MSc

The present study entitled “Economic analysis of production and
marketing of Kaipad paddy in Kannur district” was conducted with the objectives
of working out the costs and returns of Kaipad paddy cultivation, estimating the
magnitude and the factors contributing to the yield gap, identifying the marketing
channels and the price spread in different channels, finding out the constraints in
production and marketing of Kaipad paddy and documenting the cultural practices
of Kaipad paddy cultivation.
The study was based on both primary and secondary data. The study was
conducted in Kaipad tracts of Kannur district and primary data were collected by
means of formal interviews from farmers, traders and market-intermediaries. The
farmers in the study area were categorised into five groups on the basis of farming
practices followed as farmers growing traditional variety, farmers growing
traditional Kaipad and shrimp in sequence, farmers growing HYV
(Ezhome-l/Ezhome-2), farmers growing HYV (Ezhome-1 / Ezhome-2) and
shrimp in sequence and paddy farmers from non-saline areas adjacent to Kaipad.
From each of the five categories, l5 farmers were selected from each of the
Panchayat. A sample of 30 farmers was randomly selected from each group, thus
making a total sample size of 150 farmers.
Cost-return structure was worked out both for Kaipad and conventional
paddy production using percentage analysis and cost concepts. The cost of
cultivation (Cost C2- Rs.67128) was highest in the case of farmers growing HYV
without shrimp in sequence. The cost of production of HYV was higher than the
costs incurred for growing traditional varieties and the average income from the
HYV was more than the income from traditional varieties. The highest average
gross income of Rs.61741/ha was obtained by farmers growing HYV and shrimp
in sequence while it was lowest for the farmer respondents growing traditional
variety without shrimp in sequence. Family labour income was estimated to be
negative in the category of farmers growing traditional variety. The net income
and Benefit Cost Ratio indicated that the farming is a loss making business in
Kaipad region, especially when the value of the family labour, the land value and
the managerial cost were accounted in the cost.
Yield gap was estimated and factors contributing to the yield gap were
analysed using regression analysis. Among the farmers growing Ezhome-1without
shrimp in sequence, the total yield gap was 747 Kg, which was 21 per cent of the
potential yield whereas for farmers growing Ezhome-2 without shrimp in
sequence, the total yield gap added to 847 Kg and it accounted for about 26 per
cent of the potential yield. When Ezhome-1 and Ezhome-2 were grown with
shrimp in sequence, the total yield gap was 601 and 497 respectively. The share of
yield gap II in the total yield gap was found to be 38 per cent and 43 per cent
respectively for Ezhome-1 and Ezhome-2 with shrimp in sequence, while it was
78 and 91 per cent for Ezhome 1 and Ezhome 2 without shrimp in sequence.
In farms growing traditional varieties age was influencing yield gap
positively while labour use in man days was found to be negatively influencing
the yield gap. In the case of farms growing HYV, seed rate and education were
significantly reducing yield gap. For the fitted log-linear yield function for all
farms, age was found to be positively influencing yield gap while the seed rate
and education were negatively influencing yield gap.
The four marketing channels identified were, (i) farmer – rice miller –
retailers -consumer (ii) farmer - local agent - rice miller- retailer - consumer (iii)
farmer - local agent - Padasekhara-samithis - consumer (iv) farmer - consumer.
The price spread was estimated as Rs.16.3 in channel I, Rs.17.51 in channel II,
Rs.2.97 in channel III and Rs.3.85 in channel IV respectively. The marketing
efficiency was found to be highest in channel III.
Various constraints in production and marketing of paddy were identified
and ranked using Garret’s ranking technique. Among the various constraints faced
by farmers, high wage cost and scarcity of hired labour were the major ones. Low
price realized for the produce was the foremost constraint faced in marketing of
paddy.
Since labour cost accounted for the major share in cost of cultivation and
labour scarcity was the major constraint, efforts have to be made for
mechanisation in Kaipad cultivation. The production must be increased by
bridging the yield gap and thereby increasing the marketable surplus. Taking
advantage of the GI status of Kaipad paddy, efforts are to be made for marketing
it as a premium priced branded organic produce.