Valuation of externalities due to agrochemicals in vegetable cultivation in Palakkd district

Abstract

The present study, entitled "Valuation of externality due to agrochemicals in vegetable cultivation in Palakkad District", was conducted during 2021–22 with the specific objectives of studying the cost of cultivation of the selected vegetables in the study area, analyzing the resource use efficiencies of these selected vegetables, and valuing the externalities that arise out of using agrochemicals in vegetable cultivation in the district. Palakkad district was purposefully selected for the study based on the area under cultivation of vegetables in Kerala. From the district, two blocks were selected through purposive sampling based on the area under the selected vegetables, viz., bitter gourd and chilli, namely Chittur and Nemmara. From each of the selected blocks, two Panchayats were randomly selected, namely Vadakarapathy and Eruthempathy from the Chittur block and Nemmara and Elavancherry from the Nemmara block. From each of the selected Panchayats, 15 farmers were selected randomly, who were practising the cultivation of both of the selected crops. Thus the total sample size of farmers constituted was sixty. The cost of cultivation per ha for bitter gourd farmers in Chittur block was calculated, and Cost A1, Cost A2, Cost B, and Cost C were found to be Rs. 3,35,341.71, Rs. 3,56,400.53, Rs. 3,98,488.18, and Rs. 5,45,004.07 per ha respectively. In Nemmara block Cost A1, Cost A2, Cost B, and Cost C were calculated and found to be Rs. 3,55,994.40, Rs. 3,77,847.04, Rs. 4,21,421.34, and Rs. 5,67,937.24 per ha, respectively. In both of the blocks, the major share of cost was incurred for hired labour (27.52% in Chittur and 27.34% in Nemmara), followed by for pandal establishment (14.44% in Chittur and 17.82% in Nemmara). The comparative analysis of yield and returns in Chittur and Nemmara revealed that both yield and returns were higher in Chittur as compared to Nemmara. In Chittur block, the farmers reported an average yield of 22,708.46 kg/ha. The produce sold at 36 rupees on average fetched Rs. 8,17,504.80/ha for the farmer. In Nemmara block, the average output per farmer was 22,375.26 kg/ha. The total return obtained was Rs. 8,05,509.26/ha. The B C ratio of bitter gourd farmers in Chittur block at Cost A1, Cost A2, Cost B and Cost C was 2.44, 2.29, 2.05, and 1.50, respectively. While it was 2.26, 2.13, 1.91, and 1.42, respectively, in the case of farmers in the Nemmara block. In both of the blocks, the B C ratio was greater than one, indicating the cultivation was profitable to farmers. For chilli, the different costs, namely Cost A1, Cost A2, Cost B and Cost C in the Chittur block, were Rs. 2,77,831.18, Rs. 2,81,271.18, Rs. 2,86,425.13, and Rs. 5,27,329.30 per ha, respectively. In Nemmara block, the Cost A1, Cost A2, Cost B and Cost C were Rs. 2,58,220.85, Rs. 2,62,554.18, Rs. 2,66,548.13, and Rs. 4,71,611.42, respectively. In both of the blocks, the major share was incurred for hired labour (Chittur 51.59%, Nemmara 50.72%). The comparative analysis of yield and returns of chilli in Chittur and Nemmara revealed that the yield was higher in Nemmara, but the produce fetched a comparatively higher price in the Chittur block. The B C ratio of chilli farmers of Chittur block at Cost A1, Cost A2, Cost B and Cost C was 2.26, 2.23, 2.19, and 1.19, respectively. While it was 2.25, 2.21, 2.18 and 1.23, respectively, in the case of farmers in the Nemmara block. Cobb-Douglas production function was fitted for bitter gourd and chilli farmers to examine the resource use efficiency of cultivation. For both bitter gourd and chilli, organic manure and hired labour were found to be underutilized, while plant protection chemicals, chemical fertilizers and family labour were overutilized in both of the blocks. A consumer survey of 80 consumers randomly selected from various markets in Palakkad was conducted, and Contingent Valuation Method (CVM) was employed to elicit the Willingness to Pay (WTP) of the consumers interviewed. The consumers were selected from shops selling either organic or conventionally produced vegetables. Among them, 75 per cent of the respondents were aware of the presence of pesticide residues in the vegetables. Consumer awareness regarding the presence of pesticide residues was higher in organized retail outlets (85%) when compared to conventional vegetable selling centres (65%). Out of 80 respondents, 54 expressed their willingness to pay for pesticide-free vegetables (67.5%). The WTP of consumers ranged from Rs. 3 to 40 per kg of pesticide residue-free vegetables. The willingness to pay for pesticide-free vegetables was higher among consumers of organized retail outlets (Rs. 14.7 per kg) compared to conventional markets (Rs. 7.17 per kg). A multiple linear regression was fitted with the amount of WTP as the dependent variable and numerous independent variables. The results indicated that the WTP amount of consumers was significantly and positively influenced by their income, their awareness with respect to the presence of pesticide residues, their education level, and the dummy variable for the market chosen. From this linear regression, the estimated amount of WTP was found to be Rs. 9.02 per kg for pesticide-free vegetables. Thus, the proxy amount of the total externality cost to the consumers due to the application of agrochemicals in vegetable cultivation in Palakkad district was calculated by multiplying the total population of Palakkad with the estimated WTP, and the amount was found to be Rs. 2.53 crore.