1. KAUTIR (Kerala Agricultural University Theses Information and Retrieval)

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    Economics of production and marketing of Rambutan in Kerala
    (Department of Agricultural Economics, College of Agriculture,Vellanikkara, 2026) Neethu, S; Seenath Peedikakandi
    Rambutan (Nephelium lappaceum), a tropical fruit native to South-East Asia and a member of the Sapindaceae family, has agro-climatic suitability to the midland and highland regions of Kerala. The state has been witnessing tremendous increase in area under exotic fruits including rambutan. During 2023-24, rambutan cultivation in Kerala covers 839.12 ha of land, yielding 7,734 metric tonnes. Pathanamthitta, Ernakulam and Kottayam are the leading rambutan growing districts of the state. The study entitled “Economic analysis of production and marketing of rambutan in Kerala” is an attempt to estimate the economics of rambutan cultivation; assess the efficiency of rambutan production; study the marketing of rambutan and identify major constraints in rambutan cultivation and marketing. The study was based on both primary and secondary data. Primary data was collected from the leading rambutan growing districts of the state, viz. Pathanamthitta (229.37 ha), Ernakulam (220.37 ha) and Kottayam (141.70 ha). The region is falling under the AEU 12 (Southern and Central foothills). From these three districts, one block each was selected for the study considering the highest area under the crop. The blocks selected were Ranni, Kothamangalam, Eratupetta. Farms (40 each from each block) with at least 15 bearing rambutan trees of age above 5 years were randomly selected for the study. The lists of rambutan farmers provided from the Krishi Bhavans (KBs) of the selected blocks were used as the sampling frame. Apart from the farms, data was also collected from contractors (5), wholesalers (5) and retailers (5) from these districts for marketing analysis. Thus total sample size of the study was 135. Secondary data was collected from the Department of Economics and Statistics and other published and unpublished sources. Socio-economic details of the farmers were analysed using descriptive statistics and it was found that rambutan growers had an average age of 59 years, majority being males, having 5-10 years of experience in rambutan cultivation, < 1 hectare of landholding size and annual income of Rs. 4-6 lakhs. Most of the respondents were graduates and had family sizes of 3-6 members. Sample orchards had an average plot size of 0.87 ha, with trees having average age of 8 years and a planting density of 157 plants/ha and also rambutan contributing towards major share of farm income (85%). Being a perennial crop, rambutan cultivation has annualised establishment cost as well as annual maintenance cost. It has gestation period of 2 years and an economic life of 15 years. The study revealed that the total establishment cost, annual maintenance cost, and total cost of rambutan cultivation were Rs. 714623/ha, Rs. 141746/ha/yr and, Rs. 239993/ha/yr respectively. Three-year averaging was carried out while calculating yield to avoid fluctuations in yield due to weather variations. Average yield of rambutan in the study area was found to be 6.5 t/ha/yr. The gross return from cultivation was Rs. 8.5 lakhs/ha/yr, with a net return of Rs. 6 lakhs/ha/yr. BCR was found to be 3.5, confirming that rambutan is a profitable fruit crop in the study area. The Resource Use Efficiency (RUE) of rambutan cultivation was estimated taking farm level variables such as yield (Y), area, age of trees, number of trees, quantities of manures and fertilisers. The fitted Cobb-Douglas production function had R 2 value of 0.94 explaining 94 per cent of the variability. The analysis also revealed that a one per cent increase in the age of trees, number of trees, manure and fertiliser would increase the yield by 0.39, 0.53, 0.67, and 0.19 per cent, respectively. In contrast, the coefficient for area (-0.35) indicated negative influence on yield due to management inefficiency. The total return to scale was 1.34, indicating increasing returns to scale. Additionally, RUE (ratio of Marginal Value Product (MVP) to Marginal Factor Cost (MFC)) for manure (14.81) and fertiliser (20.56) was more than 1, indicating underutilisation of resources. Data Envelopment Analysis (DEA) revealed that the mean technical, allocative and economic efficiency of farms as 70 per cent, 63 per cent, and 43 per cent respectively. The study further compared efficiency across different irrigation regimes. Micro-sprinkler irrigated farms recorded higher mean technical, allocative, and economic efficiency (70%, 63%, and 45% respectively) compared to conventionally irrigated farms (69%, 55%, and 40%). Three channels were identified for marketing of rambutan within the state, the most common being Channel I (Producer-Pre-harvest contractor-Wholesalers-Retailers) and Channel II (Producer-FPC-Wholesaler-Retailer). Price received by producer was highest in Channel II (Rs. 132.50/kg) followed by Channel I (Rs. 130.27/kg) and Channel III (Rs. 132/kg). Channel I and Channel II were comparatively more efficient than Channel III (Producer- Pre-harvest contractor-Exporter). The price spread was found to be the highest in Channel III (Rs. 318/kg), followed by Channel I (Rs. 131.07/kg) and Channel II (Rs. 130.35/kg). The producer’s share in the consumer’s rupee was the highest in Channel II (50.41%), followed closely by Channel I (49.85%), while the lowest share was recorded in Channel III (29.33%). The constraints in production of rambutan were found to be unfavourable weather variations followed by high initial investment, wild animal attack, bird attack and occurrence of pest and diseases. Significant marketing constraints faced by farmers were difficulty in direct selling, lower shelf life, defective and faulty payment, exploitation by middlemen, delay in payment and lack of market information. The constraints faced by market intermediaries were difficulty in covering the trees with polythene net for fruit protection, high transportation cost, lower shelf-life, price fluctuation and limited scope for value addition. Focused research trials for developing a well-defined package of practice for the crop is essential. Research initiatives for developing technologies for improving shelf life and value addition, hassle-free technology for operations like tree covering with nets, harvesting and pruning, etc., are recommended. FPCs mediated harvesting operations and marketing through collective approach are also suggested.
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    Economics of production and marketing of G.1. tagged Kodungallur snap melon
    (Department of Agricultural Economics, College of Agriculture,Vellanikkara, 2026) Sangeetha Malladagudda
    Snap melon (Cucumis melo var. momordica), locally known as Kodungallur pottuvellari, was a traditional variety grown in Kodungallur and nearby areas of Thrissur and Ernakulam districts of Kerala. Owing to its unique quality attributes linked to the region’s agro-climatic conditions, it received G.I. status in 2022. Mature fruits were used to prepare a refreshing summer juice. Despite its nutritional and economic importance, systematic economic studies on snap melon remained limited; hence, the present study was undertaken to fill this gap. The objectives were to examine the economics of cultivation, analyse marketing efficiency, and identify production and marketing constraints. A multi-stage sampling technique was adopted, and the survey was conducted in the G.I. certified cultivation area during 2024-25. A total of 122 farmers and 10 market intermediaries were selected, making the total sample size 132. The cost of cultivation was estimated using CACP cost concepts, resource use efficiency was analysed through the Cobb–Douglas production function, marketing efficiency was measured by Acharya and Agarwal’s method, and constraints were analysed using Garrett’s ranking technique. Socio-economic analysis showed that the majority of farmers were middle-aged and predominantly male. Most of the farmers had an education of SSLC or above. Among the sample farmers, 76.23 per cent were marginal farmers, 77.87 per cent had medium-sized families, and 58.82 per cent depended primarily on farming. A large share of farmers had farming experience and experience in snap melon cultivation for more than 20 years. Cultivation practices were categorised into monocropping and intercropping, organic and INM, and drip and conventional irrigation. Across all categories evaluated, intercropping recorded the highest cost of cultivation (Cost C3) at ₹1,70,641/ha. However, drip irrigation registered the highest gross returns (₹3,21,846/ha), the highest net returns (₹1,57,801/ha), the highest yield (12.13 t/ha), and the lowest cost of production (₹13.52/kg). Economic efficiency was highest under organic farming, with the highest B:C ratio (1.97), closely followed by drip irrigation (1.96) and monocropping (1.95), showing that these practices yielded better returns per rupee spent. The highest difference in net returns, amounting to ₹70,714, was observed between monocropping and intercropping, suggesting that the cropping pattern created the greatest income disparity between alternative practices. Notably, the better- performing practices like organic farming, drip irrigation, and monocropping were also the most widely adopted practices by farmers in the study area, indicating that farmers were already practicing economically profitable methods. The Average cost of cultivation for the overall sample size showed that the total cost of cultivation (Cost C3) was ₹1,66,713 per ha. Hired human labour and family labour shared the major share in cost, highlighting the labour-intensive nature of the snap melon. Farm business income was ₹2,22,775 per ha, and family labour income was ₹2,15,013 per ha. The net returns amounted to ₹1,78,814 per ha, and the B: C ratio of 2.07 confirmed the economic viability of snap melon cultivation in the study area. Resource use efficiency analysis showed that seed rate, hired labour, plant nutrients, and family labour negatively influenced yield, with seed rate being the most statistically significant and overused input. Machine labour and irrigation had positive but insignificant effects, and decreasing returns to scale (–0.86) indicated inefficient resource use. In drip irrigation, seed rate was overused, and machine labour was underused, with decreasing returns to scale of –0.70. Under conventional irrigation, seed rate, hired labour, and family labour were statistically significant but negatively affected yield, with stronger decreasing returns to scale (–1.06), highlighting greater inefficiency. Optimizing seed and labour use and increasing mechanization, particularly under drip irrigation, could improve efficiency and profitability. Six channels were identified for the fruit marketing of snap melon. Channel I (direct producer–consumer) recorded the highest marketing efficiency (6.81), lowest marketing cost and price spread, and highest producer’s share (87.19%), though it was adopted by fewer farmers due to perishability and storage constraints. Channel II was the most widely used channel (35.25%), with an efficiency of 1.11 and a producer’s share of 52.64 per cent, and emerged as the second-best channel. For juice marketing, five channels were identified. Channel I (direct farmer marketing) recorded the highest producer’s share (66.29%), highest marketing efficiency (1.97), and lowest marketing cost (₹29.50), making it the most efficient, followed by Channel II, which showed moderate efficiency (0.52) and a producer’s share of 34.32 per cent despite the highest total cost. Channels III to V, involving wholesalers and contractors, recorded lower efficiency, higher costs, and greater price spreads. Major production constraints included untimely rainfall, followed by high labour costs, labour shortages during peak periods, high input costs, small landholdings, field-level fruit losses, and poor soil fertility. Marketing constraints were dominated by price fluctuations, distress sales due to low shelf life, transportation difficulties, low demand during seasonal oversupply, and intermediary control over pricing. Based on the results, the following policy interventions are suggested: developing a scientific package of practices, standardizing harvest maturity indices, implementing crop insurance, establishing storage and processing facilities, promoting FPO-based collective marketing, and supporting participation in G.I. exhibitions and trade fairs to improve market access, returns, and profitability, thereby enhancing the economic welfare of snap melon farmers.
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    Dynamics of co-operative credit and its impact on agricultural development in Kerala
    (Department of Agricultural Economics, College of Agriculture, Vellayani, 2026-02-11) Divyapriya Rahul; Anil Kuruvila
    The thesis titled “Dynamics of co-operative credit and its impact on agricultural development in Kerala” examines the long-term development and role of co-operative agricultural credit in Kerala and its impact on agricultural growth and farmers’ livelihoods during the period from 1980-81 to 2022-23. Co-operative institutions, especially Primary Agricultural Credit Societies (PACS) and Primary Co-operative Agricultural and Rural Development Banks (PCARDBs), have been important sources of rural finance in Kerala. They provide loans to farmers for crop production, irrigation, machinery, plantation development, and other agricultural activities. Despite the importance, the distribution and effectiveness of co-operative credit have differed widely across districts and over time. This study aims to understand how co-operative credit has evolved, how it has contributed to agricultural development, and how it has affected individual farming households in Kerala. The study is based on both secondary and primary data. Secondary data were collected from government reports, institutional records, and official databases relating to co-operative credit and agricultural development. These data cover all districts of Kerala and span more than four decades. Primary data were collected from 160 farmer borrowers selected from four districts, viz., Pathanamthitta, Alappuzha, Malappuram, and Palakkad. These districts were chosen to represent areas with low and high levels of credit disbursement and different agricultural systems. This combination of data sources enabled a comprehensive analysis of both long-term trends and household-level impacts. The analysis was guided by three main objectives. The first objective was to examine the changing pattern and growth of co-operative credit in Kerala. The second objective was to assess the contribution of co-operative credit to agricultural development, while the third objective was to study the impact of co-operative credit on farmers’ income and standard of living. Various statistical and econometric tools such as growth rate analysis, inequality measures, cointegration tests, causality analysis, and regression models were used to achieve these objectives. iii To study the growth and performance of PACS and PCARDBs, the entire study period was divided into three phases, which were identified on the basis of structural break analysis. The first phase (1980-81 to 2001-02) was a period of rapid expansion and institutional strengthening. During this period, most districts experienced strong growth in membership, deposits, share capital, working capital, and credit disbursement. Farmers increasingly trusted co-operative institutions and deposited their savings in them. Deposit mobilisation became the main source of funds, which reduced excessive dependence on external borrowing. Both short-term crop loans and long-term investment loans expanded, indicating rising agricultural activity and investment. However, some districts such as Kottayam and Thrissur showed relatively weaker growth, suggesting early signs of saturation or limited investment demand. The second phase (2002-03 to 2011-12) was a period of transition. During this period, the growth of co-operative institutions slowed down in many districts. Competition from commercial banks, the spread of Kisan Credit Card scheme and changes in rural finance policies affected the functioning of PACS. Deposit mobilisation continued, but growth in share capital weakened in several regions. As a result, co-operatives became more dependent on borrowings from higher financing agencies. While some districts such as Palakkad, Kozhikode, and Malappuram performed relatively well, others like Wayanad, Kottayam, and Thiruvananthapuram recorded stagnation. Credit expansion also became concentrated among fewer borrowers in some areas, reducing inclusiveness. The third phase (2012-13 to 2022-23) represents a period of partial revival and institutional stabilisation. Membership and share capital increased in many districts, reflecting renewed confidence among farmers. Internal resource mobilisation improved, and dependence on external borrowings declined compared to the previous phase. Long- term investment credit expanded in several districts, especially for plantation development, irrigation, and mechanisation. However, short-term and medium-term credit growth slowed in many regions due to increased competition from banks and digital credit platforms. Performance across districts remained uneven, with some districts showing balanced growth while others lagged behind. A similar analysis was carried out for PCARDBs, which mainly provide long- term agricultural loans. In the first phase, several districts such as Wayanad, Palakkad, iv and Ernakulam recorded strong institutional and credit growth. However, dependence on external borrowings was high in many areas. In the second phase, institutional restructuring improved financial stability in some districts, but growth remained selective. In the third phase, long-term credit expanded sharply, indicating renewed investment activity, but this expansion was often supported by external funds rather than internal resources and as a result, concerns about the financial autonomy persisted. The study also analysed the regional distribution of medium-term and long-term co- operative credit. The results showed that credit distribution in Kerala has been highly unequal across districts throughout the study period. A few districts such as Ernakulam, Kottayam, Thrissur, and Kollam consistently received a large share of investment credit, while districts such as Idukki, Wayanad, Kasaragod, and Alappuzha remained under- served. Even after adjusting credit amounts based on cultivated area, inequalities remained high. This indicates that institutional strength, cropping patterns, and historical development play more important roles than land size in determining the credit access. Established co-operative networks and diversified commercial agriculture enabled certain districts to attract more credit, while weaker regions faced persistent constraints. To assess the contribution of co-operative credit to agricultural development, the study examined the long-term and short-term relationships between credit and agricultural indicators. The results show that co-operative credit has a stable relationship with cropping intensity, fertilizer use, irrigated area, plantation area, and agricultural output. This means that credit and agricultural development have moved together over time. In the short run, credit availability was found to encourage better farming practices and investment in agriculture. However, the impact of credit on output and income was gradual rather than immediate. The micro-level analysis based on primary data provides important insights into how farmers use co-operative credit. The sample farmers were mostly older, experienced cultivators with low levels of formal education and small landholdings. This reflects the ageing nature of agriculture in Kerala and limited participation of younger generations. Most households belonged to the medium-income category, with income levels influenced by crop diversification and non-farm activities.The study v found that the amount of credit sanctioned to farmers was mainly determined by collateral availability and existing indebtedness rather than by actual production needs. Factors such as land size, education, and cultivation expenses had little influence on loan size. This indicates that lending decisions were guided more by institutional rules and risk considerations than by farm requirements. As a result, credit allocation was not always aligned with the productive potential. The study also found that farm income was influenced mainly by cultivated area, production expenditure, and farming experience. The amount of co-operative credit borrowed did not have a significant direct impact on income. This suggests that credit alone does not guarantee higher income unless it is used effectively for productive investments. The analysis of loan utilisation revealed that a considerable number of borrowers diverted loans for non-productive purposes such as household consumption, repayment of old debts, medical expenses, and coping with climatic or wildlife-related losses.. Consequently, co-operative credit often functioned as a means of stabilising household consumption and managing risks rather than promoting productive investment. The study concluded that Kerala’s co-operative credit system has expanded significantly over the past four decades and has played a vital role in supporting agricultural activities. However, its growth has been spatially uneven and institutionally driven. Investment-oriented credit was more unequally distributed than short-term crop loans, limiting development in weaker regions. At the macro level, co-operative credit supports agricultural intensification and structural transformation. At the micro level, its developmental impact is limited by risk-averse lending practices, ecological challenges, and diversion of funds. The study recommends increasing the share of long- term investment credit, strengthening deposit mobilisation and share capital, adopting district-specific revival strategies, aligning credit with agro-ecological conditions, and linking credit with technology adoption and advisory services. It also emphasises the need for flexible lending products, better monitoring of loan utilisation, and incentive- based repayment systems. Integrating credit with farm support services can improve productivity and repayment capacity. These measures can enhance the effectiveness of co-operative credit as a tool for sustainable and inclusive agricultural development in Kerala.
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    Economic loss assessment in farming due to human wildlife conflict in Idukki district of Kerala
    (Department of Agricultural Economics, College of Agriculture, Vellayani, 2026) Adarsh, B Sajeev
    Human-Wildlife Conflict (HWC) refers to interactions between humans and wildlife that result in negative impacts on human life, property, livelihoods, or safety, as well as on wildlife conservation and habitat preservation. These conflicts arise primarily at the interface between human settlements and wildlife habitats, where competition for space and resources occurs. Kerala state possesses a remarkable forest coverage of 11,521 square kilometres, constituting 56.78 per cent of its total geographical area, significantly higher than the national average. Among the districts in Kerala, Idukki has the highest forest cover and has extensive collection of flora and fauna. This creates a tension in the human settlements near the forest fringes. “Economic loss assessment in farming due to human wildlife conflict in Idukki district of Kerala” was undertaken to identify the nature and type of damage caused by wild animals, quantify the magnitude of direct loss associated with HWC and estimate the magnitude of the indirect cost of HWC. The study was carried out in Marayoor Forest Division which comes under the High Range Circle Kottayam, in which 90 farmers each from Marayoor and Kanthalloor range were surveyed using a well-structured and pre-tested interview schedule. The socioeconomic characters revealed that most of the farmers belonged to the age group of 45-60 and depended on agriculture as their major occupation. Primarily, it was essential to identify the types of damages experienced by farmers. The findings revealed that trampling, breaking, and feeding constituted the most damaging forms of wildlife activity, with elephants, wild gaur, wild boar, sambar deer, and monkeys being the primary species responsible for conflict. Results obtained through the Garrett ranking technique, together with perceptions of the farmers, indicated that conflict intensity was not uniform throughout the year, rather, it tended to peak during the summer months when resource scarcity and animal stress drove wildlife closer to agricultural fields. The economic assessment of direct costs underscored the alarming scale of crop losses in the region. Using the market price method, the study estimated that farmers collectively incurred direct losses amounting to nearly ₹72 lakh, demonstrating the substantial economic vulnerability of households dependent on agriculture. Banana, ii beans, sugarcane, and several perennial crops displayed particularly high susceptibility, especially when damage occurred during critical crop growth stages. Despite the magnitude of such losses, only 13 per cent of affected farmers applied for compensation. Their reluctance originated from disproportionately high transaction costs including the time, effort, and expenses involved in navigating bureaucratic procedures relative to the ex-gratia amounts received. This mismatch illustrated structural deficiencies in the existing compensation system, which neither reflected the true extent of economic loss nor incentivised farmers to report incidents formally. The study’s examination of indirect costs, which were often overlooked in conventional assessments of HWC, revealed a far deeper socioeconomic burden. Farmers incurred considerable opportunity costs due to the time spent in guarding crops and monitoring animal movement. The average opportunity cost of labour was estimated at ₹19,863 per year, while average annual household expenditure on preventive measures such as fencing, lighting, and deterrent devices was ₹10,959. When transaction costs were included, the total indirect cost incurred by an average household reached ₹30,928. These estimates demonstrated that indirect costs represented a substantial and persistent economic drain, one that was not compensated under existing policies. This evidence indicated the need for more comprehensive valuation frameworks in future HWC assessments. A notable contribution of the study lay in its assessment of farmer wellbeing through a beta-weighted regression index. By standardising indicators and estimating beta coefficients using multiple regression, a composite wellbeing index was constructed to capture the economic and social effects of HWC. The results indicated that although 163 farmers fell within the moderate wellbeing category, a significant proportion experienced negative wellbeing outcomes. Variables such as income, age, education, and the extent of area damaged significantly influenced wellbeing. High economic losses, prolonged stress, sleep disruption, and recurring fear of wildlife attacks adversely affected psychological stability and livelihood security, as further illustrated through heatmap analysis of stress indicators. The study also applied the Contingent Valuation Method (CVM) to estimate farmers’ willingness to pay (WTP) for improved mitigation measures. Farmers were presented with a hypothetical scenario of enhanced conflict mitigation system and were asked to indicate their maximum WTP. The mean stated annual WTP amounted to ₹6,404 , while the regression estimated WTP was approximately ₹6,200 per year. These findings indicated that farmers recognised the need for collective action and were willing to contribute financially to community led mitigation initiatives. Based on these insights, the study proposed several policy recommendations. First, animal specific deterrent mechanisms particularly for elephants, gaur, and wild boar should be implemented through cluster level solar fencing, automated detection systems, and strategically placed physical barriers. Second, ex-gratia payment structures needed revision to incorporate both direct and indirect costs, thereby ensuring fair and adequate compensation. Third, administrative procedures required simplification, and verification processes needed decentralisation to reduce transaction costs and improve accessibility. Fourth, wellbeing oriented approaches, such as clinical ethnographic assessments, should be integrated into long term HWC management to monitor stress, trauma, and behavioural changes among affected communities. Finally, strengthening Jan Jagratha Samithis and fostering community led initiatives supported partly through farmer WTP could promote sustainable, participatory mitigation systems that addressed both ecological and livelihood concerns.
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    Dynamics and volatility transmission of tea prices:implication for small tea growers in Kerala
    (Department of Agricultural Economics, College of Agriculture, Vellayani, 2025-12-22) Anandhu,S
    Tea (Camellia sinensis, f: Theaceae) is an important plantation crop that originated in the borderlands of China, India and Burma. It is a perennial tropical crop that requires high elevations and a humid climate. Globally, major producers of tea are China, India, Sri Lanka and Kenya, where China is the leading producer followed by India. In India, tea plantations were established during the colonial period and are cultivated mainly in Assam and West Bengal in the North and Kerala, Tamil Nadu and Karnataka in the South. This study mainly focuses on Kerala, which is the second largest tea producer in South India. In India, tea is cultivated by Small Tea Growers (STGs) who cultivate on a land area of less than 25 acres and big tea growers who cultivate on much larger area. Usually, the leaves harvested by STGs are sold either through intermediaries or directly to the auction centres. However, the tea industry faces persistent challenges, among which price volatility is the most critical one faced by growers, especially STGs. Price instability has profound implications for STGs, who are highly vulnerable to income fluctuations due to limited capital and market access. Volatile prices affect their economic welfare and contribute to long-term uncertainty in the sector. Accordingly, this study was done with the following objectives: (a) to analyse the volatility and transmission of tea prices, (b) to assess the impact of price fluctuations on the welfare of STGs, and (c) to identify suitable forecasting models for predicting tea prices. Data on area, production, productivity and annual auction prices were collected from the Tea Board of India, Indian Tea Association and international sources, and primary data were collected through field survey from 200 STGs across Idukki and Wayanad districts of Kerala. In order to analyse the effect of trade liberalisation on the area, production, productivity and auction prices, the data were segmented into two groups, i.e., pre-liberalisation period (1980-2000), post-liberalisation period (2001- 2024) and the overall period (1980-2024). Analytical tools included growth and instability models like Compound annual growth rate (CAGR) per cent per annum, Cuddy-Della Valle Index (CDVI) and Coefficient of Variation (CV). Decomposition analysis was done using Hazell’s decomposition model. The ARMA-APARCH model was employed for the estimation of volatility persistence, and Johansen’s cointegration (ii) and Granger causality tests were used for price transmission analysis. In order to study the influence of price volatility on the welfare of STGs, econometric models such as Propensity Score Matching (PSM), Augmented Inverse Probability Weighting (AIPW), and Inverse Probability Weighted Regression Adjustment (IPWRA) were used. To identify the best forecasting model, traditional time-series models (ARIMA, SARIMA), regression models (Linear, SVR, GBR and RFR), deep learning techniques (RNN and LSTM), and hybrid combinations (ARIMA-LSTM and ARIMA-GARCH) were evaluated based on statistical performance metrics including RMSE, MSE, MAE, MAPE and R2 and residual diagnostic tests. In North India, the CAGR of area, production, and productivity showed a steady increase in both pre- and post-liberalisation periods. In South India, however, the growth rates declined after liberalisation, with slower expansion in area and productivity. In both regions, growth in annual auction prices decreased after trade reforms. In North India, instability in area, production, and productivity increased after liberalisation. In contrast, South India experienced a decrease in instability during the post-liberalisation period. In both regions, instability in annual auction prices reduced after liberalisation. In Kerala, the growth rate in area was very low, such that it could not be offset by a marginal increase in productivity. This resulted in much lower growth in production. The decomposition analysis revealed that the price effect contributed the most to the variation in tea income across all regions. The trend analysis revealed a significant positive and consistent upward movement in monthly auction prices for both North and South India. The seasonal analysis revealed distinct intra-year price movements in both regions, with North Indian prices showing stronger seasonality. Cyclicality was more evident in North Indian tea prices, showing longer and sharper price cycles driven by market demand and production adjustments. In contrast, South Indian prices showed shorter, milder cycles. In North India, volatility persistence (β) was present in the pre- liberalisation period, indicating strong clustering of shocks, whereas it increased after liberalisation, showing the influence of increased trade activity in North India after implementing the trade reforms. The overall period also reflected a considerable persistence level, confirming that liberalisation increased long-term volatility persistence in North Indian tea prices. Volatility persistence in South India declined (iii) notably from the pre-liberalisation to the post-liberalisation period, indicating quicker dissipation of price shocks after trade reforms. Compared with North India, South Indian prices showed lower overall persistence and weaker volatility clustering, suggesting a more stable and less reactive market environment. Price transmission between markets was stronger in North India, showing greater integration with both domestic and international markets, while South Indian markets exhibited weaker linkages. In the post-liberalisation period, transmission improved significantly in both regions, reflecting enhanced market connectivity and faster price adjustments. The Granger causality test revealed bidirectional causality among the domestic and international markets before and after liberalisation. During the post-liberalisation period, causal linkages strengthened such that overall, this confirmed improved price transmission and greater interdependence between domestic and global tea markets. In both Idukki and Wayanad, labour costs constituted the major share of the total cost. The cost of cultivation was higher in Idukki (₹2,44,551 ha⁻¹) than in Wayanad (₹2,15,567 ha⁻¹), mainly due to greater labour use. However, Wayanad achieved higher gross returns and a higher benefit-cost ratio compared to Idukki. This was because in Wayanad, the sample STGs followed organic cultivation method and sold the tea leaves at a higher fixed price. In Idukki, the tea leaves were sold through intermediaries, while in Wayanad, it was sold directly to the Bought Leaf Factory (BLF). Marketing efficiency was notably higher in Wayanad (5.94%) than in Idukki (1.82%) due to the absence of intermediaries in Wayanad. The wider price spread and higher marketing margin in Idukki indicate reduced producer share and lower overall efficiency compared to Wayanad. Constraints in tea cultivation were analysed using the Garrett ranking technique. It was found that the most critical constraint identified in Idukki was price volatility, followed by issues like high wage rates and climate change. The most severe issue in Wayanad was labour shortage, followed by disease and pest incidence. Welfare of the STGs was analysed using PSM, AIPW and IPWRA. It was found that on average, the annual household consumption expenditure reduces by Rs. 22,916 to Rs. 34,661. Income inequality was analysed using the Gini coefficient and the Lorenz curve. It was found that there were significant inequalities between the STGs in Idukki and Wayanad districts in terms of their gross annual income. (iv) The forecasting modelling demonstrated that while classical models like ARIMA and SARIMA captured linear trends effectively, they failed to model complex nonlinear dependencies inherent in tea price data. Deep learning models, particularly LSTM, outperformed traditional methods, and the ARIMA–LSTM hybrid model achieved the highest accuracy. For both North Indian and South Indian price series, the ARIMA-LSTM hybrid achieved the lowest RMSE and best overall predictive accuracy, outperforming both traditional and machine-learning approaches. This finding underscores the potential of combining statistical and machine learning approaches for improved predictive performance in agricultural commodity markets. From the study, it was revealed that STGs in Idukki who faced price volatility had a welfare reduction in consumption expenditure ranging from Rs. 22,916 to Rs. 34,661 per year. This indicates the need for intervention in price stabilisation. It was also found that the cost of production per kg was Rs. 22 in Idukki. So, whenever the price falls below the minimum cost of production, especially during peak production months, the government may provide a Price Deficiency Payment (PDP), which could also be observed in the case of other plantation crops like rubber. Based on the empirical evidence, the study recommends providing financial aid for the establishment of cooperative and SHG-based bought-leaf factories (BLFs) to ensure fair pricing and reduce dependence on private intermediaries. The development of a digital market intelligence platform integrating real-time price data, predictive analytics, and advisory services would empower growers to make better marketing decisions. Additionally, the study advocates promoting crop diversification, which helps to mitigate the risk of the STGs. The results emphasise that trade liberalisation and technological integration have enhanced market connectivity but simultaneously exposed domestic producers to external price shocks. Strengthening institutional mechanisms, ensuring access to reliable price information, and encouraging cooperative market structures can mitigate risks and enhance sustainability. The research contributes to the academic understanding of price dynamics in perennial crops and provides actionable insights for policymakers, emphasising that managing volatility through predictive modelling and institutional innovation is key to securing the livelihood of smallholders. In conclusion, the study affirms that effective price stabilisation policies, digital forecasting tools, and (v) cooperative empowerment are vital for achieving inclusive growth in Kerala’s tea sector. By integrating advanced econometric techniques with machine learning models, this research not only enriches the literature on agricultural price volatility but also provides a policy-relevant framework for ensuring the long-term viability and economic security of STGs in volatile global commodity markets.
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    Valuing the Complementarity in Rice-Fish Integrated Farming: The Case of Pokkali Ecosystem
    (Department of Agricultural Economics, college of agriculture, Vellanikkara, 2025-08-26) SUMITHRA,S; Indiradevi,P
    Integrated Farming Systems (IFS) are known for their mutually complementary relations. The coastal saline ecosystem along the Ernakulam, Alappuzha and Thrissur districts of Kerala, referred to as Pokkali lands, follow the traditional practice of integrating paddy and fish/prawn farming. Despite the ecological resilience and economic viability, IFS in Pokkali ecosystem has experienced a significant decline in recent decades, shifting to monoculture practices of aquaculture. In this background, the study was conducted with the main objectives of understanding the dynamics of rice-fish rotational system and assessing the relative economics, estimating the economic value of complementarity between the systems based on empirical analysis, estimating the value based on stakeholder knowledge, and effecting the comparison between the two estimates. The study was conducted in Ernakulam district, which holds the largest share (64%) of Pokkali lands focussing on five prevalent farming systems: Rice–Prawn IFS, Rice–Fish IFS, Prawn monoculture, Fish monoculture, and fallowing. Multistage sampling method, was adopted with district, block panchayat (BP) and grama panchayat (GP) as the respective stages of selection. The BP and GP with highest area under respective farming practice were purposively selected, while the sample respondents were chosen on random basis. The total sample size was 250 farmers (random sample of 50 from each system) and 120 other stakeholders, which include officers of agriculture department as well as fisheries department, farm labourers, and general public, working/residing in the locality. Data was gathered from the respondents through personal interview method employing structured pre-tested interview schedule. Soil samples were also collected from the selected farms following IFS system, before and after the rice crop and were analysed in soil testing laboratory under KAU. Analytical tools employed include partial budgeting to assess the relative economics of various systems, productivity change method for capturing the positive externality due to complementarity in IFS, and contingent valuation method. The Pokkali ecosystem in Kerala, a unique agro-ecological unit, has witnessed significant decline over the past two decades. Though official data is not published, informal reports show Pokkali paddy cultivation area shrinking from about 25,000 hectares in the 1980s to merely 5,707 hectares by 2021, driven by low rice profitability, rising wages, labour scarcity, and large-scale land conversion for non-agricultural use. Remote sensing studies further underscore the impact of urbanization and infrastructure growth in altering land use patterns, along with a significant shift toward monoculture aquaculture, threatening the sustainability of this ecologically sensitive system. The Rice–Aquaculture IFS in Pokkali operates in a seasonal rotation: rice is cultivated from June to October, followed by prawn or fish farming from November to April. Despite receiving policy and legal support for rice component, subsidies and mandatory rice cultivation certificates for aquaculture licensing, the system faces declining trend. Rice cultivation yields 1,326 kg/ha, with negative net returns of ₹40,383/ha, it remains financially unviable without support. Conversely, prawn farming is capital intensive (₹2,01,889/ha) but highly profitable, yielding returns of ₹4,88,373/ha and net profit of ₹2,86,484/ha. Together, the rice–prawn IFS yields a total return of ₹5,57,325/ha with a net return of ₹2,46,101/ha and a favourable benefit-cost ratio (BCR) of 1.79. On the other hand, the rice–fish IFS, offers limited economic benefits with relatively low fish yield and losses from rice cultivation, this system yields only ₹10,028/ha in net returns and a marginal BCR of 1.03. Comparative analysis indicates prawn monoculture which is resource-intensive and environmentally less sustainable, generates lower net returns (₹1,68,338/ha) and a reduced BCR (1.60) compared to integrated systems, primarily due to higher operational expenses especially feed costs. Monoculture practice, particularly fish farming, delivers higher net returns (₹3,97,311/ha) and a BCR of 2.32 outperforming the rice–fish IFS, incentivizing farmers to abandon traditional IFS practices. The higher profitability in monoculture is primarily due to the ability to rear more number of fish species, including long-duration and high-value species. Such practices are not feasible in the rice-fish IFS, where aquaculture is typically restricted to six-months. However, partial budgeting reveals that shifting from monoculture to integrated farming results in net economic gains, particularly in the rice–prawn system, which offers an additional gain of ₹69,837/ha, despite higher cultivation costs. This gain stems from reduced input expenses in aquaculture (artificial feed, eradicants, electricity) and dual income sources. In monoculture systems, only aquatic species typically high-value prawns like Tiger prawns or commercially viable fishes are cultivated by skipping Pokkali rice cultivation. The relatively poor economic gains along with cultivation challenges act as major drivers for shifting from IFS to monoculture practices, which are very fast and visible in certain pockets like Kumbalam, Kumbalanghi, Chellanam panchayats. At the same time, the ecological complementarity in IFS, particularly the effect of improved soil quality, is also significant. Statistical analysis shows that a 1% increase in Soil Quality Index (SQI) leads to a 0.25% rise in rice yield, which is equivalent to 3.23 kg/ha or ₹167.96/ha. When scaled across 5,000 ha, the realized value of this yield benefit is ₹8.40 lakh. Empirical studies (Sreelatha and Joseph, 2019) confirm that IFS improves SQI by 41.6% over monoculture, equating to a benefit of ₹3.49 crore ecosystem-wide. The study underscores that IFS is both economically viable and ecologically beneficial, especially when complemented with improved management and varietal selection. High-yielding Pokkali varieties provide 29.14% higher yields than traditional types. Yet, current subsidy policies fail to incentivize full-cycle crop management, often resulting in low yield realization and misuse of support mechanisms. Additionally, perceived rice yield gains, though lower than realized, still affirm this ecological value, estimated at ₹97.76/ha. The undervaluation of soil quality benefits among stakeholders reveals a critical perception gap, particularly among aquaculture farmers and fisheries officials, who tend to favour short-term economic returns from monoculture over long-term ecological gains. Stakeholder perceptions reveal wide variation. While agricultural officers’ express optimism about IFS yield potential, fisheries officials lean toward aquaculture. Farm labourers report higher perceived yields, reflecting their hands-on experience. Farmers practicing monoculture acknowledge the ecological benefits of IFS but cited labour shortages, profitability concerns, and climatic risks as key barriers. The study recommends scientific mapping of Pokkali areas using remote sensing, developing a database of Pokkali landholders, linking subsidy to yield or performance metrics to ensure proper crop management, applying externality gains in extension methods, strengthen compliance mechanisms to ensure rice cultivation precedes aquaculture licensing, reinforcing the Pokkali Land Development Authority and establishing targeted support programs to address region-specific socio-economic barriers, and considering the scope of introducing a targeted Green Granary Support Scheme for Pokkali farmers that provides financial incentives, technical support, and market linkages to promote eco-friendly farming practices. Further research focus is to be on assessing the role of water quality in influencing prawn/fish yield across IFS and monoculture systems, examining the efficacy of current subsidy schemes, conducting longitudinal studies on soil health, salinity, and system resilience. IFS being an effective system that ensures food security, profitability and sustainability, is considered as a powerful tool for enhancing the economic status of small and marginal farmers. There should be programme to conserve and support the traditional rice-fish IFS models, especially in view of the climate change challenges.
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    Economics of rainfeed, conventinal and drip irrigated coconut cultivation in Palakkad District, Kerala
    (Department of Agricultural Econimics, College of Agriculture, Vellanikkara, 2025) Rinshina, T.; Seenath Peedikakandi
    Water is a vital resource that sustains life on Earth, playing an essential role in ecosystems, regulating climate, and supporting biodiversity. In agriculture, efficient irrigation practices are essential for enhancing the resource use efficiency, ensuring food security and safeguarding water resources for future generations. Micro irrigation techniques such as drip irrigation can increase productivity, reduce wastage and minimize the environmental impact of farming operations. The study entitled “Economics of rainfed, conventional and drip irrigated coconut cultivation in Palakkad district, Kerala” aimed to estimate and compare the economics of rainfed, conventional, and drip-irrigated coconut cultivation. It further analysed the economic efficiency of irrigated farms and identified factors influencing and challenges in the adoption of drip irrigation. Palakkad district was purposively selected, owing to its status of minimal groundwater recharge in Kerala. From the district, two block panchayats viz. Chittur and Kollengode having highest area under drip irrigated coconut cultivation were purposively selected for the study. Data were collected from 140 respondents across two blocks, Chittur and Kollengode comprising 50 drip-irrigated farms (DIF), 50 conventionally irrigated farms (CIF) and 40 rainfed farms. The socio-economic profile of the farmers indicated that 38 per cent of the respondents were aged between 50 and 59 years, 52 per cent completed tenth grade and the majority (32%) had annual incomes ranging from ₹2 to ₹4 lakhs. Nearly half (47%) were small farmers and most (94%) having medium-sized families comprising of 3-6 members. The analysis of irrigation pattern in the farms revealed that drip irrigated farms could irrigate more frequently with 60 per cent irrigating every alternate day. Annual water use for drip-irrigated farms was 2685 m³/ha, substantially lower than the 6,745 m³/ha used by conventionally irrigated farms, highlighting the role of drip irrigation in water conservation. The amortised establishment costs were ₹15,518/ha/year for rainfed farms, ₹20,079/ha/year for CIF, and ₹19,695/ha/year for DIF. Maintenance costs amounted to ₹1,00,838/ha/year for rainfed farms, ₹1,44,485/ha/year for CIF, and ₹1,30,441/ha/year for DIF. Irrigation costs were significantly lower for drip-irrigated farms (₹22,038/ha) ii compared to conventionally irrigated farms (₹31,399/ha). DIF with total cost of cultivation of ₹1,59,267/ha/year) could achieve 10 per cent reduction in total cost of cultivation than that of CIF. Similarly, DIF could achieve highest productivity (19,035 nuts/ha/year), 9 per cent higher than CIF. Net returns were also highest in DIF (₹70,470/ha/year). Even though the cost of cultivation was lowest for rainfed farms (₹1,23,415/ha/year), they were having lowest yield and net returns. Technical efficiency analysis revealed that the mean efficiencies were 94 per cent for DIF and 82 per cent for CIF. Similarly, economic efficiencies were 90 per cent among DIF and 86 per cent among CIF. The resource use efficiency of irrigation water was 0.93 for drip irrigated farms and 0.16 for CIF showing overuse of water. Both DIF and CIF were using water more than the levels recommended as per KAU. The region has dry and intense agro-climatic conditions compared to other parts of the state making state level irrigation recommendations unreliable. The factors influencing the adoption of drip irrigation system were analysed using the binary logistic regression. The results revealed that the factors such as household income, education, type of water source, membership in social organisations, and irrigation costs were significantly influencing the adoption of drip irrigation. The major challenges for the adoption of drip irrigation were lack of funds, lack of streamline and proper implantation of subsidy, maintenance issues, poor water quality, destruction by animals and low awareness. The study concluded that drip irrigation improved water use efficiency, reduced costs, enhanced yields, and increased returns making it an effective option for water-scarce regions. Field trials need to be conducted specific to the region to estimate optimum quantity of water under drip irrigation. Demonstration trials and awareness creation programmes need to be carried out to popularise fertigation and optimum water use to reduce water wastage. Lack of funds was hindering adoption of drip irrigation and hence PMKSY micro irrigation subsidy scheme needed to be streamlined and made more flexible and timely.
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    Economic analysis of watershed development - a study of Jalasamrudhi project, Thiruvananthapuram
    (Department of Agricultural Economics, College of Agriculture, Vellayani, 2024-05-18) Anjana, P M; Paul Lazarus, T
    The research work entitled “Economic analysis of watershed development – A study of Jalasamrudhi Project, Thiruvananthapuram” was carried out during 2023-24 with the objectives to study the impact of watershed development programme on crop production, cropping pattern and farm income, to examine the variation in benefits availed by beneficiaries and non-beneficiaries of watershed and analyse the problems and weaknesses of the programme as perceived by beneficiaries. The Jalasamrudhi project was launched in Kattakada assembly constituency, Thiruvananthapuram. Kerala in 2017 to promote economic growth in the village community and ensure sustainable management of natural resources across the entire project area. The Kattakada constituency comprises a total of nine micro watersheds. Out of the nine micro-watersheds, only the Kulathummal thodu micro-watershed had completed all the designated works under the Jalasamrudhi project. The primary data was collected through a survey. The treated watershed selected for the study was Kulathummal thodu micro watershed and the untreated watershed selected for the study was Manappuram micro watershed. The respondents in the fully implemented watershed were designated as beneficiaries whereas respondents in the unimplemented watershed as non-beneficiaries. 80 beneficiaries from the treated watershed and 80 non-beneficiaries from the untreated watershed were selected, thus making the total sample size 160. Secondary data was collected from the office of the Nemom Block Panchayat, Malayinkeezhu and Directorate of Soil Survey and Soil Conservation, Thiruvananthapuram. Kulathummal thodu micro watershed (2K27b1 and 2K27b2) was one of the fully implemented micro watershed under Jalasamrudhi Project with an area of 1,159.33 ha. The total expenditure of the project was ₹2,98,20,000/- and the major portion was spent on water conservation measures including the construction of check dams, farm ponds, well recharging, renovation of public well and construction of thodu (stream) along with the provision of fruit saplings, cows, poultry birds and cage etc. The project was accompanied by the Mahatma Gandhi National Rural Employment Scheme (MGNREGS) during the project period. Manappuram micro watershed (2K27b3) was the unimplemented micro watershed under Jalasamrudhi project. The beneficiary farmers had more annual income, land holdings, and area under different crops when compared to that of non-beneficiaries. The major crops cultivated in the watershed area were banana, rubber, tapioca and coconut. Intercropping of banana with tapioca is the major cropping pattern seen in the selected watersheds. The cost of cultivation of banana and tapioca was calculated using the cost concepts and total cost was more for beneficiaries than that for non-beneficiaries. The profitability was found using the B: C ratio. The B: C ratio at Cost C was more for beneficiaries in the case of banana (2.49) and tapioca (1.42). From the results of the regression analysis, it was evident that the coefficient of multiple determination of beneficiaries and non-beneficiaries had values ranging from 0.69 and 0.79; and 0.78 and 0.83 respectively indicating that large percent of variation in the gross returns was due to the independent variables considered. The positive impact of the watershed development programme was reflected in the increase in the number of beneficiaries adopting water conservation measures such as well recharge, construction of farm ponds, renovation of thodu etc when compared to non-beneficiaries. The impact of watershed development programme on farm income was analysed using two-sample t-test on average net income from crops (banana and tapioca), average net livestock income and average farm income of beneficiaries and non-beneficiaries. The income from crop and farm income showed significant difference in t - test with 5 per cent and 1 per cent level of significance, respectively. There was not much change in the cropping pattern among beneficiaries and non-beneficiaries. The mean ground water table level of beneficiaries (7.773 m) was more when compared to that of non-beneficiaries (6.439 m). All the beneficiaries in the treated watershed responded that due to watershed development programmme, there was an improved availability of irrigation water (100%), improved crop sales (85 %) and improved livestock sales (33.75 %). All the respondents among beneficiaries reported that the watershed development programme had improved scenic beauty, pollination, water filtration, women empowerment, community development and biodiversity or habitat improvement. Major constraints faced by the beneficiaries in treated watershed were crop loss due to high-speed winds, pests and climate change followed by non- availability of inputs and subsidies on time. Suggestions given by the beneficiaries to improve the project were to ensure continuity and follow-up of the programme and by increasing the project period from 5 to 10 years. Jalasamrudhi project has improved the livelihood of the farmers in the treated watershed. Hence such water conservation measures should be extended to the untreated watersheds to increase the production and productivity of the natural resources.
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    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.
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    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.