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Agricultural Situationin India

VOL. LXXIV November, 2017 No. 8

CONTENTS

PAGES

Farm Sector News

General Survey of Agriculture

Articles

1. Productivity, Efficiency and Technical Change:An Assessment of Paddy Cultivation in India-Varun Kumar Das

2. Drought and Drought Coping Mechanisms inRural Mahabubnagar District of Telangana State:A Historical Perspective- K. Bhasker

3. An Analysis of Financial Feasibility of Investmenton Coconut Cultivation in Karnataka State-AnanduBhovi and Pushpa M. Savadatti

Agro-Economic ResearchEconomic Analysis of Cost and Return of Off-Season Vegetables with Focus on Poly HouseEffect in Himachal Pradesh-Meenakshi and N.K.Sharma-Agro-Economic Research Centre,Himachal Pradesh University, Shimla.

Commodity Reviews

Foodgrains

Commercial Crops :

Oilseeds

Manufacture of Vegetable and Animal Oils and Fats

Fruits and Vegetables

Potato

Onion

Condiments and Spices

Raw Cotton

Raw Jute

Editorial Board

ChairmanS. K. Mukherjee

EditorP. C. Bodh

Addl. Economic AdviserYogita Swaroop

Economic OfficerProsenjit Das

Officials Associated in Preparation of thePublication

D.K. Gaur — Sub-EditorS.K. Kaushal — Tech. Asstt. (Printing)

Uma Rani — Tech. Asstt. (Printing)Shripal Singh— MTS

Cover Design By:Yogeshwari Tailor— Asstt. Graph

Publication DivisionDIRECTORATE OF ECONOMICS

AND STATISTICS

DEPARTMENT OF AGRICULTURE, COOPERATION & FARMERS WELFARE

MINISTRY OF AGRICULTURE & FARMERS WELFARE

GOVERNMENT OF INDIA

C-1, HUTMENTS, DARA SHUKOH ROAD,NEW DELHI-110 011PHONE : 23012669

(Email: [email protected])

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Phone : 23817823, 23819689, 23813761,23813762, 23813764, 23813765

(Email: [email protected])

©Articles Published in the Journal cannot bereproduced in any form without the permissionof Economic and Statistical Adviser.

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The Journal is brought out by the Directorateof Economics and Statistics, Ministry ofAgriculture & Farmers Welfare, it aims atpresenting an integrated picture of the foodand agricultural situation in india on monthto month basis. The views expressed are notnecessarily those of the Government of India.

NOTE TO CONTRIBUTORS

Articles on the State of Indian Agricultureand allied sectors are accepted for publicationin the Directorate of Economics & Statistics,Department of Agriculture, Cooperation &Farmers Welfare’s monthly Journal“Agricultural Situation in India”. The Journalintends to provide a forum for scholarly workand also to promote technical competence forresearch in agricultural and allied subjects.Good articles in Hard Copy as well as SoftCopy ([email protected]) in MSWord, not exceeding five thounsand words,may be sent in duplicate, typed in doublespace on one side of foolscap paper in TimesNew Roman font size 12, addressed to theEditor, Publication Division, Directorate ofEconomics and Statistics, M/o Agriculture &Farmers Welfare, C-1, Hutments DaraShukoh Road, New Delhi-110 011 along witha declaration by the author(s) that the articlehas neither been published nor submitted forpublication elsewhere. The author (s) shouldfurnish their e-mail address, Phone No. andtheir permanent address only on theforwarding letter so as to maintain anonymityof the author while seeking comments of thereferees on the suitability of the article forpublication.

Although authors are solely responsiblefor the factual accuracy and the opinionexpressed in their articles, the Editorial Boardof the Journal, reserves the right to edit,amend and delete any portion of the articlewith a view to making it more presentable orto reject any article, if not found suitable.Articles which are not found suitable will notbe returned unless accompanied by a self-addressed and stamped envelope. Nocorrespondence will be entertained on thearticles rejected by the Editorial Board.

An honorarium of Rs. 2000/- per articleof atleast 2000 words for the regular issueand Rs. 2500/- per article of at least 2500words for the Special/Annual issue is paidby the Directorate of Economics & Statisticsto the authors of the articles accepted for theJournal.

Disclaimer: Views expressed in the articlesand studies are of the authors only and maynot necessarily represent those ofGovernment of India.

STATISTICAL TABLESPAGES

Wages

1. Daily Agricultural Wages in Some States—Category-wise.

1.1. Daily Agricultural Wages in Some States—Operation-wise.

Prices

2. Wholesale Prices of Certain ImportantAgricultural Commodities and Animal HusbandryProducts at Selected Centres in India.

3. Month-end Wholesale Prices of Some ImportantAgricultural Commodities in International Marketduring the year, 2017.

Crop Production

4. Sowing and Harvesting Operations Normally inProgress during December, 2017.

Abbreviations used

N.A. — Not Available.

N.Q. — Not Quoted.

N.T. — No Transactions.

N.S. — No Supply/No Stock.

R. — Revised.

M.C. — Market Closed.

N.R. — Not Reported.

Neg. — Negligible.

Kg. — Kilogram.

Q. — Quintal.

(P) — Provisional.

Plus (+) indicates surplus or increase.

Minus (–) indicates deficit or decrease.

We are pleased to inform that our monthly journalAgricultural Situation in India has been accredited by theNational Academy of Agricultural Sciences (NAAS) andit has been given a score of 3.15 out of 6. The score iseffective from January, 2017 onwards. The score may beseen in the following website: www.naasindia.org,

The journal Agricultural Situation in India has beenincluded in the UGC approved list of journals forpromotion and recruitment in academic and non-academic posts.

Soft copy of the journal may be seen in PDF at thefollowing URL : eands.dacnet.nic.in/publication.htm.

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November, 2017 1

Farm Sector News

India exported a total of 11,34,948 MT seafood valuedat all time high US$ 5.78 billion (Rs. 37,870.90 crore)in 2016-17

Secretary, Department of Animal Husbandry, Dairying andFisheries (DADF), Shri Devendra Chaudhry held ameeting on 3rd October, 2017 with the representatives ofCoastal States, National Fisheries Development Board(NFDB), Export Inspection Council (EIC), MarineProducts Export Development Authority (MPEDA),Central Institute of Brackishwater Aquaculture (CIBA) andother stakeholders including Seafood ExportersAssociation of India (SEAI), All India Shrimp HatcheriesAssociation (AISHA), Society of AquacultureProfessionals (SAP), Prawn Farmers Federations,Compound Livestock Feed Manufacturers Association(CLFMA), Fisheries institutions etc. to discuss the issuerelated to the problem of use of antibiotics in Indianaquaculture particularly in shrimp farms and hatcheries inthe wake of detection of antibiotics such as nitrofuran andchloramphenicol in shrimp exported from India afterincreased frequency of inspection by EU from 10% to50% w.e.f. October, 2016.

India exported a total of 11,34,948 MT seafoodvalued at all time high US$ 5.78 billion (Rs. 37,870.90crore) in 2016-17 as against 9,45,892 MT valued atUS$ 4.69 billion in the previous year. Frozen shrimpmaintained its position as the top contributor with38.28 % share in quantity and 64.50 % of the total earningsin terms of US$ from seafood exports. An increase of16.21% in terms of quantity and 20.33% in terms ofUS$ has been recorded over the previous year. The demandfrom the European Union of Indian marine products grewsubstantially during this period while USA and South EastAsia continued to be the major importers. The overallexport of shrimp alone was pegged at 4,34,484 MT worthUS$ 3,726.36 million during 2016-17. USA was the largestimport market for frozen shrimp (1,65,827 MT), followedby the EU (77,178 MT), South East Asia (1,05,763 MT),Japan (31,284 MT), Middle East (19,554MT),China (7818MT) and other countries (27,063 MT).

The concerns of stakeholders and possible causesof the problem were discussed in detail during the intensedeliberations. It was decided that the issue is a complexone and has to be addressed by various regulatory agenciesin the Central and State Governments. Accordingly,DADF shall under its mandate for disease monitoring

should control the relevant regulations, coordinate andmonitor the issue. The Ministry of Health & FamilyWelfare through its regulatory bodies such as CentralDrugs Standard Control Organisation (DGSCO) and theFood Safety Standards Authority of India (FSSAI) wouldalso be consulted for working out a workable regulatorymechanism within the available legal provisions so thateffective enforcement is in place including penal actionagainst violators.

Embryo Transfer Technology, a promising revolutionin Bovine breeding

Embryo transfer technology (ETT) has revolutionized thebreeding strategies in Bovines as a tool to optimize thegenetic improvement in cattle.

In this regard, the Department of Animal husbandry,Dairying and Fisheries in co-operation with 12 States hasundertaken a Mass Embryo Transfer programme inIndigenous Breeds under the scheme, National Missionon Bovine Productivity. It had been planned to carry out440 embryo transfers during October 2-10, 2017throughout the country. The programme was implementedwith the objective of conservation and development ofindigenous breeds under Rashtriya Gokul Mission.

Through the use of ETT, (i) a farmer can get a 5-6fold increase in number of offsprings , (ii) the calves soborn will be of high genetic merit and (iii) the offspringsborn will be free from diseases.

The programme had been initiated in 12 ETT centresacross the country from 2nd October and continued till10th October 2017. Under this programme, embryos ofhigher genetic merit indigenous bovines were beingtransferred in to surrogate cows. Embryos of Indigenousbreeds such as Sahiwal, Gir, Red Sindhi, Ongole, Deoniand Vechur had been proposed to be transferred underthis programme. On first day of ET programme held on2nd October, 35 Numbers of embryos were transferred into recipients. Remaining were transferred on different daystill 10th of October 2017.

Pradhan Mantri Krishi Sinchai Yojana (PMKSY) hasbeen started to provide a permanent solution fromdrought

Agriculture and Farmers Welfare Minister Shri RadhaMohan Singh said the government started PMKSY toprovide a permanent solution from drought.

Source: www.pib.nic.in

2 Agricultural Situation in India

Three Ministries are implementing this scheme in missionmode and the Ministry of Water Resources is leading theproject. PMKSY aims not only to create irrigation sourcesbut also to create protected irrigation by harnessingrainwater at micro level through 'Jal Sanchay' and 'JalSinchan' schemes. The Minister said it on 14th October,2017 at the concluding session of India Water Week-2017organized at Vigyan Bhawan, New Delhi. The theme ofthe program at the concluding session was "Water andEnergy for Inclusive Growth".

Shri Radha Mohan Singh said that India was hometo 17% of the world population and 11.3% of the livestockpopulation and only 4 percent of the world's waterresources are available in the country. In such a situation,there is an unprecedented challenge of providing water tosuch a large human and livestock population.

He informed that we have a total of 200.8 millionhectares of agricultural land in the country out of whichonly 95.8 million hectares is irrigated, which is only 48percent of the total. Therefore, it is a challenge to providewater to 52% of non-irrigated land and make it suitablefor adoption of advanced farming. It's possible onlythrough proper water management.

He further said that PMKSY had been started toprovide a permanent solution from drought. ThreeMinistries were implementing this scheme in mission modeand the Ministry of Water Resources was leading theproject. PMKSY aims not only to create irrigation sourcesbut also to create protected irrigation by harnessingrainwater at micro level through 'Jal Sanchay' and'Jal Sinchan'.

The Minister added that the government is investingRs.50,000 crore for a period of five years (2015-16 to2019-20) to develop complete irrigation supply chain,water resources, distribution network and farm-levelapplication solutions to achieve the target of water forevery farm.

He concluded by saying that for the year 2015-16,Rs 555.5 crore had been released for drought mitigationand district irrigation scheme. Under this, Rs.175 crorehad been allocated for the material for construction ofwater harvesting structures under MNREGA andRs.259 crore was allocated to the states for water recharge,drought mitigation and micro-water storage constructionin 219 drought-affected districts and 1071 highly druggedblocks identified by the Central Ground Water Board.In the year 2016-17, Rs.520.90 crore was released fordrought mitigation measures. So far, 56,226 waterharvesting structures, 1,13,976 hectare irrigation capacityand 675 district irrigation schemes have been prepared.

Women can propel the country towards second GreenRevolution and change the landscape of thedevelopment if they get opportunities and facilities:Shri Radha Mohan Singh

Union Agriculture and Farmers Welfare Minister ShriRadha Mohan Singh said that government is givingpreference to women under various policies such asorganic farming, self-employment scheme, Pradhan MantriKaushal Vikas Yojana, etc. The Minister added that womencan propel the country towards second Green Revolutionand they can change the landscape of the development ifthey get opportunities and facilities. Shri Singh said thison 15th October, 2017 during Rashtriya Mahila KisanDiwas celebration at New Delhi.

Smt. Krishna Raj, Central Minister of State forAgriculture and Farmers Welfare, Smt. Archana Chitnis,Minister of Women and Child Development, MadhyaPradesh Government, Dr. Trilochan Mohapatra, DG ICARwere also present at the event. Shri Singh informed thatlast year the Agriculture and Farmers Welfare Ministryhad decided to observe October 15 every year as RashtriyaMahila Kisan Diwas.

Shri Singh said that the decision was inspired bythe celebration of October 15 as International Women'sDay by the United Nations Organization. And today, allthe Agricultural Universities, Institutes, and KVKs arecelebrating Rashtriya Mahila Kisan Diwas.

Agriculture and Farmers Welfare Minister said thatunder the current scenario, women's contribution to theprevention of climate change and management of naturalresources cannot be denied. They play multi-dimensionalroles in agriculture. They are contributing in every fieldof agriculture - from sowing to planting, drainage,irrigation, fertilizer, plant protection, harvesting, weeding,and storage. Apart from this, they are active in otheractivities like cattle management, fodder collection, milkand allied activities related to agriculture such asbeekeeping, mushroom production, suction farming, goatrearing, poultry, etc.

Shri Singh further said that within the agriculturalsector, the wage workers working on the basis of socio-economic status and regional factors, working in their ownland, and also in the management of various aspects ofagricultural production, women continue to play importantroles through labour supervision and participation inpost-harvest operations.

The Minister informed that according to the Foodand Agriculture Organization, women's contribution toIndian agriculture is about 32 percent, while in some states(such as Hills, Northeast, and Kerala) contribution ofwomen to agriculture and rural economy is more than thatof men. Women are involved in 48 percent agriculture-

November, 2017 3

related employment whereas 7.5 crore women are playinga significant role in milk production and livestockmanagement.

Shri Singh said that to strengthen women'sparticipating in agriculture and allied activities and toimprove their access to land, loans and other facilities,the Ministry of Agriculture and Farmers Welfare has policyprovisions like joint leasing for both domestic andagricultural land under National Policy for Farmers. UnderAgriculture policies, provisions of issuing Kisan CreditCard to women and creating livelihood opportunitiesthrough livestock practices agricultural processing arementioned. Therefore, the aim of the Ministry is to increaseagricultural production and productivity and make policiesfor the welfare of the farmers. Shri Singh added that theaim is to ensure that women contribute effectively inagricultural production and productivity and get betterlivelihood opportunities. Therefore, proper structural,functional and institutional measures are being promotedto empower women, to build their abilities and to increasetheir access to input technology and other agriculturalresources and various initiatives have been taken in thisregard.

Shri Radha Mohan Singh reviewed Pioneer ProjectCHAMAN

Union Agriculture and Farmers Welfare Minister,Shri Radha Mohan Singh said that in order to providestrategic development to the horticulture sector, so as toincrease farmers income, a pioneer project calledCHAMAN, has been launched three years back by theGovernment. This project is being implemented byMahalanobis National Crop Forecast Centre (MNCFC)using remote sensing technology and is likely to becompleted in March 2018. This was told by the Ministerin New Delhi on 16th October, 2017 during a presentationon CHAMAN.

Shri Radha Mohan Singh said that the Horticulturesector is one of the major drivers of growth in Agriculturesector. This sector provides nutrient rich crops to thepeople and better remunerative prices to the farmersthereby augmenting their income. It also provides higheremployment opportunities in the primary, secondary andtertiary sectors. Thus it has gained significant prominencein the recent years. It is a matter of pride that India is theSecond largest producer of vegetables and fruits in theworld and is first in the production of banana, mango, limeand lemon, papaya and okra.

Shri Singh informed that CHAMAN is a pioneerproject in which remote sensing technique is being usedfor strategic development of horticulture sector as also toincrease the farmers' income. It gives methodology forpreparing reliable estimates of horticulture crops. UnionAgriculture Minister said that this methodology would helpthe farmers to generate better income.

Shri Radha Mohan Singh further said that the incomeof farmers would increase by growing selected crops inthe high suitable areas identified under CHAMAN in thecurrent Jhum /waste lands. Besides this, the Post-Harvestdamages of farmers would be significantly reduced bycreation of desired Post Harvest Infrastructures like coldstorages etc. thereby increasing their income. In addition,the Geo-Spatial Studies like crop intensification, orchardrejuvenation and aqua-horticulture would further help thefarmers' to grow their horticultural crops in a profitablemanner which would help in doubling their income.

Union Agriculture Minister added that it is proposedto hand over the interim reports of North Eastern StatesSite Suitability Studies to the respective State Governmentsby January 2018 for immediate consideration. The wasteland/ jhum land areas identified for one crop in one districteach of North Eastern States, under site suitability studieswould be utilised by the State Governments to take up theprojects of development of these areas on priority.On completion of this Project, the Geo-Spatial Studieswould be conducted in all major states of the country.

National Seed Corporation Limited handed over adividend of 2016-17 to the Union Minister forAgriculture and Farmers Welfare, Shri Radha MohanSingh.

National Seeds Corporation Limited (NSC) has paidhighest ever dividend of Rs. 12.03 Crores to theGovernment of India which is 30 % of the effective ProfitAfter Tax (PAT). During last three years, Company haspaid dividend of Rs. 4.12 Crores for 2013-14, Rs. 8.12Crores for 2014-15 and Rs. 11.46 Crores for 2015-16,respectively. Besides, Corporation has paid Rs. 28.95Crores to the Central Exchequer which comprises Rs. 2.45Crores towards Dividend Tax, Rs. 25.35 Crores towardsIncome Tax and Rs. 1.15 crores towards Service Tax. Inthis manner, a sum of Rs.40.98 Crores has been paid tothe Central Government Exchequer for 2016-17.NSC Chairman presented the cheque to the Union Ministerfor Agriculture and Farmers Welfare, Shri Radha MohanSingh in New Delhi, on 25th October, 2017. On thisoccasion Dr. S.K. Pattanayak, Secretary, andDr. B. Rajender, Joint Secretary (Seeds), Department ofAgriculture, Cooperation and Farmers Welfare,Government of India were also present.

NSC is the Apex level Government Company forproduction and marketing of seeds under the administrativecontrol of the Ministry of Agriculture and Farmers Welfarewith adequate infrastructure, land resources and waterreservoirs to produce quality seeds. Seeds are madeavailable to the farmers at reasonable price to ensure foodsecurity in the Country.


India produced 163.7 million tonne milk in 2016-17worth over Rs.4 lakh crore: Shri Radha Mohan Singh

Union Agriculture and Farmers Welfare Minister ShriRadha Mohan Singh said that India is emerging as a leaderamong the milk-producing nations and added that in2016-17, 163.7 million tonne milk was produced in thecountry, which was worth over Rs.4 lakh crore. Shri Singhsaid it on 28th October, 2017 at the Pashu Arogya Mela inSemwapur, Motihari, Bihar.

Agriculture Minister said that in 2015-16, total milkproduction in Bihar was 8.29 million metric tonne, whichwas 5.33% of the whole country. Bihar has 6.67% of thecountry's total cattle population. Therefore, there is a needto increase milk production and productivity in the state.Shri Singh said that Comfed/Sudha are playing importantroles in collection, processing, and marketing of milk inBihar. Shri Singh said dairy farming has been a traditionalsource of livelihood and it has a deep connection with theagricultural economy. At present, there are 19 crore cattlein the country, which amounts to 14% of the total cattlepopulation of the world. Out of them,15.1 crores areIndigenous cattle, which is 80 % of the total cattlepopulation. The country's dairy cooperatives provide anaverage of 75 to 80 percent of its sales to the farmers. InBihar, Comfed/Sudha are providing an appropriate valueof the milk to the farmers through cooperative agencies.In comparison to 15 million men, 75 million women areengaged in this field.

The Minister informed that India has 30 crorebovines, which is 18% of the total bovine population ofthe world. The country's indigenous bovine is the resultof traditional and scientific knowledge and hardwork ofhundred years. Today, we have 40 breeds of cattle alongwith Yak and Mithun and 13 breeds of buffaloes.

Shri Singh said that indigenous animals are moresuitable for the country, particularly suitable for climateand environment of their reproductive areas. Mainly so,Indigenous breeds are least affected due to climate change.

Shri Singh said Bachaur was the indigenous cattlebreed of Bihar. There is 6.73 lakh Bachaur cattle breed inthe region, out of which 2.99 lakh are reproductive animals.He said that there is a huge possibility of increasingproductivity of Indigenous breeds in the country throughcommercial farm management and balanced nutrition. Forthe first time, the government has initiated Rashtriya GokulMission with an objective to conserve and propagateindigenous breeds in an organized and scientific manner.Till now, Rs.1,077 crore has been sanctioned for theproposals received from 27 states under the scheme.And so far, Rs.499.08 crore has been released under thisscheme.

Shri Singh said Rs.67 crore had been allocated toBihar under Rashtriya Gokul Mission. And so far,

Rs.22.5 crore had been sanctioned for the implementationof this scheme. This scheme would help in increasing milkproduction and milk productivity in the region. Under thisprogramme, 1250 MAITRI centres are being set up tofacilitate artificial insemination for cattle on the doorstep.This will also give a new direction to the conservation ofthe indigenous breeds. Along with other components,setting up of Gokul Gram is also included under RashtriyaGokul Mission. One Gokul Gram would have 500 animalswith high genetic quality, out of which 300 would bereproductive animals. The Gokul Grams would rearLal Sindhi, Sahiwal and Gir breeds along with Bachaur.

Shri Radha Mohan Singh administered the RashtriyaEkta Diwas pledge on the occasion of 142nd BirthAnniversary of Sardar Vallabhbhai Patel

On the occasion of 142nd Birth Anniversary ofSardar Vallabhbhai Patel, Union Agriculture and FarmersWelfare Minister, Shri Radha Mohan Singh participatedin the Rashtriya Ekta Diwas event, organized on31st October, 2017 in New Delhi.

Shri Radha Mohan Singh said that Rashtriya EktaDiwas was introduced and inaugurated by the PrimeMinister, Shri Narendra Modi in the year 2014. The ideais to pay tribute to Vallabhbhai Patel, who was instrumentalin building India into a united nation by integrating 550independent princely states. Therefore, we celebrate EktaDiwas on 31st October every year to commemorate thebirth anniversary of the Iron Man of India, Shri SardarVallabhbhai Patel.

Shri Singh said that apart from being a world leader,Sardar Patel was the father of India's political integration.He led the merger of several small States into the IndianUnion. The several States under his guidance andpersuasion came together to form a bigger entity and thenmerged into the Indian Union. Regionalism gave way tonationalism, as he asked people to think big and be strong.

It is the result of the efforts made by Sardar Patelfor the integration of India soon after independence thattoday every part of the country is celebrating.

Agriculture Minister said that Rashtriya Ekta Diwasis an opportunity to reaffirm the inherent strength andresilience of our nation to withstand the potential threatsto the unity, integrity, and security of our country. Thisyear, Rashtriya Ekta Diwas has been celebrated in a biggerway. The day was marked by oath-taking ceremonies touphold the nation's unity, Run for Unity, Poster and Quizcompetitions and exhibitions to highlight Sardar Patel'srole at the critical juncture in Indian history.

Shri Radha Mohan Singh said that the occasion ispious, as the nation not only shows its gratitude to aformidable personality of Indian freedom struggle but alsoeducates and informs the new generation about him.

November, 2017 5

Shri Singh said that last year, at the Run for Unity event,the Prime Minister had said, "One can see the tricolourfrom Kashmir to Kanyakumari; from the Himalayas to the

ocean. We see the tricolour across the length and breadthof the nation, and the credit for this goes to SardarVallabhbhai Patel."


Trends in Foodgrain Prices

During the month of September, 2017 the All India IndexNumber of Wholesale Price (2011-12=100) of foodgrainsincreased by 1.05 percent from 142.5 in August, 2017 to144.0 in September, 2017.

The Wholesale Price Index (WPI) Number of cereals,should no change during this month while WPI of pulsesincreased by 5.69 percent from 142.4 to 150.5 during thesame period.

The Wholesale Price Index Number of wheatincreased by 0.36 percent from 137.1 to 137.6 while WPIof paddy increased by 0.20 percent from 148.5 to 148.8during the same period.

Weather, Rainfall and Reservoir Situation duringSeptember, 2017

Rainfall Situation

Cumulative Post-Monsoon Season rainfall for the countryas a whole during the period 01st October to 25th October,2017 has been 6% higher than the Long Period Average(LPA). Rainfall in the four broad geographical divisionsof the country during the above period has been higherthan LPA by 36% in East & North East India, 18% inCentral India, and 12% in South Peninsula but lower thanLPA by 98% in North-West India.

Out of total 36 meteorological Sub-divisions, 13subdivisions received large excess/excess rainfall, 06subdivisions received normal rainfall, 13 Sub-divisionsreceived deficient/large deficient and 04 subdivisionsreceived no rain.

Water Storage in Major Reservoirs

Central Water Commission monitors 91 major reservoirsin the country which have total live capacity of157.80 Billion Cubic Metre (BCM) at Full Reservoir Level(FRL). Current live storage in these reservoirs (as on26th October, 2017) was 109.88 BCM as against115.48 BCM on 26.10.2016 (last year) and 114.65 BCMof normal storage (average storage of last 10 years). Currentyear’s storage is 95% of last year’s storage and 96% of thenormal storage.

Economic Growth

The growth rate of GDP at constant market prices in firstquarter (April-June) (Q1) of 2017-18 was 5.7 per cent as

General Survey of Agriculture

compared to 7.9 per cent in the corresponding period ofprevious year.

The growth rate of GVA at constant basic prices forQ1 of 2017-18 was 5.6 per cent as compared to 7.6 percent in the corresponding period of previous year. At thesectoral level, GVA of agriculture, industry and servicessectors grew at 2.3 per cent, 1.6 per cent and 8.7 per centrespectively in Q1 of 2017-18.

As per the provisional estimates of national incomefor the year 2016-17, the growth of GDP at constant(2011-12) prices was 7.1 per cent in 2016-17 and thegrowth rate of GVA at constant basic prices for 2016-17was 6.6 per cent (Table 1).

The share of total final consumption in GDP atcurrent prices in Q1 of 2017-18 is estimated at 70.7 percent, as compared to 69.6 per cent in Q1 of 2016-17. Thefixed investment rate (ratio of gross fixed capital formationto GDP) declined from 29.2 per cent in Q1 of 2016-17 to27.5 per cent in 2017-18.

The saving rate (ratio of gross saving to GDP) forthe year 2015-16 was 32.3 per cent, as compared to 33.1per cent in 2014-15. The investment rate (rate of grosscapital formation to GDP) in 2015-16 was 33.3 per cent,as compared to 34.4 per cent in 2014-15.

Agriculture and Food Management

Rainfall: The cumulative rainfall received for the countryas a whole for South West monsoon during the period 1stOctober – 15th October, 2017, has been 14 per cent abovenormal. The actual rainfall received during this period hasbeen 57.7 mm as against the normal at 50.6 mm. Out of thetotal 36 meteorological subdivisions, 7 subdivisionsreceived large excess rainfall, 7 subdivisions receivedexcess rainfall, 10 subdivisions received normal rainfall, 3subdivisions received deficient rainfall and 5 subdivisionsreceived large deficient rainfall.

All India production of foodgrains: As per the 1stAdvance Estimates released by Ministry of Agriculture,Cooperation & Farmers Welfare on 22nd September2017,production of kharif foodgrains during 2017-18 is estimatedat 134.7 million tonnes, as compared to 138.5 milliontonnes (4th advance estimates) and 135 million tones(1st Advance estimates) in 2016-17 (Table 3).

Procurement: Procurement of rice as on 3rd October,2017 was 38.1 million tonnes during Kharif marketing

November, 2017 7

season 2016-17 whereas procurement of wheat was30.8 million tonnes during rabi marketing season 2017-18(Table 4).

Off-take: Offtake of rice during the month of August, 2017was 30.2 lakh tonnes. This comprises 27.3 lakh tonnesunder TPDS/NFSA and 2.9 lakh tonnes under otherschemes. In respect of wheat, the total offtake was22.2 lakh tonnes comprising 20.5 lakh tonnes under

TPDS/NFSA and 1.7 lakh tonnes under other schemes. Thecumulative offtake of foodgrains during 2017-18 is 29.4million tonnes (Table 5).

Stocks: Stocks of foodgrains (rice and wheat) held by FCIas on 1st September, 2017 was 48.2 million tonnes,compared to 42.8 million tonnes as on 1st September, 2016(Table 6).

TABLE 1: GROWTH OF GVA AT BASIC PRICES BY ECONOMIC ACTIVITY AT CONSTANT (2011-12) PRICES (IN PER CENT)

Growth Rate (%) Share in GVA or GDP (%)

Sectors 2014-15 2015-16 2016-17 2014-15 2015-16 2016-17PE PE

Agriculture, forestry & fishing -0.2 0.7 4.9 16.5 15.4 15.2

Industry 7.5 8.8 5.6 31.2 31.5 31.2

Mining & quarrying 11.7 10.5 1.8 3.0 3.1 3.0

Manufacturing 8.3 10.8 7.9 17.4 17.8 18.1

Electricity, gas, water supply & other 7.1 5.0 7.2 2.2 2.1 2.2utility services Construction Services

Construction 4.7 5.0 1.7 8.6 8.4 8.0

Services 9.7 9.7 7.7 52.2 53.1 53.7

Trade, Hotel, Transport Storage 9.0 10.5 7.8 18.5 19.0 19.2

Financial, real estate & prof services 11.1 10.8 5.7 21.4 21.9 21.7

Public Administration, defence and 8.1 6.9 11.3 12.4 12.2 12.8other services

GVA at basic prices 7.2 7.9 6.6 100.0 100.0 100.0

GDP at market prices 7.5 8.0 7.1 — —- —-

Source : Central Statistics Office (CS0). PE: as per Provisional estimates of GDP released on 31st May 2017.

TABLE 2: QUARTER-WISE GROWTH OF GVA AT CONSTANT (2011-12) BASIC PRICES (PER CENT)

Sectors 2015-16 2016-17 2017-18

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q 1

Agriculture, forestry & fishing 2.4 2.3 -2.1 1.5 2.5 4.1 6.9 5.2 2.3

Industry 7.3 7.1 10.3 10.3 7.4 5.9 6.2 3.1 1.6

Mining & quarrying 8.3 12.2 11.7 10.5 -0.9 -1.3 1.9 6.4 -0.7

Manufacturing 8.2 9.3 13.2 12.7 10.7 7.7 8.2 5.3 1.2

Electricity, gas, water supply & other 2.8 5.7 4.0 7.6 10.3 5.1 7.4 6.1 7.0utility services

Construction 6.2 1.6 6.0 6.0 3.1 4.3 3.4 -3.7 2.0

Services 9.3 10.1 9.6 10.0 9.0 7.8 6.9 7.2 8.7

Trade, hotels, transport, communication 10.3 8.3 10.1 12.8 8.9 7.7 8.3 6.5 11.1and services related to broadcasting

Financial, real estate & professional services 10.1 13.0 10.5 9.0 9.4 7.0 3.3 2.2 6.4

Public administration, defence and Other Services 6.2 7.2 7.5 6.7 8.6 9.5 10.3 17.0 9.5

GVA at Basic Price 7.6 8.2 7.3 8.7 7.6 6.8 6.7 5.6 5.6

GDP at market prices 7.6 8.0 7.2 9.1 7.9 7.5 7.0 6.1 5.7

Source: Central Statistics Office (CS0).


TABLE 3: PRODUCTION OF MAJOR AGRICULTURAL CROPS (1ST ADV. EST.)

Crops Production (in Million Tonnes)

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(4th AE) (1st AE)*

Total Foudgrains 257.1 265.0 252.0 251.6 275.7 134.7Rice 105.2 106.7 105.5 104.4 110.2 94.5

Wheat 93.5 95.9 86.5 92.3 98.4 ...

Total Coarse Cereals 40.0 43.3 42.9 38.5 44.2 31.5

Toral Pulses 18.3 19.3 17.2 16.4 23.0 8.7

Total Oilseeds 30.9 32.8 27.5 25.3 32.1 20.7

Sugarcane 341.2 352.1 362.3 348.4 306.0 337.7

Cottor# 34.2 35.9 34.8 30.0 33.1 32.3

Source: DES, DAC&FW, M/o Agriculture & Farmers Welfare, 3rd advance Estimates, # Million bales of 170 kgs. each. *only Kharif Crops.

TABLE 4: PROCUREMENT OF CROPS (IN MILLION TONNES)

Crops 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Rice# 35.0 34.0 31.8 32.0 34.2 38.1* 0.0

Wheat@ 28.3 38.2 25.1 28.0 28.1 23.0 30.8

Total 63.3 72.2 56.9 60.2 62.3 61.1 30.8

# Kharif Marketing Season (October-September), @ Rabi Marketing Season (April-March,), * As on 03.10.2017Source: FCI and DFPD, M/o Consumer Affairs and Public Distribution.

TABLE 5: OFF-TAKE OF FOODGRAINS (MILLION TONNES)

Crops 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18*

Rice 32.6 29.2 30.7 31.8 32.8 17.4

Wheat 33.2 30.6 25.2 31.8 29.1 12.0

Total 65.8 59.8 55.9 63.6 61.9 29.4(Rice & Wheat)

Source: DFPD, M/o Consumer Affairs, Food and Public Distribution. P: Provisional, *up to August 2017

TABLE 6: STOCKS OF FOODGRAINS (MILLION TONNES)

Crops September 1, 2016 September 1, 2017

1. Rice 16.5 18.2

2. Unmilled Paddy # 3.2 3.3

3. Converted Unmiled Paddy in terms of Rice 2.1 2.2

4. Wheat 24.2 27.8

Total (Rice & Wheat) (1+3+4) 42.8 48.2

November, 2017 9

Abstract

In this study, we estimate Total Factor Productivity (TFP)growth of paddy cultivation in 12 major paddy producingstates in India from 1999 till 2012. Previous studies haveapplied methods which require price data on inputs. But,this study applies a method called Malmquist index methodwhich does not require price information. This allows usto include rainfall as one of the inputs used in theproduction of paddy. Based on Cost of Cultivation data,the results show that states like Kerala and Madhya Pradeshhave the highest TFP growth rate. Bihar in eastern Indiais also not lagging behind. The entire TFP growth has beencontributed by technological change. Efficiency gain isyet to be realised in all the states.

Keywords: Paddy, Total Factor Productivity,Efficiency change, Technical change, Malmquist indexmethod, Data Envelopment Analysis Programming(DEAP)

1. Introduction

Rice cultivation in India covered an estimated area of 43.9million hectares, producing around 106.54 million tonnesduring 2013-14 (GoI 2014). In terms of value, riceoccupies top position among all the food items producedin India, followed by milk, wheat etc. In the internationalarena, India is the second largest producer of rice afterChina during 2012-13 (FAOSTAT). In terms of trade, Indiais a net exporter of rice compared to China. Till late 1980s,rice was mainly cultivated for domestic consumption. Bylate 1995-96, more than 4 million tonnes of rice wasexported to the world market, reaching around more than10 million tonnes by 2012-13 (Mohanty 2013).Surprisingly, China started to be a net importer during theseperiod.

Rice is the main cereal crop for majority of Indians.Irrigated area used for rice production was around 58.7per cent, whereas wheat production under irrigation wasaround 92 per cent (Table 1). Rice is a “water guzzler”crop; 2,500-3,000 litres of water is required for producingaround 1 kg milled rough rice (Bouman 2009). Hence, interms of scarce resource like water and irrigation, it meritsattention in terms of efficiency and productivity. In aresource constrained developing economy like India, it isimportant to measure the productivity and performanceof various sectors of the economy. As such, it becomes

Productivity, Efficiency and Technical Change: An Assessment of Paddy Cultivation inIndia

VARUN KUMAR DAS*pertinent to analyse and understand productivity andefficiency of different crops, which would help in formingbetter agricultural policies and strategies.

TABLE 1. AREA UNDER IRRIGATION FOR MAJOR CROPS

(2011-12)

( In percent)

Sugarcane 94.3Wheat 92.9Rice 58.7Coarse cereals 17.9Pulses 16.1

Source: Author’s calculation based on Agricultural Statistics at a Glance

Economic growth is determined by how much andhow productively factors of production are utilized in theproduction process. Productivity may be measured eitherin terms of partial factor productivity or total factorproductivity. Total factor productivity (TFP) growthmeasures that part of the output growth which is notexplained by input growth i.e., it is the difference betweenoutput growth and input growth. TFP is a better measureover partial factor productivity since it accounts for allthe factors involved in the production process. There area few studies which have documented agriculturalproductivity in India as a whole (Dholakia and Dholakia1993; Desai and Namboodiri 1997, Chaudhury 2012).There are also studies on crop specific productivity growth(Chand et al 2011, Kumar and Mittal 2006). Major wheatspecific TFP studies have carried out by Kumar andMruthyunjaya (1992) and Bhushan (2005). Kumar andRosegrant (1994) and Janaiah et al (2006) studiedparticularly the rice crop. Kumar and Rosegrant (1994)found that about one-third of paddy production growthduring 1971-88 could be explained due to TFP growth.Janaiah et al. (2006) found that modern varieties of paddyseeds like HYVs contributed towards TFP growth duringthe post green revolution period.

There are various methods of TFP calculation viz.growth regression, growth accounting, stochastic frontieranalysis etc. Except, Bhushan (2005), all other cropspecific TFP studies have used Törnqvist-Theil indexmethod. This method imposes certain theoreticalrestrictions while calculating TFP growth. First of all, itassumes some specific from of production functions. But,in reality, the production function is difficult to estimate.

* Ph. D. Student Indira Gandhi Institute of Development Research (IGIDR), Gen. A. K. Vaidya Marg, Film City Road, Goregaon (East), Mumbai - 400 065.


Pradesh (Table 5), followed by Orrisa at 2.3 per cent. Infact, Madhya Pradesh had the highest growth rates in allthe three modern technological inputs of farming likefertilizer, tractor use, irrigation. Fertilizer use in paddyfarming grew by around 7 per cent in Madhya Pradesh,whereas machine labour and irrigation showed animpressive growth of 16.3 and 25.8 per cent annually. Fromthis, we may guess that Madhya Pradesh is makingtechnological investments in paddy cultivation. Karnataka,on the other hand, shows a negative yield growth duringthis period. Orissa has the highest seed growth rate perhectare at 2 per cent annually.

TABLE 5: COMPOUND ANNUAL GROWTH RATE OF PADDY AND INPUTS (1999-2012)

States Yield Seed Fertiliser Manure Hum Lab Anim lab Mach lab Irrigation (kg/hect) (kg) (kg nutrients) (kg) (man hrs) (pair hrs) (index) (index)

Assam 1.8 -1.4 3.8 2.2 -0.8 -2.5 15.5 1.9

Bihar 0.2 -1.9 1.9 -24.1 -0.7 -7.4 0.5 25.8

Haryana 1.9 1.9 1 -9 -1.3 -7.6 -2.1 0.7

Karnataka -0.1 -1.1 1.1 -9.4 -3.3 -7.5 6.9 -3.8

Madhya Pradesh 3.7 -3.4 6.6 -1.6 -2.2 -9.7 16.3 -14

Orissa 2.3 2 -0.5 -0.5 -0.8 -0.7 7.6 -8.5

Punjab 1.7 1.7 1 -2.3 -0.9 3.4 -3.6 -4.2

Tamil Nadu 0.3 0.3 1.4 -1.3 -3.8 -17.5 3.3 -4.3

Uttar Pradesh 1.6 1.6 2.2 -8.4 -1 -6 1.4 3.9

West Bengal 1 -0.9 2.6 -1.7 -0.3 -5.6 4.2 -2

Kerala 2.1 2.1 2.4 -3.1 -4.5 -12.3 9 8.6

Source : Author’s calculation based on Cost of Cultivation data.

TABLE 4. ASSIGNMENT OF PERCENTAGE SHARE OF SEED

USED TO YIELD

Haryana 1

Punjab 1

Tamil Nadu 2

Uttar Pradesh 2

Kerala 2

Source: Author’s calculation based on Cost of Cultivation data.

TABLE 6. TFP, EFFICIENCY AND TECHNOLOGICAL GROWTH

INDICES 1999-2012 (WITH SEED INPUT)

EFFCH TECHCH PECH SECH TFPCH

Andhra Pradesh 0.6 5.4 0 0.6 6

Assam 0 -5 0 0 -5

Bihar 0 5.7 0 0 5.7

Haryana 0 7.5 0 0 7.5

Karnataka -1 2.7 -1.1 0.1 1.8

Madhya Pradesh 0 9.3 0 0 9.3

Orissa 0 2.3 0 0 2.3

Punjab 0 3.6 0 0 3.6

Tamil Nadu -1.3 5.9 -1.5 0.2 4.5

Uttar Pradesh 0 4.8 0 0 4.8

West Bengal 0 0.4 0 0 0.4

Kerala 0 9.6 0 0 9.6


TABLE 7. TFP, EFFICIENCY AND TECHNOLOGICAL GROWTH

INDICES 1999-2012 (WITHOUT SEED INPUT)


Andhra Pradesh 0.6 5.4 0 0.6 6.0

Assam 0 -5.3 0 0 -5.3

Bihar 0 5.7 0 0 5.7

Haryana 0 8.2 0 0 8.2

Karnataka -1.1 3.6 -1.5 0.4 2.4

Madhya Pradesh 0 9.3 0 0 9.3

Orissa 0.5 2.1 0 0.5 2.6

Punjab 0 3.9 0 0 3.9

Tamil Nadu -1.3 5.9 -1.5 0.2 4.5

Uttar Pradesh 0 4.8 0 0 4.8


Kerala 0 9.6 0 0 9.6


November, 2017 13

4. Results

We conduct our analysis in two levels: first, at all Indialevel by taking all the 12 states, and then second, we dividethe states into 3 regions viz. North, South and East. In theeast zone, we have Bihar, West Bengal, Assam and Orissa.In the south zone, there are Kerala, Tamil Nadu, Karnatakaand Andhra Pradesh. Since, we do not have data on any ofthe paddy producing western state, we club MadhyaPradesh with Punjab, Haryana and Uttar Pradesh to formthe north zone.

We find that the state with highest TFP growth rateis Kerala during 1999-2012 (Table 6). Annual TFP growthrate is around 9.6 per cent in Kerala. Madhya Pradeshclosely follows Kerala, with TFP growing by 9.3 per cent.These two states are unconventional states since Punjaband Haryana are presumed to be the most productive.However, the current results show the contrary. It isimportant to note that poorer states like Bihar are catchingup to the frontier. Haryana and Andhra Pradesh are theother two states where TFP grew at more than 6 per centannually. Bihar has shown an impressive TFP growth ataround 5.7 percent. In almost all the states TFP growthwas due to technological change only. There is regress inefficiency change in Karnataka and Tamil Nadu by about1 per cent during this period. Since, we have used estimatedseed data for five states where seed data was not available,we drop seed input from all the states and again estimatethe TFP results (Table 7). Results are almost similar tothose when we include the seed input for all the states.However, we notice that Haryana’s TFP increased toaround 8.2 per cent annually.

If we compare the states according to each threezones, then in the south zone, Kerala has the highest TFPgrowth at 9.3 percent annually (Table 8). Andhra Pradeshhas the lowest TFP growth of 2.5 per cent among all thethree states. When we compare the states in the north zone,we find that Haryana has the highest TFP growth rate of9.2 per cent (Table 9). TFP declined in the north zone forUttar Pradesh during this period. Bihar has the highestTFP growth rate of 13.8 per cent among all the four statesin the east zone (Table 10). TFP declined for Assam duringthis period by more than 5 per cent annually.

These findings are in sharp contrast to recent studieson productivity growth of paddy. Chand et al. (2010) foundthat TFP growth was the highest in Punjab at 2.3 per centannually during 1975-2005. However, this is a very longtime line. The results do not say much about the recentdynamics in paddy production. Also, there is no periodbreak up in their study. On the other hand, Janaiah et al.(2006) undertook paddy TFP study for pre and post-greenrevolution period of 1986-2000. Bihar had the highest TFPgrowth at 4.36 per cent, followed by Orissa at 2.36 percent. In the post-green revolution period, productivitygrowth was performing well in non-green revolution area.

However, the study is only till 2000. Samal (2011) in hisstudy on paddy, found that area under paddy declinedduring 2001-2010. Growth in paddy production only camefrom yield, which stood at around 1.5 per cent annually.The study finds Orissa, Haryana, and Madhya Pradesh tobe performing well.

TABLE 8. SOUTH ZONE TFP GROWTH INDICES 1999-2012


Andhra Pradesh 0 2.5 0 0 2.5

Karnataka -1.1 4.9 0 -1.1 3.8

Tamil Nadu 0 5.7 0 0 5.7

Kerala 0 9.3 0 0 9.3


TABLE 9. NORTH ZONE TFP GROWTH INDICES 1999-2012


Haryana 0 9.2 0 0 9.2

Punjab 0 0.8 0 0 0.8

Uttar Pradesh 0 -3.5 0 0 -3.5

Madhya Pradesh 0 5 0 0 5


TABLE 10. EAST ZONE TFP GROWTH INDICES 1999-2012


Assam 0 -5.4 0 0 -5.4

Bihar 0 13.8 0 0 13.8


Orissa 0 2.7 0 0 2.7


5. Observations

The current findings on TFP growth gives a clearer andbetter picture of paddy productivity growth among themajor states in the recent past. It gives the latest and up todata trend on TFP growth of paddy from 1999 to 2012. Itfills the gap for 2005 to 2012 (i.e. 7 years), since the lastavailable study was till 2005 (Chand et al. 2011). In allthe previous studies, Kerala was never considered whileestimating TFP growth of paddy. This may be becausepaddy cost of cultivation for Kerala is available only from1997 onwards. This implies that previous studies wereinferring from restricted number of states withoutconsidering Kerala, which has been performing the bestamong all the states in the recent decade. Also, we haveapplied a better methodology which does not require priceinformation on inputs. This allows us to be able to includerainfall as one of the input of paddy cultivation. Hence,this study gives the latest and more reliable TFP estimateson paddy TFP growth.


Out of all the three zones under consideration, southzone is the best performing. Kumar and Rosegrant (1994)found similar results for 1971-1988. Haryana in north zonehas highest TFP. But at all India level, Madhya Pradeshoutweighs Haryana. Bihar is the best performing state inthe east zone. Then the question arises is that whether Biharis reaping benefits from BGREI (Bringing GreenRevolution in Eastern India) project? BGREI project

started in 2010, but Bihar’s TFP growth in paddy startedby late 1990’s (see Janaiah et al. 2006 results). Hence,though BGREI may have contributed to Bihar ’sagricultural sector in general, but in particular, paddy TFPhas been growing in Bihar since long back. So, we seethat unconventional states are picking up in the last decade.Kerala and Madhya Pradesh has the highest TFP growthrate. Bihar is also not lagging behind.


FIGURE 1: TFP GROWTH RATE OF PADDY CULTIVATION 1999-2012 (ALL STATES)


FIGURE 2 : SOUTH ZONE TFP GROWTH RATE OF PADDY CULTIVATION 1999-2012

November, 2017 15


FIGURE 2 : NORTH ZONE TFP GROWTH RATE OF PADDY CULTIVATION 1999-2012


FIGURE 4 : EAST ZONE TFP GROWTH RATE OF PADDY CULTIVATION 1999-2012

This also shows that paddy cultivation is adoptingmodern technology in these states. However, all the TFPgrowth has been contributed by adoption of moderntechnologies like HYV seeds, tractors, better irrigationfacilities etc. Efficiency gain has almost remained constantduring this period in all the states. Therefore, there is ampleroom for efficiency gain for all the states.

We have applied data envelopment analysis in ourstudy. There are better methods available like sequential

Malmquist, GAMS etc. Hence, there is scope to checkwhether other methods endorse results we have found.Another observation is regarding farmers’ return fromgrowth in paddy productivity. TFP gain leads to savingson scarce resources for paddy farmers. Hence, the questionthat arises is whether gain in TFP has led to concomitantincrease in farmers earnings? Or, in other words, is paddyearnings higher in states with higher TFP? These are thequestions that emerges for further research.


6. Conclusion

Paddy is one of the most important crop cultivated in India.Both in terms of area and value, paddy occupies highestpriority. Efficiency gain in production process is bestgauged by estimating total factor productivity growth. Inthis study, we have estimated TFP growth in paddycultivation among all the major paddy cultivating Indianstates from 1999 to 2012 using Malmquist index methodof TFP calculation. Previous studies have appliedTörnqvist-Theilindex method which requires price dataon inputs. But, Malmquist index method is a superiormethod as it does not require price information. This allowsus to include rainfall as one of the inputs used in theproduction of paddy. The results show that states likeKerala and Madhya Pradesh has the highest TFP growthrate. Bihar in eastern India is also not lagging behind. Theentire TFP growth has been contributed by technologicalchange. Efficiency gain is yet to be realised in all the states.Hence, we may conclude that paddy cultivation in Indiahas been adopting modern technologies.

REFERENCES

Bhushan, Surya (2005) Total factor productivity growthof wheat in India: A Malmquist approach. IndianJournal of Agricultural Economics, 60(1): 32-48.

Bouman, Bas (2009) How much water does rice use? RiceToday, January-March, International Rice ResearchInstitute, Manila.

Caves, Douglas W., Christensen, Laurits R. and Diewert,W. Erwin (1982) The Economic theory of indexnumbers and the measurement of input, output andproductivity. Econometrica, 50(6): 1393-1414.

Chand, Ramesh, Kumar, Praduman and Kumar, Sant(2011) Total factor productivity and contribution ofresearch investment to agricultural growth in India.Policy Paper 25. National Centre for AgriculturalEconomics and Policy Research, New Delhi.

Chaudhary, Shilpa (2012) Trends in total factorproductivity in Indian agriculture: State-levelevidence using non-parametric sequentialMalmquist index. Working Paper No. 215, Centrefor Development Economics, Delhi School ofEconomics, Delhi.

Coelli, Tim J. (1996) A Guide to DEAP Version 2.1: DataEnvelopment Analysis (Computer) Program. Centrefor Efficiency and Productivity Analysis (CEPA),Working Papers 8/96, Department of Econometrics,University of New England, Armidale.

Desai, Bhupat M. and Namboodiri, N. V. (1997)Determinants of total factor productivity in Indianagriculture. Economic and Political Weekly, 32(52):A165-A171.

Dholakia, Ravindra H. and Dholakia, Bakul H. (1993)Growth of total factor productivity in Indianagriculture. Indian Economic Review, 28(1): 25-40.

FAI (Fertiliser Association of India) (various issues)Fertiliser Statistics of India, New Delhi.

GoI (Government of India) (2014) Agricultural Statisticsat a Glance. Directorate of Economics and Statistics,Ministry of Agriculture and Co-operation, NewDelhi.

GoI (Government of India) (a, various issues) Cost ofCultivation of Principal Crops in India. Directorateof Economics and Statistics, Ministry of Agricultureand Co-operation, New Delhi.

GoI (Government of India) (b, various issues) ConsumerPrice Index Numbers for Agricultural & RuralLabourers in India. Annual Report, Labour Bureau,Ministry of Labour, Shimla/Chandigarh.

GoI (Government of India) (c, various issues) Land UseStatistics. Ministry of Agriculture and Co-operation,New Delhi.

Janaiah, Aldas, Hossain, Mahabub and Otsuka, Keijiro(2006) Productivity impact of the modern varietiesof rice in India. The Developing Economies,XLIV(2): 190-207.

Kumar, Praduman and Mruthyunjaya (1992) Measurementand analysis of productivity growth in wheat. IndianJournal of Agricultural Economics, 47 (7): 451-458.

Kumar, Praduman and Mittal, Surabhi (2006) Agricultureproductivity trends in India: Sustainability issues.Agriculture Economics Research Review, 19: 71-88.

Kumar, Praduman and Rosegrant, Mark W. (1994)Productivity and sources of growth for rice in India.Economic and Political Weekly, 29(53): A183-A188.

Mohanty, Samarendu (2013) Game changers in the globalrice market. Rice Today, July-September,International Rice Research Institute, Manila.

Samal, Parashuram (2012) Growth in Production,Productivity, Costs and Profitability of Rice in Indiaduring 1980-2010. Mimeo. Central Rice ResearchInstitute, Cuttack.

November, 2017 17

Abstract

This paper is an attempt to study the drought in its specificsocio-historical context. It also looks at the copingmechanisms employed by different social groups and theirinterdependence, specifically the marginalized groups whocarried out Jeetha system in a form kin to debt bondagerelation for their sustainability to counter the erraticbehavior of rainfall during droughts. It also tries to explainthe coping mechanisms of the poor rural households intimes of drought that reflect various problems with regardto the capacity to migrate, and rituals practiced duringdroughts. The study also examines the role of theGovernment institutions in mitigating the droughtsituations.

Keywords: Drought, Coping Mechanism, Jeetha System,Debt Bondage Relationship, Migration, Rituals,Untouchability, Sustainability.

Introduction

Drought is a meteorological phenomenon which resultsfrom a long continuous dry weather, and lack orinsufficiency of rain which causes exhaustion of soilmoisture, withering away of plants for shortage of water,depletion of underground water supply and reduction, andeventual cessation of stream flow (Tapeshwar Singh, 1978).Drought is defined as ‘continuous dry weather‘characterized by lack of rainfall. Droughts are generallyconfined to the limited localities and for shorter periods oftime. In the present study, drought is regarded as the scarcityor insufficiency of rainfall along with social factors to meetthe requirement for livelihood of the people living indrought-prone regions (Quraishi, 1989).

Drought had adversely affected the livelihoodconditions of both the cultivators, the landed and landlessagricultural labour households. The decline in the level ofliving is more in the case of medium and small farmers,more than the landless labourers. The farmers, in addition,suffered loss of assets in the form of livestock, utensilsand even land (Sulabha Brahme, 1983).

About 58 per cent of India’s districts, that is, 352out of 604 across 15 states had been declared to be drought-affected by May 2009, where the monsoon had fallen shortby 22 per cent. The drought of 2009 affected the foodsecurity of marginal and small farmers. According to Union

Drought and Drought Coping Mechanisms in Rural Mahabubnagar District of TelanganaState: A Historical Perspective

K. BHASKER1

Agriculture Ministry’s Drought Crisis Management Plan,it was assessed that 68 per cent of the country was prone todrought, with nearly 33 per cent of area having a chronicdrought problem, and 35 per cent found to be droughtprone. Gradually, the severity of the drought proneness hadincreased by 57 per cent since 1997 and every third districtin the country suffered from drought (Richard Mohapatra,2013).

The National Commission on Agriculture in Indiahad classified three types of drought viz. Meteorologicaldrought, Hydrological drought and Agricultural droughtbased on the concept of its utilization.

Meteorological Drought: Meteorological drought occurswhen there is a significant decrease from normalprecipitation over an area (i.e., more than 10%). The droughtis considered “moderate”, if the deficiency is between 26and 50 per cent, and severe if it is more than 50 per cent.

Hydrological Drought: Prolonged meteorological droughtresulting in depletion of surface water from reservoirs,lakes, streams, rivers, cessation of spring flow and fall ingroundwater levels causing severe shortage of water forlivestock and human needs is called hydrological drought.

Agricultural Drought: This occurs when soil moistureand rainfall are inadequate during the crop growing seasonto support a healthy crop growth to maturity, with thesituation causing extreme crop stress and wilting (Droughtmanagement in India, 2016)1. During the recent times,years of all India droughts were 1972, 1979, 1982, 1987,2002 and 2009 (History of droughts, 2016)2. The concernof the present study is more with agricultural drought thanmeteorological or hydrological droughts.

The undivided state of Andhra Pradesh hadexperienced drought conditions in the recent past. The stategovernment had declared 234 Mandals in nine districts ofthe state as drought-hit in 2012 due to dry spells, reductionin yield and rainfall deficiency. The poor rainfall wasreported in Mahabubnagar district during the year 2012-2013, i.e., 564.3 mm against 603.4 mm normal rainfall3

with a rainfall deviation of -39.6% on the negative side.The Mandals in Ananthapur, Chittoor, YSR Kadapa,Kurnool, Prakasham, Vizianagaram, Mahabubnagar,Guntur and Nalgonda were declared as drought-affected(Indian Agrarian Crisis, 2013)4.

* PhD Research Scholar, Centre for Economic and Social Studies (CESS), N.O. Campus, Begumpet, Hyderabad-16.E-mail: [email protected]


Literature Review:

A review of the available literature on the proposedresearch is made in order to locate the relevance of thepresent study.

Olsen, Wendy. K. (1987:441) in the paper entitled‘Man made Drought in Rayalaseema’, asserted that manyfarmers in Western Chittor district, Rayalaseema, assumedthat the rains have permanently decreased. The increasein evaporation and run off resulting from intensiveirrigation of drought hit lands must be taken seriously as acause of the present water shortage. Hence, they resortedto pump up ground water, lowering its level over time.

Madhusudan Dattatraya Sathe (1987:924), in thepaper entitled ‘Maharashtra: Causes of RecurrentDrought in Ahmednagar’, says that the problem of droughtcould be overcome only by enlarging the social basis ofsharing of irrigation water and enabling the poor dry landfarmers to get an access to the irrigation water. This alonewould stabilize dry land agriculture.

Janaki Nair (1986:767) in the paper entitled ‘ManyFaces of Drought’ says that previously only landlesspeople used to go out to work but nowadays even thosewith land have been forced to seek work.

Govind Babu, R.K. Sing and Babu Sing (2004:125)in the paper entitled ‘Socio-economic impact of watersheddevelopment in Kanpur’, say watersheds help the farmersin diversifying and intensifying the agricultural activity ina manner that enables them to augment their income andemployment. They also stressed on the maintenance ofthe nutritional standards, particularly of the poorer andmost vulnerable sections, the aged, the infirm, pregnantand lactating mothers, children, etc.

Martha Alter Chen (1991) in the book ‘Coping withSeasonality and Drought’, pointed out that the relationshipbetween the patrons (Jajmans) and their clients (Kamins)was not contractual. The Jajmans guarantee not onlyregular payments but also periodic gifts and concessions(eg., food and clothing) only in the normal years and inperiods of overall shortages, such as the drought, manyJajmans are forced to withhold payments. Though thisstudy throws light on the impact of drought creating thedisputes in Jajmani relationship, it had not shown itsassessment of the implication of disruption.

Purendra Prasad, (1998) in his book ‘Famines andDroughts: Survival Strategies’, which is deeply rooted inthe concepts and the theories of cultural ecology and theparticipatory methods of cultural anthropology, brings outmuch clarity on the situation of people who experienceprolonged drought. Social and Economic impacts ofdrought on the life and society of drought-prone areas inIndia are poorly understood, especially at the level ofanalysis. He had used the concept of adaptation to depicttheir responses to drought.

Surinder S. Jodhka (1994) in the paper titled‘Agrarian changes and attached labour: Emerging Patternsin Haryana Agriculture’, had asserted that the system ofattached labour was locally termed as the ‘Sajhi’ or ‘Siri’system where Sajhi’s were almost indebted to theirlandlords for the credits they have taken for certainpurposes like weddings, illness and to meet consumptionexpenditure for the family. The attached labourers ofdeprived category in the agrarian society functioned moreas a labour mortgage system for interest free credit ratherthan a subsistence guarantee type that which is stillperpetuated through prolonged indebtedness which haselements of un-freedom. Due to the growing dislikes ofthe relationships occurring among labourers which creatednot only tensions but also the problem of availability ofemployment outside agriculture altogether, it had resultedin a gradual decline of the system.

M.Krishnaiah (1998) in his paper titled ‘Regularfarm labour system in Semi-Arid Areas: Emerging Patternin Andhra Pradesh’, had observed the changing nature ofattached labour sort of relationships into contract migrantlabourers that existed between agriculture labourers andemployers in semi arid rural areas of Andhra Pradesh. Hehad discussed about the Regular Farm Labours who arecategorized into herdsmen and plowmen on the basis ofnature of duties they performed and in return for theirservices, they were provided with cash and kind thatincluded blanket, Chappals, bidis, 45 kgs of paddy andeven with the remuneration of Rs.2,200for herdsmen andRs.3000 for ploughmen per annum.

Emerging Research Gap:

Most of the studies from the above literature had broadlydiscussed implementation of the issues such as watershedprojects, groundwater irrigation and its utilization, copingstrategies in terms of socio-economic variables duringdroughts leading to loss in food production of grains andemployment of labour. Some studies examined theexistence of the attached labour system and how in returnfor their services they are provided with interest free loansfor their sustenance. But they have not examined theseverity of drought and its impact particularly onvulnerable sections, who are carrying out the Jeetha systemin compulsion for no interest free credit system. There isstill a lack of micro studies, particularly in the context ofthe impact of drought on the marginalized sections of thesociety related to socio-economic and socio-culturalaspects affecting their livelihood pattern. The present studytried to look whether the issues related with drought inthe village along with the dominance of rich landowningcastes of cultivators like Reddys over vulnerable sectionssuch as castes of agriculture labour, scheduled castes andscheduled tribes have been carried out in order to earntheir livelihood and what enabled them to adapt different

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coping mechanisms over the years in order to derive theirsustenance in the study village.

The paper is divided into three sections. Section-Ipresents the introduction which includes a brief discussionabout the background of the study, study area, objectivesof the study, data base and methodology. Section-II bringsabout a complete profile of the study area, i.e., generalfeatures of Mahabubnagar district in terms of its variouscharacteristics, impact of drought, coping strategies andthe relief measures adopted or implemented by thegovernment in this district. More specific discussionfocuses on the situation in the study village. The lastSection (Section- III) summarizes the general findings ofthe study and some suggestions are given on how tominimize the severity of drought.

Research Questions

Keeping these issues under consideration, the presentpaper addresses the following important research question:what are the factors which are influencing the copingmechanisms? To address this question, the present paperaims at studying different factors influencing the successof coping mechanisms during the situations of drought.

Objectives of the Study:

The main objectives of this paper are: (i) To study thedrought in its specific socio-historical context in the studyvillage; (ii) To study impact of drought on marginalizedgroups and their coping patterns in the drought affectedvillage; and (iii) To analyze the role of the state governmentin addressing the concerns of different social groups.

Methodology: Study Area- The study area is GudibandaVillage of Devarkadra Mandal of Mahabubnagar Districtin Telangana State where the field work was carried outduring the year 2012. The present study concentrated onMahabubnagar district of Telangana where drought is themost frequent, often leaving devastating disasters.Mahabubnagar district was chosen as the representativearea because it truly depicts the climate variation whichoften takes place in the state. Erratic rainfall and othergeographic conditions of the district further aggravate thedrought situation. According to the official data, the SouthWest Monsoon forms a lions share of the total rainfall forthe year (Fig. 1). South West monsoon usually commencesin the meteorological week 23 - 25 (June 4 – 24) in thisregion. The distribution of rainfall during meteorologicalweek 23 – 42 ultimately decides the fate of rainfed Kharifcrops in this district.

FIG 1: RAINFALL DISTRIBUTION IN MAHABUBNAGAR DISTRICT: 1980- 2011

However, a closer observation with fig. 1 indicatesskewed and deviated pattern of rainfall throughout theyears in the District. As Irrigation facility is lacking inthis district, agricultural operations of the area are totallydependent upon timely arrival of monsoon in appropriatequantity.

Source: GoAP, Compiled from Statistical Abstracts, different years, DE&S, Hyderabad.

Land Utilization Pattern in Mahabubnagar District

Figure 2 on land use pattern of Mahabubnagar district from1990 to 2012 illustrate how land put to non-agriculturaluse shows an increasing trend over a period of time,whereas the net sown area shows a declining trend5. Thiswas all because of the frequent occurrence of droughtalmost every year.


FIG. 2: LAND USE PATTERN IN MAHABUBNAGAR DISTRICT: 1990-2011

ear.

Source: GoAP, Compiled from Statistical Abstracts, different years, DE&S, Hyderabad.

The study village Gudibanda of Devarkadra Mandalis purposively selected as it is one of the dry land villages.It is a multi-caste village providing information on variousitems like occupation, income, land ownership, Jeethasystem, Debt bonding relations, untouchability, socialrelations and social status for research study. Therefore,the chosen village provides rich data in understandingparticularly the socio-cultural and socio-economicrelations affecting the livelihood conditions in the society.

Fieldwork Data and Techniques:

As drought is a natural geographical phenomenon, it hasto be studied in various situations under varied socio-cultural and socio-economic conditions. The study hasbeen carried out using anthropological and sociologicalapproaches. To understand survival strategies related tospecific geographic locations and specific caste groupsinvolved in farming, some in agriculture labour and fewin work related to wage labour, a researcher has to takethese factors into consideration. The socio-culturalresponses and their adaptations to drought and also theirspecific socio-historical context on drought of the regionhave also been taken into account. Attention has also beenpaid to the Jeetha (annual attached labour) cattle keepers,landless labourers, agricultural labourers, small andmarginal farmers who really bear the brunt of ecologicalcrisis such as drought.

The study has its main focus on the socialimplications of vulnerability, specifically of themarginalized groups during the drought periods whichexisted between 1970 and 1992. This is a qualitative micro-level study aimed at understanding the process of drought,role or efforts of state Government and their impact,

particularly on marginalized sections who are morevulnerable in the selected village. For the present study,all the 222 households in the village have been selected(Village Census/ Census survey method). In order to fulfillthe objectives of the study, qualitative and quantitativemethods were used in the study. The fieldwork techniquessuch as participant and non-participant observation,interviews, both formal and informal using detailedchecklist, and case studies along with the focus groupdiscussions were conducted. Socio-demographic data aswell as data related to seasonal migration, occupationalchanges, farming and non-farm activities has beencollected from every household affected by the droughtin the study village. The collection of data on historicaldroughts over the years was possible by memory recallparticularly by the knowledgeable old persons who arefamiliar with local circumstances.

History of Droughts in Mahabubnagar District

Famine, as commonly understood is a thing of the past,particularly with the development of communicationswhich facilitate the rushing of foodgrains to the areas ofscarcity in times of necessity. Mahabubnagar district,however, was affected by famines during A.D. 1803-04,1832-33, 1853-54, 1865-66 and 1876-78. In the Twentiethcentury, the district suffered once in 1918-19 when theMandals of Achampet, Kalvakurthy, Mahabubnagar,Makthal and Nagarkurnool were badly affected.After 1920, there were no famines except droughtconditions which recurred about seven times in the district.Out of them, the droughts which occurred during1957-58, 1960-61 and 1963-64 were, to some extent,severe (Andhra Pradesh District Gazetteers,Mahabubnagar, 1976:76).

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Drought Years in Gudibanda Village: According toVillagers’ Perception

The respondents of the village mentioned some years inwhich they experienced droughts. The year were 1970,1971, 1972, 1974, 1975, 1976, 1978, 1980, 1981,1983, 1985, 1987, 1989, 1990, 1991, 1992, 1998, 2000,2002, 2003, 2006, 2007, 2009, 2011, 2012. According tothe villagers, there are two most severe drought years andthe remaining were not so severe. Pedda Karuvu (droughtwith huge impact-1970) and China Karuvu (Drought withmoderate impact-1980 ). During these periods the villagershad lost everything as the crops got adversely affected.They did not have any food grains left to consume andtheir financial conditions were bad leaving them indebtedto moneylenders. The sufferers were mostly theagricultural labourers, small and marginal farmers. Dueto these reasons, the small and marginal farmers are madeto cope up with different occupations apart from investingin the agriculture related works.

Pedda Karuvu (1970’s Drought with huge impact)

Villagers’ Perceptions

During this period, they consumed Cherla DhumpaGaddalu 6 and grass leaves near the outfields of the driedCheruvu (water tank) in the village. They would boil thisDhumpa Gaddalu, remove the outer layer and consumethem. Thonangi7 grass seeds grown near Millet crop fieldswere crushed to powder, boiled in hot water and madeinto to paste like Sankati (gruel) and consumed. They wereconsuming the leafy vegetables like Gangavayal Kura(portulaca oleracea) Puntikura (hibiscus cannabinus)grown near Cheruvu (tank). They would boil these leafyvegetables along with Pachchi Mirapakayalu (greenchillies) and make it into paste. They were preparingChinta Pulusu made out of Tamarind leaves and consumeit along with Jonna Sankati (Jowar gruel). There werefew cases where as people had no money, they had tosurvive only with water.

As there was drought situation prevailing in the studyvillage between 1970-1992, there was no adequate waterfor humans and livestock as well. Gradually, the stock offodder was getting reduced the survival of the livestockbecame a big challenge. Farmers were growing thetraditional crops like Jonnalu (Jowar) Arkalu (Red Jowar),Ulavalu (Horse gram), Ragulu (Red Millet), and Sajjalu(Bazra). Even though there was a low demand for them inthe market, farmers were growing these drought-resistantcrops.

During 1970’s, the agricultural lands were mostlycultivated by Reddys who have been the dominant castein the village. Most of the vulnerable caste like theBackward Casts and Schedule Casts could not afford toon own a small patch of agriculture land but the proportionof land owning was less when compared to other

Cultivators like in (Reddys). Most of the villagers used tofetch water from the wells which belonged to Reddys. TheSCs and STs were facing problems in fetching the wateras they were not allowed to take water for drinking purposefrom the wells in Reddys’ houses but were provided onlyin their farm houses. SC’s were working as Jeetha8 underReddys and were paid Rs.300 per year.

When they go for wage labour work in the villagefor one day, women and men were paid twenty five paiseone rupee fifty paise respectively. During drought periods,as crops get dry and fail, the Reddys buy the Jowar andSajjalu (Bazra) from the retail shop owners in DevarkadraMandal and Mahabubnagar by paying the amount toprovide the food for people who were working as Jeethain their fields. They do this as they want to continue thesepeople as Jeetha’s so that they can use their services intheir agricultural fields for the next season. From the year1985 onwards, the other caste of BC’s belonged to castesof agriculture labour like Boyas have started owning smallpatches of lands which they used to cultivate. Whendrought situations occur, the disadvantaged sections likeMadiga and Boyas used to migrate to the neighbouringvillage and work as wage labourers and do farm work inthe agriculture fields. They would earn some money andreturn to the village during the month of March-April toclear the earlier debts and start the preparatory works forthe next Kharif season. There were some instances whenthey mortgage their gold ornaments like “Pusthelbottu”(Nuptial Knot) to the shopkeepers or to wholesale shopowners in Devarakadra Mandal to get 2 bags of seeds tosow sown in the agricultural fields during Kharif season.Then after the harvest of the crop they had to repay doublei.e., four bags of seeds as interest to that shop owner aprocess which is termed as ‘Naagu9’ where they clear thedebt and take back the “Pusthelbottu”.

Chinna Karuvu (drought with moderate impact-1980)

Though Chinna Karuvu had not seriously affected the livesof people, it had created troublesome situation in thevillage. During this period, people had consumed thecustard apple and leafy vegetables grown in the outskirtsof the village boundaries for survival. As it became ahabit of experiencing droughts frequently, out of 222household respondents, three-fourths of them could notspecify the drought years because they always felt thatthey were under drought situations.

Coping Mechanisms with Drought

Jeetha System (Debt bondage relationship)

Case Study: During 1970s drought, Maasanna aged (75)and his wife Ashamma (60) with two children, andbelonging to the Boya caste, had a small patch of half anacre of dry land. As they were not financially well enoughin investing money on crops due to the existing droughtsituations in their village, they began to work as Jeetha,


to earn money for survival of their family. The couple whobegan to work as Jeetha (annual attached labour) underSri Rama Reddy were kept busy during the day and nightas well. During the day, they were kept busy withagriculture related work like “Mota Kottadam”, i.e.,traditional method of drawing the water to irrigate landwith the help of two bulls and Bukkena (leather bucket)and sowing crops. During nights, they were kept busy indoing domestic works like crushing Vadlu (paddy) andJonnalu (Jowar). In the next day morning, they were beingprovided with Jonna Sankati (gruel) in Chippa (bowl).They would consume part of it and take along theremaining one to give it to their children as they neitherhad the time nor energy to prepare the food at home. Inthose days, the couple used to work for 10-15 yearscontinuously due to the recurrent drought situations andunavailability of wage work in the village. Ashamma wasmade to carry out the domestic work for which she wasnot being paid in cash but provided two Sers of paddy inkind, left in the field during harvest time. The Jeetha waspaid Rs.300 per year and was given a one quintal of paddyfor “Naagu” during harvest time. The term “Naagu”means for one quintal of paddy provided to Jeetha in returnhad to pay back two quintals of paddy to his Reddy ‘Dora’10

during the next year. If he did not pay back, then he becameindebted to his owner and in order to clear his debt, againhe had to work as a Jeetha for the next one year as well.As this trend continued many of the people were forced towork as Jeetha almost permanently for years on as theywere not financially sound enough to clear their debts.Maasanna also could not pay back the debts to his ownerand this made him to continue to work as Jeetha for years.This is a kind of trick or mind game played by caste ofcultivators or employers group towards the vulnerablesections of the society in order to keep their hold onpersons and make them work on their fields.

They are aware that they cannot survive withoutwork in the village so they continued to work as Jeethaand maintain the Debt bondage relationship11 for years.This is because as they do not have awareness in goingfor work outside the village, this made them to work as aJeetha for years together.

Seasonal Migration

Very few individuals were resorting to seasonal migrationfrom the village as there was lack of awareness with regardto migration. This is another way of coping mechanismsused by these individuals in order to survive to droughtsin the study village. During the drought situations as therewas not enough work provided in and around the village,they were forced to go for seasonal migration as contractlabourers for 7 months to places like Bombay and Lathurin Maharashtra. They were provided Rs.100 to Rs.150 perperson in advance and provide food with shelter. Theywere given one rupee fifty paise per day and for one month

they were provided with Rs. 45 and for 7 months it isRs.315. But majority of them do not showed interest asthey feel insecure staying outside the village and wereinterested working as Jeetha under the Reddy’s of Castesof Cultivators.

Modifying Consumption

The Madigas, a scheduled caste of leather workers usedto take the sickly or dead cattle like cows or bullocks ofthe Reddys, slaughter them and distribute amongthemselves. The thin fat content of the flesh were used ascandles which gives light during the nights. The skin ofthese dead cattle are used in preparing items like Chappulu(sandals), Charlakola (leather whip) and Bokkena (leatherbucket) which is used for pumping up water from wellsinto the agriculture fields. Preparing such leather itemsserved as their main occupation. These were kept for salein Market place or in open place in the village. They didnot even have beds but slept on leather made blankets.Not only the SC Madiga but also agricultural laboursBackward Castes like Boya, Telugollu also worked asJeetha in the houses of the Cultivator Caste.

Livestock Fodder

They were providing Kanugaakulu (Pongamia leaves),Yaapaaku (Neem leaves), Yeethaakulu (palm leaves),Thunga gaddi (nut grass) as a fodder to livestock andbullocks during drought situations as there was no propergrass grown due to inadequacy of water availability.

Selling Assets

There were also the instances like the poor selling awaytheir utensils made of bronze like Bindelu (pots) for tenrupees, glass for ten rupees and steel plates for Rs.15 andbuy Jowar (Jonnalu) and Sajjalu (Bajra) for theirconsumption needs.

Customs and Beliefs Practiced during Droughts

Untouchability

During the last forty years, there had been a system whichwas strictly followed as a custom in the village. That is,from amongst the Madiga households of the village, a maleand female member of a household had to compulsorilywork in the house of the Reddys as a Jeetha completelyfor a period of one year. They were supposed to provideservice in preparing the leather made objects to all thefamily members of that particular household. In return theReddy provided Sankati and Ambali in separate bowls(chippa) to entire Madiga family along with the 5 bags ofpaddy in kind at the time of harvesting. They used toprovide water in a separate pots for drinking and they usedto carry these pot after finishing the work. The Cultivatorcastes never allowed them to enter into their houses; theywere made to work in an open compound of theirrespective houses. This clearly shows that untouchability

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continued to be practiced in the study village. On a rotationbasis each alternate year the Madigas were made to movefrom one Reddy household to another. This was becauseof the dominance of the upper castes on the mostvulnerable caste like SCs. Another reason is that as theSCs were not holding the lands and found no work in thevillage due to recurrent drought situations, they wereforced to depend on the Reddy cultivators for earning theirlivelihood. In those days, not all the Madigas whobelonged to SC caste had even kutcha houses. They usedto build tarpaulin tents for temporary shelters near theresidence of the Reddy “Dora”. The major proportionof the people who worked as Jeethas under the Reddysare the Madigas.

Rituals Practiced during Droughts

Leaving the Village (Vuuru Vadili Velladam)

Case study: Kondanna, aged (75) who belonged to a Boyacaste shared his experiences spread over the past 60 years.An incidence took place when he was 15 years old. Asthere were severe drought situations in the study regionthe villagers had approached the Brahmins in temple ofthe Devarkadra Mandal who advised them to perform aritual at the surroundings of the village. The ritual includedalmost all the village members from infants to aged whowere made to leave the village to an open dug well thatdried up completely at outskirts, which is 2 km away fromthe village. They were made to perform puja (worshipGod) near the well by applying kumkum (Vermilion) tothe walls of the well and breaking coconuts. They hadalso taken the raw rice and Atukulu (flattened/whippedrice) along with them where they had cooked the rice afterperforming puja. They consumed the food and slept therefor the whole night. They said that by staying outside thevillage for one day and night they had a belief that therecould be rains in the village. After this incidence thereappeared normal rains in the village for two consecutiveyears.

Role of Government

During the Colonial period, droughts led to famines andmass starvations. The beginning of colonial period wasalso marked by the onset of severe droughts and famines.During the famine of 1770, one-third of the population ofthe Hyderabad province had perished. The colonial eraended with the great Bengal Famine of 1943, in whichthree million people had perished (Dubashi, 1992). Duringthe British rule, there appeared to be a marked differencein times of acute distress. As there were no rules andguidelines in implementing policies towards famines, theameliorative measures which were taken were purelytemporary.

During the drought situations, the people in ruralareas had to depend on the Government and assume thatthe Government has the responsibility in helping them to

come out of distress. During the Colonial period themeasures taken to mitigate the distress due to droughtsare temporary. In the post-colonial period, long termmeasures began to be taken by the government.

In the post-Independence period, the prime concernof the Government had been to look after the welfare ofthe people. As the majority of the population resides inrural areas the State Government had formulated manyrural development schemes in accordance with the CentralGovernment such as Integrated Rural DevelopmentProgramme (IRDP), Training for rural youth under SelfEmployment (TRYSEM), and supply of improved tool kitsto Rural Artisans (SITRA) in the financial year 1978 andextended them throughout India by 1980 (PlanningCommission, 1982)12. Few programmes such as PradhanManthri Gramin Awaas Yojana (PMGAY), MahatmaGandhi National Rural Employment Guarantee Schemes(MNREGS), Drought Prone Area Programme (DPAP),Desert Development Programme (DDP), Development ofWomen and Children in Rural Areas (DWACRA), etc.,had come up in the year 198513. Over the years i.e., from1970s to 1985’s the Government had taken different reliefmeasures to eradicate the adverse situation of drought inthe study village.

Although the majority of the Governmental Schemeswere planned to help the scheduled caste, scheduled tribesand castes of agriculture labour, most of them are not in aposition to utilize them because of the technical rulesimposed by the Government. Again, within the landedcategory, relatively well-off people belonging to mediumand small farmers received benefits as compared tomarginal farmers who are really needy because permissionfor sanctioning the lemon and mango orchards was givento the small and medium but not the marginal farmers.Thus, the drought mitigating measures which wereundertaken by the Government during the drought periodsdid not serve in fruitful manner as they were not reallyreaching the needy people.

Conclusion

The marginalized groups are restricted only in modifyingconsumption levels and selling assets during droughts. Asthey do not have awareness in resorting to seasonalmigration, vulnerable groups of the society such asScheduled Castes and few sections of the Castes ofAgriculture labour were not financially well enough toinvest money on crops due to existing drought situationsin the study village. This made them to work as Jeetha assuch to earn money for their sustenance. They havemaintained debt bond relationship over years in the studyregion. Everybody in the village gets affected by drought,but the severely affected were the Scheduled caste Madigasas many of them did not have agriculture lands, even ifthey have continued to be victims of droughts over years.Hence, the only option left for them was to work as Jeetha


under the Reddy dora. The ground reality from the presentvillage study shows that the dominant households fromthe caste of cultivators have been setting the patterns, termsand conditions of Jeetha system. This includes that all themembers of the employee family should render servicesto the landlord family for 24 hours involved in agriculture,as herdsmen, and also in domestic work. For this theemployer provides them with three meals per day for theJeetha family. Other than this as rendering his services inexchange, the Jeetha gets a cash amount of Rs. 300.Besides this he also received 50 kgs of paddy for notinterest free loan but he was supposed to payback doubleof it i.e., 100 kgs of paddy at harvest time. This systemwas called ‘Naagu’. In this way the households ofCultivator castes were exploiting the deprived sections byimposing ‘Naagu’ system as a part in terms of theircontracts, of course, which were not interest free. Whenlabourer under Jeetha were not able to pay back the shareof paddy they had taken from the Reddy dora, then hebecame indebted to his owner and in order to clear hisdebt again he had to work as a Jeetha for the next year. Asthis trend continued many of the people were compelledto work as Jeetha almost permanently for years on, asthey were not able to clear their debts. As they lack theawareness in going outside the village for work and nowork is found in the village due to drought situations, theycontinued to work as Jeetha and maintained debt bondrelationship for years. This was a kind of trick or mindgame played by Cultivator caste on the vulnerable sectionsof the society in order to keep their hold on labourers soas to make them work on their fields. Altogether, thereexisted a situation of different caste groups and their inter-dependence during normal and drought years as well. Thedrought mitigating measures that had been undertaken bythe Government during the drought periods did not servethe purpose well as they were not really reaching the needypeople. So, there still exists a greater scope forimprovement in implementation of the schemes. Therefore,the Government should take an initiative by restrictingthe manipulations of well-off people in the village bydiversifying the welfare schemes so that these schemeswould reach the really needy people like the marginalizedsections who are the most vulnerable in the society.

REFERENCES

Andhra Pradesh district Gazetteers, Mahabubnagar (1976),Hyderabad: The Government of Andhra Pradesh atthe Government Central Press.

Chen, Martha Alter (1991), Coping with Seasonality andDrought, New Delhi: Sage Publications.

Dubashi, P R (1992), “Drought and Development”,Economic and Political weekly, 27(A-27-A36),pp.22-35.

Imperial Gazetteers of India, Provincial series Hyderabadstate (1909), Calcutta: Superintendent ofGovernment Printing.

Janaki, Nair (1986), “Many Faces of Drought”, Economicand Political weekly, 21 (18), pp.767-769.

Madhusudhan Dattatreya, Sathe (1987), “Maharashtra-Causes of Recurrent Drought in Ahmednagar”,Economic and Political weekly, 22(24), pp.924-926.

Olsen, Wendy K (1987), “Man made drought inRayalaseema”, Economic and Political Weekly,22(11), pp.441-443.

Prasad, Purendra (1998), Famines and Droughts SurvivalStrategies, Jaipur and New Delhi: RawatPublication.

Quraishi, MA (1989), Drought Strategy, Delhi: B RPublishing Corporation.

Sulabha Brahme (1983). “Drought in Maharashtra 1972”,Social Scientist, 1(12), pp.47-54.

Singh, Tapeshwar (1978), Drought-Prone areas in India,New Delhi: People’s Publishing House.

Govind Babu, R.K. Singh and Babu Singh (2004), “Socio-Economic Impact of Watershed Development inKanpur”, Agricultural Economics Research Review,17, pp.125-130.

Mahapatra, Richard (2013), “Drought threatening foodsecurity”, India Disaster Report II RedefiningDisasters edited by S. Parasuram and UnniKrishnana, Oxford University Press.

Notes:1. http://www.gktoday.in/blog/drought-management-in-

india/ (Assessed on 4 November 2015)2. http://www.outlookindia.com/magazine/story/india-

the-history-of-drought/209341 (Assessed on July2017)

3. Census of India 2011.4. http://agrariancrisis.in/tag/drought/ (Assessed on 8

November 2015)5. Statistical Abstract of Andhra Pradesh. Directorate

of Economics and Statistics, Hyderabad.6. Small tubers like structures that grow near the

outfields of the water tanks.7. Type of grass creeper in nature that provide seeds.8. The form of Annual attached labours under land

owners or employers was locally termed as Jeetha.9. Taking 2 bags of paddy and returning double i.e.,

4 bags of paddy as interest at the harvesting time.10. Rich landlord and dominant caste in the village locally

called as Reddy Dora.11. Jeetha receiving cash or kind in return from his patron/

landlord for rendering his services.12. http://planningcommission.nic.in/reports/peoreport/

cmpdmpeo/volume1/134.pdf (Assessed on 10December 2016)

13. h t t p s : / / e n . w i k i p e d i a . o r g / w i k i /Pradhan_Mantri_Gramin_Awaas_Yojana (Assessedon 2 December 2016)

November, 2017 25

Abstract

The present study intended to examine economic feasibilityand financial soundness of Coconut cultivation inKarnataka state. A project evaluation method was adoptedto assess the profitability of investment made on coconutgardens. Further, based on multi-stage random samplingtechnique was adopted to select a sample of 240 farmersare selected from four major coconut growing districts ofthe state. It is clear from the results that farmers fromTumakuru, Hasan, and Chikmagalur districts were gettingbetter returns by, selling nuts as copra and in Chikmagalurdistrict, it is mainly because of introducing Areca nut,Banana and some other high valued crops into the gardenas intercrops. However, farmers in Chitradurga districtwere getting very less profits in the state, mainly due toselling the produce as either de-husked or tender nut, withinsignificant returns from intercrops. The results furtherrevealed that large farmers were getting better profits thansmall and medium farmers.

Keywords : Coconut cultivation, Karnatka, Profit,Investment.

I. Introduction

Coconut, (Cocos nucifera L.) is grown in 93 countries inthe world. The five major coconut growing countries ofthe world are Indonesia, Philippines, India, Brazil, andSri Lanka put together, they contribute to 99.66 percentof the world coconut production. India is the third largestproducer of coconut followed by Indonesia andPhilippines.

Presently, India is producing 20.44 billion nuts (23percent of the total world Coconut production) from anarea of 1.97 million hectares (2014-15). In India, totalCoconut area is distributed among 18 states includingKarnataka state and three union territories. India has beenknown as the producer of best grade milling copra in theworld, yielding high-grade coconut oil known for its aromaand flavour and now it is turned as the premier coirmanufacturing country in the world. It is the source ofpermanent income to nearly 12 million farm families andcontributes more than rupees 10,000 crores to the country’sGDP apart from an export earnings of rupees 1,450,24crores.

An Analysis of Financial Feasibility of Investment on Coconut Cultivation in Karnataka State

ANANDUBHOVI*AND PUSHPA M. SAVADATTI**

Copra, de-husked coconut, tender coconut, andcoconut shell command a great demand in view of theirtraditional, medicinal, industrial, and many other end uses.Besides this, each and every part of the tree is economicallyuseful. Hence, it is called as the Kalpavriksha (Tree ofParadise) in India.

In India, Karnataka state ranked second, both interms of area and production of coconut by producing5141.15 thousand million nuts (25.15 percent of total) froman area of 515.03 million hectares (26.07 percent of total).

The coconut crop plays a very important role in theIndian economy in general and Karnataka economy inparticular in terms of employment creation, incomegeneration, earning forex reserves. etc. Considering theimportance of the crop, the present study aims to analysethe economic aspects of coconut production in Karnatakastate with the following objectives.

Specific Objectives of the Study are

1) to analyse the costs and returns of the coconutproduction among the small, medium and largefarmers, and

2) to estimate the economic viability of investment incoconut cultivation.

II. Materials and Methods

A) Data base and Sampling Method

The present study is based on primary data, which wascollected from the sample farmers. A multi-stage randomsampling technique was adopted in the selection ofdistricts, talukas, villages, and finally farmers.In the firststage, Karnataka state has been selected for the analysisbecause of its large contribution to the Indian economy ingeneral and Indian Coconut industry in particular. At thesecond stage, Tumakuru, Hasan, Chitradurga, andChikmagalur districts of Karnataka were selected for thestudy as these are the major coconut growing districts inthe state.These four districts together accounted for 30.2percent, 14.7 percent, 11.4 percent, and 9.03 percent oftotal area under coconut cultivation respectively in thestate. Further, these four districts collectively contributed56 percent to the total area and 43 percent to the totalcoconut production of Karnataka state (2014-15). In the

*Research (Ph.D.) Scholar, Dept. of Economics, Karnatak University Dharwad, Karnataka;**Professor (Supervisor), Dept. of Economic Studies and Planning, School of Business Studies, Central University of Karnataka, Gulbarga, Karnataka.


third stage, two talukas from each selected districts werechosen based on maximum area under the crop. Then forselection of sample farmers; farmers have been categorisedinto small farmers (land holdings d” 5 acres), mediumfarmers (5 acres<land holdings< 10 acres) and largefarmers (land holdings >10 acres) as per Government ofKarnataka categorisation.Further, 10 farmers from eachcategory, 30 farmers from each taluka were selected fromdifferent villages of the selected talukas for detailedanalysis. In total, 240 coconut farmers were randomlyselected for the analysis purpose. The required primarydata from these 240 sample farmers were collected in thestudy area by using pre-tested schedule. Primary detailswere collected during 2015-16.

B) Methodology

Many studies were undertaken to estimate the financialprofitability of the investment on perennial crops by usingDiscounted Cash Flow Techniques (Raghupathy A. andet al-1979) for analysis. To analyse the objectives of thepresent study,Discounted Cash Flow Techniques wereemployed and the same have been presented below.

i) Net Present Value (NPV)

This criterion is applied to assess the present value of netaccrued benefits over the economic life of the coconutgardens. It is the difference between the present value ofthe benefits streams (cash inflows) and present value ofcosts (cash outflows). The general mathematical form ofnet present worth is (Raghupathy A. and et al-1979),

Where, Bn= Benefits in each year

Cn = Costs in each year

n = Number of years

r = Discount rate

t= Time period

NPV is expected to be positive, and positive NPVindicates that the investment in coconut gardens iseconomically viable.

ii) Benefit Cost Ratio (BCR)

It is the ratio of discounted cash inflows to discountedcash outflows and this ratio must be unity or more thanunity, for an investment to be considered economicallyviable. The BCR is obtained as follows (Raghupathy A.and et al-1979).

iii) Internal Rate of Return (IRR)

It is the rate of return which equates the discounted benefitsto the discounted costs. It represents the marginal rate ofreturn of existing coconut garden. A general mathematicalform of IRR is (Raghupathy A. and et al-1979),

TRR

IRR is arrived through the interpolation techniqueby using different discount rates, so as to see that the netpresent worth is equated to zero. The procedure is,

The IRR should be more than the discounted rate,being considered for promising financial feasibility andfinancial soundness.

Apart from these techniques, simple averages,percentages,and tables are used for detailed analysis inthe present study.

To calculate NPV, BCR, and IRR, the followingassumptions are made.

1. Economic life of the coconut garden wasassumed to be 60 years and on an average 7years was considered as a pre-baring periodbased on the opinions of sample farmers andexperts. Investment made in pre-baring periodis considered as establishment cost.

2. Costs incurred in 8th year and onwards areconsidered as maintenance cost.

3. Life span of the bore wells was assumed to bethe same as that of garden (60 years).

4. The life of pump-sets was considered 20 yearsand the costs of these items were added duringthe 1st, 21st, and 41st years.

5. Income generated in the gardens over the yearsfrom coconut and intercrops were taken inmonetary terms and Yield and prices ofcoconut and intercrops realised by the farmers,were used to calculate gross returns.

6. A discount rate of 15 percent was assumed tobe the opportunity cost of capital of thecoconut production, which is the rateadvocated by the World Bank for agriculturalproject in developing countries (RaghupathyA and et al-1979).

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November, 2017 27

III. Results and Discussion

To understand financial profitability of the investmentsmade on coconut gardens, the total cost and gross returnper acre were calculated and the same are presented intable-1 and 2 in appendix. The cost incurred on coconutgardens are divided into two broad categories viz.establishment costs and maintenance costs. Further,establishment cost was subdivided into three groups suchas total material cost, total irrigation cost, and total labourcost

It was observed from the table-1 (see appendix) that,calculated average establishment cost is Rs.2,37,056,Rs.1,78,902, and Rs. 1,48,407, respectively, for small,medium, and large farmers in Tumakuru district, andmarginal change has been observed for respectivecategories in all remaining districts. Further, estimatedaverage establishment cost per acre is greater in smallfarmers than that of medium and large farmers, further,itis relatively less for large farmers in all sample districts.Moreover, material cost has greater share (around 50percent) in total establishment cost among all the farmcategories in all the sample districts.The present studyfound that, material cost is highest in, Tumakuru district(Rs. 1,21,301) for small farmers, Hasan district was formedium(Rs. 93,468) and large (Rs. 1,03,460) farmcategories respectively. Further, considering totalestablishment cost; Hasan district placed first in case ofsmall (Rs. 2,49,426) and large farmers (Rs. 1,54,170),respectively, Tumakuru district (Rs. 1,78,902) for mediumfarm groups.

It is clear from the table-2 (see appendix) thatmaintenance cost consists of material cost. out labour cost,Out of total maintenance cost, material cost has the greatershare in it. Among small farmers, material cost is highestin Tumakuru district followed by Chikmagalur, Hasan, andChitradurga and it is highest in Hasan district followed byChitradurga, Chikmagalur, and Tumakuru. For mediumfarmers and among large farmers, Hasan accounted forhighest material cost followed by Chikmagalur district.

Out of total cost, establishment cost constituted lionshare; it consists around 89 percent, 87 percent, and 85percent in small, medium, and large farmers, respectively,in all sample districts of the state.

In the study area copra, de-husked nuts, husked nuts,and tender nuts have greater economic importance. Further,coir and coconut shellsare are also earning income, asintercrops Arecanut, Banana, and Ginger earns greaterincome than other crops introduced into the coconutgardens. Therefore, gross return is obtained by addingnet revenue from intercrops.The present study found that,all farm categories in Tumakuru and Hasan districts areproducing coconut, and making high grade milling coprafor getting better prices, due to this reason, they are gettingbetter returns.

It is evident from the table-3 (see appendix) that,gross return from coconut cultivation in Tumakuru district,is Rs.1,21,983/-, Rs.1,31,830/-,and Rs.1,58,670per acrefor small, medium and large farmers, respectively, this isdue to selling produce as copra and introducing high valuecrops into the garden. In Chitradurga district, it isRs.98,091/-, Rs. 98,179/-,Rs1,25,315/- per acre forrespective farm categories, this occurs because of sellingproduct at a very low price due to many intermediariesinvolved in the marketing process and selling tender nutsor de-husked nuts.

The present study found that, investment made oncoconut cultivation is highly beneficial in Tumakuru,Hasan, and Chikmagalur districts, but in Chitradurgadistrict, farmers are getting very less margins because oflow price, low productivity due to insufficient ground waterand lower maintenance of gardens, etc.

It is clear from the table -4 (see appendix) that,Benefit Cost Ratio (BCR) for small farmers is highest inTumakuru district that is 1.33per rupee investment oncoconut, followed by Hasan (1.19), Chikmagalur(1.15),and that is 1.81per rupee in Tumakuru district for mediumfarmers, followed by Hasan (1.65), Chikmagalur (1.58)and Chitradurga (1.37) district and it is recorded 2.46 perrupee investment on coconut in Tumakuru followed byChikmagalur (2.22), Hasan (2.17), and Chitradurga (1.97)in case of large farmers.

Further, NPV is highest in Tumakuru (Rs.75498 peracre) as against Chitradurga district (Rs.22920 per acre)with respect to farmers and for medium farmers, it is Rs.1,48,123/- in Tumakuru followed by Hasan (Rs. 1,17,544/-), Chikmagalur (Rs. 1,04,685/-) and Chitradurga. Besidesthis, Tumakuru recorded highest (Rs.2,35,603) NPV incase of large farmers followed by Chikmagalur(Rs.2,02,357/-), Hasan (Rs.1,96,768). Apart from this,Internal Rate of Return (IRR) recorded highest inTumakuru district such as 38 percent, 60 percent, and90percent for small medium and large farmers,respectively as against Chitradurga district.

IV. Conclusions

It is clear from the present study that, investment made oncoconut gardens is highly beneficial in all the farmcategories in sample area. Further, farmers from Tumakuru,Hasan, and Chikmagalur districts are getting better returns,due to selling nuts as copra and fewer intermediaries andin Chikmagalur district, it is mainly because of introducingAreca nut, Banana, and some other high value crops intothe garden as intercrops. However, farmers in Chitradurgadistrict realized very less profit in the state, mainly due toselling the produce as either de-husked or tender nuts, andinsignificant return from intercrops and getting very lowprice due to many intermediaries involved in the marketingprocess etc. The present study found that, large farmersare getting better profits than small and medium farmers


because of decreasing costs conditions. Of the study alsorevealed that small farmers are facing lowprice, insufficientground water, costly labour, marketing problems and lowernet-return from intercrops.

Coconut is marketed either as tender nuts or as de-husked nuts or retained for copra making. It was observedin the field that, farmers,who are undertaking copramaking,are getting better profit, than the farmers who areselling nuts as de-husked or tender nuts.

November, 2017 29

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TABLE 4: RESULTS OF FINANCIAL FEASIBILITY OF

INVESTMENT ON COCONUT GARDENS IN SAMPLE DISTRICTS

OF KARNATAKA STATE

Districts Farmers Benefit Net Present InternalCost Value-NPV Rate of

Ratio-BCR (Rupees/ Return-IRRacre) (in %)

Tumakuru Small 1.33 75497.64 38

Medium 1.81 148123.40 60

large 2.46 235603.00 90

Hasan Small 1.19 43831.32 33

Medium 1.65 117544.00 53

large 2.172 196768.00 77

Chitradurga Small 1.103 22919.70 30

Medium 1.37 66116.20 42

large 1.97 154502.00 68

Chikmagalur Small 1.15 33068.31 32

Medium 1.58 104685.30 51

large 2.218 202357.00 79

Note: @15 percent Discount Rate

Source: Calculated from Primary Data collected during 2015-16.

V. REFERENCES

Agarwal M.G. “Farm Level Benefits and Costs ofAgricultural Production Projects”, Indian Journal ofAgricultural Economics, Vol: 28 (4), pp 197-204.

Amarender Reddy A. (2005), “Economics of PulsesProduction and Marketing in India”, AgriculturalSituation in India, Vol.61, No.12, pp.875-884.

Babu K.R. (1989) “An Economic Evaluation of Investmentand Resource use Efficiency in Rubber Plantationsin Dakshina Kannada District, Karnataka” M.Sc.Thesis, University of Agricultural Sciences,Dharwad.

George M. V. and Joseph P. T. “Cost-Benefit Analysis ofInvestment in Tree Crops” Indian Journal ofAgricultural Economics, Vol: 28(4), P. 173-180.

Guledgudda S. S. Patil B. L. and Heremath G. K. (2006),“An Appraisal of Financial Feasibility of Investmentin Cashew Plantations in Karnataka”, AgricultureSituation in India, Vol: 62(12), P.777-782.

John V.T. (1994) “An Economic Analysis of Productionand Marketing of Cashew in Dakshina KannadaDistrict of Karnataka” M.Sc. Thesis, University ofAgricultural Sciences, Dharwad.

Krishnakumar V.( 2014)” Intercropping in Coconut gardenand model coconut farmers” Indian Coconut Journal,Vol: 56(12)and Vol: 57 (1) pp. 26- 29.

Raghupathy, A. Bisaliah, S. and Heremath K. C., (1979)“Techniques of Project evaluation: Applied toCoconut Production” Financing Agriculture, Vol:11(11),P.14-17.

Subramanian P. and Thamban C. (2014)”Intercropping offodder crops in Coconut garden” Indian CoconutJournal, Vol: 56(12)and Vol: 57 (1) pp. 36-40.

Sundaravaradarajan K. R. and Ramanathan G. (2003)“Cost, Returns and Economic Viability of CashewPlantations in Tamil Nadu” Agricultural Situationin India, Vol: 59(11), P. 709-715.

November, 2017 33

Background

The hilly areas of Himachal have the special significanceof unique agro-climatic conditions for the production ofoff season vegetables almost throughout the year. Thevaried topography in hills offers a best opportunity andnatural glass house conditions for growing a large numberof vegetables/varieties. In hilly areas, the vegetables viz.peas, tomato, beans, cauliflower, cabbage, capsicum etc.are mainly grown in various pockets or belts throughoutthe year as off season vegetables. Most of these vegetablesgrown in these areas are harvested at such a time whenthese are not available in plains and fetch high prices.Increased demand for vegetables due to rapid urbanisationand growing tourism, have come as boon for the growersof the hills. Polyhouse farming is an alternative newtechnique in agriculture gaining popularity among thefarmers of Himachal Pradesh to get assured crops of off-season vegetables in those belts, where these vegetablescannot be grown throughout the year. The state and centralgovernments are encouraging construction of polyhousesby giving subsidies to the farmers. Therefore, in H.P.,cultivation of off-season vegetables are practised in bothways i.e., with and without the help of polyhouses. Thus itbecomes essential to study the costs and returns of offseason vegetables grown in Himachal Pradesh with andwithout the help of polyhouses. Keeping in view theimportance of off season vegetables grown in H.P., theMinistry of Agriculture and Farmers Welfare entrusted thisstudy to Agro Economic Research Centre, H.P. University,Shimla.

Objectives

The main objectives of the study are as under:

To analyse the trends in area and production ofvegetables in the State;

To examine the costs and returns in variousvegetables grown by farmers in the State;

To assess the marketing costs, margins and pricespread in various vegetables in different markets;

To study the various problems faced by vegetablegrowers in production and marketing of vegetables in the State.

AGRO-ECONOMIC RESEARCH

Economic Analysis of Cost and Return of Off-Season Vegetables with Focus on PolyHouse Effect in Himachal Pradesh*

MEENAKSHI AND N.K. SHARMA

In addition to the above objectives, the followingobjectives are specific to off season vegetables inpolyhouses.

To study the costs and returns of off seasonvegetables in polyhouses;

To study the marketing system of polyhousevegetable crops;

To study the problems faced by polyhouse farmersin the State.

To conduct the study on off season vegetables inthe state of Himachal Pradesh, six vegetables viz. tomato,capsicum, beans, peas, cabbage and cauliflower wereselected for cultivation outside polyhouse and twovegetables viz. tomato and capsicum were selected forcultivation inside polyhouse. A multistage stratifiedrandom sampling technique was used in the selection ofthe districts, blocks, villages and finally the vegetablegrowers. A total sample of 120 vegetable growers ofdifferent categories, growing vegetables outsidepolyhouse, were selected for this study. For studying thecosts, and returns of off season vegetables insidepolyhouses, the information/data was taken from the study“An Economic Analysis of Protected Cultivation UnderMIDH in Himachal Pradesh” (having a sample of 100different size of polyhouses) assigned by the Ministry ofAgriculture and farmers welfare, GOI to this centre forthe same period.

Main Findings

The total area under various vegetables grown in the Stateduring the year 2014-15 was 73894 hectares. The highestarea was under peas (31.97%) followed by tomato(14.61%) cauliflower (7.02%), cabbage (6.52%), beans(5.09%) and capsicum (3.26%). The total production ofvarious vegetables in the State during the year 2014-15was 1576454 MT. The largest production was of tomato(30.19%) followed by peas (17.61%), cabbage (10.04%),cauliflower (7.44%), capsicum (3.50%) and beans(2.99%). During the period 2005-06 to 2014-15, year toyear growth in the production of vegetables varied from3.05 to 10.63 percent. On an average, the per hectare total

*Agro-Economic Research Centre, Himachal Pradesh University, Shimla.


cost (cost C) of cultivation of tomato, peas, cabbage,cauliflower, capsicum and beans (off season vegetablesgrown outside polyhouse) were Rs.96517, Rs.87989,Rs.93730, Rs.102187, Rs.84940 and Rs.83397,respectively, in all the sampled farms. Category wise, nospecific trend appeared in the costs of these vegetables.The material cost was the most important component ofthe total cost C in all the vegetables followed by the labourcost (family & hired) and rental value of owned land. Theaverage net return over cost C realized from the cultivationof tomato, peas, cabbage, cauliflower, capsicum and beanswere Rs.507121, Rs.299160, Rs.401687, Rs.456818,Rs.268630, and Rs.196296 per hectare, respectively, inall the sampled farms under study. The input-output ratioof tomato production was also highest (1:6.25) among allthe vegetables in all the sampled farms under study. In thecase of peas, cabbage, cauliflower, capsicum and beanson an average input-output ratio was 1:4.40, 1:5.29, 1:5.47,1:4.11 and 1:3.35, respectively, in all the sampled farmsunder study. After tomato, cauliflower cultivation was mostprofitable followed by cabbage, peas, capsicum and beans.

In all the sampled farmers, there was no tendencyof retaining vegetables for seed and kind wages or giftsand more than 90 percent of the total produce was sold inmarkets after home consumption and losses. Out of totalmarketed produce, 72 to 78 percent was sold in Chandigarhmarket, was making it an important market for the study.The cost of marketing borne by vegetable growers forselling their produce in Chandigarh market worked out tobe Rs.285, Rs.411, Rs.270, Rs.288, Rs.278 and Rs.332per quintal for tomato, peas, cabbage, cauliflower,capsicum and beans respectively. Investment oncommission and market fee was the main item of totalmarketing cost borne by the producer in all the vegetablesexcept cabbage. The second important component ofmarketing cost was the cost of assembling, grading andpacking. The retailer’s margin was highest in tomato(9.61%) and lowest in cabbage (8.45%). The share ofproducer in consumer’s rupee was 66.91, 66.82, 66.40,65.62, 64.46 and 61.35 percent in capsicum, peas, beans,cabbage, cauliflower and tomato respectively.

The various problems faced by the vegetablegrowers (growing vegetables outside polyhouse) were lackof transportation facilities, shortage of packing materialand lack of storage facilities. The prices of produce dependmainly on the market conditions, and if the growers donot have proper information regarding market, then theycannot take the advantage of high prices. The farmers werefacing the problems of getting late information,information available for few markets, inadequateinformation and misleading information. In most of thecases, commission agents quote lower prices than theactual one.

Two important crops, that is, capsicum and tomatogrown in three different sizes, of polyhouses; namely,small, medium and large (up to 250, 500 and 1000sq.meters) were studied. The total cost of construction of apolyhouse of different sizes, i.e., small, medium and largewas Rs.270860, Rs.517180 and Rs.1003740, respectively,in which Rs.54172, Rs.103436 and Rs.200748 was thenet cost paid by the farmers and the rest was the subsidyamount. In the selected areas, most of the polyhouses weremore than five years old.

On an average, the total production of capsicum andtomato was 402 and 566 boxes per polyhouse in a yearhaving cost per box Rs.194 and Rs.185, respectively. Outof total marketed surplus of 389 boxes of capsicum, 345boxes i.e. 88.69 percent were marketed in Chandigarhmarket and rest 44 boxes i.e., 11.31 percent in the localmarkets. In the case of tomato, out of total marketedproduce of 552 boxes, 496 boxes i.e., 90 percent weremarketed in Chandigarh market and rest 56 boxes i.e., 10percent in the local market. Their value in the market wasRs.574 and Rs.592 per box resulting in net returns ofRs.260 and Rs.407 per box. The input-output ratios were1:4.25 and 1:5.35 for capsicum and tomato, respectively.

Although the polyhouse farming was found to beprofitable regarding income and employment generation,the activity is not free from problems. In most of the casesexecution of the polyhouse was delayed due to the longand cumbersome clearance procedure adopted by variousdepartments for sanctioning polyhouse and clearance ofloan & subsidy. The construction was further delayed bythe contractor. Delay in technology transfer was anotherreason due to which the polyhouses could not becomeoperational well in time. Once a polyhouse becameoperational, unavailability of inputs, higher prices or poorquality of inputs were the problems faced by farmers. Lackof knowledge of most appropriate sowing time and culturalpractices i.e., raising nursery and crops etc. was anothermajor problem. The polyhouse growers also faced theproblems related to harvesting, packing/processing,storage, marketing etc. The cultivation of off seasonvegetables is beneficial both inside and outside polyhouse,but the cultivation inside polyhouse is certainly beneficialto the growers of those areas where this is not possibleoutside polyhouse.

Policy Implications

It is clear from the above that growing off seasonvegetables outside and inside polyhouse in HimachalPradesh has improved the quality of life of the growers byimproving income and employment. However, theprofitability of these crops still can be improved by takingthe following steps.

Establishment of vegetable processing units inproducing areas can improve the profitability by reducing

November, 2017 35

the losses in picking, grading and packing etc. This willalso solve the problem of packing material andtransportation up to some extent.

Research efforts should be made to increase therange of products (from tomato sauce and cauliflowerpickle) that could be prepared from hill vegetables.

Keeping in view the perishable nature of vegetablesand variations in market prices, adequate storage facilitiesshould be developed.

Arrangements should be made to provide latestinformation regarding prices and arrivals of the vegetablesin the markets.

The emphasis should be given to expand the marketand develop infrastructure by improving packing andtransportation facilities.

In the present marketing system of vegetables, mostof the benefits are reaped by the middlemen. An attemptshould be made to minimize middlemen margins bystrengthening the marketing system by organisingcooperative societies.

The cropping practices of crop production aresignificantly different in polyhouses than that of in growingcrops or vegetables outside the polyhouse. The growersshould be given proper training related to cultural practicesi.e., raising nursery and crops, intensity of irrigation, themost appropriate sowing and harvesting time.

The polyhouses in H.P. were prone to damage byheavy rain and storms. Polyhouses should be insured atthe time of construction.


During the month of September,2017 the WholesalePrice Index (Base 2011-12=100) of pulses increased by

COMMODITY REVIEWS

Foodgrains

5.69%, cereals are no change & foodgrains increased by1.05% respectively over the previous month.

ALL INDIA INDEX NUMBER OF WHOLESALE PRICES

(Base: 2004-2005=100)

Commodity Weight WPI for the WPI for the WPI Percentage change(%) Month of Month of A year during

September, 2017 August, 2017 ago A month A Year

1 2 3 4 5 6 7

Paddy 1.793 148.8 148.5 144.7 0.2 2.83

Wheat 1.116 137.6 137.1 140.0 0.36 -1.71

Jowar 0.096 126.3 124.5 124.0 1.45 1.85

Bajra 0.115 139.4 143.8 155.1 -3.06 -10.12

Maize 0.217 125.1 127.7 139.8 -2.04 -10.52

Barley 0.017 140.3 139.1 154.0 0.86 -8.90

Ragi 0.019 252.5 261.9 167.3 -3.59 50.93

Cereals 3.373 142.5 142.5 142.6 0.00 -0.07

Pulses 0.717 150.5 142.4 198.7 5.69 -24.26

Foodgrains 4.09 144.0 142.5 153.0 1.05 -5.8

Source : Office of the Economic Adviser, M/O Commerce and Industry.

Commodity Main Trend Rising Falling Mixed Steady

Rice Rising & Mixed Jharkhand Gujarat A.P. OrissaKarnataka KeralaWest Bengal U.P.

Wheat Mixed Haryana Karnataka Gujarat JharkhandPunjab M.P. Rajasthan

U.P.

Jowar Mixed Rajasthan Gujarat A.P.KarnatakaMaharashtra

Bajra Falling Karnataka A.P. MaharashtraRajasthan Gujarat

U.P.Delhi

Maize Falling U.P. Gujarat Rajasthan M.P.HaryanaKarnataka

The following Table indicates the State wise trend of Wholesale Prices of Cereals during the month ofSeptember, 2017.

November, 2017 37

Procurement of Rice

-0.63 million tonnes of Rice(including paddy convertedinto rice) was procured during September 2017 as against0.025 million tonnes of rice(including paddy convertedinto rice)procured during September 2016.The total

procurement of Rice in the current marketing season i.e2016-2017, up to 29.10.2017 stood at 38.10 milliontonnes, as against 34.17 million tonnes of rice procured,during the corresponding period of last year. The detailsgiven in the following table :

PROCUREMENT OF RICE

(In Thousand Tonnes)

State Marketing Season Corresponding Marketing Year

2016-17 Period of last Year (October-September)

upto 29.09.2017 2015-16 2015-16 2014-15

Procurement Percentage Procurement Percentage Procurement Percentage Procurement Percentage

to Total to Total to Total to Total

1 2 3 4 5 6 7 8 9

Andhra Pradesh 3725 9.78 4326 12.67 4326 12.65 3591 11.17

Chhatisgarh 4022 10.56 3442 10.07 3442 10.06 3423 10.64

Haryana 3583 9.40 2861 8.37 2861 8.36 2015 6.27

Maharashtra 309 0.82 230 0.67 230 0.67 199 0.62

Punjab 11052 29.00 9350 27.36 9350 27.33 7786 24.21

Tamil Nadu 144 0.38 1192 3.49 1191 3.48 1049 3.26

Uttar Pradesh 2354 6.18 2910 8.52 2910 8.50 1698 5.28

Uttarakhand 706 1.85 597 1.75 598 1.75 465 1.45

Others 12210 32.04 9260 27.10 9301 27.19 11936 37.11

Total 38105 100.00 34168 100.00 34209 100.00 32162 100.00

Source: Department of Food & Public Distribution.

Procurement of Wheat

The total procurement of wheat in the current marketingseason i.e 2017-2018 up to August, 2017 is 30.83 million

tonnes against a total of 22.96 million tonnes of wheatprocured during last year. The details given in the followingtable :

PROCUREMENT OF WHEAT

(In Thousand Tonnes)

State Marketing Season Corresponding Marketing Year2017-18 Period of last Year (April-March)

(upto 31.08.2017) 2016-17 2016-17 2015-16Procurement Percentage Procurement Percentage Procurement Percentage Procurement Percentage

to Total to Total to Total to Total

1 2 3 4 5 6 7 8 9

Haryana 7432 24.11 6752 29.41 6722 29.32 6778 24.13

Madhya Pradesh 6725 21.82 3992 17.39 3990 17.40 7309 26.02

Punjab 11706 37.98 10649 46.38 10645 46.42 10344 36.83

Rajasthan 1245 4.04 762 3.32 762 3.32 1300 4.63

Uttar Pradesh 3699 12.00 797 3.47 802 3.50 2267 8.07

Others 18 0.06 10 0.04 9 0.04 90 0.32

Total 30825 100.00 22962 100.00 22930 100.00 28088 100.00

Source: Department of Food & Public Distribution.


Oil Seeds: The Wholesale Price Index (WPI) of nine majoroilseeds as a group stood at 128 in September, 2017showing a increase of 0.7% over the previous month anda decrease of 8.4% over the previous year. The WPI ofsafflower (kardi seed) increased by 0.6%, copra (coconut)by 11.9%, cotton seed by 0.2%, rape & mustard seed by1%, sunflower by 4.1%, soyabean by 1.6% and gingellyseed by 3.3% over the previous month. WPI of groundnutseed decreased by 5.2% and niger seed by 0.3% over theprevious month.

Manufacture of Vegetable and Animal Oils and Fats:The WPI of manufacture of vegetable and animal oils andfats as a group stood at 107.9 in September, 2017 showingan increase of 0.9% over the previous month and 0.3%over the year. The WPI of cotton seed oil increased by0.7%, copra oil by 6.7%, soyabean oil by 1.2% andsunflower oil by 0.6% over the previous month. The WPIof groundnut oil decreased by 2.5%, mustard oil by 0.6%and rapeseed oil by 0.2% over the previous month.

Fruits & Vegetable: The WPI of fruits & vegetable as agroup stood at 162.9 in September, 2017 showing a

Commercial Crops

decrease of 14.9% over the previous month and an increaseof 9.5% over previous year.

Potato: The WPI of potato stood at 122.9 in September,2017 showing a decrease of 7.1% over the previous monthand 46.5% over the previous year.

Onion: The WPI of onion stood at 193.8 in September,2017 showing a decrease of 12.1% over the previousmonth and an increase of 79.8% over the year.

Condiments & Spices: The WPI of condiments & spices(group) stood at 124 in September, 2017 showing anincrease of 0.9% over the previous month and a decreaseof 14.2% over the year. The WPI of chillies (dry) increasedby 0.3% and turmeric by 4.9% over the month. The WPIof black pepper decreased by 2.7% over the previousmonth.

Raw Cotton: The WPI of raw cotton stood at 106.5 inSeptember, 2017 showing a decrease of 3.3% and 4.1%over the previous month and year respectively.

Raw Jute: The WPI of raw jute stood at 159.9 inSeptember, 2017 an increase of 3.4% and a decrease of17.6% over the previous month and year respectively.

WHOLESALE PRICE INDEX OF COMMERCIAL CROPS

(Base Year : 2011-12 = 100)

Commodity Latest Month Year % Variation Over

September, 2017 August, 2017 September, 2016 Month Year

OIL SEEDS 128.0 127.1 139.7 0.7 -8.4

Groundnut Seed 117.9 124.4 140.3 -5.2 -16.0

Rape & Mustard Seed 134.6 133.3 155.5 1.0 -13.4

Cotton Seed 142.9 142.6 164.4 0.2 -13.1

Copra (Coconut) 188.6 168.5 107.6 11.9 75.3

Gingelly Seed (Sesamum) 119.7 115.9 122.6 3.3 -2.4

Niger Seed 204.8 205.4 207.6 -0.3 -1.3

Safflower (Kardi Seed) 140.2 139.3 112.9 0.6 24.2

Sunflower 98.4 94.5 113.5 4.1 -13.3

Soyabean 124.8 122.8 149.3 1.6 -16.4

Manufacture of vegetable and 107.9 106.9 107.6 0.9 0.3animal oils and fats

Mustard Oil 115.8 116.5 131.3 -0.6 -11.8

Soyabean Oil 105.1 103.9 103.8 1.2 1.3

November, 2017 39

Sunflower Oil 102.1 101.5 105.5 0.6 -3.2

Groundnut Oil 104.7 107.4 123.3 -2.5 -15.1

Rapeseed Oil 112.0 112.2 124.3 -0.2 -9.9

Copra oil 167.5 157.0 126.5 6.7 32.4

Cotton seed Oil 101.9 101.2 102.1 0.7 -0.2

FRUITS & VEGETABLES 162.9 191.5 148.7 -14.9 9.5

Potato 122.9 132.3 229.8 -7.1 -46.5

Onion 193.8 220.5 107.8 -12.1 79.8

CONDIMENTS & SPICES 124.0 122.9 144.6 0.9 -14.2

Black Pepper 157.8 162.1 188.0 -2.7 -16.1

Chillies (Dry) 107.2 106.9 139.0 0.3 -22.9

Turmeric 122.6 116.9 115.8 4.9 5.9

Raw Cotton 106.5 110.1 111.0 -3.3 -4.1

Raw Jute 159.9 154.6 194.0 3.4 -17.6

Commodity Latest Month Year % Variation OverSeptember, 2017 August, 2017 September, 2016 Month Year

WHOLESALE PRICE INDEX OF COMMERCIAL CROPS —Contd.

(Base Year : 2011-12 = 100)


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AN

A

Pun

jab

Lud

hiya

naP

akho

wal

Aug

, 17

M8

480

480

NA

NA

400

NA

480

480

NA

W8

NA

NA

NA

NA

NA

NA

NA

NA

NA


Raj

asth

anB

arm

erK

usee

pJa

n, 1

7M

8N

AN

AN

AN

AN

AN

AN

AN

AN

AW

8N

AN

AN

AN

AN

AN

AN

AN

AN

A

Jalo

reS

arna

uJa

n, 1

7M

8N

AN

A30

040

0N

AN

A50

020

0N

AW

8N

AN

A30

030

0N

AN

AN

A10

0N

A

Tam

il N

adu*

Tha

njav

urP

ulva

rnat

ham

Apr

, 17

M8

NA

341

NA

NA

363

NA

525

425

NA

W8

NA

NA

143

128

128

NA

NA

NA

NA

Tir

unel

veli

Mal

ayak

ulam

Apr

, 17

M8

NA

200

NA

500

387

NA

NA

NA

NA

W8

NA

150

175

183

NA

NA

NA

NA

NA

Tri

pura

Stat

e A

vera

geJu

ly, 1

6M

829

025

526

727

026

829

030

728

328

3W

8N

A20

319

819

920

322

0N

AN

AN

A

Utt

ar P

rade

sh*

Mee

rut

Gan

eshp

urJu

ly, 1

7M

827

526

526

427

126

4N

A39

8N

AN

AW

8N

A20

521

120

821

1N

AN

AN

AN

A

Aur

raiy

aA

urra

iya

July

,17

M8

170

175

185

307

171

NA

500

NA

.NA

W8

NA

NA

185

307

171

NA

NA

NA

NA

Cha

ndau

liC

hand

auli

July

,17

M8

NA

NA

250

NA

250

NA

400

NA

NA

W8

NA

NA

250

NA

250

NA

NA

NA

NA

M-M

an

W

-Wom

anN

A-

Not

Ava

ilab

le

*

Sta

tes

repo

rted

dis

tric

t av

erag

e da

ily

wag

es.

Stat

eD

istr

ict

Cen

tre

Mon

thTy

pe o

fN

orm

alP

loug

hing

Sow

ing

Wee

ding

Har

vest

ing

Oth

erS

kill

ed L

abou

rs&

Yea

rL

abou

rD

aily

Agr

i-H

erds

man

C

arpe

nter

Bla

ckC

obbl

erW

orki

ngL

abou

r S

mit

hH

ours

1.1

AV

ER

AG

E D

AIL

Y A

GR

ICU

LTU

RA

L W

AG

ES

IN S

OM

E S

TAT

ES (

OPE

RA

TIO

N-W

ISE)—

Con

td.

November, 2017 43

Prices

2. MONTH END WHOLESALE PRICES OF CERTAIN AGRICULTURAL COMMODITIES AND ANIMAL HUSBANDRY PRODUCTS

AT SELECTED CENTRES IN INDIA

Commodity Variety Unit State Centre Sept.-17 Aug.-17 Sept.-16

Wheat PBW 343 Quintal Punjab Amritsar 1650 1650 1700

Wheat Dara Quintal Uttar Pradesh Chandausi 1625 1540 1660

Wheat Lokvan Quintal Madhya Pradesh Bhopal 1671 1655 1780

Jowar - Quintal Maharashtra Mumbai 2500 2400 2350

Gram No III Quintal Madhya Pradesh Sehore 5276 5390 9150

Maize Yellow Quintal Uttar Pradesh Kanpur 1330 1275 1440

Gram Split - Quintal Bihar Patna 7000 7000 8550

Gram Split - Quintal Maharashtra Mumbai 7600 6900 10750

Arhar Split - Quintal Bihar Patna 7800 7680 11000

Arhar Split - Quintal Maharashtra Mumbai 5850 5700 8350

Arhar Split - Quintal NCT of Delhi Delhi 5600 5450 9775

Arhar Split Sort II Quintal Tamil Nadu Chennai 6500 6200 11400

Gur - Quintal Maharashtra Mumbai 3950 4000 4100

Gur Sort II Quintal Tamil Nadu Coimbatore 5000 4200 4600

Gur Balti Quintal Uttar Pradesh Hapur 3480 3200 3000

Mustard Seed Black (S) Quintal Uttar Pradesh Kanpur 3600 3700 4375

Mustard Seed Black Quintal West Bengal Raniganj 4000 4000 4700

Mustard Seed - Quintal West Bengal Kolkata 4200 4300 5000

Linseed Bada Dana Quintal Uttar Pradesh Kanpur 4450 4600 6530

Linseed Small Quintal Uttar Pradesh Varanasi 4430 4350 4900

Cotton Seed Mixed Quintal Tamil Nadu Virudhunagar 2000 2000 2600

Cotton Seed MCU 5 Quintal Tamil Nadu Coimbatore 2580 2750 2500

Castor Seed - Quintal Telangana Hyderabad 4000 4400 3325

Sesamum Seed White Quintal Uttar Pradesh Varanasi 6190 6000 9020

Copra FAQ Quintal Kerala Alleppey 11350 10150 6400

Groundnut Pods Quintal Tamil Nadu Coimbatore 5200 5000 5500

Groundnut - Quintal Maharashtra Mumbai 4800 5200 8400

Mustard Oil - 15 Kg. Uttar Pradesh Kanpur 1340 1355 1474

Mustard Oil Ordinary 15 Kg. West Bengal Kolkata 1425 1375 1585

Groundnut Oil - 15 Kg. Maharashtra Mumbai 1250 1280 1900

Groundnut Oil Ordinary 15 Kg. Tamil Nadu Chennai 1825 1800 2010

Linseed Oil - 15 Kg. Uttar Pradesh Kanpur 1425 1445 1541

Castor Oil - 15 Kg. Telangana Hyderabad 1410 1500 1125

Sesamum Oil - 15 Kg. NCT of Delhi Delhi 1560 1540 1495

Sesamum Oil Ordinary 15 Kg. Tamil Nadu Chennai 2325 2385 2205

Coconut Oil - 15 Kg. Kerala Cochin 2415 2190 1380

Mustard Cake - Quintal Uttar Pradesh Kanpur 1825 1855 2260

Groundnut Cake - Quintal Telangana Hyderabad 2643 2786 4000


Cotton/Kapas NH 44 Quintal Andhra Pradesh Nandyal 4300 5100 5500

Cotton/Kapas LRA Quintal Tamil Nadu Virudhunagar 4300 4300 NT

Jute Raw TD 5 Quintal West Bengal Kolkata 3635 3640 3875

Jute Raw W 5 Quintal West Bengal Kolkata 3685 3690 3875

Oranges - 100 No NCT of Delhi Delhi NA NA NA

Oranges Big 100 No Tamil Nadu Chennai NT NT NT

Banana - 100 No. NCT of Delhi Delhi 450 400 420

Banana Medium 100 No. Tamil Nadu Kodaikkanal 670 610 520

Cashewnuts Raw Quintal Maharashtra Mumbai 100000 100000 80000

Almonds - Quintal Maharashtra Mumbai 8500 65000 80000

Walnuts - Quintal Maharashtra Mumbai 100000 80000 55000

Kishmish - Quintal Maharashtra Mumbai 12000 12000 11000

Peas Green - Quintal Maharashtra Mumbai 3600 3250 3400

Tomato Ripe Quintal Uttar Pradesh Kanpur 1800 3080 1760

Ladyfinger - Quintal Tamil Nadu Chennai 2000 2000 1500

Cauliflower - 100 No. Tamil Nadu Chennai 2000 1500 1600

Potato Red Quintal Bihar Patna 940 820 1550

Potato Desi Quintal West Bengal Kolkata 620 750 1620

Potato Sort I Quintal Tamil Nadu Mettuppalayam 1643 2057 2417

Onion Pole Quintal Maharashtra Nashik 1300 1800 400

Turmeric Nadan Quintal Kerala Cochin 14500 14000 15500

Turmeric Salam Quintal Tamil Nadu Chennai 12000 8300 8500

Chillies - Quintal Bihar Patna 11800 11600 9500

Black Pepper Nadan Quintal Kerala Kozhikode 38500 45500 65000

Ginger Dry Quintal Kerala Cochin 14000 13500 15000

Cardamom Major Quintal NCT of Delhi Delhi 118000 119000 130000

Cardamom Small Quintal West Bengal Kolkata 135000 135000 100000

Milk Buffalo 100 Liters West Bengal Kolkata 5200 5000 3800

Ghee Deshi Deshi No 1 Quintal NCT of Delhi Delhi 63365 53360 34684

Ghee Deshi - Quintal Maharashtra Mumbai 46000 46000 46000

Ghee Deshi Desi Quintal Uttar Pradesh Kanpur 39250 39000 36300

Fish Rohu Quintal NCT of Delhi Delhi 13000 13500 11000

Fish Pomphrets Quintal Tamil Nadu Chennai 33500 34500 34500

Eggs Madras 1000 No. West Bengal Kolkata 4330 4350 4000

Tea - Quintal Bihar Patna 21300 21300 21200

Tea Atti Kunna Quintal Tamil Nadu Coimbatore 37000 36000 34000

Coffee Plant-A Quintal Tamil Nadu Coimbatore 24800 26000 26500

Coffee Rubusta Quintal Tamil Nadu Coimbatore 15000 19000 16000

Tobacco Kampila Quintal Uttar Pradesh Farukhabad 3200 3350 4600

Tobacco Raisa Quintal Uttar Pradesh Farukhabad 2300 2600 NA

Tobacco Bidi Tobacco Quintal West Bengal Kolkata 13300 13300 13200

Rubber - Quintal Kerala Kottayam 12000 11400 10000

Arecanut Pheton Quintal Tamil Nadu Chennai 32700 32700 32700

Commodity Variety Unit State Centre Sept.-17 Aug.-17 Sept.-16

2. MONTH END WHOLESALE PRICES OF CERTAIN AGRICULTURAL COMMODITIES AND ANIMAL HUSBANDRY PRODUCTS

AT SELECTED CENTRES IN INDIA—Contd.

November, 2017 45

3. M

ON

TH

EN

D W

HO

LE

SAL

E P

RIC

ES

OF S

OM

E I

MPO

RTA

NT A

GR

ICU

LTU

RA

L C

OM

MO

DIT

IES

IN

INT

ER

NA

TIO

NA

L M

AR

KE

TS

DU

RIN

G Y

EA

R, 2

017

Com

mod

ity

Var

iety

Cou

ntry

Cen

tre

Uni

tJa

n.F

eb.

Mar

.A

rp.

May

Jun

Jul

Aug

Sep

CA

RD

AM

OM

Gua

tmal

a B

old

Gre

enU

.K.

-

Dol

lar/

MT

9000

.00

9000

.00

1750

0.00

1750

0.00

1750

0.00

1750

0.00

1750

0.00

1750

0.00

1750

0.00

Rs.

/Qtl

6133

5.00

6021

9.00

1133

82.5

011

2105

.00

1129

27.5

011

2560

.00

1131

37.5

011

2000

.00

1143

62.5

0

CA

SH

EW

KE

RN

EL

SS

pot

U.K

. 32

0sU

.K.

-

Dol

lar/

MT

1061

2.51

1069

1.56

1120

5.67

1166

2.24

1181

6.40

1171

6.89

1188

3.43

1154

3.61

1197

3.24

Rs.

/Qtl

7232

4.26

7153

7.23

7260

1.54

7470

8.31

7625

1.23

7536

3.04

7682

6.37

7387

9.10

7824

5.12

CA

ST

OR

OIL

Any

Ori

gin

ex t

ank

Net

herl

ands

-

Dol

lar/

MT

1453

.70

1498

.40

1883

.90

1859

.00

1834

.80

1834

.80

1834

.80

1790

.00

1806

.00

Rot

terd

amR

s./Q

tl99

06.9

710

025.

7912

205.

7911

908.

7511

839.

9611

801.

4311

861.

9811

456.

0011

802.

21

CH

ILL

IES

Bir

ds e

ye 2

005

crop

Afr

ica

-

Dol

lar/

MT

4100

.00

4100

.00

7500

.00

7500

.00

7500

.00

6800

.00

6800

.00

6800

.00

6800

.00

Rs.

/Qtl

2794

1.50

2743

3.10

4859

2.50

4804

5.00

4839

7.50

4373

7.60

4396

2.00

4352

0.00

4443

8.00

CL

OV

ES

Sin

gapo

reM

adag

asca

r

-D

olla

r/M

T75

00.0

084

00.0

088

00.0

088

00.0

087

50.0

095

00.0

095

00.0

098

50.0

085

00.0

0R

s./Q

tl51

112.

5056

204.

4057

015.

2056

372.

8056

463.

7561

104.

0061

417.

5063

040.

0055

547.

50

CO

CO

NU

T O

ILC

rude

Phi

llip

ine/

Net

herl

ands

-

Dol

lar/

MT

1840

.00

1590

.00

1610

.00

1600

.00

2100

.00

1810

.00

1810

.00

2005

.00

1600

.00

Indo

nesi

a, c

if R

otte

rdam

Rs.

/Qtl

1253

9.60

1063

8.69

1043

1.19

1024

9.60

1355

1.30

1164

1.92

1170

1.65

1283

2.00

1045

6.00

CO

PR

AP

hill

ipin

es c

if R

otte

rdam

Phi

llip

ine

-

Dol

lar/

MT

905.

0083

8.00

800.

0083

1.50

840.

0083

8.00

838.

0083

6.50

820.

50R

s./Q

tl61

67.5

856

07.0

651

83.2

053

26.5

954

20.5

253

90.0

254

17.6

753

53.6

053

61.9

7

CO

RR

IAN

DE

RIn

dia

-

Dol

lar/

MT

1650

.00

1650

.00

1650

.00

1650

.00

1650

.00

1650

.00

1650

.00

1650

.00

1650

.00

Rs.

/Qtl

1124

4.75

1104

0.15

1069

0.35

1056

9.90

1064

7.45

1061

2.80

1066

7.25

1056

0.00

1078

2.75

CU

MM

IN S

EE

DIn

dia

-

Dol

lar/

MT

2500

.00

2500

.00

2900

.00

3500

.00

3500

.00

2900

.00

2900

.00

3300

.00

3300

.00

Rs.

/Qtl

1703

7.50

1672

7.50

1878

9.10

2242

1.00

2258

5.50

1865

2.80

1874

8.50

2112

0.00

2156

5.50

MA

IZE

U.S

.A.

Chi

cago

C/5

6 lb

s36

6.25

371.

0035

8.50

359.

0037

1.25

384.

7538

4.75

342.

0033

9.00

Rs.

/Qtl

980.

9397

5.57

912.

8390

3.80

941.

5097

2.56

977.

5586

0.20

870.

64

OA

TS

CA

NA

DA

Win

nipe

gD

olla

r/M

T33

6.74

332.

7431

1.98

304.

2432

3.14

345.

2333

1.15

301.

2630

8.92

Rs.

/Qtl

2294

.88

2226

.36

2021

.32

1948

.96

2085

.22

2220

.52

2140

.88

1928

.06

2018

.79

PAL

M K

ER

NA

L O

ILC

rude

Mal

aysi

a/N

ethe

rlan

ds

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olla

r/M

T18

20.0

013

30.0

011

90.0

010

80.0

012

00.0

010

75.0

010

75.0

012

55.0

013

50.0

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done

sia,

cif

Rot

terd

amR

s./Q

tl12

403.

3088

99.0

377

10.0

169

18.4

877

43.6

069

14.4

069

49.8

880

32.0

088

22.2

5

PAL

M O

ILC

rude

Mal

aysi

an/

Net

herl

ands

-

Dol

lar/

MT

822.

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0.00

705.

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0.00

760.

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5.00

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0.00

720.

00S

umat

ra,

cif

Rot

terd

amR

s./Q

tl56

05.3

450

85.1

645

67.7

045

48.2

649

04.2

845

98.8

846

22.4

845

44.0

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05.2

0

PE

PP

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(B

lack

)S

araw

ak

Bla

ck l

able

Mal

aysi

a

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r/M

T79

00.0

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00.0

077

00.0

077

00.0

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00.0

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00.0

062

00.0

050

00.0

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s./Q

tl53

838.

5051

520.

7049

888.

3049

326.

2046

461.

6039

878.

4040

083.

0032

000.

0032

675.

00

RA

PE

SE

ED

Can

ola

CA

NA

DA

Win

nipe

gC

an D

olla

r/M

T52

2.40

518.

3049

3.80

530.

4052

3.70

509.

5050

9.50

504.

7049

2.70

Rs.

/Qtl

2719

.61

2634

.52

2399

.87

2493

.41

2510

.09

2430

.32

2546

.48

2584

.06

2584

.70

UK

del

iver

ed r

apes

eed,

U.K

.

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ound

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330.

0033

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336.

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8.00

290.

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5.00

295.

0031

0.00

293.

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live

red

Eri

th(b

uyer

)R

s./Q

tl28

32.7

227

83.2

227

16.5

627

09.2

823

94.8

224

16.6

424

63.5

525

47.5

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65.8

0


RA

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SE

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Ref

ined

ble

ache

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7.00

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3.00

738.

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725.

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5.00

766.

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deod

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x-ta

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brok

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rice

Rs.

/Qtl

7098

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6374

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6168

.86

6095

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6127

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5939

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6054

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6294

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LU

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oil

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310.

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1.00

284.

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4.00

278.

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5.00

prot

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('hi-

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) ex

-mil

lR

s./Q

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41.5

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06.3

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60.6

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37.9

223

26.5

323

71.6

822

84.6

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95.7

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SOY

AB

EA

N O

ILU

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.

-C

/lbs

34.8

732

.72

32.2

131

.91

32.2

831

.36

31.3

634

.00

35.0

0R

s./Q

tl52

37.5

648

25.2

145

99.5

045

05.3

245

90.9

944

45.6

344

68.4

447

95.9

050

41.1

0R

efin

ed b

leac

hed

and

U.K

.

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807.

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9.00

750.

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2.00

680.

0069

6.00

696.

0072

8.00

734.

00de

odor

ised

ex-

tank

s,R

s./Q

tl69

27.2

959

08.1

060

63.7

556

33.3

256

15.4

457

01.6

358

12.3

059

82.7

064

27.6

4br

oker

pri

ce

SO

YA

BE

AN

SU

.S.A

.

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/60

lbs

1055

.25

1022

.75

969.

0094

5.75

948.

2593

0.75

930.

7593

6.00

953.

00R

s./Q

tl26

39.2

925

11.4

623

04.0

822

23.4

622

45.6

921

97.0

822

08.3

521

98.4

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85.6

2

US

NO

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r/M

T42

5.60

425.

60-

386.

2038

7.10

380.

7038

0.70

392.

7039

3.40

Rs.

/Qtl

2900

.46

2840

.88

-24

74.0

024

97.9

624

48.6

624

61.2

325

13.2

825

70.8

7S

SUN

FLO

WE

R S

EE

D O

ILR

efin

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hed

and

U.K

.

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ound

/MT

796.

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6.00

791.

0076

6.00

760.

0075

6.00

756.

0079

3.00

747.

00de

odor

ised

ex-

tank

s,R

s./Q

tl68

32.8

665

49.7

463

95.2

463

27.1

662

76.0

861

93.1

563

13.3

665

16.8

765

41.4

8br

oker

pri

ce

Whe

atU

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lbs

424.

5044

1.25

425.

5040

7.75

432.

5044

4.75

444.

7540

9.00

421.

00R

s./Q

tl10

61.7

210

83.5

310

11.7

595

8.62

1024

.27

1049

.85

1055

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960.

6610

09.7

0

Com

mod

ity

Var

iety

Cou

ntry

Cen

tre

Uni

tJa

n.F

eb.

Mar

.A

rp.

May

Jun

Jul

Aug

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83.3

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November, 2017 47

Crop Production

4. SOWING AND HARVESTING OPERATIONS NORMALLY IN PROGRESS DURING THE MONTH OF DECEMBER, 2017

State Sowing Harvesting

(1) (2) (3)

Andhra Pradesh Summer Rice, Jowar (R), Maize, Ragi, Winter Rice, Urad (K), Bajra, Ragi (K), SmallSmall Millets (R), Gram, Urad (R), Millets (K), Sugarcane, Ginger, Mesta, SweetMung (R) Potato, Groundnut, Nigerseed, Onion

Assam Wheat Winter Rice, Sugarcane, Castor seed, Sesamum

Bihar Wheat, Barley, Gram, Winter Potato Winter Rice, Jowar (K), Bajra, Winter Potato(Plains), Sugarcane, Linseed (Plains), Groundnut, Cotton

Gujarat Winter Potato (Hills), Sugarcane, Winter Rice, Jowar (K), Sugarcane, Ginger,Onion Chillies (Dry), Tobacco, Caster seed, Sesamum,

Cotton, Turmeric

Himachal Pradesh Onion Sugarcane, Ginger, Cillies (Dry), Cotton, Turmeric

Jammu & Kashmir Onion Winter Potato (Plains), Sugarcane, Ginger, Chillies(Dry), Sesamum

Karnataka Summer Rice, Gram, Urad (R), Mung Summer Rice, Gram, Urad (K), Mung (K), Ragi,(R), Winter Potato (Plains), Summer Small Millets (K), Tur (K), other Kharif Pulses,Potato (Plains), Sugarcane, Onion Winter Potato (Plains), Summer Potato (Plains),

Sugarcane, Chillies (Dry), Tobacco, Groundnut,Castor seed, Sesamum, Cotton, Mesta, SweetPotato, Sannhemp, Nigerseed, Kardiseed, Tapioca

Kerala Summer Rice, Sugarcane, Sesamum Winter Rice, Ragi, Small Millets (R), Tur (R),(3rd Crop), Sweet Potato (3rd Crop) Other Kharif Pulses, Other Rabi Pulses, Sugarcane,

Ginger, Pepper Black, Sesamum (2nd Crop), SweetPotato (2nd Crop), Turmeric, Tapioca

Madhya Pradesh Winter Potato (Hills), Sugarcane, Autumn Rice, Jowar (K), Bajra, Small Millets (K),Castorseed, Onion Tur (K), Mung (R), Other Rabi Pulses, Summer

Potato (Plains), Chillies (Dry), Tobacco, Ginger,Sugarcane, Castorseed, Sesamum, Cotton, Jute,Mesta, Sweet Potato, Turmeric, Sannhemp,Nigerseed

Maharashtra Maize (R), Other Rabi Pulses, Winter Rice, Jowar (K), Small Millets (K),Sugarcane, Onion Sugarcane, Chillies (Dry), Groundnut, Sesamum,

Cotton, Sannhemp, Nigerseed

Manipur Winter Rice, Sweet Potato

Orissa Summer Rice, Bajra (R), Urad (R), Winter Rice, Sugarcane, Chillies (Dry), Groundnut,Mung (R), Chillies (Dry), Rape & Castorseed, Cotton (Early), Mesta, NigerseedMustard, Cotton (Late)

Punjab and Haryana Wheat, Barley, Winter Potato (Plains), Summer Potato, Sugarcane, Ginger, Chillies (Dry),Tobacco, Onion Groundnut, Cotton, Sweet Potato, Turmeric,

Sannhemp

Rajasthan Wheat, Barley, Tobacco, (3rd Crop) Autumn Rice, Jowar (K), Small Millets (K),Tur (K), Urad (K), Mung (K), other Kharif Pulses,Winter Potato (Plains), Sugarcane, Chillies (Dry),Tobacco, Groundnut, Sesamum, Cotton

Tamil Nadu Winter Rice, Jowar (R), Bajra, Tur (R), Autumn Rice, Jowar (K), Bajra, Ragi, Smallother Rabi Pulses (Kulthi), Winter Millets (K), Gram, Tur (K), Mung (K), WinterPotato (Hills), Sugarcane, Chillies Potato (Hills), Sugarcane, Pepper Black,(Dry), Tobacco, Onion Chillies (Dry), Groundnut, Castor seed, Sesamum,

Cotton, Onion, Tapioca

Tripura Summer Rice, Urad (R), Mung (R), Winter Rice, Sugarcane, Cottonother Rabi Pulses, Winter Potato(Plains), Chillies (Dry), Tobacco

Uttar Pradesh Wheat, Winter Potato (Hills), Winter Rice, Jowar (K), Tur (K), WinterSugarcane, Tobacco, Onion Potato (Plains), Summer Potato, Sugarcane,

Groundnut, Rape & Mustard, Cotton, Sweet Potato,Tapioca

West Bengal Summer Rice, Wheat, Gram, Urad Winter Rice, Tur (K), Urad (K), Mung (R), other(R), Mung (R), other Rabi Pulses, Rabi Pulses, Sugarcane, Ginger, Chillies (Dry),Sugarcane, Tobacco, Chillies (Dry) Sesamum, Mesta

Delhi Tobacco Sugarcane

Andaman & Nicobar Winter RiceIsland

(K)—Kharif (R)—Rabi

4. SOWING AND HARVESTING OPERATIONS NORMALLY IN PROGRESS DURING THE MONTH OF DECEMBER, 2017—Contd.

(1) (2) (3)

GMGIPMRND—2569AGRI—11-01-2018.


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