Livelihood generation through agriculture among self help groups: An economic analysis

Abstract

The present study entitled “Livelihood generation through agriculture among Self Help Groups - An economic analysis” was carried out in the Department of Agricultural Economics, College of Agriculture, Vellayani during the period 2019-22 to study the agricultural livelihood of SHGs and income generation by them through production and marketing of the crops cultivated. The economics of different crops cultivated by the group farmers were analyzed in the study. The socio-economic characteristics of farmers were also studied during the time period. An attempt was also made to identify the constraints faced by farmers in the study area. The socio-economic characteristics of the farmers were studied based on age, gender, education, family size, farming experience, caste, occupation, land holding size and tenancy status. The analysis showed that majority of the respondents fell under the age group 45-60 years(57%). The analysis of educational status of the farmers revealed that majority of the respondent farmers had completed their high school. The average family size was found to be 4.18. Majority of the respondents were having 11-20 years of experience. The percentage of sample farmers who chose agriculture as their main occupation was higher nearly 90% and depends agriculture as their primary source of income. Majority of the sample farmers (95%) were cultivating in leased land. Most of members belong to OBC category(57%) followed by general category(35%). The economics of cultivation of respondents for three crops namely banana, bittergourd and cowpea were analyzed. The per hectare cost of cultivation of all the crops at cost C2 was found to ₹.458766.39, ₹ 164060.84 and ₹ 433198.93 for banana, bitter gourd and cowpea respectively. The income measures were also estimated for the group. Net returns from banana, bittergourd and cowpea were estimated to be ₹ 25940.65, ₹ 26505.56 and ₹ 117528.5 respectively. III The resource use efficiency of banana cultivation revealed that area, seed, manures, plant protection chemicals and family labour were significantly contributing to the yield of group farmers for banana and shows decreasing returns to scale. The resource use efficiency of bitter gourd cultivation shows that area and soil ameleorent had a positive significant impact on yield and manures are negatively significant. Similarly the resource use efficiency of cowpea cultivation revealed that manures plant protection chemical and quantity of family labour had a positive significant impact on yield. The ∑bi values of banana shows decreasing returns to scale. But for bitter gourd and cowpea there are increasing returns to scale. The marginal productivity analysis of banana shows that majority of the resources were under utilized. For bitter gourd most of the resources were over utilized showing increasing returns to scale. For cowpea fertilizers and family labour were over utilized. Three marketing channels were identified for banana and two for vegetables in the study area. Most of the farming groups preferred to sell their produce directly to the consumers through the fairs (80%). The farmers share in consumer rupee were found to be about 60 per cent for both banana and cow pea and nearly 70 per cent for bitter gourd in channel 2 ( Producer-wholesaler-retailer-consumer). Price spread was more in channel 3(Producer-wholesaler—processor-retailer-consumer) for banana and less in channel 1(producer-consumer) for all the crops. The marketing efficiency was also high in channel 1 for all the three crops. The most severe constraints faced by most of the JLGs in the study area were attack of wild animals followed by price fluctuation with a garrets score of 72.45 followed by wide price fluctuations(68.75). The entry of wild animal into the field can be prevented by electric fencing. The farmers may find difficult to afford the electrical fencing. Proper handholding facilities should be provided by the concerned authorities to overcome the financial problem faced by the farmers. It is difficult for farmers to find proper marketing facilities and are forced to sell their produce at local market via middleman which reduces their income significantly. The government should focus on providing marketing facilities and branding of products so that it fetches more prices. Effective trainings can also be conducted through krishi bhavans or Kudumbasree for farmers to make them well acquainted with the modern cultivation practices.