction in inequality during the studied period and has concluded that districts in Odisha are
converging as far as agricultural productivity is concerned. The study has identified the major determinants
of agricultural productivity in Odisha and has suggested some policy measures for increasing agricultural
productivity in the state.
Key words: Cropping pattern, crop diversification, crop concentration, agricultural productivity, Odisha
JEL Classification: Q1, Q 15, Q19, Q24
Introduction
Odisha is primarily an agrarian economy and
agriculture holds the key to overall development of
the state, which remains backward, unstable, rain-fed,
traditional and prone to natural calamities like droughts,
floods and cyclones. The Odishas agricultural scenario
has become stagnant over a long period of time
(Pattnaik and Shah, 2010; Swain, 1999). Tripathy and
Sarap (1994, p.969) state that an important determinant
of growth in agricultural income is the rise in
agricultural output, and change in crop pattern. These
in turn depend on institutional as well as technological
factors.
Agriculture continues to be the mainstay of Odisha
economy with contribution of about 25.6 per cent to
* Author for correspondence
Email: dineshcsrd@gmail.com
94
Vol. 29 (No.1)
January-June 2016
Table 1. Sectoral composition of net state domestic product (NSDP) in Odisha: 1980 to 2010
(per cent)
Sector
Agriculture and allied
Agriculture
Forestry and logging
Fishing
Industry
Services
Per capita NSDP at 1999-2000
prices (in `)
1980-1985
1985-1990
1990-1995
1995-2000
2000-2005
2009-2010
56.58
48.89
6.97
0.73
15.41
28.01
7960
51.65
45.93
4.82
0.90
16.59
31.75
9084
41.76
36.93
3.43
1.41
20.83
37.41
8921
37.20
32.67
2.78
1.75
19.77
43.03
9855
29.70
25.57
2.65
1.48
20.67
49.63
11323
19.35
16.75
1.67
0.93
26.25
54.40
19456
Source: Calculated by author, taking NSDP at factor cost data from http://www.mospi.gov.in/cso_rept_pubn.htm, Accessed:
7 May, 2011
, where, pi is the
, in
where, Aij is the gross cropped area under the ith crop
in jth district, Aj is the gross cropped area in the jth
district, and jAj is the gross cropped area in the state
which is the summation of GCA of each district. Using
this Location Quotient method, Crop Concentration
Index (CCI) was calculated. If CCI value is higher than
unity, the component areal unit accounts for a share
greater than it would have had if the distribution was
uniform in the entire region and therefore, the areal
unit has a concentration of great agricultural
significance.
Agricultural Productivity
To assess agricultural productivity, Sapre and
Deshpande index was used. This method is widely used
because, along with crop yield levels rank, it takes
into account the proportion of area under crop. Instead
of using simple average ranks, weighted average of
ranks is used. The lower is the value of index, the higher
is the productivity level. Because, if a district has yield
level in rice which is highest in the state, its weightage
is 1; whereas if a districts yield level in rice is ranked
10th in the state, it will get weightage 10. The formula
for calculating this index can be expressed as:
95
96
Vol. 29 (No.1)
January-June 2016
Crops
Cereals
Rice
Wheat
Ragi
Maize
Jowar
Bajra
Small millets
Total cereals
48.12
0.83
3.55
1.81
0.39
0.11
2.42
57.25
48.06
0.50
2.91
1.83
0.36
0.09
1.24
54.98
47.31
0.27
2.51
2.02
0.22
0.07
0.72
53.13
53.97
0.21
2.41
1.91
0.19
0.05
0.58
59.32
55.58
0.21
2.39
2.21
0.14
0.04
0.41
61.00
Pulses
Kharif pulses
Rabi pulses
Total pulses
Total food grains
5.92
15.19
21.11
78.35
6.96
15.13
22.09
77.08
7.24
14.91
22.15
75.27
6.64
13.49
20.13
79.45
6.89
12.41
19.30
80.30
Oilseeds
Groundnut
Til
Castor
Mustard
Linseed
Niger
Sunflower
Safflower
Total oilseeds
2.79
2.74
0.51
1.45
0.39
1.97
0.01
0.05
9.92
4.02
3.29
0.39
1.54
0.36
2.05
0.04
0.04
11.72
3.59
4.35
0.29
1.72
0.34
2.08
0.05
0.03
12.44
3.34
3.42
0.29
1.49
0.35
1.83
0.07
0.03
10.82
2.73
3.09
0.21
1.32
0.25
1.70
0.07
0.02
9.40
Vegetables
Potato
Sweet potato
Onion
Total vegetables
0.10
0.63
0.46
8.09
0.11
0.63
0.49
7.72
0.11
0.54
0.48
9.01
0.11
0.60
0.59
6.16
0.10
0.54
0.29
7.08
Cash crops
Sugarcane
Jute
Mesta
Sunhemp
Cotton
0.57
0.54
0.48
0.13
0.04
0.51
0.39
0.43
0.15
0.05
0.44
0.35
0.34
0.14
0.06
0.53
0.22
0.36
0.14
0.30
0.29
0.15
0.32
0.13
0.53
Condiments and
spices
Chilies
Coriander
Garlic
Ginger
Turmeric
Total condiments and spices
Tobacco
0.95
0.19
0.19
0.07
0.28
1.67
0.21
0.98
0.21
0.23
0.08
0.27
1.78
0.17
1.01
0.23
0.20
0.11
0.26
1.81
0.13
1.01
0.26
0.19
0.15
0.30
1.91
0.10
0.92
0.21
0.13
0.18
0.31
1.74
0.06
1980-1985
2000-2005
Source: Calculated from area data obtained from published sources of Directorate of Agriculture and Food Production,
Government of Odisha
Note: List of crops taken here cover 96-98 per cent of GCA in the districts of Odisha.
97
Balasore
Bolangir
Cuttack
Dhenkanal
Ganjam
Kalahandi
Keonjhar
Koraput
Mayurbhanj
Phulbani
Puri
Sambalpur
Sundergarh
Odisha
1980-1985
1985-1990
HI index value
1990-1995
0.69
0.68
0.61
0.61
0.69
0.65
0.65
0.58
0.68
0.48
0.68
0.69
0.69
0.65
0.66
0.61
0.60
0.54
0.64
0.63
0.62
0.57
0.65
0.50
0.70
0.64
0.64
0.61
0.62
0.60
0.58
0.50
0.65
0.67
0.58
0.57
0.62
0.48
0.72
0.60
0.61
0.60
1995-2000
2000-2005
0.74
0.66
0.64
0.57
0.70
0.64
0.63
0.58
0.69
0.54
0.76
0.64
0.69
0.65
0.73
0.69
0.67
0.55
0.67
0.68
0.59
0.60
0.72
0.53
0.75
0.69
0.74
0.66
Source: Authors calculations based on area data for crops taken from Directorate of Agriculture & Food Production,
Odisha, Bhubaneswar
98
HI value
Herfindahl index
Cropping intensity
Crop yield
Net irrigated area
Number of landholdings
Area operated
Chemical fertilizer consumption
Share of total foodgrain in GCA (%)
Share of total oilseeds in GCA (%)
Share of total vegetables in GCA (%)
Share of total condiments and spices in
GCA (%)
Share of other total crops in GCA (%)
1.000
0.421**
-0.011
0.305*
0.292*
0.123
0.339**
0.972**
-0.847**
-0.154
-0.624**
January-June 2016
Vol. 29 (No.1)
-0.061
Coefficients
P>|t|
Variance inflationary
factor
0.000 (0.000)
-0.000 (0.000)
0.000 (0.000)
0.012 (0.001)
-0.003 (0.001)
0.009**
0.018**
0.648
0.000***
0.081**
2.06
3.17
2.23
1.86
1.59
-0.371 (0.042)
0.000
Prob>F
R-squared
value
0.000***
0.95
99
Table 6. Percentage share of GCA under total foodgrains in Odisha across districts against other crops
(per cent)
District
1980-1985
1985-1990
1990-1995
1995-2000
82.15
81.32
77.25
77.47
82.18
78.25
76.81
74.08
81.91
68.37
79.32
81.89
82.20
78.35
80.05
76.70
76.00
70.71
78.45
77.94
76.96
73.79
80.21
66.76
83.28
78.76
79.26
77.08
77.19
75.85
74.04
66.81
81.06
73.61
74.34
74.23
77.67
64.97
84.26
75.59
76.30
75.27
85.36
80.10
78.78
71.89
83.02
78.76
76.70
75.10
82.61
70.96
87.28
78.71
82.10
79.45
Balasore
Bolangir
Cuttack
Dhenkanal
Ganjam
Kalahandi
Keonjhar
Koraput
Mayurbhanj
Phulbani
Puri
Sambalpur
Sundergarh
Odisha
2000-2005
84.66
82.54
80.86
71.85
80.80
81.70
74.71
75.77
84.46
70.66
85.75
82.32
85.29
80.30
Source: Calculated from area data obtained from published sources of Directorate of Agriculture and Food Production,
Government of Odisha
Sundergarh
Keonjhar
Mayurbhanj
Balasore
Bolangir
Phulbani
Dhenkanal
Sambalpur
Puri
Ganjam
Kalahandi
Cuttack
Koraput
Phulbani
Keonjhar
Phulbani
Ganjam
Phulbani
Phulbani
Dhenkanal
Phulbani
Rice
Mustard
Til
Groundnut
Turmeric
Dhenkanal
Phulbani
1.29
1.13
12.74
11.89
10.59
9.01
8.02
7.20
6.39
6.38
5.55
4.44
4.08
3.64
3.17
1.56
1.20
2.33
1.12
1.50
1.05
CCI
Sundergarh
Keonjhar
Mayurbhanj
Phulbani
Balasore
Puri
Bolangir
Sambalpur
Dhenkanal
Kalahandi
Ganjam
Cuttack
Koraput
Phulbani
Keonjhar
Phulbani
Keonjhar
Phulbani
Kalahandi
Dhenkanal
Phulbani
Districts
12.56
12.27
10.42
9.06
8.35
7.40
7.23
5.91
5.03
4.22
4.07
3.85
2.99
1.68
1.22
2.76
1.51
2.00
1.54
1.49
1.13
CCI
Phulbani
Sundergarh
Phulbani
Keonjhar
Mayurbhanj
Balasore
Bolangir
Puri
Sambalpur
Dhenkanal
Ganjam
Kalahandi
Cuttack
Koraput
Phulbani
Keonjhar
Phulbani
Keonjhar
Phulbani
Dhenkanal
Districts
1995-2000
1.49
13.20
12.90
12.33
11.75
11.29
8.01
7.51
6.38
5.08
5.00
4.91
4.58
3.30
1.81
1.23
2.17
1.48
1.80
1.36
CCI
Phulbani
Sundergarh
Phulbani
Mayurbhanj
Balasore
Keonjhar
Bolangir
Puri
Dhenkanal
Sambalpur
Kalahandi
Ganjam
Cuttack
Koraput
Phulbani
Keonjhar
Phulbani
Keonjhar
Phulbani
Dhenkanal
Districts
2000-2005
1.14
14.75
13.14
12.56
11.67
10.36
8.07
7.69
6.56
6.37
5.83
4.82
4.55
3.49
1.69
1.13
1.20
1.13
1.42
1.42
CCI
1.31
Sundergarh
Keonjhar
Mayurbhanj
Balasore
Phulbani
Bolangir
Sambalpur
Puri
Dhenkanal
Kalahandi
Ganjam
Cuttack
Koraput
Phulbani
Keonjhar
Phulbani
Keonjhar
Phulbani
Dhenkanal
Districts
1990-1995
Vol. 29 (No.1)
Niger
Ragi
14.52
12.90
11.08
9.83
8.11
7.36
7.10
7.00
5.62
4.48
4.38
3.63
2.92
1.49
1.13
1.53
1.05
2.06
1.52
1.11
CCI
1985-1990
Maize
Districts
Crop
1980-1985
100
January-June 2016
101
1980-1985
1985-1990
1990-1995
1995-2000
2000-2005
Cuttack
1.44
Cuttack
1.85
Cuttack
2.04
Cuttack
1.82
Balasore
3.50
Sambalpur
3.83
Puri
4.83
Sambalpur
4.22
Sambalpur
3.64
Cuttack
3.69
Koraput
5.09
Sambalpur
5.19
Ganjam
5.72
Ganjam
5.43
Sambalpur
4.56
Ganjam
5.60
Koraput
5.78
Dhenkanal
6.09
Koraput
6.04
Koraput
5.65
Puri
6.16
Dhenkanal
6.25
Koraput
6.15
Balasore
6.86
Mayurbhanj 6.10
Mayurbhanj
6.69
Balasore
6.57
Puri
6.51
Puri
7.00
Phulbani
7.01
Dhenkanal
6.73
Mayurbhanj
6.92
Balasore
7.14
Bolangir
7.58
Ganjam
7.03
Phulbani
7.07
Phulbani
7.59
Bolangir
7.68
Phulbani
7.88
Kalahandi
8.16
Bolangir
7.49
Ganjam
7.84
Mayurbhanj
7.74
Sundergarh
8.28
Keonjhar
8.20
10
Balasore
7.57
Bolangir
7.89
Keonjhar
8.71
Mayurbhanj 8.44
Bolangir
8.44
11
Kalahandi
9.63
Keonjhar
8.83
Phulbani
9.09
Keonjhar
8.66
Puri
8.61
12
Keonjhar
10.53
Kalahandi
9.50
Kalahandi
9.29
Dhenkanal
9.06
Dhenkanal
8.84
13
Sundergarh
10.69
Sundergarh
10.00
Sundergarh
9.54
Kalahandi
9.20
Sundergarh 9.72
Odisha
6.81
Odisha
6.85
Odisha
6.92
Odisha
6.91
Odisha
6.89
Source: Calculated form the data Directorate of Agriculture and Food Production, Odisha, Bhubaneswar.
Note: Lower the index value higher is the productivity level. Hence, author has presumed here that taking the productivity
index values of Odisha as bench-mark the districts having productivity index value between 0 and 6 are considered more
productive, while those having productivity index value higher than 6 are regarded low productive. .
102
Vol. 29 (No.1)
January-June 2016
1980-1985
1985-1990
1990-1995
1995-2000
2000-2005
0.38
0.44
0.57
0.25
0.13
0.30
0.36
0.46
0.20
0.09
0.28
0.35
0.44
0.19
0.08
0.34
0.41
0.53
0.23
0.11
0.35
0.42
0.49
0.24
0.11
103
Yield
rate
Fertilizer
Irrigation
Yield rate
Fertilizer
Irrigation
Share-cropping
Leased-in land
Marginal landholding size
Small landholding size
Large landholding size
1.00
0.44*** 1.00
0.32*** 0.55*** 1.00
-0.06
0.08
0.35***
0.24*
0.63*** 0.42***
-0.29** -0.33*** -0.56***
-0.05
-0.09
-0.18
0.08
0.21*
0.35***
1.00
0.34***
-0.61***
-0.12
0.37***
Marginal
Small
Large
landholding landholding landholding
size
size
size
1.00
-0.34***
-0.22*
0.29**
1.00
0.22*
-0.27**
1.00
-0.20
1.00
Source: Calculated from Agricultural Statistics, Statistical Abstract and Agricultural Censuses.
Note: ***, ** and * denote significance at 0.01 per cent, 0.05 per cent and 0.10 per cent levels of probability, respectively.
Coefficients
P>|t|
Variance inflationary
factor
-166.39 (77.01)
151.15 (69.16)
59.14 (66.77)
110.58 (64.03)
5.13 (1.44)
-2.15 (2.30)
2.07 (2.34)
3.12 (6.54)
987.87 (242.58)
0.035**
0.033**
0.380
0.090
0.001***
0.354
0.381
0.635
0.000***
2.40
1.94
1.81
1.66
2.56
2.92
2.81
2.33
Prob > F
value
R-squared
0.000***
0.468
104
Concluding Remarks
The study has revealed that Odisha is basically a
mono-crop (rice) state. The reasons behind increasing
preference for production of rice are irrigation facilities
and provision of minimum support price (MSP) by the
government for this crop. An assured and increasing
price of rice vis--vis other crops has resulted in a
higher preference for rice cultivation. Thus, there has
been a move towards specialization rather than
diversification as a result of agricultural development
in the state.
Agricultural productivity level across the districts
of Odisha is converging as per the Sapre and Deshpande
index and the values for various inequality measures
have been found out in the analysis. The ranks of
districts as per productivity level urge for micro level
research across low-productivity districts by adopting
the model of high-productive districts (Balasore,
Cuttack and Sambalpur).
The inter-district variations in yield rate are mostly
related to difference in fertilizer consumption and
climatic conditions. Therefore, agricultural
Vol. 29 (No.1)
January-June 2016
Acknowledgements
The author is highly grateful to his MPhil
supervisor Dr Deepak K. Mishra, Professor at CSRD,
SSS, Jawaharlal Nehru University, New Delhi, for his
support in carrying out this study. The suggestions
given by the Editor, AERR, are gratefully
acknowledged. The usual disclaimer apply.
References
Ghosh, B.K. (2011) Essence of crop diversification: A study
of West Bengal agriculture. Asian Journal of
Agricultural Research, 5(1): 28-44.
Nayak, Dinesh Kumar (2011) Agrarian Structure and
Agricultural Productivity in Orissa: An Analysis of
Inter-district Variations. MPhil Dissertation, submitted
to Jawaharlal Nehru University.
Pattnaik, I. and Shah, A. (2010) Is there a glimpse of
dynamism in Orissas agriculture? Economic and
Political Weekly, 45(26 & 27): 756-59.
Sapre, S.C. and Deshpande, C.D. (1964) Inter-district
variation in agricultural efficiency in Maharashtra state.
Indian Journal of Agricultural Economics, 19(1): 24252.
Swain, M. (1999) Tenancy structure in Orissa: Implications
for agricultural growth. Artha Vijnana, 41(3): 245-61.
Tripathy, P.K. and Sarap, K. (1994) Development profile of
Orissas agriculture. In: Compressive History and
Culture of Orissa, Vol II (Part 2), Ed: P.K. Mishra.
Kaveri Books, New Delhi. pp. 969-77.
Received: February, 2015; Accepted: December, 2015
Abstract
The dynamics in the landings of marine fisheries resources in Maharashtra over the past five decades
(1961-2010) have been examined after classifying them into 24 different resource groups. The decadewise compound growth rates (CGR) of different resource groups and coefficient of variation have been
calculated. The present status of 25 resource groups has been examined separately based on a simple
criterion. The study has revealed that marine fishery in Maharashtra state is facing crisis since late-1990s.
Most of the fish stocks that were classified as abundant and less abundant at the country level, have come
under declining category in the case of Maharashtra. It indicates that state-wise scenario is different from
the national scenario and state-wise understanding of marine fishery resources is very important for
formulating regulatory and management measures.
Key words: Compound growth rate, decadal fish landings, fisheries, stock status, Maharashtra, India
JEL Classification: Q22
Introduction
The marine fish landings in India have fallen by 4
per cent to 3.78 million tonnes (MT) in 2013 from the
all-time high of 3.94 (Mt) in 2012 (CMFRI, 2014).
Between 1996 and 2009, the marine fish landings have
been fluctuating or became almost stagnant. The review
of studies on macro level growth trends and stock
assessments has revealed that most of the fisheries
resources are under stress or over-exploited to
maximum sustainable yield (MSY) level; some are
fully exploited and only a few remain under-exploited
(Srinath, 2003; Srinath and Balan, 2003; Dehadrai and
Yadava, 2004; Pillai, 2006). The demersal fisheries,
that constitute about 45 per cent of total landings, were
over-fished mainly by the mechanized sector
(Vivekanandan and Jayasankar, 2008). The economic
* Author for correspondence
Email: suresha1947@gmail.com
106
Vol. 29 (No.1)
January-June 2016
Suresha Adiga et al. : Crisis of Sustainability or Perils of Ill-managed Open Access Fisheries?
107
Table 1. Decadal mean catch and coefficient of variation (CV) for marine fisheries in Indian and Maharashtra
Period
India
1951-1960
1961-1970
1971-1980
1981-1990
1991-2000
2001-2010
1961-2010
664527
832426
1259624
1692597
2408687
2738943
1786455
138398
247097
306175
349536
344888
277219
1951-1960
1961-1970
1971-1980
1981-1990
1991-2000
2001-2010
1961-2010
CGR
India
Maharashtra
4.90
5.15
2.26
5.00
2.04
3.55
3.11
4.03
3.09
3.16
0.41
-4.69
2.15
India
CV
Maharashtra
Percentage of
Maharashtra to India
19.15
15.62
9.91
15.84
7.50
11.85
41.39
16.12
14.21
11.04
10.29
17.29
31.67
16.63
19.62
18.09
14.51
12.59
15.52
108
Vol. 29 (No.1)
January-June 2016
Table 3. Mean fish catch, coefficient of variation (CV), compound growth rate (CGR) and per cent contribution of
various major fish groups in Maharashtra state during 1961-1970
Fish group
Overall
Crustaceans
Bombayduck
Clupeids
Croakers
Pomfrets
Mackerel
Ribbonfish
Catfish
Eel
Elasmobranchs
Unicorn cod
Perches
Carangids
Threadfins
Seerfish
Goatfish
Silverbellies
Lizardfish
Tunas
Flatfish
Whitefish
Mullets
HB&FB
Molluscs
Mean catch
(tonnes)
CV
CGR
% of total state
landings
138398
43891
26858
11577
9191
7667
4832
4768
4600
4224
4195
3211
2147
1739
1297
1254
927
660
289
265
248
210
176
131
76
15.62
18.59
13.04
11.58
19.46
47.89
149.35
42.55
54.96
68.43
28.87
41.19
57.29
104.31
78.68
51.58
124.77
132.62
146.52
82.29
168.68
85.68
73.86
92.67
122.28
4.03
4.02
1.52
3.02
0.61
8.17
12.64
10.04
15.76
-10.41
6.50
-9.99
-11.81
23.44
1.84
14.61
-1.79
13.66
24.10
2.48
41.39
22.18
14.76
26.05
15.80
31.71
19.41
8.37
6.64
5.54
3.49
3.45
3.32
3.05
3.03
2.32
1.55
1.26
0.94
0.91
0.67
0.48
0.21
0.19
0.18
0.15
0.13
0.09
0.06
Suresha Adiga et al. : Crisis of Sustainability or Perils of Ill-managed Open Access Fisheries?
109
Table 4. Mean fish catch, coefficient of variation (CV), compound growth rate (CGR) and per cent contribution of
various major fish groups in Maharashtra state during 1971-1980
Fish group
Overall
Crustaceans
Bombayduck
Clupeids
Croakers
Pomfrets
Catfish
Ribbonfish
Elasmobranchs
Eel
Perches
Seerfish
Mackerel
Carangids
Threadfins
Unicorn cod
Molluscs
Flatfish
Lizardfish
Tunas
Goatfish
Silverbellies
Whitefish
HB & FB
Mullets
Mean catch
(tonnes)
CV
CGR
% of total state
landings
247097
89976
45717
23865
16638
10923
10358
9681
7791
3044
2834
2415
2232
2173
1939
1776
1472
1376
1004
805
577
517
484
72
65
14.21
14.48
31.35
19.35
19.09
39.55
28.81
21.08
26.99
45.11
57.54
34.29
71.19
24.27
44.03
112.32
104.17
53.82
64.8
82.56
55.88
43.76
38.99
55.51
74.39
3.09
-0.71
10.84
2.82
3.50
10.44
-3.91
2.71
7.50
8.83
15.35
10.50
-22.97
1.49
1.11
-42.22
30.42
11.26
22.87
22.79
-6.36
0.95
3.23
-7.95
-3.59
36.41
18.50
9.66
6.73
4.42
4.19
3.92
3.15
1.23
1.15
0.98
0.90
0.88
0.78
0.72
0.60
0.56
0.41
0.33
0.23
0.21
0.20
0.03
0.03
demersal groups were due to the multiday activity (24 days/trip) of trawlers becoming a standard practice
in the state, while fishing was extended further to 70
m depth. The landings of mackerel recovered in this
decade with a growth rate of 61.54 per cent due to the
introduction of purse seines in the mid-1980s.
Increased fishing effort, introduction of purse
seines and multi-day trawling were the major factors
that increased marine landings during the decade. The
decadal mean landing of bombayduck, elasmobranch
and whitefish increased, but the overall trend in growth
was negative (-8.9%, -1.94% and -5.66% CGR,
respectively), as landings started decreasing in
bombayduck since 1985, while whitefish and
elasmobranch showed a drastic decrease in their
landings after 1988. A significant difference in the inter-
110
Vol. 29 (No.1)
January-June 2016
Table 5. Mean fish catch, coefficient of variation (CV), compound growth rate (CGR) and per cent contribution of
various major fish groups in Maharashtra state during 1981-1990
Fish group
Overall
Crustaceans
Bombayduck
Clupeids
Croakers
Pomfrets
Ribbonfish
Catfish
Elasmobranchs
Molluscs
Perches
Carangids
Seerfish
Mackerel
Flatfish
Eel
Lizardfish
Tunas
Whitefish
Goatfish
Threadfins
Unicorn cod
Silverbellies
Mullets
HB&FB
Mean catch
(tonnes)
CV
CGR
% of total state
landings
306175
92049
46661
28509
21161
15794
15646
12548
10999
9890
9105
8866
6353
4994
4028
2610
2505
2135
1698
1483
1370
647
297
115
105
11.04
16.91
37.31
25.09
13.20
26.63
31.60
24.65
11.54
44.18
52.68
69.77
31.72
153.37
29.11
34.50
40.11
35.61
50.76
41.18
75.52
112.85
116.66
83.97
74.07
3.16
3.80
-8.90
3.07
3.68
-2.75
10.41
1.41
-1.94
20.98
18.49
29.03
10.97
61.54
6.55
-8.96
10.66
-1.04
-5.66
5.07
15.60
31.97
-23.25
1.68
-13.71
30.06
15.24
9.31
6.91
5.16
5.11
4.10
3.59
3.23
2.97
2.90
2.07
1.63
1.32
0.85
0.82
0.70
0.55
0.48
0.45
0.21
0.10
0.04
0.03
Suresha Adiga et al. : Crisis of Sustainability or Perils of Ill-managed Open Access Fisheries?
111
Table 6. Mean fish, coefficient of variation (CV), compound growth rate (CGR) and per cent contribution of various
major fish groups in Maharashtra state during 1991-2000
Fish group
Overall
Crustaceans
Ribbonfish
Clupeids
Mackerel
Croakers
Molluscs
Bombayduck
Perches
Carangids
Pomfrets
Catfish
Elasmobranchs
Seerfish
Flatfish
Lizardfish
Tunas
Whitefish
Eel
Threadfins
Unicorn cod
Goatfish
Silverbellies
Mullets
HB&FB
Mean catch
(tonnes)
CV
CGR
% of total state
landings
349536
111429
32078
28836
27819
26173
22651
20091
13436
11204
9513
9299
7885
6652
5986
2739
2321
1466
1316
771
592
379
106
85
81
10.29
18.53
38.33
16.24
33.44
10.36
22.37
51.79
16.62
33.95
31.93
35.81
16.61
31.82
19.57
63.79
31.32
46.32
19.10
39.55
71.80
48.07
65.88
106.38
54.56
0.41
0.56
5.76
0.68
12.63
1.11
-4.29
-3.89
-3.08
-5.48
-2.01
-4.09
-1.63
1.21
-4.49
-12.41
4.44
-2.49
0.34
-2.55
-14.02
-8.99
1.35
14.79
9.97
31.88
9.18
8.25
7.96
7.49
6.48
5.75
3.84
3.21
2.72
2.66
2.26
1.90
1.71
0.78
0.66
0.42
0.38
0.22
0.17
0.11
0.03
0.02
0.02
seiners increased dramatically to nearly 517 in 201011 largely by conversion of the trawlers by fitting drum
winch that increased the fishing efficiency and
subsequently led to increased landings of major pelagic
resources. The increasing export demand coupled with
good prices for crustaceans, molluscs, pomfrets on one
hand and the unrestricted expansion and relentless
intensification of fishing effort that began in the mid1990s, have led to a gradual but steady decline in many
resources, especially in the demersal fishes. That more
and more juveniles were being caught off the Mumbai
coast attested the exploitative nature of fishing as well
as the desperation to fish, irrespective of age and size
groups. A good number of mini purse seiners (ring
seiners) were introduced in Raigad and Ratnagiri
districts after 2006. Of the 24 groups, 18 groups showed
112
Vol. 29 (No.1)
January-June 2016
Table 7. Mean fish catch, coefficient of variation (CV), compound growth rate (CGR) and per cent contribution of
various major fish groups in Maharashtra state during 2001-2010
Fish group
Mean catch
(tonnes)
CV
CGR
% of total state
landings
344888
103965
29894
28756
27783
26774
23855
22444
13558
11117
10676
8559
8162
6713
5335
3153
2066
2035
1507
936
724
560
467
241
80
17.29
20.29
26.76
65.00
9.94
21.47
20.28
26.30
17.26
67.74
23.96
31.17
36.26
24.82
39.20
32.70
39.28
28.79
36.59
62.99
127.69
31.21
52.98
35.84
61.83
-4.69
-4.25
-4.13
-16.35
-1.56
-5.91
-3.93
-4.97
-0.18
1.57
-3.35
-8.68
-8.25
-7.71
5.26
-7.32
-9.52
-2.76
-8.09
3.24
0.13
-6.38
-11.99
6.09
6.55
30.14
8.67
8.34
8.06
7.76
6.92
6.51
3.93
3.22
3.10
2.48
2.37
1.95
1.55
0.91
0.60
0.59
0.44
0.27
0.21
0.16
0.14
0.07
0.02
Overall
Crustaceans
Clupeids
Ribbonfish
Croakers
Perches
Bombayduck
Molluscs
Carangids
Mackerel
Catfish
Elasmobranchs
Seerfish
Pomfrets
Tunas
Flatfish
Eel
Lizardfish
Threadfins
Whitefish
Silverbellies
Unicorn cod
Goatfish
HB&FB
Mullets
Suresha Adiga et al. : Crisis of Sustainability or Perils of Ill-managed Open Access Fisheries?
113
114
Vol. 29 (No.1)
January-June 2016
Table 8. Classification of different resource groups based on three-year (2008-2010) average landings
Resource
Croakers
Tunnies
Seer fish
Carangids
HB & FB
Perches
Catfish
Crustaceans
Molluscs
Clupeids
Bombayduck
Mackerel
Silverbellies
Whitefish
Ribbonfish
Threadfins
Barracudas
Lizard fish
Pomfrets
Flatfish
Elasmobranch
Eels
Mullets
Unicorn cod
Goatfish
Average
landings (t)
during
2008-10
Maximum
annual landing (t)
during
1961-2010
Year
Percentage
of total
landings
26647
7466
6818
14297
287
21381
10801
98192
19989
24042
19274
15357
732
1352
14345
859
807
1797
4963
2498
5594
1111
109
488
247
32315
10265
13256
22452
457
36351
21086
149978
31684
48303
82136
38355
3195
3146
66281
4125
1699
6670
22523
7797
14384
10091
481
5498
4180
1998
2008
2002
1989
2009
2003
1988
1998
2003
1989
1981
1996
2004
1983
2002
1976
1967
1995
1983
1995
2002
1961
1965
1965
1964
82.46
72.73
51.43
63.68
62.87
58.82
51.22
65.47
63.09
49.77
23.47
40.04
22.92
42.99
21.64
20.82
47.52
26.94
22.03
32.04
38.89
11.01
22.66
8.88
5.91
Stock status
Stock status of
of Maharashtra
India as per
Sathianandan
et al. (2011)
Abundant
Abundant
Less abundant
Less abundant
Less abundant
Less abundant
Less abundant
Less abundant
Less abundant
Declining
Declining
Declining
Declining
Declining
Declining
Declining
Declining
Declining
Declining
Declining
Declining
Declining
Declining
Depleted
Collapsed
Abundant
Abundant
Abundant
Abundant
Abundant
Abundant
Abundant
Abundant
Abundant
Abundant
Abundant
Abundant
Abundant
Declining
Less abundant
Less abundant
Abundant
Abundant
Abundant
Less abundant
Less abundant
Abundant
Less abundant
Collapsed
Abundant
Suresha Adiga et al. : Crisis of Sustainability or Perils of Ill-managed Open Access Fisheries?
115
9.60
53.88
34.89
0.16
0.14
11.22
56.51
30.54
0.16
0.08
Conclusions
Despite the average decadal mean catch of 344888
tonnes that contributed 12.59 per cent to the total
marine fish of the country during the previous decade
(2001-2010), the marine fishery of Maharashtra has
been facing crisis since late-1990s. However, the
growth rates of important resources (18 groups) have
declined and shown a negative trend, as indicated by
the compound growth rate during the previous decade.
Increased fishing effort from shrimp trawling by multiday fishing trips, introduction of purse seines in 1980s
and increasing pollution load are responsible for
declining growth rates. The historical highest annual
landings were recorded in the year 2002, but thereafter
the state total landings started showing a decreasing
trend and reached 3.07 lakh tonnes in 2011 (CMFRI,
2012). Among the 24 groups of resources, mackerel,
whitefish, ribbonfish, lizardfish, pomfrets, flatfish,
mullets, unicorn cod, crustaceans and molluscs have
shown a decline in their landings in recent decades.
The species which have shown increased mean
catch over the decade are clupeids, croakers, perches,
carangids and seerfish, even though their growth rate
is negative in the recent decade. The negative growth
is mainly because of having a decreasing trend in
landings of these species after 2005. However, their
Acknowledgments
The authors thank Dr W.S. Lakra, Director, Central
Institute of Fisheries Education, Mumbai, for his
encouragement and support. They also extend their
gratitude to the Central Marine Fisheries Research
Institute for providing data for the present study. The
authors thank the anonymous referee for his critical
comment on the paper.
References
CMFRI (Central Marine Fisheries Research Institute) (2012)
Annual Report 2011-12. Cochin. 186 p.
CMFRI (Central Marine Fisheries Research Institute) (2014)
Annual Report 2013-14. Cochin. 274 p.
Dehadarai, P.V. and Yadava, Y.S. (2004) Fisheries
development. Vol.13. In: State of the Indian FarmerA
Millennium Study. Department of Agriculture and Cooperation, Ministry of Agriculture, Government of
India, New Delhi. 173 p.
Devaraj, M., Mohamad Kasim, H., Muthiah, C. and Pillai,
N.G.K. (1999) Assessment of the exploited Seerfish
116
Vol. 29 (No.1)
January-June 2016
Abstract
The study has examined profitability, sources of productivity improvement and determinants of a new
technology Sustainable Sugarcane Initiative (SSI) adoption in sugarcane cultivation in Tamil Nadu
by collecting primary data from 120 sugarcane farms during 2014-15. Although the cost of cultivation
has been found higher in SSI method vis-a-vis conventional method, the cost of production is lower due
to 26 per cent more cane yield. The cost and return analysis has indicated that sugarcane cultivation is
more profitable under SSI method than under the conventional method. The decomposition analysis has
shown that the inputs, viz. fertilizers, micro-nutrients and deployment of labour are the major sources of
productivity enhancement in the SSI method. The estimates of logit model have indicated that farmers
educational level and experience are the major determinants for adoption of SSI method in sugarcane
cultivation. The major policy options suggested to improve production and profitability of sugarcane
include provision of drip irrigation with subsidy, ensuring timely availability of critical inputs and imparting
periodical trainings to farmers on SSI method such as fertigation, wide row spacing, etc.
Key words: Sugarcane cultivation, technology impact, sustainable sugarcane initiative, economic
analysis, productivity enhancing sources, Tamil Nadu
JEL Classification: Q1, Q01, Q16, E23, O32
Introduction
In India, the sugar industry is the second largest
industry next to the textile industry in playing a vital
role in the socio-economic transformation of country
(Wagh, 2015). The sugar industry being an important
agro-based industry, provides livelihoods to about 6
million sugarcane farmers and around 7 lakh workers
who are employed in the sugar mills. India ranked
second in sugarcane production in the world, after
Brazil, with an area of 5.31 million hectares and
production of 366.8 million tonnes with productivity
of 69.1 tonnes/ha during 2014-15 (ISMA, 2015). The
* Author for correspondence
Email: E-mail: sharanu2k@gmail.com
This paper is part of the masters study of first author supervised by second author.
118
43 sugar mills, of which 16 are owned by the cooperative sector and 27 by the private sector.
The demand for sugar and by-products of sugar
industry is raising, whereas production is declining due
to reasons such as decrease in cultivable lands, climate
change effect, escalating cost of inputs such as
fertilizers and human labour and fluctuating and
insufficient cane price. The sugar industry also faces
problems such as inadequate cane supply for crushing
due to reduction in area under sugarcane, labour
scarcity for harvesting, competition from other highly
remunerative crops like rice and maize, inadequate
availability of planting material at the time of onset of
season leading to inadequate coverage of targeted area
(NABARD, 2012).
Besides, irrigation water is emerging as one of the
major constraints affecting productivity and
profitability of both farmers and millers. The excessive
ground water exploitation and wide variability in
rainfall due to climate change are debilitating the
sugarcane farmers in the country (Goud, 2011). Further,
less use of farm mechanization due to closer spacing
in the conventional method of sugarcane production
increases drudgery of human labour and its production
cost. In Tamil Nadu, the sugarcane area increased from
3.15 lakh ha in 2001-02 to 3.48 lakh ha in 2012-13,
but it was minimal during the years 2003-04, 200405, 2005-06 and 2009-10 due to poor monsoon and its
aftermath. This is the major reason for deceleration of
growth rate of sugarcane area during the recent years.
These crises call for development of alternate options
and technologies for sugarcane cultivation to make it
viable and remunerative to both farmers as well as sugar
mills.
The sustainable Sugarcane Initiative (SSI) is a new
method which improves the productivity of sugarcane
by using less resource and thereby, reduces the input
cost also. The SSI is a better method of sugarcane
cultivation than the conventional methods which are
seed - water - space-intensive. By adopting SSI method,
the productivity of cane can be enhanced by practising
drip irrigation with fertigation, maintaining optimum
plant spacing of 5ft 2ft for easy penetration of
sunlight, and profuse tillering and after the
establishment of 2 or 3 tillers, the mother shoot may
be removed just one inch above the ground to facilitate
more number of tillers. The benefits of SSI method
vary depending on how efficiently farmers use these
Vol. 29 (No.1)
January-June 2016
Economic Analysis
(a) Estimation of Cost and Returns
To estimate cost and returns of sugarcane under
conventional and SSI methods, the standard method
developed by the Commission on Agricultural Costs
and Prices (CACP) was followed (Raju and Rao, 1990;
Narayanamoorthy, 2013).
(b) Sources of Change in Sugarcane Productivity
To measure the sources of change in sugarcane
productivity, Cobb-Douglas production function was
used as given by Equation (1):
i2
i3
YLDi = 0 NITROi1
i1 PHOS i2 POTAS i3
i4
i5
i
MNM i4 HLAB i5 MLAB i6 ui
(1)
Arthi et al. : Is SSI Technology More Profitable than Conventional Method for Sugarcane Production?
where,
Subscript i = 1 indicates conventional method; i = 2
indicates SSI method
119
YLD
NITROi1
PHOSi2
POTASi3
MNMi4
where,
HLABi5
MLABi6
i = Coefficients to be estimated
AGE
EDU
120
Vol. 29 (No.1)
January-June 2016
Depreciation
Interest on fixed assets
Rental value of owned land
Total fixed cost
Setts cost
Fertilizer cost
Plant protection chemicals cost
Human labour cost
Machine labour cost
Total variable cost
Overall total cost
Villupuram district
Conventional
SSI
Trichy district
Conventional
SSI
Overall
Conventional
SSI
5605
(3.12)
4228
(2.35)
20540
(11.43)
30373
(16.90)
Fixed cost
13040
(6.25)
9837
(4.71)
21034
(10.08)
43911
(21.04)
5666
(3.18)
4274
(2.40)
20742
(11.63)
30682
(17.21)
11931
(5.80)
9001
(4.38)
21271
(10.34)
42203
(20.52)
5635
(3.15)
4251
(2.37)
20641
(11.53)
30528
(17.05)
12486
(6.03)
9419
(4.55)
21153
(10.21)
43057
(20.78)
19385
(10.79)
18793
(10.46)
2793
(1.55)
93225
(51.87)
15160
(8.43)
149356
(83.10)
179729
Variable cost
18935
(9.07)
21568
(10.34)
2540
(1.22)
106726
(51.14)
15008
(7.19)
164777
(78.96)
208688
20086
(11.27)
17894
(10.04)
3037
(1.70)
91228
(51.17)
15359
(8.61)
147604
(82.79)
178286
23053
(11.21)
20044
(9.75)
2259
(1.10)
102954
(50.06)
15136
(7.36)
163446
(79.48)
205649
19736
(11.02)
18344
(10.25)
2915
(1.63)
92227
(51.52)
15260
(8.52)
148480
(82.95)
179008
20994
(10.13)
20806
(10.04)
2400
(1.16)
104840
(50.61)
15072
(7.28)
164112
(79.22)
207169
Arthi et al. : Is SSI Technology More Profitable than Conventional Method for Sugarcane Production?
121
Cost A1 (`/ha)
Cost B1 (`/ha)
Cost B2 (`/ha)
Cost C1(`/ha)
Cost C2 (Total cost)
Yield (t/ha)
Price (`/tonne)
Cost of production (`/tonne)
Gross returns (`/ha)*
Net returns (`/ha)
Farm business income (`/ha)
Farm investment income (`/ha)
Family labour income (`/ha)
Benefit-cost ratio
Villupuram district
Conventionl
SSI
147736
151964
172504
159189
179729
104
2300
1421
239200
91464
91464
84239
66696
1.62
171592
181429
202463
187654
208688
132
2300
1300
303600
132008
132008
125783
101137
1.77
Trichy district
Conventionl
SSI
146256
150530
171272
157544
178286
101
2275
1448
229775
83519
83519
76505
58503
1.57
168817
177818
199089
184378
205649
125
2275
1351
284375
115558
115558
108998
85286
1.68
Overall
Conventionl
146996
151247
171888
158367
179008
102.5
2288
1434
234469
87473
87473
80353
62581
1.60
SSI
170205
179624
200776
186016
207169
128.5
2288
1325
293944
123739
123739
117347
93168
1.73
*In the study area, 70 per cent farmers cultivated pulses (black gram, green gram and cow pea) as intercrops and SSI
farmers would additionally generate the gross income of ` 16200 /ha/annum.
122
Vol. 29 (No.1)
January-June 2016
CONSTANT
NITRO
PHOS
POTAS
MNM
HLAB
MLAB
R square
F value
Regression coefficient
Conventional
SSI
method
method
-5.0139***
(0.6248)
0.5943***
(0.1004)
0.0045
(0.0184)
-0.0012
(0.0387)
0.0371**
(0.0103)
0.9881***
(0.1206)
-0.0159
(0.0105)
0.94
150.821***
-2.4928***
(0.6970)
0.3519***
(0.1236)
0.1424**
(0.0505)
0.2386***
(0.0460)
-0.0650
(0.04419)
0.5763***
(0.0971)
-0.0175
(0.0268)
0.85
51.520***
Arthi et al. : Is SSI Technology More Profitable than Conventional Method for Sugarcane Production?
Table 4. Sources of productivity gain in SSI method of
sugarcane production
Sl. Source of productivity difference
No.
Contribution
(%)
A.
24.41
B.
2.16
C.
20.49
1.
5.68
2.
0.48
3.
2.46
4.
Micronutrients (kg/ha)
3.53
5.
7.77
6.
0.54
D.
E.
Residual factors
1.76
123
Coefficient
Odds ratio
CONSTANT
AGE
SQAGE
EDU
HHSIZE
FARMSIZE
INCOME
7.8051
-0.3091
0.00298*
2.5036***
-1.3429**
-0.3370*
0.0001**
0.6708
1.0028
12.2265
0.2610
0.7138
1.0001
124
Vol. 29 (No.1)
January-June 2016
References
Acknowledgements
Arthi et al. : Is SSI Technology More Profitable than Conventional Method for Sugarcane Production?
Sugarcane Initiative. Natural Resource Management
Centre, Kolkata.
Narayanamoorthy, A. (2013) Profitability in crops
cultivation in India: Some evidence from cost of
cultivation survey data. Indian Journal of Agricultural
Economics, 68(1): 104-121.
125
Shanthy, R.T. and Ramanjaneyulu, S. (2014) Socioeconomic performance analysis of sugarcane cultivation
under sustainable sugarcane initiative method. Indian
Research Journal of Extension Education, 14(3): 9398.
126
Vol. 29 (No.1)
January-June 2016
Conventional method
SSI method
101.90
539.59
137.49
219.56
52.14
361.10
8.58
127.38
605.70
141.19
238.45
88.54
413.29
10.47
25.00
12.25
2.69
8.60
69.81
14.45
22.02
Yield (t/ha)
N fertilizer (kg/ha)
P fertilizer (kg/ha)
K fertilizer (kg/ha)
Micronutrients (kg/ha)
Human labour (person days/ha)
Machine labour(hours/ha)
Annexure II: Descriptive statistics for the factors affecting adoption of SSI method
Factor
Age (years)
Age square
Education (index*)
Household size (No.)
Total area (acres)
Annual income (`)
Mean value
Minimum value
Maximum value
Standard deviation ()
47.41
2377.05
4.46
4.75
8.46
312350
28
784
1
3
1.25
137281
71
5041
6
9
32
826048
11.39
1116.67
1.60
1.51
5.29
174831
Note : * Weighted average of formal education received by the household members (illiterate = 0, primary = 1, middle = 2,
secondary = 3, higher secondary = 4, graduate = 5 and post-graduate = 6).
Abstract
Using a partial equilibrium model, this study has investigated cross-border price effect on the rice demand
and supply in Nepal. Due to bigger market and close proximity, Indian rice price is likely to affect
Nepalese rice price. This study has examined the effect of Indian rice price on Nepalese rice demand, and
supply by making projections for the next 10 years period using the baseline data from 1992 to 2013. The
model has estimated that the per capita rice demand will decrease from 130 kg/capita to
128 kg/capita between 2013 and 2023. The model has also introduced 3 per cent price shock (increase) in
Indian rice price, a trend in past five years, to examine the scenario of rice import and export for Nepal.
Due to increase in price in the Indian market, Nepalese rice price would also increase which will give an
incentive to the farmers to produce more rice and Nepal will stop importing rice from India by the
year 2019.
Key words: Partial equilibrium model, Nepalese rice market, rice import, rice export, Nepal
JEL Classification: Q11, Q17, Q18
Introduction
Rice is the staple food of nearly half of the worlds
7.2 billion inhabitants (IRRI, 2014). Almost 40 per cent
of the worlds rice is harvested in South Asia (Gumma
et al., 2011). In Nepal, rice is grown on about 1.42
million hectares, which is almost 46 per cent of land
cultivated in the year 2012-13 (MoAD, 2013). As a
result, rice is a major source of food and plays a major
role in food security of Nepalese households (Prasad
et al., 2011). Despite an increasing trend, the rice
production is still not sufficient to meet the demand of
many Nepalese households (MoAD, 2013). Therefore,
rice is imported both formally and informally in Nepal
through porous border between India and Nepal. The
price of Indian rice plays an important role in the rice
* Author for correspondence
Email: mishrab@umsystem.edu
128
Study Framework
The unequal sizes of Indian and Nepalese rice
markets make a perfect example of international trade
theory between small and large country case studies.
Under this framework, the price of a large country is
determined by the demand and supply of rice in its
domestic market. But, the large countrys price is
exogenous for a small country and affects the small
countrys price. Therefore, large countrys price plays
a role in determining the demand and supply of a small
country. After trade with no restrictions between the
two countries, the Indian rice price equals the Nepalese
rice price (Figure 1).
Vol. 29 (No.1)
January-June 2016
(1)
PT
QDNep
Q
Q
Figure 1. Equilibrium rice price after trade between
India and Nepal
Note: In figure QSInd denotes quantity supply of India, QDNep
denotes quantity demand in Nepal, and QT denotes quantity
at the equilibrium price PT.
T
Mishra et al. : Effect of Change in Indian Rice Price on Nepalese Rice Market
129
Demand Equation
Coefficient
Intercept
Trend
GDP per capita
Real domestic rice price (Nepal)
0.152589*
-0.001056
0.000023
-0.000247**
0.681477
0.300000S
0.418948
0.003690*
5529.865374*
0.261917*
Table 2. Summary of average estimate of rice demand, export, import, supply, and producer price
Particulars
GDP per capita (constant US$ 2001)
Total demand (000 Mt)
Exports (000 Mt)
Total supply (000 Mt)
Milled production (000 Mt)
Imports (000 Mt)
Real Indian producer rice price (constant US$ 2001)
2003 to 2013
Average
2014
2015
2014 to 2023
Average
292
3041
0
3041
2896
145
310
315
3640
0
3640
3293
347
341
321
3680
0
3680
3340
340
342
344
3821
0
3821
3464
356
344
130
Vol. 29 (No.1)
January-June 2016
Mishra et al. : Effect of Change in Indian Rice Price on Nepalese Rice Market
131
Figure 5. Real domestic rice price (NRs 2001) after 3 per cent shock on the Indian rice price
Source: FAO and authors estimates
132
Vol. 29 (No.1)
January-June 2016
Figure 6. Per capita demand of rice in Nepal after 3 per cent shock on Indian rice price
Source: USDA and authors estimates (2014)
Figure 7. Rice import from India after 3 per cent price shock in Indian rice market
Source: FAO and authors estimates (2014)
Conclusions
The paper has measured the cross border price
effect on rice demand and supply using partial
equilibrium model. Any change in the Indian rice price
is transmitted to Nepal and thereby affects the demand
and supply scenario in Nepalese rice market. The
analysis has been done under two scenarios: (a) current
trend, and (b) 3 per cent increase in the Indian rice
price. To examine the effect of Indian rice price,
Mishra et al. : Effect of Change in Indian Rice Price on Nepalese Rice Market
References
FAO (Food and Agriculture Organization of United Nations)
(1999) Report of the Expert Consultation on Bridging
the Rice Yield Gap. FAO Regional Office for Asia and
the Pacific, Bangkok.
FAO (Food and Agriculture Organization of United Nations)
(2014) Retrieved from FAOSTAT: http://
faostat3.fao.org/home/ on 7-10-2014
Gumma, K.M., Nelson, A., Thenkabail, S.P. and Singh, A.N.
(2011) Mapping rice areas of South Asia using MODIS
multi-temporal data. Journal of Applied Remote
Sensing, 5(1): 1-26.
IRRI (International Rice Research Institute) (2014) The New
Green Revolution: A Bigger Rice Bowl. Manila
Karkee, M. (2008) Nepal Economic Growth Assessment
Agriculture. USAID, Kathmandu, Nepal.
MoAD (Ministry of Agricultural Development) (2013)
Statistical Information on Nepalese Agriculture: 2013.
Kathmandu, Nepal.
Prasad, K.S., Pullabhotla, H. and Ganesh-Kumar, A.
(2011) Supply and Demand for Cereals in Nepal 2010-
133
Abstract
The study has examined the growth performance and identified determinants of rice exports from India
with special reference to basmati rice during the period 1980-81 to 2012-13. Compound growth rate,
instability index and Markov chain analysis, were applied to estimate trend, and instability and the
project export to different countries. The time series data were made stationary before estimating the
determinants of Indian rice export. The study has observed that rice contributed substantially to the
national income during the study period. The higher growth observed in value of basmati rice export
(15.87%) was due to higher growth in unit value than quantity of export (7.55%) during 1980-81 to
2012-13. The growth rate of unit value of rice export was higher in period I (13.48%) than period II
(5.06%). The growth rates in export of non-basmati rice in terms of quantity, export earnings and unit
value were 10.87 per cent, 17.74 per cent and 6.20 per cent, respectively during the study period. The
instability index has been found highest for quantity (43.37 %) in case of basmati rice and value (141.36%)
in case of total rice during the entire period. The UAE has been found to be a highly preferred market for
Indian basmati rice and Nigeria for Indian non-basmati rice, as indicated by the probability of retention
of their previous shares. The study has projected that during 2013-14 the major markets for Indian basmati
rice would be Iran and Saudi Arabia, whereas for Indian non- basmati rice, the major markets would be
Nigeria and South Africa. The estimated regression model has shown that export price, international
price, lagged production, domestic consumption, and exchange rate are the major determinants of rice
export from India. In order to sustain in the international market, Indian export price needs to be competitive
besides improvement in quality and sanitary standards.
Key words: Rice, export destinations, performance, instability index, Markov Chain Analysis, export
determinants
JEL Classification: F17, Q17
Introduction
International trade plays an important role in the
economic development of a country. The participation
of India in international trade is largely confined to
primary products, especially of the agricultural sector.
Indian trade policy for agricultural commodities is
guided by the twin objectives of ensuring national food
* Author for correspondence
Email: sekhonmk@yahoo.co.in
This paper is drawn from the M.Sc. thesis of the first author
submitted to the Department of Economics and Sociology,
Punjab Agricultural University, Ludhiana
136
Vol. 29 (No.1)
January-June 2016
81 to 2012-13). For analysis, the total period was subdivided into two periods, viz. Period-I: Pre-WTO
period (1980-81 to 1994-95); and Period-II: Post-WTO
period (1995-96 to 2012-13). The division of period
was based on the assumption that liberalization as well
as formation of WTO helped in boosting up rice export.
The data on export quantity and value were collected
from Agricultural Statistical Compendium, and
APEDA. Similarly, data on production, import, stock,
and international price of rice were collected from
various sources like indiastat.com website, hand book
of Indian Economy, pink sheet of World Bank, etc.
The global data on exports and imports were collected
from various issues of Rice Year Book, USDA websites.
To analyze trend, the compound growth rates for export
of basmati rice and total rice in terms of quantity, value
and unit value realizations were worked out for the
both sub-periods and the overall period. The Instability
Index was computed using Cuddy-Della Valle Index,
I = CV *(1-R2)0.5(Singh and Byerlee, 1990), where,
CV is the coefficient of variation and R2 is the corrected
coefficient of determination of the log linear function.
The trade directions of export were analyzed using
the first order Markov chain approach. Central to the
Markov chain analysis is the estimation of transitional
probability matrix Pij. The elements Pij of the matrix P
indicates the probability that export will switch from
the ith country to the jth country with passage of time
(Dent, 1967; Lee et al., 1970; Gillet, 1976). The
diagonal elements of the matrix measure the probability
that the export share of a country will be retained.
Hence, the examination of the diagonal elements will
indicate the preference of an importing country for a
particular countrys exports.
In the context of the present study, the structural
changes were treated as a random process with selected
importing countries. The average export to a particular
country was considered to be a random variable which
depended only on the past exports to that country, and
can be denoted algebraically by Equation (1):
(1)
where, Ejt denotes exports from India to the jth country
during the year t, Eit-1 denotes exports from India to
the ith country during the period t-1, Pij is the probability
that exports will shift from the ith country to the jth
137
GP* = 1, P*e 0
where,
0 = Vector of zeroes,
P* = Vector in which probability Pij is arranged,
I = Appropriate dimensioned column vector of unit,
e = Vector of absolute error (|U|),
Y = Vector of export to each country,
X = Block diagonal matrix of lagged values of Y,
V = Vector of errors, and
G = Grouping matrix to add the row elements of P as
arranged in P* to unity.
After calculating the transitional probability
matrix, the expected shares of export were calculated
by Equation (2):
(j=1,2,3, r)
(2)
138
(5)
where, t is the white noise error, Yt-1 = (Yt-1 Yt-2),
where represents the first difference, m represents
the number of lagged difference. These lags are
included to make error- term white noise in above
equation. 1 is the intercept and t represents time trend.
The null hypothesis of ADF is H0: =0; There is unit
root, and the alternative hypothesis is H1: <0; There
is no unit root.
CUSUM Test and CUSUM of Squares Test
The CUSUM test is based on the cumulative sum
of the equation errors in regression. The E-Views
represent graphically the cumulative sum of errors
together with critical lines of 5 per cent. The equation
parameters are not considered stable if the whole sum
of recursive errors gets outside the two critical lines.
CUSUM of Squares test is calculated similarly and
interpreted as CUSUM test, with the difference that
instead of recursive errors, we use recursive doubled
errors.
Vol. 29 (No.1)
January-June 2016
139
1980-81
1985-86
1990-91
1995-96
2000-01
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Total rice
export
(Quantity,
000 tonnes)
Total rice
export
(value,
in crore `)
Unit value
(/tonne)
Agricultural
export
(in crore `)
727.35
245.01
505.11
4914.01
1534.47
4088.16
4747.92
6469.28
2488.29
2156.32
2471.35
7175.89
10147.89
223.86
196.32
459.63
4568.12
2943.39
6221.25
7035.88
11754.39
11164.4
11254.42
11585.92
24108.74
33858.19
3077.71
8012.61
9099.60
9296.11
19181.80
15217.73
14818.87
18169.55
44867.76
52192.72
46880.94
33596.86
33364.77
2375.70
3271.50
6012.76
20397.74
28657.37
49216.96
62411.42
79039.72
85951.67
89341.50
117483.60
187609.30
230141.13
9.42
6.00
7.64
22.40
10.27
12.64
11.27
14.87
12.99
12.60
9.86
12.85
14.71
140
Vol. 29 (No.1)
January-June 2016
Table 2. Compound growth rates of quantity, value and unit value of basmati rice and total rice export from India,
1980-81 to 2012-13
(in per cent)
Period
Quantity
Basmati rice
Value
Unit value
I (1980-81 to 1994-95)
0.22ns
(2.06)
13.74**
(1.93)
13.48**
(0.84)
4.07ns
(3.17)
14.96**
(2.84)
10.46**
(1.05)
II (1995-96 to 2012-13)
12.11**
(0.93)
17.78**
(1.72)
5.06**
(0.99)
3.72ns
(2.34)
12.34**
(1.85)
8.31**
(1.65)
7.55**
(0.73)
15.87**
(0.69)
7.74**
(0.49)
10.87**
(1.25)
17.74**
(0.94)
6.20**
(0.60)
Note: Figures within the parentheses indicate standard error in respective values
** and * denote significance at 1 per cent, and 5 per cent levels, respectively.
141
I (1980-81 to 1994-95)
II (1995-96 to 2012-13)
Overall (1980-81 to 2012-13)
CV(%)
Basmati rice
Instability index
Total rice
Instability index
CV(%)
33.16
69.77
95.91
Quantity
33.16
19.49
43.37
46.23
53.23
97.71
46.23
53.23
50.68
Value
I (1980-81 to 1994-95)
II (1995-96 to 2012-13)
Overall (1980-81 to 2012-13)
I (1980-81 to 1994-95)
II (1995-96 to 2012-13)
Overall (1980-81 to 2012-13)
71.92
101.98
152.98
34.49
34.43
33.52
76.41
88.40
141.36
41.22
43.53
37.40
55.09
35.60
63.00
Unit Value
11.42
21.60
20.41
42.61
60.52
74.91
13.87
36.56
34.57
142
Vol. 29 (No.1)
January-June 2016
Table 4. Share of basmati rice exported from India to major countries: 2007-08 to 2012-13
(Value in crore `)
Year
Saudi
Arabia
Kuwait
UK
USA
UAE
Iran
Iraq
Others
Total
2007-08
2038.35
(46.92)
3102.81
(32.74)
3295.47
(30.26)
3132.94
(27.59)
3380.88
(21.88)
3659.08
(18.85)
401.68
(9.25)
733.94
(7.74)
1030.14
(9.46)
1091.64
(9.61)
1362.92
(8.82)
1059.68
(5.46)
291.08
(6.70)
431.04
(4.55)
195.89
(1.80)
351.77
(3.10)
629.46
(4.07)
849.98
(4.38)
142.10
(3.27)
272.60
(2.88)
153.50
(1.41)
250.32
(2.20)
503.88
(3.26)
561.69
(2.89)
689.83
(15.88)
2786.20
(29.40)
3094.65
(28.42)
2839.76
(25.01)
3432.79
(22.22)
1311.20
(6.76)
20.33
(0.47)
980.76
(10.35)
2053.09
(18.85)
2033.96
(17.91)
2843.21
(18.40)
6463.50
(33.30)
16.81
(0.39)
34.48
(0.36)
35.90
(0.33)
165.31
(1.46)
672.87
(4.36)
1076.67
(5.55)
744.39
(17.13)
1135.22
(11.98)
1030.46
(9.46)
1488.93
(13.11)
2623.60
(16.98)
4427.58
(22.81)
4344.57
(100.00)
9477.05
(100.00)
10889.10
(100.00)
11354.63
(100.00)
15449.61
(100.00)
19409.38
(100.00)
2008-09
2009-10
2010-11
2011-12
2012-13
Note: Figures within the parentheses indicate per cent share of each importing country.
Source: GoI (2013b)
Table 5. Transitional probability matrix of Indian basmati rice export, 2000-01 to 2012-13
Country
Saudi Arabia
Kuwait
UK
UAE
Iran
Iraq
Others
Saudi Arabia
Kuwait
UK
UAE
Iran
Iraq
Others
0.7517
0.0000
0.5327
0.0000
0.0000
0.0000
0.3570
0.1055
0.3831
0.0000
0.0171
0.1005
0.0000
0.0000
0.0498
0.0015
0.4673
0.0000
0.0000
0.0000
0.0680
0.0000
0.1156
0.0000
0.8226
0.0000
0.0000
0.0350
0.0000
0.0000
0.0000
0.1603
0.7209
1.0000
0.0000
0.0000
0.0018
0.0000
0.0000
0.0766
0.0000
0.0000
0.0930
0.4980
0.0000
0.0000
0.1021
0.0000
0.5400
227.35
(10.50)
196.11
(10.65)
172.79
(8.38)
137.69
(6.91)
237.00
(8.39)
237.93
(7.82)
306.87
(10.99)
401.68
9.25
733.94
7.74
1030.14
9.46
1091.64
(9.61)
1362.92
(8.82)
1059.68
(5.46)
204.55
(9.44)
188.91
(10.26)
178.64
(8.66)
167.22
(8.39)
260.95
(9.24)
270.85
(8.90)
258.33
(9.25)
382.75
(8.81)
754.74
(7.96)
1001.58
(9.20)
1001.71
(8.82)
1223.27
(7.92)
Kuwait
Actual Estimated
303.70
(14.02)
193.26
(10.49)
205.16
(9.95)
219.39
(11.01)
265.40
(9.40)
222.66
(7.32)
196.23
(7.03)
291.08
6.70
431.04
4.55
195.89
1.80
351.77
(3.10)
629.46
(4.07)
849.98
(4.38)
227.23
(10.49)
165.81
(9.00)
185.61
(9.00)
187.33
(9.40)
243.31
(8.62)
237.77
(7.81)
201.27
(7.21)
298.32
(6.87)
452.63
(4.78)
337.55
(3.10)
440.16
(3.88)
677.06
(4.38)
UK
Actual Estimated
90.53
(4.18)
49.97
(2.71)
84.33
(4.09)
104.88
(5.26)
143.97
(5.10)
159.57
(5.24)
305.21
(10.93)
689.83
15.88
2786.20
29.40
3094.65
28.42
2839.76
25.01
3432.79
(22.22)
1311.20
(6.76)
116.35
(5.37)
75.37
(4.09)
108.46
(5.26)
118.39
(5.94)
166.39
(5.89)
184.79
(6.07)
310.92
11.13
644.91
14.84
2426.01
25.60
2706.14
(24.85)
2523.02
(22.22)
3090.79
(20.01)
UAE
Actual Estimated
Note: Figures within the parentheses indicate percentage to total export of basmati rice.
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
1098.78
(50.73)
1058.81
(57.49)
1052.21
(51.03)
1067.96
(53.58)
1587.43
(56.22)
1664.42
(54.70)
1240.96
(44.43)
2038.35
(46.92)
3102.81
(32.74)
3295.47
(30.26)
3132.94
(27.59)
3380.88
(21.88)
3659.08
(18.85)
2000-01
1146.86
(52.95)
1017.18
(55.23)
1095.22
(53.11)
1084.95
(54.44)
1544.49
(54.69)
1635.28
(53.74)
1286.16
(46.05)
2003.87
(46.12)
3064.76
(32.34)
3004.40
(27.59)
3163.51
(27.86)
3993.47
(25.85)
Saudi Arabia
Actual Estimated
Year
0.00
(0.00)
12.32
(0.67)
0.11
(0.01)
0.26
(0.01)
2.44
(0.09)
13.98
(0.46)
46.17
(1.65)
20.33
(0.47)
980.76
(10.35)
2053.09
(18.85)
2033.96
(17.91)
2843.21
(18.40)
6463.50
(33.30)
14.51
(0.67)
16.89
(0.92)
15.11
(0.73)
17.00
(0.85)
24.89
(0.88)
36.63
(1.20)
82.85
(2.97)
142.04
(3.27)
1188.07
(12.54)
2011.93
(18.48)
2086.70
(18.38)
3272.67
(21.18)
Iran
Actual Estimated
Table 6. Actual and estimated shares of Indian basmati rice export from India, 2000-01 to 2012-13
0.00
(0.00)
0.00
(0.00)
1.51
(0.07)
0.00
(0.00)
0.05
(0.00)
0.98
(0.03)
0.65
(0.02)
16.81
(0.39)
34.48
(0.36)
35.90
(0.33)
165.31
(1.46)
672.87
(4.36)
1076.67
(5.55)
0.40
(0.02)
1.29
(0.07)
0.31
(0.02)
0.26
(0.01)
0.60
(0.02)
1.49
(0.05)
4.07
(0.15)
2.26
(0.05)
76.39
(0.81)
159.02
(1.46)
157.66
(1.39)
220.10
(1.42)
Iraq
Actual Estimated
445.58
(20.57)
331.29
(17.99)
546.00
(26.48)
462.85
(23.22)
587.56
(20.81)
743.52
(24.43)
696.71
(24.95)
886.49
(20.40)
1407.82
(14.86)
1183.96
(10.87)
1739.25
(15.32)
3127.48
(20.24)
4989.27
(25.71)
456.04
(21.06)
376.31
(20.43)
478.77
(23.22)
417.87
(20.97)
583.22
(20.65)
676.24
(22.22)
649.18
(23.24)
870.42
(20.03)
1514.46
(15.98)
1668.49
(15.32)
1981.87
(17.45)
2972.24
(19.24)
Others
Actual Estimated
2165.94
(100.00)
1841.76
(100.00)
2062.11
100.00
1993.03
(100.00)
2823.85
(100.00)
3043.06
(100.00)
2792.80
(100.00)
4344.57
(100.00)
9477.05
(100.00)
10889.10
(100.00)
11354.63
(100.00)
15449.61
(100.00)
19409.38
(100.00)
Total
Actual
(in crore `)
144
Vol. 29 (No.1)
January-June 2016
Table 7. Projected exports of Indian basmati rice to major importing countries: 2013-14 to 2017-18
(Value in crore `)
Year
2013-14
2014-15
2015-16
2016-17
2017-18
Saudi Arabia
Kuwait
UK
UAE
Iran
Iraq
Other countsries
4984.81
(25.68)
5744.79
(29.60)
6290.35
(32.41)
6734.15
(34.70)
7105.83
(36.61)
1463.86
(7.54)
1707.68
(8.80)
1787.80
(9.21)
1806.46
(9.31)
1804.72
(9.30)
920.09
(4.74)
967.24
(4.98)
1017.77
(5.24)
1069.93
(5.51)
1118.37
(5.76)
1375.72
(7.09)
1448.66
(7.46)
1531.84
(7.89)
1610.20
(8.30)
1677.81
(8.64)
5946.15
(30.64)
5003.67
(25.78)
4297.05
(22.14)
3729.27
(19.21)
3278.57
(16.89)
496.79
(2.56)
457.88
(2.36)
386.14
(1.99)
332.17
(1.71)
288.73
(1.49)
4221.97
(21.75)
4079.46
(21.02)
4098.43
(21.12)
4127.20
(21.26)
4135.36
(21.30)
Note: Figures within the parentheses indicate per cent to respective values
Source: GoI (2013b)
Coefficient
0.15**
-2.00***
1.08ns
1.20***
-0.95ns
0.53ns
Standard
error
0.06
0.21
0.64
0.25
0.64
0.64
145
Table 9. Estimates of determinants of rice export from India by model I and model II
Dependent variable: D (Quantity)
Model I
Coefficient
Constant
D (Export price)
D (Exchange rate)
D (International price)
D (Domestic consumption)
D (Lagged production)
Std. error
0.16**
0.06
-2.02***
0.20
1.21*
0.62
1.23***
0.24
-1.30**
0.47
R-squared=0.8104
Adjusted R-squared=0.7823
D-W=2.37
F-statistics=28.854
Model II
Coefficient
Std. error
0.13**
0.06
-1.98***
0.21
1.02ns
0.66
1.15***
0.25
1.16**
0.49
R-squared=0.7994
Adjusted R-squared=0.7697
D-W=2.55
F-statistics=26.9033
Prob (F-statistics) = 0.0000
Note: D=Difference ;*, **, and *** indicate level of significance at 10 per cent, 5 per cent and 1 per cent level respectively.
146
(a)
CUSUM
January-June 2016
(b)
CUSUM
5% significance
(c)
CUSUM
Vol. 29 (No.1)
5% significance
10% significance
(d)
CUSUM
10% significance
Figure 2. CUSUM test and CUSUM of square test, (a) CUSUM 5% significance model I , (b) CUSUM 10%
significance Model II, (c) CUSUM 5% significance, and (d) CUSUM 10% significance
Conclusions
Rice contributes substantially to the national
income through exports of its basmati as well as nonbasmati rice varieties. The study has revealed that
Indian rice exports had a fabulous performance during
147
Name of test
Fstatistics
Observed
R- squared
R-square
Prob.
chi-square
for observed
Decision
1.677
0.7948
The variance of
error-terms
are constant
3.5066
0.1732
No serial
correlation
1.5847ns
0.457
Error-terms are
normally
distributed
1.116
0.8917
The variance of
error-terms
is constant
3.746
0.1536
No serial
correlation
0.595
Error-terms are
normally
distributed
Model I
Breusch0.3733ns
PaganGodfrey
Breusch1.538ns
Godfrey Serial
Correlation
LM Test
JarqueBera
Model II
Breusch0.2439ns
PaganGodfrey
Breusch1.657ns
Godfrey Serial
Correlation
LM Test
JarqueBera
1.038ns
Note: NS=Non-significant
Acknowledgements
The authors are grateful to the anonymous referee
for the valuable suggestions. The views expressed are
those of the authors only.
References
Abolagba, E.O., Onyekwere, N.C., Abonkpolor, B.N. and
Umar, H.Y. ( 2010) Determinants of agricultural
exports. Journal of Humane Ecology, 29(3): 181-184.
All India Rice Exporters Association (2013) Retrived from
www.airea.net.
Bansil, P.C. (1992) Agricultural Statistical Compendium,
Vol. I, Food grains, Part II. Techno Economic Research
Institute, New Delhi.
Bilal, M. and Rizvi, S.B.H. (2013) Determinants of rice
exports: An empirical analysis of Pakistan. Journal of
Global and Scientific Issues, 1(4): 5-16.
148
Vol. 29 (No.1)
January-June 2016
149
Annexure 1. World rice trade showing major exporters and importers: 1990-2013
(000 tonnes)
Country
India
Vietnam
Thailand
Pakistan
USA
Others
World Total
China
Nigeria
Iran
Phillipines
Indonesia
Others
World Total
1990
1995
0.51
(4.36)
1.67
(14.27)
3.94
(33.68)
0.90
(7.69)
2.42
(20.68)
2.25
(19.23)
11.70
(100.00)
4.18
(20.10)
2.32
(11.15)
5.89
(28.32)
1.59
(7.64)
2.99
(14.38)
3.83
(18.41)
20.80
(100.00)
0.06
(0.51)
0.22
(1.88)
0.87
(7.44)
0.54
(4.62)
0.08
(0.68)
9.94
(84.96)
11.70
(100.00)
1.96
(9.42)
0.45
(2.16)
1.58
(7.60)
0.28
(1.35)
3.01
(14.47)
13.52
(65.00)
20.80
(100.00)
2000
2005
Exporters
1.45
4.69
(6.37)
(16.20)
3.37
5.17
(14.79)
(17.86)
6.55
7.27
(28.75)
(25.11)
2.03
3.03
(8.91)
(10.47)
2.85
3.86
(12.51)
(13.33)
6.54
4.92
(28.71)
(16.99)
22.78
28.95
(100.00)
(100.00)
Importers
0.28
0.61
(1.23)
(2.11)
1.25
1.78
(5.49)
(6.15)
1.10
1.20
(4.83)
(4.15)
0.90
1.89
(3.95)
(6.53)
1.50
0.50
(6.58)
(1.73)
17.75
22.98
(77.92)
(79.38)
22.78
28.95
(100.00)
(100.00)
2010
2011
2012
2013
2.23
(7.01)
6.73
(21.17)
9.05
(28.47)
4.00
(12.58)
3.87
(12.17)
5.91
(18.59)
31.79
(100.00)
4.64
(12.70)
7.00
(19.16)
10.65
(29.15)
3.41
(9.33)
3.25
(8.89)
7.59
(20.77)
36.54
(100.00)
10.25
(25.73)
7.72
(19.38)
6.95
(17.45)
3.50
(8.79)
3.33
(8.36)
8.09
(20.31)
39.83
(100.00)
10.50
(27.16)
6.80
(17.59)
6.70
(17.33)
3.50
(9.05)
3.27
(8.46)
7.89
(20.41)
38.66
(100.00)
0.37
(1.16)
2.00
(6.29)
1.52
(4.78)
2.40
(7.55)
1.15
(3.62)
24.35
(76.60)
31.79
(100.00)
0.58
(1.59)
2.55
(6.98)
1.87
(5.12)
1.20
(3.28)
3.10
(8.48)
27.25
(74.58)
36.54
(100.00)
2.90
(7.28)
3.40
(8.54)
1.75
(4.39)
1.50
(3.77)
1.96
(4.92)
28.32
(71.10)
39.83
(100.00)
3.20
(8.28)
2.60
(6.73)
2.15
(5.56)
1.10
(2.85)
0.65
(1.68)
28.96
(74.91)
38.66
(100.00)
150
Vol. 29 (No.1)
January-June 2016
Linear graph
QT
Intercept
Trend and intercept
Intercept
Trend and intercept
Intercept
Trend and intercept
Intercept
Trend and intercept
Intercept
Trend and intercept
Intercept
Trend and intercept
EXC
EXP
INT
DC
LGP
At level
Test statistic
Critical values
(99%)
(95%)
-0.91
-3.21
-2.44
-0.93
-1.80
-3.36
-1.27
-2.01
-3.91**
-3.30
-1.53
-4.85**
-3.65
-4.28
-3.65
-4.27
-3.66
-4.28
-3.65
-4.27
-3.67
-4.27
-3.66
-4.27
-2.95
-3.56
-2.96
-3.56
-2.96
-3.56
-2.96
-3.56
-2.96
-3.56
-2.96
-3.55
At first difference
Test statistic
Critical values
(99%)
(95%)
-6.20**
-6.24**
-3.94**
-4.20**
-4.91**
-4.83**
-4.75**
-5.12**
-6.85**
-5.12**
-9.92**
-9.81**
-3.66
-4.28
-3.66
-4.28
-3.67
-4.29
-3.66
-4.28
-3.67
-4.29
-3.66
4.28
-2.96
-3.56
-2.96
-3.56
-2.96
-3.57
-2.96
-3.56
-2.96
-3.57
-2.96
3.56
Decision
I(1) at 1%
I(1) at 1%
I(1) at 1%
I(1) at 1%
I(1) at 1%
I(1) at 1%
I(1) at 1%
I(1) at 1%
I(1) at 1%
I(1) at 1%
I(1) at 1%
I(1) at 1%
Research Note
Abstract
The nature, extent and determinants of crop diversification have been analysed in the Gadag district of
Karnataka over space and time. The area under vegetables, fruits and pulse crops has registered a higher
(7-11%) growth compared to cereals, oilseeds, fibre and other crop groups (<1%). Over the years, the
share of cereal crop groups has decreased significantly from 32.53 per cent to 28.81 per cent and that of
fruits and vegetables has increased considerably from 0.10 per cent to 0.25 per cent for fruits and from
4.66 per cent to 7.80 per cent for vegetable crops. The transition probability matrix has indicated that
over the years, horticultural crop groups have retained a higher share (92%) in terms of area under crops.
The Northern Dry Zone (Gadag taluk) has been found to be more diversified with Entropy index of 0.99
and household crop richness of 3.20 compared to 0.55 and 1.90 in the Northern Transitional Zone (Shirahatti
taluk), respectively. The major factors influencing crop diversification have been identified as size of
landholding, gross irrigated area, and net return realised per farm.
Key words: Crop diversification, horticulture, entropy, crop richness, probability matrix, Karnataka
JEL Classification: Q16, R11
Introduction
In India, the agricultural sector contributes 13.7
per cent to the national gross domestic product (GDP).
This sector also provides employment to 52 per cent
of the total work force of the country. In dry land
agriculture, diversification serves as a sole source of
combating risk against climate and weather vagaries.
Crop diversification in India is generally viewed as a
shift from the traditionally grown less-remunerative
crops to more remunerative crops. The crop
diversification ensures security for food, nutrition,
income and employment to a wider section of the
society and hence, has a significant bearing on GDP
* Author for correspondence
Email: tmgajanana@yahoo.com, gajanana@iihr.res.in
This paper forms part of the M.Sc. thesis submitted by the
first author to the University of Agricultural Sciences,
Bengaluru, under the guidance of the second author.
152
(2)
Vol. 29 (No.1)
January-June 2016
(3)
(5)
where,
Ejt = Area under crop to the jth crop group in year t
Eit-1 = Area under crop of ith crop group during the
year t-1
Pij = The probability of shift in area under ith crop
group to jth crop group
ejt = The error-term statistically independent of
Eit-1, and
n = The number of crop groups.
The transitional probabilities Pij arranged in (m n)
matrix have the following properties:
Pij = 1 and 0 Pij 1
153
i=1,...,n
The transitional probability matrix (T) based on
LP framework is estimated using Minimization of
Mean Absolute Deviation (MAD).
Min, OP* + I e
(7)
ST
X P* + V = Y
GP* = 1
P* > 0
where, P* is the transitional probability matrix, 0 is
the zero vector, I is an appropriately dimensional
vector of areas, and e is the vector of absolute errors.
Garret Ranking Technique In this study, Garret
ranking technique was used to assess the benefits of
practising crop diversification and constraints in crop
diversification.
The respondents were asked to rank (in the order
of severity) the factors- benefits and constraints and
these ranks were converted to scores by referring to
Garret table.
Gadag
taluk
Shirahatti
taluk
Gadag
district
Rij= Rank given for the ith item by the jth individual,
and
Cereals
Pulses
Sugar crops
Spices
Fruits
Vegetables
Oilseeds
Fibres
Medicinal and aromatic
Flowers
-0.967
5.63*
10.09
-0.471
7.82*
4.00*
-1.01
-1.72
25.57*
-4.19
0.72
5.72*
21.37*
-3.911
5.17*
0.94
-0.057
0.58
-17.96
0.78
0.43
6.58*
22.84*
0.53
10.67*
6.7*
-0.91
-0.55
-10.03
-1.18
154
Vol. 29 (No.1)
January-June 2016
Table 2. Changes in share of crop groups in total cropped area in Gadag district, TE 2000-01 to 2011-12
(Per cent)
Period
TE 2000-01
TE 2003-04
TE 2006-07
TE 2009-10
TE 2011-12
Cereals
Pulses
Sugar
Spices
32.53
30.96
26.63
28.23
28.81
16.39
18.98
25.87
25.31
26.89
0.04
0.10
0.02
0.10
0.90
3.48
3.28
3.23
3.07
3.15
Crop group
Fruits Vegetables Oilseeds
Fibres
0.10
0.16
0.17
0.23
0.25
13.87
11.83
9.13
9.66
12.73
4.66
5.51
6.00
7.87
7.80
28.80
29.09
28.85
25.47
19.41
Medicinal
Flowers
and aromatic
crops
0.06
0.02
0.01
0.01
0.02
0.07
0.07
0.08
0.06
0.05
155
Table 3. Transitional probability matrix for area under different crop groups in Gadag district, 1998-99 to 2011-12
Crop group
Cereals
Pulses
Oilseeds
Fibres
Horticulture
Cereals
Pulses
Oilseeds
Fibres
Horticulture
0.48
0.37
0.00
0.56
0.00
0.00
0.49
0.10
0.00
0.06
0.32
0.00
0.46
0.00
0.02
0.19
0.03
0.00
0.44
0.00
0.00
0.11
0.44
0.00
0.92
Gadag
taluk
Shirahatti
taluk
Gadag
district
Simpson Index
Entropy Index
Herfindahl Index
0.80*
1.71*
0.20*
0.75
1.56
0.25
0.77
1.59
0.23
156
Gadag
talik
Shirahatti
taluk
0.58*
0.89*
1.18*
0.99*
15
3.20
0.31*
0.83*
0.44*
0.55*
10
1.90
Vol. 29 (No.1)
January-June 2016
Gadag taluk
Crop richness
Size of holding
1.00
0.78
1.00
Shirahatti taluk
Crop richness
Size of holding
1.00
0.67
1.00
Gadag taluk
Average landholding
Crop richness of
(acres)
household
1.57
4.00
13.81
8.67
2.14
2.57
3.94
3.20
Shirahatti taluk
Average landholding
Crop richness of
(acres)
household
1.93
4.13
17.67
10.38
1.14
1.63
2.40
1.90
157
Particulars
Variable
Irrigated
farmer
Non-irrigated
farmer
5.50
2.76
11
24391
11844
12547
Intercept
Gross irrigated area
Income of family
Size of holding
F value
Adj. R2
Coefficient
t-stat
1.826771***
0.034202*
0.000005**
0.080910***
24.05
0.71
7.96
1.44
2.20
2.80
Garret score
Ranking
68.57
56.10
50.80
49.87
46.27
45.80
44.20
40.00
I
II
III
IV
V
VI
VII
VIII
158
Vol. 29 (No.1)
January-June 2016
Acknowledgements
The authors thank the anonymous referee for the
useful comments which helped in improving the paper.
References
Acharya, S.P., Basavaraja, H., Kunnal, L.B., Mahajanashetti,
S.B. and Bhat, A.R.S. (2011) Crop diversification in
Karnataka: An economic analysis. Agricultural
Economics Research Review, 24 (1): 351-357.
Anonymous (2010) Scheme to increase pulses output
launched. The Hindu, 11 August.
Bhattacharya, R., (2008) Crop Diversification: A search for
an alternative income of the farmers in the state of West
Bengal in India. International Conference on Applied
Economics: 83-93
Birthal, P.S., Jha, A.K., Joshi, P.K. and Singh, D.K. (2006)
Agricultural diversification in North-East region of
India: Implication for growth and equity. Indian Journal
of Agricultural Economics, 61 (3): 328-340.
Garret, E. Henry and Woodworth, R.S. (1969) Statistics in
Psychology and Education. Vaklis, Feffer and Simons
Pvt. Ltd, Bombay. pp. 329.
GoI (Government of India) (2010) Operational Guidelines
for Accelerated Pulses Production Program (A3P).
National Food Security Mission, Ministry of
Agriculture, New Delhi.
Gopalappa, D.V. (1996) Crop diversification and income
levels in Karimnagar district of Andhra Pradesh. Indian
Journal of Agricultural Economics, 51(3): 381-388.
Joshi, P.K., Gulati, A., Birthal, P.S. and Tewari, L. (2004)
Agriculture diversification in South Asia: Patterns,
determinants and policy implications. Economic and
Political Weekly, 39(18): 2457-2467.
Kalankar, S.S. (2003) Agricultural development and sources
of output growth in Maharashtra State. Artha Vijnana,
45(3/4): 297-324.
Kiru, Sichoongwe, Lawrence, Mapemba, Gelson Tembo and
Davies, Ngongola (2014) The determinants and extent
of crop diversification among smallholder farmers: A
case study of southern province Zambia. Journal of
Agricultural Science, 6(11): 150-159.
Rimal, N.S., Kumar, Shiv, Singh, D.R., Chahal, V.P. and
Shaloo (2015) Sources of growth in pulses production
in India. Agricultural Economics Research Review,
28(1): 91-102.
Venkatesh, M. (2013) Rice & pulse production register big
growth in Karnataka. The New Indian Express, 8
January.
Received: January, 2015; Accepted: February, 2016
Research Note
Abstract
The paper has assessed the impact of integration of water chestnut cultivation with cat fish culture on
livelihood of farmers in the seasonal waterlogged areas of Balasore district in Odisha. It has revealed an
increase in production of water chestnut by 1.99 t/ha with an additional harvest of catfish to the extent of
0.78 tonnes, resulting in more than 50 per cent increase in the income of farmers. The study has observed
that before adoption of technology, four out of five types of assets measuring the changes in livelihood of
farm families were below the average level (barring social assets), which increased considerably after
adoption of technology with highest gain in financial assets (41%), followed by physical assets (35%),
social assets (31%) and human assets (29%). About 86 per cent farmers could be brought to above
average level of living with the change in farming situation on adoption of water chestnut cultivation
integrated with cat fish farming in Odisha. The developed package of practices for integrated farming of
water chestnut and catfish has been adopted by the CARE India under their dissemination programme
in tribal districts of Odisha.
Key words: Water chestnut, cat fish, integrated farming, adoption, waterlogged area, Odisha
JEL Classification: Q12, Q16, Q22
Introduction
Water chestnut (Trapa bispinosa Roxb.) (singhara
or pani phal) is one of the few neglected but
economically important aquatic crops grown in
different parts of India. It is a natural crop in the areas
where water stagnation above the ground persists for
more than six months in a year. The 8 million ha
shallow low land ecosystem in the low-lying areas of
the country, of which 5.8 Mha is in eastern India,
provides ideal environment for the cultivation of this
crop, mainly during kharif season (Roy Chowdhury et
al., 2006).
* Author for correspondence
Email: souvik.ghosh@visva-bharati.ac.in
160
Vol. 29 (No.1)
January-June 2016
Ghosh et al. : Impact of Integrated Farming of Water Chestnut and Cat Fish on Livelihood of Farmers
161
Table 1. Impact of integration of water chestnut and cat fish (Magur) on farming practices in seasonal waterlogged
areas of Odisha (Farm size = 3.301.39 acre, N=35)
Farming
practice
Area
(acre)
MeanSD
Production
(t)
MeanSD
Paddy
1.650.87
(52.72%)
1.530.95
(62.09%)
1.150.69
(60.00%)
1.120.63
(56.25%)
5.232.31
(44.17%)
0.220.15
(68.18%)
Water
chestnut
Fish
Cost of
cultivation
(`/acre)
MeanSD
Gross income
(`/acre)
MeanSD
Area
(acre)
MeanSD
Production
(t)
MeanSD
41652409
81184551
(57.84%)
(56.06%)
197949473 5073524451
(47.86%)
(48.19%)
23241626
62354308
(69.97%)
(69.09%)
1.630.86
(52.76%)
1.660.93
(56.02%)
1.590.93
(58.49%)
1.490.70
(46.98%)
6.452.70
(41.86%)
0.580.27
(46.55%)
Cost of
cultivation
(`/acre)
MeanSD
Gross income
(`/acre)
MeanSD
68914106 140576460
(59.58%)
(45.96%)
2400011277 6814325079
(46.99%)
(36.80%)
49142331 217579983
(47.44%)
(45.88%)
Notes: SD stands for standard deviation. The figures within the parentheses indicate coefficient of variance.
162
Vol. 29 (No.1)
January-June 2016
Ghosh et al. : Impact of Integrated Farming of Water Chestnut and Cat Fish on Livelihood of Farmers
163
Figure 1. Change in average level of different types of assets measuring livelihood of farmers after adoption of
water chestnut and cat fish (Magur) integrated farming in seasonal waterlogged areas of Odisha
164
Vol. 29 (No.1)
January-June 2016
Figure 2. Overall standard of living of farmers before and after adoption of water chestnut and cat fish (Magur)
integrated farming in seasonal waterlogged areas of Odisha
Concluding Remarks
There is market demand for both cat fish (Magur)
and water chestnut; therefore, growing water chestnut
in combination with Magur could provide good income
to the farmers of seasonal waterlogged areas in the
Balasore district of Odisha. Moreover, options of postharvest processing of nut to flour could potentially
avoid distress sale of excess harvest as well as provided
better market price. Growing fishes in isolated water
bodies has always been vulnerable to theft/poaching
and farmers are hesitant to invest in fisheries away from
their homestead. The integration of water chestnut with
it could offer a surface cover protection besides adding
income. This shallow waterlogged areas of eastern
India, where surface drainage is not possible, and water
stagnates with depth of more than 0.50 m for a period
of about six months, this technology is farmer-friendly
and a cost-effective option.
In this study, the impact assessment of technology
on farming situation and livelihood of farmers has been
carried out covering a sample of 35 farmers adopting
integration of water chestnut (WCN) cultivation and
cat fish culture. The smothering effect given by water
chestnut crop over water body could deter the pilferage
References
Alam, M.S., Singh, D.S. and Sehgal, V.K. (2001)
Optimization of screening in a water chestnut
decorticator. Journal of Agricultural Engineering, 38:
29-34.
Ashley, C., Start, D., Slater, R. and Deshingkar, P. (2003)
Understanding Livelihoods in Rural India: Diversity,
Change and Exclusion. Policy Guidance Sheets
produced by the Overseas Development Institute for
the Livelihood Options Study, funded by the
UK Department for International Development (DFID).
Ghosh et al. : Impact of Integrated Farming of Water Chestnut and Cat Fish on Livelihood of Farmers
Chambers, R. and Conway, G.R. (1992) Sustainable Rural
Livelihoods: Practical Concepts for the 21st Century.
IDS Discussion Paper 296, Institute of Development
Studies, Brighton, UK.
DFID (Department for International Development) (1999)
Sustainable Livelihoods Guidance Sheets. Eldis
Document Store (http://www.eldis.org).
Ghosh, Souvik, Kumar, Ashwani, James, B.K., Roy
Chowdhury, S., Brahmanand, P.S., Mohanty, R.K. and
Kar, G. (2011) Impact assessment of the technologies
on the farming and livelihood of farmers. Research
Bulletin No. 52, Directorate of Water Management
(Indian Council of Agricultural Research),
Bhubaneswar, Odisha. 56p
Kunda, M., Azim, M.E., Wahab, M.A., Dewan, S., Roos,
N. and Thilsted, S.H. (2008) Potential of mixed
culture of freshwater prawn and self-recruiting small
species mola in rotational rice-fish/prawn culture
systems in Bangladesh. Aquaculture Research, 39: 506517.
Roy Chowdhury, S., Kumar, Ashwani, Sahoo, N., Kundu,
D.K., Anand, P.S.B. and Reddy, G.P. (2006) Growth
environment and production physiology of water
chestnut under shallow waterlogged condition and
swamp taro in marshy land. Research Bulletin No. 37,
Water Technology Centre for Eastern Region (Indian
Council of Agricultural Research), Bhubaneswar,
Odisha. 25p.
165
Book Review
Genetically Modified Crops and Agricultural
Development by Matin Qaim, Palgrave Macmillan US,
Year: 2015, e-Book ISBN: 978-1-137-40572-2,
Hardcover ISBN: 978-1-137-40571-5, DOI: 10.1057/
9781137405722, Number of Pages: 206.
Matin Qaims book titled Genetically Modified
Crops and Agricultural Development is a very central
and significant volume that brings forward Qaims
advanced study on the impacts of genetically modified
crops (GMCs). He unmistakably exposes the
hollowness of the numerous arguments against genetic
modification and gives compelling proof that GMCs
are, in fact, contributing majorly in convalescing human
lives. It can be said without a doubt that this book
represents one of the first balanced and evidence-based
accounts of GMCs.
The book begins by offering a general introduction
of the main issues and general beliefs that are associated
with GMCs and then moves into focusing on plant
breeding related to agricultural development. Qaim
notes that there are three overarching goals of
agricultural development; namely: sufficient food,
improvement of the livelihoods of those associated with
the agricultural sector and lastly, sustainability. He
addresses the progression of plant breeding and brings
to light the similarities in the main beliefs that are
fundamental to both conventional as well as GM plant
breeding. The book reveals that crop traits targeted
through genetic engineering are not completely
different from those pursued by conventional breeding.
Qaim argues that the two approaches involve
significant genetic modification of crops and gives
examples as to how crops have historically evolved
through human interventions and he strongly
emphasizes that GMCs stand for another step forward
in this ever-changing process. He states that although
conventional breeding has indeed made considerable
advances over the past forty to fifty years and has been
a driving factor of the green revolution enabling yield
168
Vol. 29 (No.1)
January-June 2016
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January-June 2016
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