Browsing by Author "Prema, A"

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Access to credit and indebtedness among women self help group members in Ernakulam district
(Department of Agricultural Economics, College of Agriculture , Vellanikkara, 2024-02-26) Nayana Krishna, M S.; Prema, A
Women-led self-help groups (SHGs) are increasingly being viewed as platforms for delivering development activities. The emergence of SHGs has given the rural women a platform to save, borrow and invest. SHGs are regarded as the right agency to minimize the problem of inadequate access to banking services to the poor and to mobilize considerable quantum of credit from formal financial institutions (Gaonkar, 2008). Access to credit, particularly to women, allows them to expand their business operations, leading to increased production, income generation and job creation. At the same time access to credit and the incidence of indebtedness among rural households remain a matter of intense policy debate. A scientific and empirical understanding of changing rural credit markets and their implications on women SHG members is considered critical to harness the potential of rural credit delivery mechanisms. The present study was carried out with the objectives of analyzing the structure and institutional flow of credit to SHG members; assessing the credit utilization pattern and indebtedness of women SHG members engaged in agri enterprises, examining the repayment status of loans and the challenges faced by the SHG members and the interventions of local institutions, if any, in addressing the indebtedness of SHG members. The study used both primary and secondary data on credit flow to SHG. The primary data was collected from 120 sample respondents from three block panchayats in Ernakulam district having maximum number of SHGs. In addition, 20 other stakeholders including bank officials, Kudumbashree officers etc. were contacted for gathering relevant information. The data were collected through personal interview method using a structured interview schedule. SHG members depended on both institutional and non- institutional sources of credit. The total institutional credit availed by women SHG members in Ernakulam district was ₹2.08 crore and the total amount of non- institutional credit availed was ₹7.45 lakh. The average amount of credit availed per head through institutional and non- institutional sources were amounted to ₹1.73 lakh and ₹0.26 lakh, respectively. Among institutional credit sources commercial bank constitutes to 52 per cent of the total credit availed followed by Kudumbashree and private financial institutions such as NBFCs, small finance banks etc. Majority of the women SHG members were found to have multiple borrowings from various credit sources and 67 per cent of the credit availed was used for consumption purposes, 22 per cent was used for production activities and only 11 per cent of the availed credit was used for investment purposes. The total credit outstanding among the women SHG members was ₹1.29 crore and the average outstanding credit per head was ₹1.07 lakh. The source wise proportion of outstanding amount was highest for PACS followed by RRBs. Indebtedness among the SHG members was analyzed both in objective and subjective analysis. 32 per cent of the respondents were struggling persistently to repay the loan. The debt to income ratio was estimated to measure the indebtedness and found that 53 per cent were over indebted. Binary logistic regression done to measure the effect of different indicators on debt burden indicated that debt to income ratio (DTI), multiple borrowing and default in repayment were having positive and significant effect on indebtedness. However, the effect of annual income on indebtedness was found negative, but significant. Repayment priority towards different credit sources from borrowers’ perspective was ranked and found that the highest priority was given to repay the loans taken from non- institutional sources and private financial institutions compared to formal institutions. The repayment was found proper and regular with non -institutional credit sources, private financial institutions and Kudumbashree. Incidence of default was found more in case of credit taken from commercial banks, cooperative banks and RRBs. Approximately one sixth of the total credit taken were observed as being renewed annually. Interventions of local institutions such as PACS to address the indebtedness of women SHG members were studied in the sample villages. The Palliyakkal Service Cooperative Bank in Paravur is providing credit to women by forming JLG groups to pay off their debt from money lenders and other private financial institutions. ‘Muttathe mulla’ is also an initiative of the Government of Kerala to address the indebtedness of women SHG members. The major challenges faced by the respondents in availing credit through formal institutions were delay in credit disbursement and collateral requirement. Formulating alternate formal channels to provide emergency credit, creating a comprehensive credit information repository at panchayat level and awareness campaigns trainings on financial management and servicing are suggested as policy recommendations.
Analysis of supply chain management of horticultural nurseries
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2016) Rajasree, P; Prema, A
Success of any horticultural production programme mainly depends on the quality of seeds and planting materials used for the production. Unavailability of adequate quantity of quality seeds and planting materials is one of the most important problems affecting the development of the horticulture sector. Even though plant nursery industry is considered as a sunrise industry in our country, only less attention is given in monitoring its activities, quality control and also in evaluating its role in the economy. The present study attempted to understand the supply chain management, income and employment potential and constraints of horticultural nursery business in the study area.
Assessment of agricultural loss due to 2018 flood to farm households in the flood pains of Chalakudy river
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2020) Femi Elizabeth George; Prema, A
Disaster-induced economic damage has been increasing in the past few decades and is likely to continue growing because of urban development, population growth and ecosystem alteration. The state Kerala, with its location along the sea coast with a steep gradient along the slopes of the Western Ghats is highly vulnerable to natural disasters. Floods are the most common natural hazard in the State. Kerala encountered the most exceedingly awful floods in its history since 1924, between June 1st and August 19th of 2018. The state‟s economy and a large number of agriculture dependent rural households, most of which are involved in subsistence agriculture, are found to have borne the brunt of the unprecedented deluge and its aftermath. It is in this context that the present study entitled „Assessment of agricultural loss due to 2018 Flood to farm households in the flood plains of Chalakudy river‟ was undertaken. Damage and Loss Assessment (DaLA) methodology given by the Food and Agriculture Organization (FAO) in 2012 was used for the damage and loss assessment with appropriate modifications. The term damage in the study means destruction (total or partial) of physical assets, while the term loss indicates the change in economic flows arising from the disaster. The study was conducted selecting 10 panchayats across three blocks, viz. Chalakudy and Mala blocks in Thrissur district and Parakkadavu block in Ernakulam district. Both primary as well as the secondary data were used for the study, however, the study was based mostly on primary data. The assessment of disaster effects on the farm households along the flood plains of the river with respect to damage and loss suffered to crops, assets and livestock showed that on an average a farm household in the flood plain has suffered a damage of ₹12,837 to agricultural assets, while the damage suffered was ₹75,538 for seasonal crops and ₹9,391 for perennial crops. With respect to livestock and poultry, on an average a farm household has suffered a damage of ₹12,216. Crop loss to the individual farm households as the crops were either damaged/lost or the production declined was also estimated. The results revealed that on an average a farm household xxx in the flood plain has suffered a loss of ₹1,59,469 from seasonal crops and ₹1,52,358 from totally destroyed perennial crops and ₹32,854 from partially destroyed perennial crops. The result suggested that it is the loss from seasonal crops which was accounted as investment loss contributed the most to the total loss suffered by a farm household. The assessment of disaster effects in the flood plains of the river with respect to damage and loss suffered to crops, assets and livestock showed that the flood plain has suffered a damage of ₹7.32 crores to agricultural assets, while the damage suffered was ₹43.10 crores for seasonal crops and ₹5.36 crores for perennial crops. The flood plain has lost about ₹6.97 crores due to the death of livestock and poultry. An estimation of the agricultural loss was also carried out in the flood plains as almost all the households reported losses from seasonal crops and perennial crops. The study showed that the flood plain has suffered a loss of ₹90.85 crores from seasonal crops and ₹86.72 crores from totally destroyed perennial crops and ₹18.55 crores from partially destroyed perennial crops. The study concluded that the flood plain has lost about ₹258.87 crores to the 2018 Kerala floods. An attempt was made to analyse the resilience level of the affected farmers. In the study wherein resilience was taken as the ability of the farmer to continue next season cropping, it was found that the sample respondents on an average showed a resilience of 0.48 in a scale of zero to one. Risk orientation, level of indebtedness, insurance, relief fund, savings, other losses and damage level were found to be the important perceived factors that help in building resilience with importance of these factors in the order mentioned above. The results of logistic regression to understand the influence of socio-economic variables on resilience suggested that while education and subsidiary occupation positively influenced the resilience, family size and crop diversification index was found to have a negative influence. Major hardships faced by the respondents were identified as flooded house, crop loss, disruption in power supply, inadequate transportation facilities, field inundation, disrupted communication services, loss of labour days and non-availability of drinking water. Keeping in view the inconsistencies with regard to the xxxi xxxi estimated flood impact to agriculture and the corresponding reported values by the Government offices, adopting standardized methodological approach based on internationally approved frame work for assessing the impact of disasters on agriculture was suggested as the major policy intervention. Understanding the importance of having a subsidiary income in building the farmer resilience, encouraging farmers to take up different crop related and other enterprises was the other major policy intervention suggested.
Changing scenario of the cut flower industry in central Kerala - an economic analysis
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2011) Lisma Steephan; Prema, A
Floriculture is fast emerging as a lucrative profession in the world scenario and is a potential money spinner for many countries. In terms of production, floriculture in the world is growing at an average rate of 10 per cent per year. Floriculture is a multi-crore industry in India which contributes 0.6 per cent to global floriculture trade. In 2009-10 the total area under floriculture was estimated to be 1,83,000 hectare with an estimated production of 1021 metric tonnes of loose flowers and about 6667 million numbers of cut flowers. Cut flowers like orchid and anthurium are identified as the most important flowers with commercial potential suitable for Kerala. The present study was done to investigate the economics of cut flower enterprises, marketing channel and marketing efficiency of cut flower trade and to identify the constraints of cut flower industry in Central Kerala. Orchid and anthurium were the major cut flowers included in the study. The study was conducted with a sample of 120 cut flower growers. Percentage analysis, ABC cost concept, Capital productivity analysis and Shepherd’s formula were used to analyze the data. Orchid and anthurium growing units have been studied across three scales of operation, viz., small (less than 500 plants: C-I), medium (500 to 1000 plants: C-II) and large (above 1000 plants: C-III) for a standard of 100 plants in each categories. Anthurium Per unit cost of cultivation of anthurium showed increasing pattern towards smaller groups. According to ABC cost concept cost of cultivation for five years for C-1, C-11 and C-111was estimated to be Rs. 15,164, Rs.11,486 and Rs.9,963 respectively. The establishment cost was found out to be Rs.13,116 (C-1), Rs.12,008 (C-11) and Rs.11,330 (C-111). Recurring cost ranged from Rs.2,500 in C-111 to Rs.6,315 in C-111. The total return realized over crop life varied from Rs.32,790 to Rs.41,152 in different scales of operation. The estimated project worth parameters were well above acceptance level in C-11 and C-111. Orchid According to ABC cost concept cost of cultivation for five years for C-1, C- 11 and C-111 was estimated to be Rs. 15,932, Rs.13,017 and Rs.11,199 respectively. The establishment cost was found out to be Rs.13,397 (C-1), Rs.12,607 (C-11) and Rs.13,092 (C-111). Recurring cost was Rs.2,450 in C-111, Rs.3,835 in C-11 and Rs.6,025 in C-1. Per unit cost of cultivation was found to be decreasing as the scale of operation increases. The total return realized over the economic life of the crop was found to Rs.27,640 in C-1, Rs.30,461 in C-11 and Rs.35,474 in C-111.Higher returns were realized from larger units. The estimated project worth parameters were well above acceptance level in all the categories. Capital productivity analysis of orchid and anthurium showed that larger units were seen comparatively more efficient and profitable than smaller ones. In anthurium cultivation only family labour was utilized for all operations in three scales of operation. But in case of orchid, hired labour was employed for potting and planting in C-111. Marketing channels and efficiency Six marketing channels were identified for anthurium. The direct channel i.e. Producer Consumer was found to be more efficient. Out of the three marketing channels identified for orchid, Producer Local florists’ Consumer was identified as the most efficient channel. Constraints in cut flower trade The most serious problem faced by orchid and anthurium growers, especially smaller sized units, was low market price for their products. Irregular markets followed by delay in getting sale proceeds were identified as the other major constraints faced by the growers. Short supply of flowers, lack of government support, lack of storage facilities etc. were the major problems faced by cut flower traders. Effective production planning and marketing management were identified as the key factors for the development of the sector.
Distribution of farm and non-farm income among rural households
(Kerala Agricultural University, 1998) Prema, A; Thomas, E K
Dynamics and competitiveness of agricultural trade polices on coconut economy of Kerala
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2019) Thasnimol, F; Prema, A
Economic analysis of production and marketing of raw cashewnut in kerala
(Department of Agricultural Economics, College of Agriculture ,Vellanikkaraa, 2024-03-14) Chenna srilakshmi; Prema, A
Cashew (Anacardium occidentale L.), a perennial tree native to Eastern Brazil is globally recognized for its commercial significance. India, holding the position of the world's second largest raw cashew producer, accounts for 22.32 per cent of global raw cashew production. Maharashtra leads cashew production in India, followed by other states. India the second largest exporter of cashew nuts, representing over 65 per cent of global cashew kernel exports. Kerala, a major cashew producer in India, has an area and production of 1.06 lakh hectares and 0.71 lakh tonnes, respectively. Despite having the highest processing capacity in India, Kerala faces challenges due to insufficient domestic production, leading to dependency on imported raw cashew nuts. It highlights the significance of area expansion under cashew cultivation in Kerala and there is a need to assess economic aspects along with constraints. In this context, the study entitled ‘Economic analysis of production and marketing of raw cashew nut in Kerala’ was undertaken with the objectives: Analysing the trends in area, production and productivity of raw cashew nut, estimating the economics of raw cashew nut production and marketing, analysing the price behaviour of raw cashew nut, delineation of major challenges faced by cashew farmers. The micro level study was conducted in Kannur and Kollam districts. Kannur has the highest area under cashew cultivation in Kerala. Kollam has been showing a declining trend over the years, and revival of cashew cultivation has been reported recently. From each district, two blocks with maximum area under cashew i.e., Iritty and Irikkur from Kannur district; Anchal and Kottarakkara from Kollam were purposively selected. From each selected blocks, three panchayats were randomly selected. Fifteen farmers from each panchayath in Kannur (90) and five farmers from each panchayath in Kollam (30) were randomly selected, making a total of 120 farmers. Further data was collected from 20 market intermediaries and 10 officials from line departments making a total sample size of 150. India showed positive trend in area and production of raw cashew nuts, while Kerala exhibited negative trend in these aspects, and has exhibited positive trend in productivity. The establishment costs of raw cashew were estimated as ₹1,36,031 and ₹1,16,697 per hectare for Kannur and Kollam, respectively. The average maintenance cost was estimated as ₹42,960 in Kannur and the maintenance cost for yield increasing phase was ₹26292 per hectare in Kollam. The estimation of total cost of cultivation was confined to Kannur district and was worked out as ₹57,816 per hectare per year and the cost of production as ₹65/kg. The efficiency of raw cashew cultivation was analysed using the Cobb-Douglas production function. The quantity of organic manures and human labour were found to be significant at five and ten per cent level of significance respectively. In Kannur, four marketing channels were identified: channel I: Producer-village trader-wholesaler-processing units, channel II: Producer-itinerant traders-wholesaler processing units, channel III: Producer- wholesaler- processing units, channel IV: Producer-Fair Trade Alliance Kerala agent (FTAK) – FTAK. whereas only two channels in Kollam as channel I: Producer- village traders-processing units and channel II: Producer-processing units. The highest marketing efficiency was observed in channels IV and III in Kannur, while in Kollam, it was highest in channel II followed by channel I. Channel IV and III in Kannur had the highest producer's share in consumer's rupee, with 94 per cent and 92 per cent, respectively. While in Kollam, channel II had the highest producer's share of 98 per cent. The price behaviour analysis indicated that there is an increasing price trend over the years from 2006 to 2023 and seasonality existed with highest prices in January, February months and it was observed decreased prices in May and June months due to onset of monsoon resulting in raw nut quality deterioration and fechting lower price. Cyclical variations with two cycles and irregular variations found to be less predominant. The constraints affecting cashew production in Kannur included the presence of tea mosquito bug and cashew stem and root borer, unfavourable weather, high labour costs, and untimely supply of raw materials by the government. Additionally, scattered land holdings and a lack of technical knowledge were also observed in Kollam. Marketing constraints include low price, Price fluctuations, non- receipt of the announced price by the Kerala State Cashew Development Corporation were common marketing constraints for both districts, along with exploitation by middlemen and lack of drying and processing units were the constraints in Kannur district. Farmers should adhere to recommended agricultural practices and participate in training programs which would enhance the technical knowledge. Promoting farmer producer organizations can bring economics of scale, while the establishment of processing units in Kannur can enable farmers to process and involve in direct export. To generate additional income, there is a need to commercialize cashew apple value addition and waste utilization, such as producing industrial ethanol, cashew fenny, and cashew honey etc. Market innovation is essential for ensuring grading and maintaining the reputation of 'Kerala cashew' for its superior quality and taste.
Economic evaluation of integrated pest management in rice in Palakkad district
(Department of Agricultural Economics, College of Agriculture, Vellanikkara, 2023-05-25) Vaishnav, S; Prema, A
Paddy (Oryza sativa L.), is one of the most important cereal crops in the world and the primary food source for more than 60 per cent of the world's population. A host of pests and diseases constrains the production and productivity of paddy. Pesticides and fungicides are widely used to control such pests and diseases. However, the indiscriminate and unscientific use of chemical pesticides in agriculture has several detrimental effects. To overcome these constraints and thereby realize crops' yield potential, integrated pest management (IPM) strategy can be adopted. IPM means the careful consideration of all available pest control techniques and subsequent integration of appropriate measures that discourage the development of pest population; keep pesticide and other interventions to economically justified levels; and reduce or minimize risks to human health and the environment (FAO, 2020). The studies regarding the economics of IPM in comparison to conventional practices are scanty in India, especially in Kerala. In this context, the study was carried out with the specific objectives viz. to assess the economics of IPM in rice, to study the extent of adoption of IPM in rice by farmers and to determine society's willingness to pay to reduce the risk associated with pesticide use. The study was based on primary data collected from the respondents of Alathur, Kuzhalmannam and Malampuzha blocks of the Palakkad district. Alathur block was purposively selected as the area where IPM has been practised since 2018 as part of the AICRP-BCCP project of KAU in rice. For assessing the economics of rice cultivation of IPM adopters as well as the extent of adoption of IPM, 30 farmers were randomly selected from the Alathur block. The economics of rice cultivation under the conventional method of pest management was studied by surveying 30 farmers chosen randomly from both Kuzhalmannam and Malampuzha blocks. The society's willingness to pay towards the reduction in risk associated with pesticide use ii was elucidated by randomly interviewing 120 general public from Palakkad district. Thus, the total sample size for the study came to be 180. IPM farms were assessed to have a total cost of cultivation of Rs. 132596 per ha, which was 2.68 per cent less than the non-IPM group's estimated cost of Rs. 136240. The paddy yield showed that IPM farmers harvested more (60.03 quintals/ha) than their non-IPM counterparts (59.16 quintals/ha), resulting in an extra return of Rs 4963 and a net profit of Rs. 8608 per ha. IPM farmers' gross income was 2.88 per cent more (Rs. 177153) than non-IPM farmers (Rs. 172190). The cost of production per kg was found to be Rs. 23 in the non-IPM and Rs. 22 in the IPM. Additionally, it showed that for every rupee invested in paddy output, IPM and non-IPM farmers received benefits of Rs. 1.34 and Rs. 1.27, respectively. It was found that, on average, 80 per cent of all farmers adopted cultural methods, followed by mechanical and biological control methods, which accounted for 45.84 per cent and 45 per cent of all farmers, respectively. A positive thing was observed that the farmers resorted to chemical methods only after consultation with the respective Agricultural Officers in the Krishi Bhavans. Weights were assigned to each practice among the different IPM components as per their contribution to pest management, and a final adoption score was obtained for each sample farmer, and they were classified into low, medium and high adopters accordingly. It was seen that most of the sample farmers (63.33%) were medium adopters of IPM practices. The results from multiple regression analysis found formal training of farmers on IPM practices, their experience in IPM farming and income were positive and significant impacts on the adoption of IPM practices by the paddy farmers. A year wise comparison of different pest and predator population between the IPM and non-IPM plots in Alathur block was made. It was observed that in every year from 2018 to 2022, the amount of pest population and damage caused by pests in IPM plots was comparatively much lesser than that in non-IPM plots. It was also observed that the population of parasitoids and other predators like spiders, Ophionea sp. were higher in IPM plots. Within the IPM plots, a trend of increasing number of predator population was also observed over the years. This shows the cumulative or long term iii effect of implementing IPM technology in the fields. It was clear that implementing IPM practices in the field lead to an eventual decrease in the pest population and an increase in the predator population. The consumers were generally willing to spend an extra amount of Rs. 6.92 per kg for the finished product. Logistic regression analysis used to determine the contribution of independent variables to the consumers' willingness to pay showed that the consumer's age, annual income, perceived benefits from IPM and monthly rice consumption had a positive, significant impact on WTP. The monthly expenditure of the consumer had a significant negative relation with WTP. Although having a positive relation, education of consumers showed no significant impact on WTP. The major constraints faced by farmers adopting and not adopting IPM were identified. The constraints of IPM farmers were high labour cost, climate changes, less knowledge about ETL, less persistence in the field, complex nature of IPM and low initial production.The constraints faced by non-IPM farmers included a lack of belief in IPM, lack of technical guidance, lack of cooperation, non-availability of inputs in local markets, complex nature of IPM and climate changes. Paddy cultivation was found to be more profitable with the adoption of IPM technology. Also, most of the respondents expressed concerns about the harmful effects of the excessive use of chemicals. This highlights the much-needed emphasis on popularising IPM practices. There is a need to ensure the timely availability of inputs and capacity-building programmes for producing bio-agents and bio-pesticides among farmer collectives. The government should also provide financial support so that more and more farmers adopt the technology.
Economic feasibility of vegetable production under polyhouse cultivation
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2016) Swathylakshmi, P V; Prema, A
Economic feasibility of vegetable production under polyhouse cultivation
(Department of Agricultural Economics, College of Horticulture, 2016) Swathylakshmi, P V; Prema, A
Ecosystem valuation and payment for ecosystem services services (PES) of kole wetlands in Kerala
(Department of Agricultural Economics, College of Agriculture, Vellanikkara, 2025-06-21) Neetha Rose, C D.; Prema, A
The basic requirements for developing effective conservation and sustainable management strategies are to recognise the benefits provided by wetlands, assign an economic value, and translate the estimated values into an actionable policy instrument. The present study was carried out at the kole wetlands, which were reported to be one of the most productive and threatened wetlands in the state, with the objectives to comprehensively value the wetland ecosystem and to estimate payment for ecosystem services (PES) value for designing a PES scheme that focuses on its sustainable management and conservation. The PES is a novel policy instrument used across the world to protect and restore the wetland ecosystems by means of rewarding stakeholder conservation efforts. The kole wetlands are a unique sub-sea level rice production area providing multiple services with high ecological significance, making it an internationally renowned Ramsar site. The study was based on both primary and secondary data. The primary data was collected during the year 2024-25, from randomly selected 585 respondents belonging to the stakeholder groups identified as paddy farmers, inland fishermen, local residents, kole tourists, general public, and other minor stakeholder groups, using a structured pretested group-specific schedule through the personal interview method. Apart from this, data on contribution rating was also collected from 40 expert personnel using a separate questionnaire, which was administered online, making the total sample size of the study as 625. The ecosystem services (ES) and disservices (EDS) generated by kole wetlands were identified by formal and informal discussions with stakeholder groups and officials, together with direct observations during the survey, and the relative preference among stakeholders was analysed using the Garrett ranking method. The study identified 21 ES belonging to all four major categories, such as 5 provisioning services, 4 cultural services, 12 regulating and supporting services and 10 EDS generated by kole wetlands. The water-related services, like floodwater regulation and groundwater recharge, were the most preferred ES among the respondents, followed by the provisioning services. Thus, the services that directly affect the stakeholder utility were found to be preferred the most. The direct market valuation method was used to estimate the value of provisioning services at ₹ 8,890 lakhs. The value of cultural services was ₹ 1,538 lakhs, as estimated using the individual travel cost method. The value of regulating and supporting services was obtained as ₹ 28,889 lakhs, estimated by using the replacement cost method, benefit transfer method, substitute cost method, and double-bound dichotomous choice contingent valuation method. The mean willingness to pay (WTP) for the conservation was highest among the kole tourist stakeholder group (₹ 211.67 per annum), pointing towards the significant opportunity of sustainable tourism development in the area. The value of disservices was estimated by using the benefit transfer method, benefit loss estimation, added cost method, and restoration cost method at ₹ 21,211 lakhs. The total economic value (TEV) of kole wetlands was estimated by deducting the total value of EDS from ES as ₹ 18,107 lakhs, equivalent to ₹ 1.32 lakhs per hectare. Notably, the value of regulating and supporting services together accounted for 74 per cent of the total ES value, reflecting the strong ecological relevance of the area. In the kole wetlands context, the value of provisioning and cultural services together provided the estimate of the marketed ES at ₹ 10,428 lakhs. The potential PES value of kole wetlands was estimated at ₹7,678 lakhs by deducting the value of marketed ES from the TEV. The per-hectare potential PES value was obtained as ₹ 56325, which forms the scientific base or upper limit of the eco-compensation amount that can be provided to the kole wetland resource managers. The PES scheme design describes the framework for providing financial incentives or payments to natural resource managers in exchange for the supply of non marketed ES. A management-based PES design that is able to acknowledge the multifunctional role of the kole wetlands agroecosystem by taking into account the diverse wetland management practices referring to the agricultural practices in the current context, and its ability to contribute towards ES generation, was proposed by the study. The identified wetland management practices were grouped into 14 categories, and the indicative contribution towards the 7 selected non-marketed ES was quantified, based on 40 expert personnel ratings obtained through the Delphi method. The minimum PES payment allocation rate was determined as 9 per cent of the proposed PES amount, which can be regarded as the basic payment rate of the scheme. The payment allocation rates for all existing and practically feasible wetland management practices category combinations were worked out for equipping the scheme to secure as well as enhance the quality and quantity of ES delivery. Thus, the suggested PES scheme design ensures a fair compensation to the resource managers for the actual environmental benefits they generate, with the added potential to correct the negative effects, augmenting both the quality and quantity of ES supply. The proposed PES scheme helps to ensure that the kole wetlands farmers are fairly compensated for the actual environmental benefits they generate. The scheme also envisions to efficiently utilize the allocated resources for conservation in a holistic manner that enhances both the quality and quantity of wetland ecosystem service supply. Thus, this PES scheme for kole wetlands may be considered as a practically viable and effective policy instrument for conservation. Further, PES scheme payments fall under the green box category of the WTO classification of domestic support which are considered to have minimal trade-distorting effects and are permitted in unrestricted manner. Therefore, allocation of public fund for conservation under these types of schemes can be easily justified. The existing paddy royalty scheme in the state may be refined specifically for the kole wetlands by incorporating the proposed management based PES scheme design. This will enable equitable compensation distribution based on actual ecosystem service contributions and enhance the efficiency of resource distribution. Also, more research studies are required to develop a universally accepted framework for the identification and assessment of EDS, which may help to make the PES value estimation more efficient and realistic. The high WTP values of the Kole tourist group indicate the immense potential of tourism activities in revenue generation and developing an ecotourism project explicitly for kole wetlands, focusing on responsible tourism practices, local community involvement, and conservation education, may also provide a sustainable solution to the conservation challenges. Specifically, it is suggested to explore the feasibility of adding crop loss due to saltwater intrusion as an add-on cover to the existing agricultural insurance schemes. The present study was subjected to the usual limitations of sample surveys, including the assumptions and biases inherent in the methodologies used. Moreover, lack of standardised assessment methods and scientific data has forced the study to follow ad hoc assessment methods and area approximations in certain cases. In the future, the proposed PES scheme may be improved by considering the bio-physical assessment of contributions by various management practices, together with the incorporation of opportunity costs and trade-offs, which may be achieved through formulating a multi-disciplinary research project for the area. Also, the proposed PES scheme design may be validated and refined in consultation with the stakeholder groups, funding agencies, and implementing agencies, to make it ready for practical implementation. Further, the ecosystem valuation supported by actual bio-physical assessment of services and disservices, based on universally accepted ES and EDS valuation frameworks, may be carried out for accurate information generation, so as to develop efficient conservation policy instruments and resource allocation decisions. Overall, the study featured the ecological significance of kole wetlands, restating the need for a holistic approach to enhance the effectiveness of conservation efforts. The proposed management-based PES scheme that may enable policymakers as well as stakeholders to pinpoint the strategies for planning effective conservation policies and actions at kole wetlands, which would ultimately lead to the preservation and enhancement of ecosystem quality.
Enhancing farmer income through farmer collectives : a case study of Mayyil rice producers company (MRPC)
(Department of Agricultural Economics, College of Agriculture,Vellanikkara, 2025) Sandra, S.; Prema, A
The agricultural sector of India is predominantly composed of small and marginal farmers who continue to encounter persistent challenges related to low productivity, limited market access, and constrained income generation. In response to these structural impediments, Farmer Producer Companies (FPCs) have gained prominence as institutional mechanisms that promote collective action and enhance the resilience of smallholder farmers. This study examines the case of the Mayyil Rice Producers Company (MRPC) in Kerala, with the objective of evaluating its role in augmenting farmer incomes and improving the livelihoods. By engaging in collective procurement, processing, and marketing, MRPC endeavors to reduce production costs, strengthen market linkages, and enhance the overall profitability of its member farmers. The principal objective of this study was to assess the contribution of the Mayyil Rice Producers Company (MRPC) to the enhancement of farmer incomes through its collective farming model. Primary data were collected from a sample of 100 farmers in the Mayyil region of Kannur district, Kerala, comprising 80 shareholder-members and 20 non-shareholders. Data collection was undertaken through personal interviews using a pre-tested and structured interview schedule to ensure reliability and consistency. The analysis centred on evaluating the economic advantages associated with MRPC membership, including reductions in production costs, improvements in farm income, and enhanced market access. In addition, the study explored the nature and effectiveness of MRPC’s backward and forward linkages, the efficiency of resource utilization, and the key operational challenges encountered by both the company and its farmer members The socio-economic characteristics of the respondents revealed that 54 per cent of the farmers were aged above 60 years, with predominant male representation (82 per cent). Majority were marginal farmers, owning less than one hectare of land. Farming was primarily pursued as a secondary occupation, while government employment constituted the principal source of household income. Shareholder-members of the MRPC were observed to possess relatively higher levels of education and better access to agricultural inputs and institutional support services compared to non-shareholders. The analysis of costs and returns revealed marked differences in productivity and profitability between shareholder and non-shareholder farmers. Shareholder-members of the MRPC attained a higher grain yield of 6,886 kg/ha, as compared to 6,422 kg/ha among non-shareholders. This yield advantage translated into gross returns of Rs.2,07,749 per hectare for shareholders, significantly exceeding the Rs.1,77,466 per hectare realized by non-shareholders. While the total cost of cultivation was marginally higher for shareholders (Rs.1,55,328/ha) relative to non-shareholders (Rs.1,38,525/ha), the resultant net income Rs.52,421/ha was substantially greater for shareholders against Rs.40,559/ha for non-shareholders. The benefit-cost ratio (BCR) further highlighted the economic advantage of collective farming, with shareholders registering a BCR of 1.3 compared to 1.2 for non-shareholders. Additionally, shareholder farmers exhibited better resource use efficiency, attributed to more access to machinery, fertilizers, and labour, facilitated through targeted training and institutional support provided by MRPC. The analysis of constraints encountered by farmers highlighted acute labour shortages as the most pressing challenge, followed by delays in procurement processes, limited access to quality agricultural inputs, market price volatility, and inadequate technical knowledge. Shareholder-members of the MRPC were better positioned to manage these constraints due to institutional interventions such as collective marketing arrangements, subsidized input distribution, and targeted capacity-building initiatives. In contrast, non-shareholders experienced greater adversity, primarily owing to their limited access to organized support systems and modern agricultural practices. A financial performance review of MRPC over the period 2018–2023 revealed consistent growth in asset accumulation, with total assets increasing from Rs. 6.03 Lakhs in 2018-19 to Rs. 14.48 Lakhs in 2022-23. Improvements in liquidity ratios indicated enhanced financial management and operational efficiency. Nevertheless, declining trends in key profitability indicators, including net profit margins and return on investment, underscored the necessity for strategic cost containment and diversification of revenue streams. Despite these fluctuations, MRPC’s operations substantially contributed to improving the economic wellbeing of its shareholder members. In conclusion, the collective farming model implemented by MRPC has demonstrated considerable potential in enhancing the economic viability of smallholder paddy farmers. To consolidate these gains and address persistent challenges, the study recommends strengthening access to quality inputs, enhancing institutional credit and financial support, expanding technical training and business diversification. These measures are critical to sustain the profitability of MRPC and building resilience of the farmers.
Impact of green army labour bank on the welfare of agricultural labourers
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2015) Sachu Zachariah John; Prema, A
Impact of Mahatma Gandhi National rural employment guarantee scheme (MGNREGS) on agricultural Labour market
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2013) Seenath Peedikakandi; Prema, A
Income savings and capital formation in farm households of Kodakara development block
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 1996) Prema, A; Thomas, E K
Land use dynamics in kerala- a multidimensional analysis
(Department of Agricultural Economics, College of Agriculture,vellanikkara, 2023-03-09) Shilpa Mathew.; Prema, A
Land is a vital input among all the production resources. Land use change is a phenomenon highlighting significant changes in human interactions with the natural environment. Kerala has witnessed significant changes in its land utilization pattern in favour of non-agricultural sector and a structural transformation in agriculture from food crop to cash crop cultivation. Therefore an analysis of the dynamics of land use and cropping pattern changes over a while provides scope for planned and judicious management of land and its resources. This study was taken up with the specific objectives viz., to assess the temporal variations of land use classes in Kerala, analyse the cropping pattern changes in the agro-ecological zones of Kerala, examine the effect of transitions in land use pattern on cropping intensity and assess the ecological significance of land use dynamics in the state. The objectives were examined using both primary and secondary data. The secondary data were compiled from various issues of Economic Review, Agricultural Statistics and Statistics for Planning (GoK). The time series data for the period from 1985-86 to 2019-20 were used to analyse the objectives of this study. The GSVA agriculture at constant prices was subjected to Bai and Perron (1998) methodology to estimate multiple break points and six phases of growth were obtained. These periods were Period I (1985-89), Period II (1990-94), Period III (1995-2003), Period IV (2004-2009), Period V (2010-2014) and Period VI (2015-2019). The cropping pattern changes in the five agro-ecological zones of Kerala were analysed using primary data pertaining to the year 2020-21 and the samples were identified based on multistage sampling method. The data were obtained from 48 respondents each from Champakulam block (Coastal Plain), Perumpadappu block (Midland Laterites), Kothamangalam block (Foothills), Nedumkandam block (High Hills) and Chittur block (Palakkad Plain) constituting a total sample size of 240. The data were collected through personal interview method employing a structured and pretested interview schedule. The Compound Annual Growth Rate and Cuddy-Della Valle instability index were used to analyse the growth performance and instability of land use classes and various crops. In the overall period (1985-2019), the cultivable wasteland (0.04%), land put to non-agricultural uses (1.49%), current fallow (1.67%) and other fallow (2.79%) exhibited positive annual growth rates. The rest of the land use categories showed declining growth rates and it was noted to be highest for land under miscellaneous tree crops (-10.2%). Instability was observed to be high for permanent pastures and area under miscellaneous tree crops. The results of the growth performance of the crops in the area, production and productivity for the overall period revealed that paddy, pulses, tapioca, pepper, ginger and tea experienced declining annual growth rate in area, production and positive growth rate in productivity. Among all the crops, cashew experienced declining annual growth rate in area, production and productivity. Banana witnessed the largest annual increase in area (4.36%) followed by arecanut (1.87%), rubber (1.27%) and other plantain (1.04%). The non-food crops such as rubber, cocoa and coffee were found to have positive annual growth rate in the area, production and productivity. The structural variation among the land use classes and crops assessed using Markov chain analysis revealed that the net area sown was the most stable land use category in the first, second and third phases with retention probabilities of 83.2 per cent, 97.9 per cent and 85.5 per cent respectively. In the fourth and fifth phases, the land under miscellaneous tree crops and barren and uncultivable land had the highest retention probabilities of 94.1 per cent and 56.1 per cent. In the sixth phase, the land put to non-agricultural uses showed a 73.2 per cent probability of holding to its share, indicating that it was the most stable land use category. As regards crops, cashew, coconut, tapioca, rubber, banana and tea were observed to be the most stable crops in the first, second, third, fourth, fifth and sixth phases respectively. The crop diversification in various districts of Kerala were estimated using the Herfindahl Index (HI), Entropy Index (EI) and Simpson’s Diversity Index (SDI). Idukki registered lowest HI (0.13) and highest values of EI (1.06) and SDI (0.87) indicating that the cropping pattern was highly diversified in the district. Kozhikode registered the highest HI (0.36), lowest values of EI (0.73) and SDI (0.64) denoting relatively higher specialization of crops. Monocropping of paddy was the major cropping pattern observed in the Coastal Plain, Midland Laterites and Palakkad Plain agro-ecological zones. In Foothills agro-ecological zone, monocropping of rubber and intercropping of coconut + banana were prominent, whereas in High Hills, it was monocropping of cardamom, pepper, rubber and intercropping of cardamom + pepper. The constraints faced by the farmers analysed using the Garrett ranking technique revealed that the unavailability of labour, climate variability, increase in the labour wage rates, high cost of inputs, attack from animals and birds, fluctuation in market prices, lack of irrigation facilities, unavailability of inputs and inadequate marketing facilities were the major constraints faced by the respondents. The factors influencing cropping intensity and the effect of transitions in land use pattern on cropping intensity were analysed using multiple regression of linearlogarithmic form. The factors viz., gross irrigated area, weighted price of fertilisers, population density and area not available for cultivation favourably contributed to the increase in cropping intensity. The increase in the land put to non-agricultural uses, barren and uncultivable land, land under miscellaneous tree crops and net area sown positively impacted the cropping intensity of Kerala. Inter-sectoral budgeting analysis was used to assess the ecological significance of land use dynamics in Kerala. The results of the analysis unveiled that in the first phase, the land shifts occurred from the undesirable ecological sector to agricultural and non-agricultural sectors. The agricultural and non-agricultural sectors increased annually by 6053 ha and 1575 ha. In the second, third and fourth phases, the land shifts took place from both the ecological and agricultural sectors. A considerable decline in the net area sown contributed to the decline of the agricultural sector in the fourth phase. In the fifth and sixth phases, land shifts occurred from the ecological and agricultural sectors to the non-agricultural sector. The decline in area under the ecological sector was high in the initial phases, whereas the decline under the agricultural sector was prominent in the later phases. Spatial planning with remote sensing and GIS and validation with field survey may be prioritised for clear demarcation of arable and non-agricultural land in order to check the declining trend of arable land and increasing trend of non-agricultural area. The cropping pattern in favour of cash crops is an indicator of food insecurity. Therefore, more focus may be given in providing various incentives to the farmers cultivating food crops. The supply of inputs at subsidised rates, especially seeds and seedlings through krishibhavan and assured marketing facilities at every panchayat/ block level, should be prioritised.
Livelihood security through mixed farming among smallholder farmers in central kerala
(Department of Agricultural Economics, College of Agriculture,Vellanikkara, 2026) Febina, N; Prema, A
Indian agriculture is mainly dominated by small and marginal farmers with fragmented landholdings and functions as a symbiotic system, where crops and livestock complement each other economically. Mixed farming is an agricultural practice that combines crop cultivation with livestock rearing or other supplementary enterprises. Among the supplementary enterprises, dairy farming has evolved as an important source of income and acts as a buffer against crop failure. Mixed crop- livestock systems are considered a promising approach to achieving both environmental and economic sustainability in agriculture. In Kerala, where small farms dominate and coconut-based cropping is widespread, dairying has become a major livelihood support. In this scenario, the present study examined the economic performance of crops and livestock in mixed farming, optimisation of crop–cattle combination for income and risk reduction. In addition, a composite livelihood security index was developed by integrating various indicators that reflect the economic, food, social, and environmental dimensions of livelihood security. Thrissur and Palakkad districts of Central Kerala, with high population of crossbred cattle were purposively selected for the study. A total of 200 small holder farmers owning up to two hectares of land and one to three milch cows were selected. Coconut, arecanut, rice, homestead vegetables, and green fodder were identified as the major crops among the selected households. Coconut and arecanut dominated the cropping pattern, reflecting both cultural preference and profitability. The cost of cultivation analysis showed clear differences across enterprises: arecanut (B:C 2.07) and coconut (1.53) stood out as highly profitable crops, while rice (1.08) and vegetables (1.01) barely crossed the threshold of economic viability. Despite the high initial cost of green fodder cultivation, it performed fairly well with a B:C ratio of 1.98 due to strong demand from dairy households. Livestock, on the other hand, emerged as a major pillar of household income with an average net return of ₹38,900 per cow per year. The results of resource optimisation showed an increase in income with increase in the number of milch cows. Total income showed a improvement from ₹6.2 lakh under current conditions to ₹7.47 lakh under the optimal plan with three cows. However, this increase came with higher labour and non-labour costs, pointing to the fact that ii expansion is possible only if farmers can manage the additional workload and expenses. Since income alone does not reflect the uncertainties faced by farmers, a MOTAD risk analysis was carried out. It revealed that moving from two to three cows involved the least risk, whereas increasing from three to four cows significantly increased variability in income. This suggested that owning three cows is the most financially and risk-wise balanced option for smallholder households. A composite livelihood security index was developed to capture food and feed, economic, social, and ecological security so as to understand the livelihood security of farmers in daily lives. The overall score of 0.629 reflected a moderate level of security among the sample households. Economic security scored relatively high (0.717), supported by stable livestock income and decent infrastructure. Social security (0.689) also remained strong due to good access to education, markets, and institutions. Food security (0.639) was moderate, showing the role of diverse crop and livestock sources. However, ecological security scored the lowest (0.470), pointing to challenges such as soil degradation, water issues, and climate-related uncertainties. This signals that although mixed farming reduces economic vulnerability, environmental sustainability remains a concern. Important constraints identified were the high cost of cattle feed, labour shortages and high labour wages, low milk prices received from milk societies, frequent disease outbreaks, and crop losses due to pests, weather fluctuations, and wild animal attacks. Farmers also struggled with price volatility of crops, high veterinary expenses, and delays in receiving payments from Supplyco agents. Targeted interventions such as subsidised feed and fodder development programmes, promotion of labour-saving tools and machinery, better milk price policies, stronger veterinary services, climate-smart crop management, and more reliable market and payment systems will be required for addressing these challenges. In conclusion, this study reaffirms that mixed farming is not only economically beneficial but also crucial for stabilising livelihoods in Central Kerala.
Market access to quality paddy seed in Kerala
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2017) Fathimath Nufaisa, P; Prema, A
Marketing of planting matrrials for selected commercial crops in Kerala
(Department of Rural Marketing and Management, College of Co-operation, Banking and Management, Vellanikkara, 2002) Prema, A; Sukumaran, A
The study on "Marketing of planting materials for selected commercial crops 111 Kerala" was undertaken to analyze the various aspects of marketing of planting materials by the organizations engaged in the commercial production and distribution of planting materials of coconut, rubber, cashew and pepper. The source and variety preference of the farmers as well as the problems and constraints experienced by the producers and the farmer-consumers were also identified. The preference to source was measured in terms of quality, preferred variety, price, local availability and confirmed availability of planting material from the source. Based on the findings of the study appropriate models have been suggested for the marketing of planting materials. The study was conducted in the districts of Kozhikkode, Kottayam, Kannur and Idukki, which represented the four selected crops. The sample size was 300 farmers consisting of 75 farmers each of the selected crop. All the farms in the Government sector and 30 private nurseries in the study area were also subjected to in-depth study. Data were collected using interview schedules and suitable statistical techniques were employed in the analysis of the data. The study revealed that all the agencies in the Government sector, the Kerala Agricultural University, Agricultural Department Farms and the Rubber Board and 87 per cent of the private nurseries followed centralized production. None of the agencies undertook market survey before planning their production strategy. The Government sector agencies followed the Break-even method of pricing, whereas the private nurseries followed the production cost plus concept. The extension and field network of the Rubber Board was the most efficient one among the agencies studied generally disseminating the technology when compared to similar agencies in the field. The agencies did not make any systematic attempt to collect the feed back from the farmers. The farmers' preference for the sources varied with the crops. Most of the selected explanatory variables did not contribute substantially to farmers' preference to source, except the factor 'quality'. The awareness of farmers about the varieties and cultivars of crops was 'low to moderate' except for rubber. The visual indicators for selecting quality planting materials developed by the researchers had not percolated to the farmers yet. There is no existing quality control and certification mechanism to prevent unscrupulous elements in the field of planting material production and marketing. The analysis of the constraints experienced by the agencies revealed that labour related issues, difficulty in getting quality parent materials and lack of sufficient infrastructure facilities to undertake production were their major problems. The major problems felt by the farmers were 'lack of sufficient information', 'insufficiency of technical advice from the agencies' and' low quality of planting materials'. The results point out vividly to the prime need for a more systematic and effective marketing of planting materials with sufficient room for ensuring quality control and better coordination and supervision at all levels of production and distribution of planting materials by the scientists as well as extension personnel in order to improve the agricultural production, and ultimately the income of the farmer.
Organic Farming – Feeding the Rich or Enriching the Poor
(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2019) Femi, Elizabeth George; Prema, A