Impact of increase in wage rate and cost of fertiliser in rice production in Thiruvananthapuram district

Abstract

The study ‘‘Impact of increase in wage rate and cost of fertilizers in Rice production in Thiruvananthapuram district’’ was carried out with the following objectives. 1. To examine the changes in the pattern of labour intake and fertilizer use consequent on the increase in wage rate and price of fertilizers. 2. To study the impact of increase in price of fertilizers and wage rate in the production and productivity of Rice. An attempt was also made to work out the economics of Rice cultivation and to examine the resource are efficiency of different input factors involved in the production process. The study was conducted at Nedumangad Agricultural sub division using a sample of 120 farmers selected by multi stage stratified random sampling technique. The variables selected for the study included wages paid to the labourers during first and second crop season of 1992-93 and 1993-94., labour use for different agricultural operations, quantity of fertilizers and organic manner used, production obtained in different crop seasons, and pricer of input and output obtained in different crop seasons. The data were collected from Rice growers using a well structured and pretested questionnaire. The data so collected were analysed using appropriate statistical techniques, viz., index numbers, percentage analysis and regression analysis. Some of the important findings of this study were. 1. Majority of the respondent farmers fell in the age group of 45-60 years, had nuclear families, educated up to high schools and were mere agriculturists. 2. The total cost of cultivation increased by 12.53 per cent in S4 season over S1 season due to the increase in cost of all the input factors involved in the production process. 3. The maximum share of total cost was contributed by labour component which was 72.5 per cent in S1 season, 69.32 per cent in S2, 70.32 per cent in S3 and 70.82 per cent in S4 season. Among this the expenditure on human labour was the highest which was 56.19 per cent to total cost in S1 and it increased to 57.45 per cent in S4 season. 4. The share of fertilizers to the total cost increased from 6.53 per cent in S1 to 7.46 per cent in S4 season and it was maximum during S2 season (9.62 per cent). 5. The returns from grain was more in first crop season and less in second crop season because the farmers mostly used high yielding variety during first crop season. 6. The price of nitrogen in terms of urea reduced by 9.79 per cent in S4 season. But its level of use reduced by 11, 15 and 5 per cent respectively in stratum I II and III 7. Since S1 season, the price of phosphate increased by 101.73 per cent in S2 season, 86.38 in S3 season and 65.66 per cent in S3 season. During this period a reduction in its use at the rate of 12-14 per cent in stratum I and II and 6-7 per cent in stratum III was noticed. 8. The price of potash showed an increase of 185.8 per cent in S2 season, 184.60 per cent in S3 season and 124.60 per cent in S4 season over S1 season. During this period its use was reduced by 13-16 per cent in stratum I and II and 4-8 per cent in stratum III. 9. A study increase in the wage rate of men and women labourers was observed during this period. But a proportional reduction in the level of labour use was not noticed. The wage rate of both male and female labourers were above the minimum wage rate fixed by the Government. 10. The price of output increased by 14 per cent in S4 season over S1 season. The increase in the price of output was only nominal when compared to the price of inputs. 11. The production function analysis revealed that the cost of organic manures and men labour had significant elasticity during S1, S2 and S3 season. Nitrogen had significant elasticity in S2 season and women labour in S4 season. Other factors did not appear significant. 12. The marginal value product of organic manure and nitrogen were much above their respective factor cost. But the marginal value product of men labour was less than the wage rate prescribed. The results obtained from the study was similar to those obtained in earlier studies with regard to most of the variables. The results clearly indicated that the profits from cultivating rice had been declining under pressure of rising input prices. The exorbitant rise in the prices of farm inputs like fertilizers and labour restricted their use by the farmers and there by reduced the level of productivity in recent years. By proper policy measures of the Government and its implementation the rice cultivation can be made a profitable preposition.