Browsing by Author "Thasnimol, F"

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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
An economic analysis of production and marketing of turmeric in Kerala and Andhra Pradesh
(Department of Agricultural Economics, College of Agriculture, Vellayani, 2022) Akkidasari Venkata Rao; Thasnimol, F
The present study entitled “An economic analysis of production and marketing of turmeric in Kerala and Andhra Pradesh” was carried out in Palakkad district of Kerala and Visakhapatnam district of Andhra Pradesh. The specific objectives of the study were to study economics, input use pattern and resource use efficiency of turmeric cultivation in Kerala and Andhra Pradesh, to estimate the marketing efficiency and to analyse the constraints in production and marketing of turmeric. Both primary and secondary data were used to examine the specific objectives of the study. Palakkad district and Visakhapatnam district were purposively selected as these districts were the major producer of turmeric in Kerala and Andhra Pradesh, respectively.Alathur and Kuzhalmannam blocks of Palakkad district and Chinthapalli and G Madugula blocks of Visakhapatnam districts were purposively selected based on high acreage and production of turmeric. From the selected block panchayath, one grama panchayath was selected based on high acreage and production of turmeric. Finally, 35 farmers were randomly selected from the selected panchayats in the Visakhapatnam district, and 15 farmers were randomly selected from the selected panchayats in the Palakkad district. Apart from these, 10 market intermediaries from Palakkad district and 20 from Visakhapatnam district were selected to elicit market-related information. The total operational cost of turmeric was Rs. 1,74,430 in Palakkad district and Rs. 1,14,022 in Visakhapatnam district. In total operational cost, 71.63 per cent was attributed to the labour cost in Palakkad district, whereas it was 42.19 per cent in Visakhapatnam district. The low share of labour cost was mainly due to the low wage rate prevailing in the Visakhapatnam region. The total fixed cost for the cultivation of turmeric was Rs. 26,794 in Palakkad and Rs. 10,480 in Visakhapatnam. The gross income from turmeric was Rs. 2,70,000 in Palakkad district, whereas it was Rs. 1,68,000 in Visakhapatnam district. The total cost of cultivation (cost C) of turmeric incurred by the farmers in Palakkad and Visakhapatnam districts was observed to be Rs. 2,01,224ha-1 and Rs. 1,24,410ha-1 respectively. The net return at cost C for Palakkad and Visakhapatnam farmers was Rs. 68,775 ha1 and Rs. 43,589 ha1 , respectively. The estimated Benefit- Cost (BC) ratio was almost equal in both districts i.e., 1.34 in Palakkad and 1.35 in Visakhapatnam district. Analysis of input use patterns in turmeric cultivation revealed that the total labour required to perform various operations in turmeric cultivation was 241 man-days and 160 man-days, respectively, for Palakkad and Visakhapatnam districts. In Palakkad district, the major labour absorbing operation was harvesting and it accounted for about 34.69 per cent of total labour requirement, followed by land preparation, curing, and intercultural operations. Similarly, in the Visakhapatnam district, harvesting operation also required more number labours and it accounted for 27.72 per cent of the total workforce, followed by planting, weeding, and irrigation. Resource use efficiency in turmeric cultivation was estimated using the Cobb-Douglas production function, and it was fitted separately for Palakkad and Visakhapatnam districts. In Palakkad district, the independent variables like area, number of labourers, farmyard manure and muriate of potash were significantly and positively affected the yield of turmeric. While in Visakhapatnam district, area, seed and machine service were significantly and positively influenced the yield of turmeric. Allocative efficiency was examined to know whether the resources in the farm were efficiently utilized or not. Marginal productivity analysis showed that resources like farmyard manure, labour and muriate of potash were underutilized, whereas the resources like factomphos and lime were over-utilized in Palakkad district. Similarly, in the Visakhapatnam district, seed and machine services were having greater potentiality for further use as these resources were underutilized in the study area. Among the two identified channels in Palakkad district, channel-II (Producers - Trader cum semi processors - Processor cum primary wholesaler- Retailers) was the most preferred channel among producers due to its relatively low marketing cost, marketing margin and high marketing efficiency. Three marketing channels were identified in the Visakhapatnam district. Among three, Channel I (Producer- village merchant- trader cum semi processor- processor cum semi wholesaler- retailer- consumer) was the predominant marketing channel in the study area. Although Channel I was the dominant marketing channel, Channel III (Producer- trader cum semi processor- processor cum semi wholesaler- retailer- consumer) was the most efficient channel due to its low marketing cost and marketing margin. High wage rates and shortage of labour were considered as the major production constraints faced by the turmeric farmers in the Palakkad district. While in Visakhapatnam district, lack of remunerative price and lack of suitable machinery services for different operations were the major production constraints faced by the farmers. In the case of marketing, price fluctuations and inadequate storage and marketing facilities were the important constraints faced by the farmers and traders. Turmeric cultivation is found to be profitable in both districts, hence government may take suitable measures to bring more land under turmeric cultivation through area expansion programmes and such other programmes. To address the problem of labour shortage, incorporate agricultural operations in the ‘MGNREGA’ programme and may also be addressed with the use of low-cost machinery hence policies may be formulated to provide suitable machinery for the farmers through respective Krishi Bhavans. Strengthen the infrastructure facilities near the production sites and facilitate the farmers to perform on-farm post-harvest handling operations through the formation of several Farmer Producer Organisations (FPOs). The establishment of a regulated market in the Visakhapatnam district may help the farmers to realize a better price for the produce by eliminating the involvement of market mediators.
Economic analysis of sugarcane cultivation in Kerala
(Department of Agricultural Economics, College of Agriculture,Vellayani, 2024-04-05) Deepak Meena.; Thasnimol, F
Sugarcane (Saccharum officinarum) is one of the primary sources of sugar in the world and has a prominent position as a cash crop in the tropics. Sugarcane is a very important crop in India’s agriculture landscape as being the world’s second largest producer and largest consumer of sugar. The global area, production, and productivity of sugarcane were 26.08 million hectares, 19.22 million tonnes, and 65.5 tonnes, respectively. In India, sugarcane was cultivated in an area of 5.83 million hectares in 2022-23, with production of 494.22 million tonnes and productivity of 84.01 tonnes per hectare. The area, production and productivity of sugarcane in Kerala was 931 hectares, 1,01,240 tonnes and 108 tonnes per ha, respectively. In Kerala, Idukki district is the leading producer of sugarcane, accounting for 93 per cent of the state production (10,076.95 tonnes). The entire production in the Idukki district is used to prepare the Marayoor jaggery. As the demand for jaggery is increasing and likely to increase in the coming years, there is considerable scope for expansion of sugarcane cultivation. In this context, the current study entitled “Economic analysis of sugarcane cultivation in Kerala” aimed to suggest appropriate and specific recommendations on production and marketing-related aspects to the sugarcane growers and processing unit owners in Kerala to help them to improve their income from their produce. The research was conducted in Idukki district of Kerala using primary and secondary data. A multi-stage random sampling technique was adopted and the data was gathered from 120 farmers using a well-structured pre-tested interview schedule. Besides, information relating to the marketing was collected from 20 market intermediaries in the Devikulam block. The economics of Marayoor Jaggery production units was analysed by interviewing the unit owners of 15 Marayoor Jaggery Production units. The socioeconomic profile of the respondent farmers was analysed and found that the majority of the respondent farmers were in the age group of 45 to 60 years. Regarding educational status, most of the farmers in the study area had an education up to the primary level. About 60 per cent of the farmers had a family size of less than four members. Exactly 84.17 per cent of farmers were dependent on agriculture as their main source of income. Regarding the type of land holding, 48.33 per cent of the farmers in the i study area had a marginal land holding of less than one hectare. The majority of the farmers (61.70%) had an annual income between rupees one to five lakh. The total cost of sugarcane cultivation was estimated at Rs. 3, 74, 831 ha-1. In total cost, operational cost and fixed cost were Rs. 2,71,583 and Rs. 1,03,244 per hectare. The estimated value of cost A2 in the study area was Rs.3,18,115 ha-1. It is observed that 54.80 per cent of cost A2 is accounted for the cost of hired human labour and 9.89 per cent is accounted for the cost of fertilizers. The computed value of cost A2+FL was Rs. 3,31,875 ha-1. The return analysis further revealed that the average yield of sugarcane in the study area was 101 tonnes ha-1. The net returns based on cost C2 was Rs. 1,02,221 ha-1, with a computed BC ratio of 1.27. A BC ratio exceeding one indicates the profitability of sugarcane cultivation in Kerala. The study examined the input-output relationship and resource use efficiency of sugarcane production using the Cobb- Douglas production function. It was observed from the fitted regression that inputs viz., setts, fertilizers and human labour were positively and significantly contributing to sugarcane production. The marginal productivity analysis further revealed the over-utilisation of organic manures and human labourers and the under-utilisation of resources like setts, chemical fertilizers and hired machine labour. The economic analysis of Marayoor jaggery processing units revealed that an average investment of Rs. 10,98,073 is needed to establish the Marayoor jaggery processing unit. The operational cost needed for the jaggery processing unit was Rs. 37,21,439. In operational cost, the cost of raw material (sugarcane) was the prime cost and accounted for about 65.87 per cent of the total cost. The financial feasibility analysis of Marayoor jaggery production units further revealed that Net Present Worth (NPW), BC ratio and IRR were Rs. 21,71,775, 1.07 and 59 per cent, at a 12 per cent discount rate. The values indicated the viability of the production unit. Among the two identified marketing channels of sugarcane, the producer’s share in the consumer rupee was high in channel II (Producer (jaggery) – Village trader – Wholesaler – Retailer – Consumer). Those farmers who marketed the produce as jaggery realised good profits compared to other farmers and marketing efficiency was also found to be higher in this channel. Despite this fact, the majority of the farmers marketed their ii produce through channel I (Producer – Processor – Wholesaler – Retailer – Consumer) due to the lack of adequate processing facilities. The Marayoor jaggery production units mainly used three channels for disposing of the jaggery. As there was no marketing intermediary, the producer share in consumers’ rupee and marketing efficiency was higher in channel III (Processor– consumer). The major production constraints reported by the sugarcane farmers were the attack of wild animals and rodents, shortage of labour and high labour costs and high cost of inputs. In the case of marketing, price fluctuation in sugarcane and the absence of regulated markets were the main constraints faced by the farmers. Shortage of raw materials and high cost of production were the major production constraints confronted by the processing unit owners. Additionally, they encountered marketing constraints like low price of Marayoor jaggery and the cheap import of jaggery from neighbouring states. Based on the findings the study recommended the following policy suggestions • As the support price is fixed based on cost A2+FL, the government may take into account the large variation in the cost before fixing the state advisory prices to promote the cultivation of sugarcane. • The cultivation of sugarcane is found profitable, hence the government may take suitable measures to bring more land under sugarcane cultivation through area expansion programmes. • The government may take suitable initiatives to promote mechanisation in sugarcane cultivation by providing necessary machinery on hire basis through Krishi Bhavan. • Promoting awareness about the optimal utilisation of inputs and implementing suitable policy measures, such as alertness and training programs on adopting recommended agricultural practices to maximize profits, could be encouraged. • The government can take initiatives to establish farmer producer organisations and strengthen the capacity of farmer collectives by providing suitable infrastructural facilities for the processing of Marayoor jaggery. • The government may provide subsidy for the installation of electric fences around the sugarcane fields. iii • To safeguard the interests of farmers and processing unit owners and uphold the quality standards of Marayoor jaggery, it is imperative for the government to implement measures aimed at regulating the influx of inferior quality jaggery from neighbouring states through rigorous inspection protocols at border checkpoints.
Performance analysis of cashew processing industry in Kollam, Kerala
(Departmant of Agricultural Economics, College of Agriculture,Vellayani, 2025-01-13) Movidha, M; Thasnimol, F
The study entitled "Performance Analysis of Cashew Processing Industry in Kerala" was conducted during the academic year 2024-25. The main objectives of the study were to evaluate the performance of the cashew processing industry in Kerala, analyse the industry’s trade competitiveness in the global market, assess the industry’s impact on the social well-being of cashew labourers and identify the constraints faced by cashew processing firm owners and labourers. Kollam district, known as the “cashew capital of the world”, was purposively chosen for the study as it holds 89 per cent of the state’s cashew processing units. Both primary and secondary data were used for analysing the specific objectives of the study. Primary data were collected through a survey using well-structured and pretested schedules, covering 120 labourers and 40 cashew processing units. Secondary data were collected from various organisations and other authentic databases. The study analysed the performance of public and private cashew processing firms in raw cashewnut purchases, cashew kernel production, exports, turnover, and overall financial performance. Both public and private firms sourced larger quantities of raw cashew nuts from the global market because of the low domestic production. However, due to financial constraints, public firms imported smaller amounts compared to their private counterparts. Although public firms employed more registered labourers, they struggled to maintain year-round operations due to raw material shortages, leading to fewer working days. In contrast, private firms employed more temporary workers in addition to the registered labourers, invested more in mechanization and maintained higher production levels of cashew kernels. In marketing, public firms relied exclusively on the domestic market, while private firms operated in both domestic and global markets. Financial analysis revealed that private firms performed better, with higher turnover and profitability driven by efficient operations. Public firms, however, struggled with high operating costs and poor liquidity, resulting in consistent net losses despite generating gross profits. Cashew accounted for 4.39 per cent of India’s agricultural export earnings, with Kerala contributing 49 per cent of this share in 2023 (GoI, 2024 ; GoK, 2024). Given Kerala’s substantial role in India’s cashew exports, understanding the country’s overall export performance provides valuable insights into the state’s performance. The study analysed the trade competitiveness of India’s cashew industry, with focus on export performance and competitiveness across three distinct periods: Period I (1980–1994), Period II (1995–2010), and Period III (2011–2023). High export growth during Period I was driven by strong global demand and increased unit values, and this was supported by significant raw cashew nut imports from African countries. However, growth rates declined in Period II due to the emergence of Vietnam as a major competitor. The closure of several processing firms due to huge debt burden and high competition from other countries contributed to the negative growth rate of cashew export during Period III. Instability analysis revealed greater instability during Period I, but stability increased in the later periods. The Nominal Protection Coefficient (NPC) of 0.90 confirmed that India enjoyed a competitive advantage in global markets. Furthermore, the Revealed Comparative Advantage (RCA) and Revealed Symmetric Comparative Advantage (RSCA) values indicated that India maintained a comparative advantage in cashew kernel exports from 1980 to 2022. However, a declining trend in RCA after 2000 raised concerns about its long-term competitiveness in the global market. Cashew firms played a crucial role in the well-being and financial stability of labourers, with 44 per cent of labourers reporting that more than 75 per cent of their family income came from the industry. However, many labourers faced financial difficulties, as 50 per cent of them had annual household incomes below ₹1 lakh. The low income led to high indebtedness, with more than 90 per cent of labourers having loans between ₹50,000 and ₹1 lakh. The wage rates provided to labourers in private cashew firms were very low, often below the government-prescribed rates, creating a significant wage disparity between public and private firms. Cashew labourers faced significant challenges related to low wages, inadequate welfare benefits, and poor working conditions. Women made up the majority of the workforce in cashew firms but were largely assigned low-paying and physically demanding roles like shelling and peeling. In contrast, male workers, who typically handled roasting tasks, received higher monthly salaries, reflecting notable gender based wage disparities. Despite the availability of welfare benefits such as health schemes and paid leave, many labourers did not utilise these facilities due to stringent eligibility criteria, complicated processes, and lack of awareness. Public firm labourers were particularly disadvantaged, as reduced working days often made them ineligible for benefits like the ESI scheme. Many cashew firms failed to meet basic safety and hygiene standards, with labourers reporting inadequate facilities, such as lack of safety measures and a women-friendly working environment. The constraints of cashew firms’ owners and labourers were identified using Garrett ranking technique. The major constraints faced by the processing unit owners included high processing costs, competition from other cashew-producing nations, and difficulties in maintaining a steady supply of cashew kernels. On the other hand, the important constraints reported by the cashew labourers included irregular income, physical strain and health issues, and a high debt burden. The study concluded that, although the cashew processing industry in Kerala held significant economic potential, it had not yet reached its full capacity due to various challenges faced by both firm owners and labourers. The financial performance of both public and private firms was hindered by high processing costs, dependency on imported raw cashewnuts, and limited mechanisation. For laborers, low wages, irregular working days, and inadequate welfare benefits contributed to a high degree of financial instability. To address these issues, policy recommendations were proposed, focusing on raw material shortages, competitiveness, and labour welfare. To combat raw material shortages, the government was advised to encourage the domestic production of high yielding and improved varieties of cashews on underutilised or barren land by providing suitable incentives and ensuring their timely procurement. The government was also encouraged to provide financial assistance and facilitate the import of raw cashew nuts, particularly for public sector firms, where delays in prior bookings and release of funds often impeded procurement. Enhancing competitiveness required modernisation through financial support for upgrading machinery and diversifying markets, alongside investment in value-added products. Ensuring year-round operations for stable employment, simplifying access to welfare schemes, and mandating health insurance were essential steps to improve labour welfare. Additionally, enforcing fair wages, implementing safety standards, and adopting gender-sensitive policies helped to promote equity and protect workers' rights. Collectively, these initiatives would enhance the well-being of the workforce and strengthen the industry