costs, returns and problems in production of...

CHAPTER III

COSTS, RETURNS AND PROBLEMS IN PRODUCTION OF ONION

3.1 INTRODUCTION India is the world’s second largest producer of vegetables next only to China.

Number of vegetables grown in the country is quite large, but vegetable crops occupy

only 2.5 per cent of the total cultivated land. Observed yield and area under vegetables

indicate that the production of vegetable in India is inadequate to meet the needs of the

country. Vegetable culture being of short duration, generally labour intensive and more

number of crops can be taken from unit area in a season or year, it is suitable for

increasing the income of small farmers and make more effective use of land and labour

resources for agricultural development1.

Onion (Allium Cepa) is an important and indispensable item in every kitchen as

condiment and vegetables in India. It is an important crop in all continents and commercially

cultivated in various countries. However, about three-fourth of global production is

accounted for by 24 countries in the world, the important countries are China, India,

USA, Russia, Spain, Iran, Turkey, Brazil and Japan. The demand for onion is world-wide

and is not limited to any particular climate and nationality. Highly industrialized nations

such as United Kingdom and Germany are leading importers of onion. China ranks first

in area and second in onion production in the world.

Onion is one of the most important vegetables cum condiment crops of the

Liliaceous family grown in India. It ranks second only to tomato in terms of total annual

production in world. Besides the traditional Rabi crop (winter season), the kharif crop

(summer season) now being grown successfully in the Northern and Eastern parts of the

country has revolutionised onion production in India. Onion can be kept for a fairly long

time and can safely withstand hazards of rough handling including long distance transport.

Onion can be kept for a fairly long time and can safely withstand hazards of rough

handling including long distance transport. The edible portion of onion is a modified stem

1 Maitry, S.K., Banerjee, B.N., and Maiti, A.K., “Marketing Efficiency – A Case Study of Kakrol”,

Agricultural Marketing, Vol.XLVI., No.4, 2003, p.28

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bulb i.e. 38.40 per cent and used throughout the year in the form of salad, condiments and

for cooking with other vegetables. Onion is also used in soups, sauces, curries, pickles,

for flavouring and seasoning foods. Onion bulbs are rich sources of calories, vitamins,

proteins, carbohydrates, iron, minerals, and ascorbic acid. Onion bulbs having medicinal

properties are recommended for the person suffering from high cholesterol, asthma,

weakness, lethargy and lack of vitality. It is also useful in curing hay fever, dropsy,

catarrh diabetes and chronic bronchitis.2

To meet the food requirements of the increasing population several strategies

have been adopted by our planners. Revolutions and special missions helped to meet the

needed requirements e.g., Green Revolution brought about self-sufficiency in wheat and

rice, White Revolution helped India to become the largest producer of milk in the world,

Yellow Revolution helped increase production of oilseeds, and the Blue Revolution

resulted in high production and marketing of fish and marine products. In the same way,

the Pink Revolution placed India on the world map for increasing productivity and

production of onion in the country. Likewise National Horticulture Mission aims at

enhancing the production of fruits and vegetables in the country.

Some of the horticulture products have 'political' potentials and overtones. They

serve as bombshells and, at times, serve as handles to beat the political opponents with.

Several mighty governments in the Asian region had to kiss the earth because there was

shortage of onion. The ruling political parties in the region have always been conscious that

at no time, especially during the political turmoil, there should be a shortage of onion3.

This chapter presents the results of production analysis of onion. These results

have been obtained by applying number of analytical techniques using primary data for

defining the production environment of onion in Erode District of Tamil Nadu. The following

sections include broader view of onion production and its production environment, results

2 Malik, D. P., Kumar, Sanjay and Hooda, B. K., “An Economic Analysis of Production and Export of

onion in India”, Ibid, Vol. XLVII, No.1, 2004, p.12 3 Daman Prakash and Shrotriya, GC., “Enhancing the Pungency through "Pink Revolution -Marketing of

Onion in India”, Agribusiness Management for Marketing Onions in Cooperatives of India, Rural Development and Management Centre Article, 2008, p.1


80

of cost-returns, factors influencing the farmers to cultivate onion, opinion of the farmers

about the availability of factors for cultivating onion and problems in cultivation of onion.

The study is based on the primary data collected from 580 sample farmers, who

are cultivating onion, through interview schedule constructed in this regard.

3.2 ONION CULTIVATION PRACTICES

A farmer produces many products on farm and uses many inputs to produce each of

his products. His object is to maximize the profits from farming. And in this connection, we

should note that only a particular combination of products and a particular combination

of inputs used to produce each of the product included in the product basket will yield

maximum profits4.

In Erode district, the cropping season for onions begins in the months of

September-October. Most farmers choose to cultivate small onion (multiplier) in their

field during Rabi season in order to get good returns during winter. The following

methods of production practices are followed.

3.2.1 LAND PREPARATION Land preparation forms an important activity in the cultivation of onion. Tractor

is commonly used to perform the land preparation practices for onion in the study area.

The first activity in land preparation is tilling or ploughing of land. The farmers use

tractor and bullocks for ploughing, spacing and row setting for sowing. Finally, human

labour is used for leveling the row setting. In comparison with other local crops, such as

maize, the tilling and planting requirements for onions are much more labour intensive.

3.2.2 SOWING OF ONION Onion plants are usually grown by various means like transplanting of seedlings,

planting bulbs, direct sowing of seed in the main field, crop by sets etc. Among all those,

the cultivation of onion through planting of bulb in the wet field is more commonly

practiced by farmers in the study area.

4 Soni, R.N., “Leading issues in Agricultural economics”, Vishal Publishing Company, 2007, p.207


81

3.2.3 IRRIGATION After the planting of onion has been completed, the farmers must monitor field

conditions cautiously. Timely irrigation of the early crop is essential. Irrigation is depending

on soil and climate. Water requirement of the crop at initial growth period is less.

It depends on crop growth, soil type and planting season. Nearly 10 times of irrigation is

made to onion as frequent irrigation delays maturity. Irrigation is mostly made by direct

watering into the rows. Only few of the farmers are using sprinkler method of irrigation.

Irrigation is stopped 15-20 days before attaining maturity for improving the keeping

quality of onion.

3.2.4 MANURING AND FERTILIZATION

The soil for onion growing should be liberally manured and fertilized. Since most

of the farmers have their own cattle, they tend to use their own farmyard manure and

others use manures by buying from outside farms. In addition to farmyard manure, farmers

apply chemical fertilizers for their farm for getting good growth of onion. They mostly

depend upon private fertilizer shops.

3.2.5 WEED CONTROL

Two weeks after planting, the farmers begin the first important weeding operation. Onion

is closely planted and a rooted crop. Thus manual hand weeding is mostly used by farmers in the

study area. Only limited farmers use chemical weedicides along with hand weeding at critical

stage. Nearly three to four times of weeding is required until onion is harvested.

3.2.6 HARVESTING

As onion bulbs increase in size, the onion leaves begin to collapse. This occurs

80 to 120 days after planting. In the study area, onion is harvested only by human labour

by pulling. Once the harvesting started, they are kept in farm field and brought to labour

households for shed curing. This operation is one of the very labour-intensive activities in

onion production.

3.2.7 CULTIVATION OF IMPROVED VARIETIES OF ONION

In the study area, only very few farmers are cultivating improved varieties of onion

such as Co 4 and Co (on) 5. Though the farmers are aware of other improved varieties


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such as Co1, Co2, Co3 and Bangalore rose, majority of farmers are cultivating only local

(nattu) variety of small onion. Because of poor demand, highly perishable nature and

failure in transplantation than in direct sowing, farmers do not prefer to cultivate the improved

varieties of onion.

3.2.8 ADVICE FROM AGRICULTURAL AND HORTICULTURAL DEPARTMENTS

FOR ONION CULTIVATION

Most of the farmers in the study area are having the habit of cultivating onion as

per their traditional practices. They are of the opinion that there is no response from the

officers of the Agricultural and Horticultural departments of the Government whenever

they seek help for arresting the pest attack. This is mainly due to non-availability of

sufficient officers and assistants to them.

3.2.9 SOURCE OF FINANCE FOR CULTIVATION OF ONION

The major problem being faced by farmers in India is insufficiency of finance.

Majority (302) of the sample respondents are using short term borrowed finance. They

borrow money from friends and relatives, from cooperative Bank in the form of interest

free jewel loan, from commercial banks as crop loan and from local money lenders. Some

times, farmers depend on commission agents for finance for cultivating onion.

3.2.10 SOURCES OF SEED PURCHASE

Being onion a seasonal crop, farmers cultivate onion in two season’s viz. Kharif

and Rabi seasons. Most of the farmers prefer to cultivate onion in Rabi season for

favourable moisture climate prevailing from November to February. Some farmers use

onion produced as an intercrop during Kharif season as seeds while others depend on

local farmers and markets for the purchase of onion seeds. Punjaipuliyampatti market is

the important market place for the purchase of onion seed followed by Modachur market,

Bootha padi market and Erode market

3.3 FACTORS MOTIVATING THE FARMERS TO CULTIVATE ONION The success of farming is judged by the amount of profit gained in it. In the area of

study, sample Farmers are interviewed to disclose the factors which motivate them to

cultivate onion. According to trade sources, small onion is mainly cultivated in three


83

seasons, but now the produce is available in the market throughout the year in Tamil Nadu.

Farmers are of the opinion that the crop duration, lesser cost of cultivation, storability and

better profits compared to other crops lead them to prefer cultivation of onion after onion5.

To examine the motivating factors, ten factors such as suitability of soil, availability

of limited water, quick returns, less risk, traditional practices, less cost of cultivation, less

fertilizer consumption, less application of plant protection chemicals, availability of

human labour, easy marketability have been considered. Simple Ranking analysis has

been applied to identify the factors motivating onion cultivation.

3.3.1 SIMPLE RANKING ANALYSIS

The following Table 3.1 shows the factors motivating the farmers to cultivate

onion and the rank assigned to each of them.

TABLE 3.1

FACTORS MOTIVATING THE FARMERS TO CULTIVATE ONION:

SIMPLE RANKING ANALYSIS

S.No. Factors Total Score Mean Score Rank

1 Suitability of soil 3847 6.63 III

2 Availability of limited water 3898 6.72 II

3 Quick returns 3082 5.31 VII

4 Less risk 3169 5.46 IV

5 Traditional practices 4680 8.07 I

6 Less cost of cultivation 2577 4.44 VIII

7 Less fertilizer consumption 3132 5.40 V

8 Less plant protection chemicals 2173 3.75 X

9 Availability of human labour 3115 5.37 VI

10 Easy marketability 2227 3.84 IX

5 TNAU’s crop Report (2008), p.2


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The above Table 3.1 shows that the traditional practices is the main factor which

motivated the farmers to cultivate onion with the mean score of 8.07 followed by

availability of limited water (6.72), suitability of soil (6.63), less risk (5.46), less fertilizer

consumption (5.40), availability of human labour (5.37), quick returns (5.31), less cost of

cultivation (4.44), easy marketability (3.84) and less plant protection chemicals (3.75).

Hence, it is concluded that the Traditional practices is the main factor which

motivated the sample farmers to cultivate onion in their farm.

In order to assess the effective ranking method, Garrett Ranking has been used to

examine the factors motivating the farmers for onion cultivation.

3.3.2 GARRETT RANKING

Scale values as per Garrett ranking technique for first to ten ranks are: 81, 70, 63,

57, 52, 47, 42, 36, 29 and 18 respectively.

The percentage position of each rank is made into score by referring factors and

summed up for assigning rank.

The Table 3.2 shows the factors motivating the farmers to cultivate onion as per

Garrett Ranking analysis.


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TABLE 3.2

FACTORS MOTIVATING THE FARMERS TO CULTIVATE ONION: GARRET RANKING ANALYSIS

S. No. Factors

SCALE AND SCORE VALUES OF RANKS Total score

Mean score Rank Ranks I II III IV V VI VII VIII IX X

Scale value(x) 81 70 63 57 52 47 42 36 29 18

1 Suitability of soil F 75 82 67 100 88 67 30 25 19 27 580 56.31 III Fx 6075 5740 4221 5700 4576 3149 1260 900 551 486 32658

2 Availability of limited water

F 30 87 115 83 138 61 26 13 11 16 580 56.39 II Fx 2430 6090 7245 4731 7176 2867 1092 468 319 288 32706

3 Quick returns F 55 47 88 99 27 16 35 36 78 99 580 48.10 VII Fx 4455 3290 5544 5643 1404 752 1470 1296 2262 1782 27898

4 Less risk F 82 23 38 31 59 84 101 94 56 12 580 49.82 IV Fx 6642 1610 2394 1767 3068 3948 4242 3384 1624 216 28895

5 Traditional practices F 187 145 67 76 15 43 22 8 3 14 580 65.87 I Fx 15147 10150 4221 4332 780 2021 924 288 87 252 38202

6 Less cost of cultivation F 23 24 41 20 76 81 92 86 39 98 580 42.90 VIII Fx 1863 1680 2583 1140 3952 3807 3864 3096 1131 1764 24880

7 Less fertilizer consumption

F 29 87 78 49 39 39 80 83 35 61 580 49.08 V Fx 2349 6090 4914 2793 2028 1833 3360 2988 1015 1098 28468

8 Less plant protection chemicals

F 10 27 30 50 20 47 64 72 153 107 580 38.50 X Fx 810 1890 1890 2850 1040 2209 2688 2592 4437 1926 22332

9 Availability of human labour

F 58 44 28 47 82 84 70 81 32 54 580 48.60 VI Fx 4698 3080 1764 2679 4264 3948 2940 2916 928 972 28189

10 Easy marketability F 31 14 28 25 36 58 60 82 154 92 580 39.43 IX Fx 2511 980 1764 1425 1872 2726 2520 2952 4466 1656 22872 TOTAL N 580 580 580 580 580 580 580 580 580 580

Source: Primary Data

Note: Scale value, f= No. of Respondents, fx=Score value


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The Table 3.2 also shows that the Traditional practices is the main factor which

motivated the farmers to cultivate onion followed by availability of limited water,

suitability of soil, less risk, less fertilizer consumption, availability of human labour,

quick returns, less cost of cultivation, easy marketability and less plant protection chemicals.

Hence, it is concluded that the Traditional practices is the main factor which

motivated the sample farmers to cultivate onion in their farm.

3.4 COST OF PRODUCTION OF ONION

Agricultural production is a complex process particularly for vegetable production.

The production of onion is associated with number of variables used in production

process. The production of this vegetable depends on natural environment, input use and

combination of inputs and management practices.

Onion is seasonal during their production period so issues related with their

production cost accountability are few. To work out production costs of the onion, all

the financial activity carried out during the production period have been considered.

The cost of production of onion is classified into fixed cost including land input and

variable costs including labour and capital inputs. Land input is fixed cost in the sense

that rent of land for the period of production and cultivation is not subject of frequent

variation as in case of materials and labour. The prevalent rent of land in the study

areas are collected on annual basis and distributed in the crop standing period including

own land. The labour input cost includes all those cost incurred on field operations

and production practices starting from land preparation up to harvesting which is

performed by human, animal and machinery. The main labour costs include the cost of

land preparation, sowing, irrigation, weeding and harvesting and shed curing. The capital

cost accounts the cost of seed, fertilizers and farm yard manures, pesticides and herbicides

and interest on input charges. The onion producing farmers have been categorized for the

purpose of study as small (below 2 acres), medium (2-4 acres) and large (4.1 acre and

above), based on the extent of land used for onion production. Following is the

mechanics of the calculation of major cost items of onion production.

Analysis of cost of cultivation of onion per acre on the basis of different sizes of

farms has been given in the Table 3.3


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TABLE 3.3

ANALYSIS OF COST OF PRODUCTION OF ONION FOR DIFFERENT SIZE OF FARMS

(Rs. per Acre)

S. No. Type of Expenditure Size of Different Farms

Average Small Medium Large

1 Cost of seeds 5,091.87 (20.44)

5,219.93 (20.12)

5,246.97 (19.77)

5,207.54 (20.17)

2 Labour on land preparation 1,086.88 (4.36)

1,178.74 (4.54)

1,204.20 (4.54)

1,171.82 (4.54)

3 Machine Labour 1,456.66 (5.85)

1,511.47 (5.83)

1,550.38 (5.84)

1515.04 (5.87)

4 Cost of Bullock Labour 944.78 (3.79)

835.15 (3.22)

967.29 (3.65)

896.16 (3.47)

5 Labour for planting 687.09 (2.75)

871.94 (3.36)

859.24 (3.24)

837.27 (3.24)

6 Weeding 674.61 (2.71)

828.18 (3.19)

778.82 (2.93)

735.76 (2.85)

7 Labour for irrigation 827.44 (3.32)

889.01 (3.43)

852.35 (3.21)

815.92 (3.16)

8 Fertilizers and Farm Yard Manure

678.17 (2.72)

818.13 (3.15)

819.62 (3.09)

744.47 (2.88)

9 Plant Protecting Chemicals 3,427.44 (13.76)

3,678.35 (14.18)

3,508.06 (13.22)

3,581.61 (13.88)

10 Harvesting Charges 1,040.48 (4.17)

1,120.78 (4.32)

1,087.17 (4.09)

1,096.60 (4.25)

11 Labour on Shed curing 4,928.30 (19.78)

4,803.71 (18.52)

5,406.01 (20.37)

5,019.79 (19.45)

Sub Total(A) Variable Cost 20,843.72(83.65)

21,755.39 (83.86)

22,280.11 (83.95)

21,621.98 (83.76)

12 Rental value of Land 3,239.53 (13.00)

3,327.81 (12.83)

3,368.56 (12.69)

3,326.45 (12.89)

13 Interest of input charges 833.75 (3.35)

858.22 (3.31)

891.20 (3.36)

864.89 (3.35)

Sub Total (B) Fixed charges 4,073.28 (16.35)

4,186.03 (16.14)

4,259.76 (16.05)

4,191.34 (16.24)

Total Cost of Production (A+B)24,917.00(100.00)

25,941.42 (100.00)

26,539.87 (100.00)

25,813.32 (100.00)

Figures in parentheses are percentages to total


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The Table 3.3 shows that, on an average, the cost of cultivation of onion per acre

for over all farms amounts to Rs. 25,813.32, whereas the average cost in small, medium

and large farms are Rs.24,917.00, Rs.25,941.42 and Rs. 26,539.87 respectively. Cost of

cultivation of onion per acre showed an increasing trend with the increase in the size of

farms. Among various components of operational costs, cost of seed accounted for

20.17 per cent of total cost followed by labour on shed curing 19.45 per cent, plant protection

chemicals 13.88 per cent, machine labour 5.87 per cent, labour on land preparation

4.54 per cent, Harvesting charges 4.25 per cent, bullock labour 3.47 per cent, Labour for

planting 3.24 per cent, irrigation charges 3.16 per cent, and cost of fertilizers and farm

yard manures 2.88 per cent and weeding charges 2.85 per cent. A size group-wise comparison

showed that large farms have made higher investment per acre than small farms. It is due

to their investment capacity for different inputs. It varied from Rs. 26,539.87 per acre on

large farms to Rs.24, 917.00 on small farms.

Therefore, it is concluded that the average cost of production of onion of large

farms is higher than the small and medium size of farms and over all farm size. The cost

of seed is the major portion on the total cost of production of onion.

3.5 PRODUCTION FUNCTION

Production is a process whereby some goods and service, called inputs are transformed

into other goods and services called output. The production function refers to the

relationship between the input and the resultant output. The production function is based

on the idea that the amount of output in a production process depends upon the amount of

inputs used in the process. Further, it is assumed that, an input or a set of inputs can

produce only one unique amount of output, which is termed as production function.

The farmer as producer has a given goal clearly to cut out with the inputs/ resources,

at his disposal. These resources are put into a process call production. This production

process may pertain to using of the resources or inputs viz., seed, fertilizer, irrigation,

human labour etc., to produce a given quantity of output of crop.

For assessment of on-farm production efficiency and returns, production function

analysis has been carried out. The production function has been estimated through input

and output relationship of the vegetables produced.


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Production function is a technical and mathematical relationship describing the

manner and the extent to which a particular product depends upon the quantities of inputs

or services of inputs, used at a given level of technology and in a given period of time.

It shows the quantity of output or income that can be produced using different levels of

inputs6. A Cobb-Douglas type production function is used to estimate input-income

relationship in vegetable production.

3.5.1 COBB-DOUGLAS PRODUCTION FUNCTION

Cobb- Douglas production function model is a widely used model to estimate

resource use efficiency and return to scale in crop farms. The Cobb-Douglas production

function which has the best fit was selected to establish the input-output relations7.

In Cobb-Douglas production function, returns per farm is taken as dependent variable and

seven inputs viz., land in acres, machine labour, bullock labour, cost of seeds, total cost of

labour, fertilizer, and pesticides as independent variables. The regression coefficients of

different input used in the production function were estimated separately for each size

group sample farms. In order to get an optimum cost return model, cost of labour on land

preparation, planting, irrigation, weeding and shed curing are grouped into a single

category as human labour.

The Cobb-Douglas type of production function has been used to study the effect

of various input expenses on return of onion. On account of its well known properties like

its computational simplicity, it is widely applied in analysing production relations.

The form of Cobb-Douglas production function used in the present study is as

follows.

6 Soni, R.N., op cit., pp.207-208 7 Verma, A.R., Rajput, A.M. and Patidar, R.S., “Economic Analysis of Production, Resource Use

Efficiency and Constraints of Onion in Indore District of Madhyapradesh”, Agricultural Marketing, Jan-Mar., Vol. XLVI, No.4, 2004, p.23


90

The general form of the function is as follows:

Y = aX1b1X2

b2X3b3 X4

b4 X5b5X6

b6 X7b7eu

Where

Y = gross return of onion in rupees

A = constant

X1= area under crop in acres

X2= value of machine labour in rupees

X3= value of bullock labour in rupees

X4= value of seeds in rupees

X5= value of total labour

X6= value of fertilizer in rupees

X7=value of pesticides in rupees

eu = Error term

bi= the regression coefficient of the i (th) independent variable ( i = 1 to 7)

The Cobb- Douglas type production function has been converted into log linear

form and the parameters have been estimated by using ordinary least square technique.

The seven regressions fitted to data, log-linear regression is found to be best fit on the

basis of R2 value of standard error of the regression coefficients. The regression

coefficient of production of onion for different sizes of farms in Erode District have been

worked out in the following Table 3.4


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TABLE 3.4

REGRESSION COEFFICIENT OF PRODUCTION FUNCTIONS OF ONION

FOR DIFFERENT SIZES OF FARMS

Particulars Size of Farms All

Farms Small Medium Large

Constant 4.323 (0.691)

3.065 (0.320)

3.724 (0.378)

1.486 (0.319)

Area of Land 0.444** (0.038)

0.042 (0.039)

0.205 (0.133)

0.0498**(0.044)

Seeds 0.332***(0.089)

0.283***(0.062)

0.143*** (0.049)

0.141***(0.050)

Total Human Labour -0.213** (0.104)

0.317***(0.082)

0.348*** (0.094)

0.433***(0.070)

Machine Labour -0.132* (0.085)

-0.002 (0.050)

0.029 (0.061)

0.108** (0.047)

Bullock Labour 0.062 (0.086)

0.082 (0.064)

-0.023* (0.145)

0.0582* (0.054)

Fertilizer and Manures 0.060 (0.075)

0.088* (0.053)

0.179 (0.124)

0.0418* (0.042)

Plant Protection chemicals 0.148** (0.056)

0.181***(0.050)

0.129 (0.076)

0.129***(0.042)

Coefficient of Determination R 0.915 0.948 0.950 0.939

Coefficient of Multiple Determination R2 0.832 0.899 0.903 0.882

Adjusted R2 0.830 0.896 0.896 0.880

F – Value 135.048 353.012 123.619 609.577

Number of Samples 193 286 101 580

Note: Figures in parentheses are standard errors of the regression coefficients.

* Significant at 10 per cent level.

** Significant at 5 per cent level.

*** Significant at 1 per cent level.


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The Table 3.4 reveals that in the all farms, seven variables included in the analysis

has explained 88.20 per cent of the variation in gross returns by the coefficient of

multiple determinations (R2). The value of R2 is low in small farms (83.20 per cent)

followed by medium farms (89.90 per cent) and quite high in large farms (90.30 per cent).

In order to analyse the elasticity of production with respect to all farms, students ‘t’ test

has been applied. The regression coefficients of the cost items such as seed, total human

labour and plant protection chemicals are 0.141, 0.433 and 0.129 respectively. This implies

that 1 per cent increase in seed, labour and plant protection chemical would increase the

gross returns of onion by 0.141, 0.433 and 0.129 per cent. The regression coefficients of

area of land and machine labour are 0.0498 and 0.108 respectively and significant at

5 per cent level. The regression coefficients of fertilizers and manures and bullock labour

are 0.0418 and 0.0582, respectively and significant at 10 per cent level. Therefore, an

increase in fertilizers and manures and bullock labour by 10 per cent would increase the

gross returns by 0.0418 per cent and 0.0582 per cent respectively.

The positive but less than unity production elasticities of seed, manures and

fertilizers, human labour, machine labour and plant protection chemicals indicates the use

of these variables stood in the rational zone of the production surface. The coefficients of

expenditure on manures and fertilizers, seeds and plant protection chemicals are positive

and statistically significant for small and medium farms. Hence, it may be inferred that

seeds and plant protection chemicals are the important inputs which significantly increase

farm returns of small and large farms. The production coefficient of human labour is

positive and statistically significant for medium and large farms. In case of small farms,

the production elasticities of total human labour and machine labour turned out to be

negative indicating excessive use in small farms. The gross returns of land are positive in

small, medium and large farms but it is statistically significant in small farms. Bullock

labour has a negative elasticity coefficients indicating a decrease in gross returns due to

increase in the use of this resource on large farms. When the use of all other resources

kept constant, the regression coefficients of machine labour is also found to be negative

in the case of medium farms indicating excessive use of machine labour in the farms.

The results revealed that the farmers could increase the gross returns in onion by applying


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more seeds, human labour, machine power, fertilizers and manures and plant protection

chemicals. The coefficients of other variables are not statistically significant, showing

that any increase in their application would not increase the gross returns of onion.

The calculated value of ‘F’ for small size land holding, medium size land holding,

large size land holding and overall farm sizes are 135.048, 353.012, 123.619 and 609.577

respectively, which are higher than the theoretical values of ‘F’ at 1 per cent level of significance

in all farms.

Hence, it is concluded that the relationship between cost and return of onion is

statistically significant at 1 per cent level in all size of farms according to ‘F’ Test.

3.6 COSTS-RETURN AND INPUT-OUTPUT RATIO OF ONION PRODUCTION

AMONG THE DIFFERENT SIZE OF FARMS

The per acre yield, cost of production, gross returns, net returns, cost-return ratio

in onion production among the farms of different size groups on the basis of cost

concepts have been given in the Table 3.5.

TABLE 3.5

PER FARM YIELD, COST OF CULTIVATION, GROSS RETURNS, NET

RETURNS, AND COST-RETURN RATIO IN ONION PRODUCTION

AMONG THE FARMS OF DIFFERENT SIZES

S.No. Particulars Size of Farms Over all

Farms Small Medium Large

1 Average Area of Land Holding 1.53 3.12 5.73 3.07

2 Average Output of onion per acre (in Kgs) 4857.58 4821.46 4762.44 4808.26

3 Gross Returns 58,451.94 57,245.44 58,156.63 57,740.57

4 Cost of production 24,917.00 25,941.42 26,539.87 25,813.32

5 Net Return 33,534.94 31,304.02 31,616.76 31,927.25

Cost-Return Ratio 1:2.35 1:2.21 1:2.19 1:2.24

Kgs=Kilograms Source: Primary Data


94

The Table 3.5 exhibits that average output of onion per acre on small sized farms

(4857.58 kgs) is higher followed by Medium (4821.46 kgs) and large (4762.44 kgs) and

is also higher than the overall farm size (4808.26). The gross and net return per acre is

also higher in the small farms. The input output ratio for small, medium, large and total

farms are 1:2.35, 1:2.21, 1.2.19 and 1:2.24 respectively.

Therefore, it is concluded that the farmers cultivating onion in the small size of

farms in the study area are receiving better return when compared to farmers holding

other size of farms.

3.7 CULTIVATION OF ONION AS AN INTER CROP

Onion is produced as a main crop as well as an inter crop among other crops.

An attempt has also been made to obtain information from the sample farmers regarding

the cultivation of onion as an inter crop. The following Table 3.6 shows that the number

of farmers cultivating onion as an inter crop and crops in which onion is cultivated as an

inter crop.

TABLE 3.6

CULTIVATION OF ONION AMONG OTHER CROPS

S.No. Name of the crop Number of farmers Percentage

1 Turmeric 78 43.58

2 Tobacco 42 23.46

3 Sugarcane 29 16.20

4 Banana 17 9.50

5 others 13 7.26

Total 179 100.00

The Table 3.6 reveals that among 580 sample farmers, only 179 farmers are

cultivating onion as an intercrop. Majority (43.58 per cent) of the farmers cultivate onion

as an inter-crop among turmeric, followed by tobacco, sugarcane, banana and others like

maize, cotton etc.


95

3.7.1 REASONS FOR CULTIVATING ONION AS AN INTER CROP

Among 179 farmers, more than 50 per cent (94) are cultivating onion as an inter

crop for seeds. Others are cultivating for their home purpose and short term returns. The average

yield of onion per acre when it is cultivated as an inter-crop would be around 2,000

kilograms. The sample farmers have a strong opinion that intercropping of onion would

certainly reduce the cost of cultivation of the main crop.

The cost of cultivation of onion while intercropping would be only cost of seeds

and labour. Application of fertilizer and plant protection chemicals to main crop would

reduce the pest attacks and the requirements of fertilizers to onion. Therefore, inter

cropping of onion is an additional source of income to the farmers.

3.8 QUANTIFICATION AND MEASUREMENT OF FARMERS OPINION ABOUT

THE FACTORS AVAILABLE FOR PRODUCTION OF ONION

These days farming has not remained specialised because of more risk and

uncertainty in the output as well as in prices. Farmers have diverted their efforts towards

growing vegetables rather than any other crops. It fetches them continuous flow of income

either throughout the year or atleast in the season. Income so received depends upon

various factors in production process. Price, Availability and Quality of seeds, Availability

and price of fertilizer, Availability of labourers and Finance for cultivation are some of

the important factors which influence the satisfaction level of the farmers in the way of

cost and return. Socio economic factors are the most responsible for not only cropping

patterns but also for production, efficient selection and application of factors available for

production of onion. The socio economic background has been defined and described in

the following section in order to understand the opinion / satisfaction of the sample

farmers about the factors available for production of onion.

Sample respondents have been asked to answer six questions regarding the factors

available for production of onion. When a respondent is highly satisfied with a factor, a

score of 5 has been allotted, like wise 4 for satisfied, 3 for neutral, 2 for dissatisfied and

1 for highly dissatisfied. As such, the maximum score that is assigned by a farmer from

all the six factors would be 30 and minimum score of 6. The respondent who scored


96

below 18 has been classified as dissatisfied and those who scored equal to above 18 has

been classified as satisfied about the factors available for production of onion. Likert’s

five point scale has been used in this regard.

According to the above, opinion of sample farmers (580) about the factors

available for cultivation of onion is classified and shown in the following Table 3.7.

TABLE 3.7

DISTRIBUTION OF SAMPLE FARMERS BY THEIR LEVEL OF OPINION

ABOUT THE AVAILABILITY OF FACTORS IN CULTIVATION OF ONION

Level of Satisfaction

Number of Sample Farmers

Total opinion score

Average opinion score

Satisfied (≥ 18) 248 (42.8) 4812 19.403

Dissatisfied (<18) 332 ( 57.2) 5160 15.542

Total 580 (100) 9972 17.193

Figures in the parentheses are percentages

The Table 3.7 lists out that an average opinion scores of all the sample farmers is

17.193. Among 580 sample farmers 57.2 per cent (332) of the respondents are dissatisfied

with the factors available for the production of onion while only 42.8 per cent (248) are

satisfied with the factors available for the production of onion.

Therefore, it is concluded that majority (57.2 per cent) of the sample farmers are

dissatisfied with the factors available for cultivation of onion.

3.9 RELATIONSHIP BETWEEN PERSONAL AND SOCIO ECONOMIC

VARIABLES AND THE OPINION OF FARMERS ABOUT THE

AVAILABILITY FACTORS IN CULTIVATION OF ONION

The identified personal and socio economic variables, which might influence the

level of opinion of the sample farmers about the availability factors in cultivation of

onion, are as follows:


97

1. Age

2. Education

3. Occupation

4. Family Income

5. Family Members engaged in agriculture

6. Area of land holding

7. Farm experience

8. Experience in onion cultivation

9. Extent of land used for onion cultivation

Significance of the relationship among the above variables with the availability of

factors for the cultivation of onion have been analysed by applying the statistical techniques

such as ‘Chi-Square’ test, ‘Z’- test and ‘Analysis of Variance’ (F-test).

3.9.1 AGE AND OPINION

Farmer’s age is expected to have influence on the productivity and output of onion

as it affects the mental and manual abilities. Thoughts, cultivation pattern, implementation

of modern technologies in farming of aged farmers may differ from young farmers.

For the purpose of analysis, age groups of farmers’ have been grouped into three

categories, viz., Young (Up to 35 years), Middle (Between 36-50 years) and Old (51

years and above). The following hypothesis has been framed to assess the farmers’

satisfaction about the availability of factors for the cultivation of onion.

H0 : There is no significant association between the age and opinion of the

farmers about the availability of factors for the cultivation of onion.

The findings relating to the opinion of the sample farmers along with their age

group are presented in the Table 3.8. The information presented in this Table is subjected

to Chi-Square Test.


98

TABLE 3.8

DISTRIBUTION OF SAMPLE FARMERS BY AGE GROUPS AND THEIR

OPINION: CHI-SQUARE TEST

Age group Satisfied Dissatisfied Total Young 18 (28.6) 45(71.4) 63 (100) Middle 126 (41.9) 175 (58.1) 301 (100)

Old 104 (48.1) 112 (51.9) 216(100) Total 248 (42.8) 332(57.2) 580 (100)

(Figures in Parentheses are percentages) D.f:2 χ2 = 7.843 ‘C’=0.116

The Table 3.8 reveals that, among the three age groups of the sample farmers, a

high percentage (71.4%) of Young age group farmers is dissatisfied with the availability

of factors for cultivation of onion as compared to middle age group and old age groups of

farmers.

It is found that calculated value of χ2 (7.843) is greater than the theoretical value

of χ2 (i.e., 5.991) for 2 degrees of freedom at 5 per cent level of significance. This implies

that the null hypothesis is rejected. Hence, it is evident that age groups of farmers

influence their satisfaction about the availability of factors for cultivation of onion.

Contingency coefficient 0.116 shows that there is a low degree of association between the

age groups and the farmers’ satisfaction about availability of factors for the cultivation of

onion.

The farmers’ age groups along with their opinion scores are given in the Table 3.9.

TABLE 3.9

DISTRIBUTION OF SAMPLE FARMERS BY AGE GROUPS AND THEIR

OPINION SCORES

Age group No. of Farmers Total score Mean score Young 63(10.86) 1044.00 16.571 Middle 301 (51.90) 5125.00 17.027

Old 216 (37.24) 3803.00 17.607 Total 580 (100) 9972.00 17.193

(Figures in Parentheses are percentages)


106

TABLE 3.18

DISTRIBUTION OF SAMPLE FARMERS BY THEIR FAMILY INCOME AND

OPINION SCORES

Family income No. of Farmers Total scores Mean scores

Below 2 lakhs 110 1979.00 17.991

Between 2 lakhs to 5 lakhs 304 5353.00 17.609

Above 5 lakhs 166 2640.00 15.904

Total 580 9972.00 17.193


The Table 3.18 exhibits that the sample respondents with more than Rs.5 lakhs as

their family income have the lowest mean scores (15.904) than the other categories of

respondents having below Rs.2 lakhs and between Rs.2 lakhs to Rs.5 lakhs. Therefore,

the test of significance is applied to find out the significant of the difference in mean

score of different category of farmers having different income level of the family.

TABLE 3.19

DISTRIBUTION OF SAMPLE FARMERS BY THEIR FAMILY INCOME AND

OPINION: F-TEST

Sources of variation

Sum of square

Degrees of freedom

Mean squares F-value Result

Between samples 398.505 2 199.253

11.332 Significant at 1% level Within samples 10145.867 577 17.584

Total 10544.372 579

It can be inferred from the Table 3.19 that there is a significant difference in the

mean score of farmers having different size of income people.


107

3.9.5 NUMBER OF FAMILY MEMBERS ENGAGED IN AGRICULTURE AND

THEIR OPINION

The family members engaged in agriculture is an important source of the labour

force for the farmer. Availability of labour is very limited in the present days. If a farmer

has more number of members in his family, he can do farming without any hurdle of non

availability of labourers. For the purpose of analysis, number of members involved in

agriculture has been grouped in to two categories viz., upto 2 and above 2 members.

The following hypothesis has been framed to test the significance.

H0 : There is no significant association between the number of family members and

opinion of the farmers about the availability of factors for the cultivation of onion.

The findings relating to the opinion of the sample farmers’ along with number of

family members engaged in agriculture are presented in the Table 3.20. The information

presented in this Table is subjected to Chi-Square Test.

TABLE 3.20

DISTRIBUTION OF SAMPLE FARMERS BY NUMBER OF FAMILY

MEMBERS ENGAGED IN AGRICULTURE AND THEIR

OPINION: CHI-SQUARE TEST

Number of Family members Engaged in

Agriculture Satisfied Dissatisfied Total

Upto 2 108 (33.8) 212 (66.3) 320 (100)

Above 2 140 (53.8) 120 (46.2) 260 (100)

Total 248 (42.8) 332(57.2) 580 (100)

(Figures in Parentheses are percentages) D.f :2 χ2 = 23.699 ‘C’=0.198

Among the two categories of farmers, a high percentage (66.3) of farmers with

two family members engaged in agriculture are not satisfied with the factors available for

cultivation of onion as compared to the category of farmers with above two family

members engaged in agriculture.


108


of Chi-Square (i.e. 6.635) for 1 degree of freedom at 1 per cent level significance.

This implies that the null hypothesis is not accepted. Hence, it is evident that number of

members engaged in agriculture influence their opinion about the availability factors in

cultivation of onion. Contingency co-efficient 0.198 shows that there is a low degree of

association between the educational status and the farmers’ opinion about the availability

of factors in cultivation of onion. The number of family members of sample farmers

engaged in agriculture along with their opinion scores are given in the Table 3.21.

TABLE 3.21


MEMBERS ENGAGED IN AGRICULTURE AND THEIR OPINION SCORE

Number of Family members Engaged in

Agriculture No. of Farmers Total score Mean score

Upto 2 320 (55.77) 5326.00 16.644

Above 2 260 (44.83) 4646.00 17.869

Total 580 (100) 9972.00 17.193

(Figures in parentheses are percentage)

The Table 3.21 points out that the mean score (16.644) of farmers with upto

2 persons engaged in agriculture is the lowest. The test of significance is applied to find

out the significance of the difference in the mean score of different categories of farmers

having number of persons in their family engaged in agriculture is tested by ‘Z’ test.

TABLE 3.22


MEMBERS ENGAGED IN AGRICULTURE AND THEIR OPINION: ‘Z’ TEST

Mean – I X1

Mean – II X2

Mean difference

X1 - X2

Standard deviation S.E ‘Z’

value Result

16.6438 17.8692 -1.4546 0.056 0.4483 -3.245 Significant at 1% level


109

As the calculated value of ‘z’ is greater than the 2.58 S.E, it is concluded that

there is a significant difference in the mean scores of two groups based on number of

family members engaged in agriculture.

3.9.6 AREA OF LAND HOLDING AND OPINION

Area of landholding is important to examine how resources are managed, and

resulting impact on productivity and sustainability. The empirical literature indicated that,

small farmers have an advantage in labour supervision than large farmers. Therefore, the

quantity of labour inputs is likely to be higher on small farms. Second, small farmers

can have restricted access to modern inputs, and this can hold back their productivity.

Third, small and large farmers may differ in their attitude to risk and uncertainty.

The large farmers may be more willing and able to carry greater risk. The following

hypothesis has been framed in this regard.

H0 : There is no significant association between the area of landholding and opinion

of the farmers about the availability of factors for the cultivation of onion.

The findings relating to the opinion of the sample farmers’ along with their area

of land holding are presented in the Table 3.23. The information presented in the Table 3.23

is subjected to Chi-Square Test.

TABLE 3.23

DISTRIBUTION OF SAMPLE FARMERS BY AREA OF LAND HOLDING AND

THEIR OPINION: CHI-SQUARE TEST

Area of Land holding Satisfied Dissatisfied Total

Below 2.5 acres 41 (27.0) 111 (73.0) 152 (100)

Between 2.5 acres to 5 acres 108 (45.0) 132 (55.0) 240 (100)

Above 5 acres 99 (52.7) 89(47.3) 188 (100)

Total 248 (42.8) 332 (57.1) 580 (100)



110

Among the three groups of sample farmers, a high percentage (73.0) of farmers

having below 2.5 acres are not satisfied with the availability of factors in cultivation of

onion as compared to farmers having between 2.5 acres to 5 acres and above 5 acres of

land.


of Chi-Square (i.e. 9.210) for 2 degrees of freedom at 1 per cent level of significance.

This implies that the null hypothesis is not accepted. Hence, it is evident that the area of

land holding of the farmers influences their opinion about the availability of factors in

cultivation of onion. Contingency co-efficient 0.197 shows that there is a low degree of

association between the size of land holding and the farmers’ opinion about the availability

of factors in cultivation of onion. The farmers’ size of land holding along with opinion

scores are given in the Table 3.24.

TABLE 3.24


THEIR OPINION SCORE

Area of Land holding No. of Farmers Total scores Mean scores

Below 2.5 acres 152 (26.2) 2498.00 16.434

Between 2.5 acres to 5 acres 240 (41.4) 4111.00 17.129

Above 5 acres 188 (32.4) 3363.00 17.888

Total 580 (100) 9972.00 17.193


The Table 3.24 points that the category of farmers with below 2.5 acres of land is

having the lowest (16.434) mean score. The test of significance is applied to find out the

significance of the difference in mean score of different category of farmers having

different size of land holdings.


111

TABLE 3.25


THEIR OPINION: F-TEST


Sum of square

Degrees of freedom

Mean squares F-value Result



Total 10544.372 579


mean score of the farmers having different area of land holdings.

3.9.7 FARM EXPERIENCE AND THEIR OPINION

In agriculture, experience is the key element for optimum use of resources. Since

agriculture involves numerous process, experience form an important factor. The application,

awareness and selection of inputs such as seeds, fertilizers, pesticides etc. may vary on

the basis of farm experience of the farmers. For the purpose of analysing the farmers’

opinion about the factors in cultivation of onion, the following hypothesis is framed.

H0 : There is no significant association between the farm experience and opinion about

availability of factors for the cultivation of onion.

The findings relating to the opinion of the sample farmers’ with different farm

experience are presented in the Table 3.26. The information presented in this Table is

subjected to Chi-Square Test.


112

TABLE 3.26

DISTRIBUTION OF SAMPLE FARMERS BY THEIR FARM EXPERIENCE

AND OPINION: CHI-SQUARE TEST

Farm Experience Satisfied Dissatisfied Total

Upto 10 years 63 (35.4) 115 (64.6) 178 (100)

Between 11 to 20 years 99 (41.6) 139 (58.4) 238 (100)

Above 20 years 86 (52.4) 78 (47.6) 164 (100)

Total 248 (42.8) 332 (57.2) 580 (100)


Among the three groups of sample farmers on the basis of farm experience, a high

percentage (64.6) of farmers with upto 10 years of farm experience are dissatisfied with

the availability of factors in cultivation of onion as compared to other groups with between

11 to 20 years and above 20 years of farm experience.


of Chi-Square (i.e. 9.210) for 2 degrees of freedom at 1 per cent level of significance.

This implies that the null hypothesis is not accepted. Hence, it is evident that the experience

in agricultural activities influences the farmers’ opinion about the availability of factors

in cultivation of onion. Contingency co-efficient 0.132 shows that there is a low degree of

association between the farm experience and the availability of factors in cultivation of

onion. The farmers experience in agriculture along with the opinion score are given in the

Table 3.27.


113

TABLE 3.27


AND OPINION SCORES

Farm Experience No. of Farmers Total scores Mean scores

Upto 10 years 178 (30.7) 3008.00 16.899

Between 11 to 20 years 238 (41.0) 4030.00 16.933

Above 20 years 164 (28.3) 2934.00 17.890

Total 580 (100) 9972.00 17.193


The Table 3.27 points out that the group of farmers with upto 10 years of experience in

agriculture has the lowest (16.899) mean score. The test of significance is applied to find

out the significant difference in the mean score of farmers having different level of

experience in farming.

TABLE 3.28


AND OPINION: F-TEST

Sources of Variation

Sum of Square

Degrees of Freedom

Mean Squares F-value Result

Between groups 111.243 2 55.622

3.076 Significant at 5% level Within groups 10433.129 577 18.082

Total 10544.372 579


means score of farmers having different level of farm experience.


114

3.9.8 EXPERIENCE IN ONION CULTIVATION AND OPINION

Onion is a seasonal and short term crop, which requires some experience in order

to get good return from it. Most farmers in the study area are cultivating onion in a

tradition. So their style of farming may differ from new farmers or those who are having

less experience. In this regard, the following hypothesis is framed to analyse the farmers’

opinion about the availability of factors in cultivation of onion.

H0 : There is no significant association between the experience in cultivation of onion

and opinion about the availability of factors for the cultivation of onion.

The findings relating to the opinion of the sample farmers’ about the availability

of factors along with their experience in onion cultivation are presented in the Table 3.29.

The information presented in this Table is subjected to Chi-Square Test.

TABLE 3.29

DISTRIBUTION OF SAMPLE FARMERS BY THEIR EXPERIENCE IN ONION

CULTIVATION AND OPINION: CHI-SQUARE TEST

Experience in onion cultivation Satisfied Dissatisfied Total

Below 5 years 28 (27.2) 75 (72.8) 103 (100)

5 to 10 years 78 (41.7) 109 (58.3) 187 (100)

Above 10 years 142 (49.0) 148 (51.0) 290 (100)

Total 248 (42.8) 332 (57.2) 580 (100)


Among the three groups of farmers having different periods of experience in onion

cultivation, the farmers with below 5 years of experience are not satisfied with the availability

of factors in cultivation of onion compared to other groups of farmers with 5 to 10 years

of experience and above 10 years of experience in onion cultivation.


of Chi-Square (i.e. 9.210) for 2 degree of freedom at 1 per cent level of significance.

This implies that the null hypothesis is not accepted. Hence, it is evident that farmers


115

experience in cultivation of onion influence their opinion about the availability of factors

in cultivation of onion. Contingency co-efficient 0.158 shows that there is a low degree of

association between the farmers experience in onion cultivation and the farmers’ opinion

about the availability of factors in cultivation of onion. The farmers’ experience in onion

cultivation along with the opinion score are given in the Table 3.30.

TABLE 3.30


CULTIVATION AND OPINION SCORES

Experience in onion cultivation

No. of farmers Total score Mean score

Below 5 years 103 (17.8) 1674.00 16.252 5 to 10 years 187 (32.2) 3200.00 17.112

Above 10 years 290 (50.0) 5098.00 17.579 Total 580 (100) 9972.00 17.193


The Table 3.30 represents that group of farmers with the below 5 years of experience

in cultivation of onion has the lowest (16.252) mean score. The test of significance is

applied to find out the significance of the difference in mean scores of different category

of farmers having different experience in onion cultivation.

TABLE 3.31


CULTIVATION AND OPINION: F-TEST


Sum of square

Degrees of freedom

Mean squares

F-value Result



Total 10544.372 579


116


opinion of farmers having different experience in onion cultivation.

3.9.9 EXTENT OF LAND USED FOR ONION CULTIVATION AND OPINION:

The extent of land used is an important factor which requires the consumption of

inputs for cultivation of onion. In order to analyse the farmers’ opinion about the

availability of factors in cultivation of onion the following hypothesis has been framed.

For the purpose of analysis the sample farmers have been grouped into three categories

on the basis of the extent of land used for onion cultivation as (i) below 2 acres (ii) 2 to 4

acres and above 4 acres.

H0 : There is no significant association between the extent of land used for onion

cultivation and opinion about the availability of factors for the cultivation of onion.

The findings relating to the opinion of the sample farmers along with the extent of

land used for onion is presented in the Table 3.32. The information presented in this table

is subjected to Chi-Square Test.

TABLE 3.32

DISTRIBUTION OF SAMPLE FARMERS BY THE EXTENT OF LAND USED

FOR ONION CULTIVATION AND THEIR OPINION: CHI-SQUARE TEST

Extent of Land used Satisfied Dissatisfied Total

Below 2 acres 71(36.8) 122(63.2) 193(100) From 2 to 4 acres 125(43.7) 161(56.3) 286(100)

Above 4 acres 52(51.5) 49(48.5) 101(100) Total 248(42.8) 332(57.2) 580(100)

(Figures in parentheses are percentages) D.F:2, χ2 =6.059 “C”= 0.102

Among the three groups of sample farmers, a high percentage (63.2) of farmers

having below 2 acres of land are not satisfied with the availability of factors in cultivation

of onion as compared to other groups of farmers cultivating onion with 2 to 4 acres and

above 4 acres.

It is found that the calculated value of χ2 (6.059) is greater than the critical value

of Chi-Square (i.e.5.991) for 2 degrees of freedom at 5 per cent level of significance.


117

This implies that the null hypothesis is not accepted. Hence, it is evident that the extent of

land used for onion cultivation influences the opinion of farmers about the availability of

factors in cultivation of onion. Contingency co-efficient (0.102) shows that there is low

degree of association between the extent of land used for onion cultivation and the

farmers’ opinion about the availability of factors in cultivation of onion. The extent of

land used for onion cultivation by sample farmers along with the opinion scores are given

in the Table 3.33.

TABLE 3.33


FOR ONION CULTIVATION AND THEIR OPINION SCORES

Extent of Land used No. of Farmers Total scores Mean scores

Below 2 acres 193(33.3) 3255.00 16.865 From 2 to 4 acres 286(49.3) 4920.00 17.203

Above 4 acres 101(17.4) 1797.00 17.792 Total 580(100) 9972.00 17.193

(Figures in parentheses are percentages)

The Table 3.33 points out that the mean score (16.865) of farmers having less

than 2 acres of land used for onion cultivation is the lowest. The test of significance is

applied to find out the significance of the difference in mean scores of different category

of farmers having different extent of land used for onion.

TABLE 3.34


FOR ONION CULTIVATION AND THEIR OPINION: F-TEST


Sum of square

Degrees of freedom

Mean square F- value Result

Between sample 147.312 2 73.656 4.087

Significant at 5 per cent

level Within sample 10397.060 577

18.019 Total 10544.372 579


118

It can be inferred from the Table 3.34 that there is a significant difference in the mean

scores of different groups of farmers on the basis of land used for cultivation of onion.

3.10 CULTIVATION PROBLEMS OF ONION GROWERS

Agriculture is associated with nature to a large extent even today. The climatic

conditions and rainfall have a decisive influence of production on agricultural products.

The fertility of land is not constant over time when repeated cultivation takes place on the

same land. The prices and production are subject to severe fluctuation owing to the

change in seasons and the operation of trade cycles, besides, farm sector is associated

with problems of organization of finance, marketing and others8.

ONION CULTIVATION PROBLEMS: SIMPLE RANKING ANALYSIS

To identify the relative importance of the problems in onion cultivation, Simple

Ranking Technique has been applied. Ten problems relating to onion cultivation are

identified and given in the final interview schedule. All the 580 sample farmers were asked

to assign ranks to all these problems in the order of importance. Each farmer was instructed

to indicate the importance of the problem by giving rank I to the most important problem,

rank II to the second important one and so on.

To examine the problems in cultivation of onion, ten factors are taken into consideration.

They are Shortage and High cost of labour, Lack of finance, High cost of seeds,

Unavailability of Hybrid seeds, Lack of support from government, unfavourable climate,

problems due to pest, Lack of technical Know how, Cost of input materials and Low

level of output.

In order to find the most important problem in cultivation of onion, simple

ranking analysis is used. The following Table 3.35 shows the problems in cultivation of

onion by farmers using simple ranking analysis

8 Benjamin R.E, Hariharan S.V and Karunagaran M, “Economics of Agriculture”, New Delhi : S. Chand

and Company Ltd., Ram Nagar, 2000, p. 178


119

TABLE 3.35

PROBLEMS IN CULTIVATION OF ONION: SIMPLE RANKING ANALYSIS

S.No. Factors Total score Mean score Rank 1 Shortage and High cost of labour 3692 6.37 I 2 Lack of finance 3511 6.05 V 3 High cost of seeds 3678 6.34 II 4 Un availability of Hybrid seeds 3559 6.14 IV 5 Lack of support from government 3567 6.15 III 6 Unfavourable climate 3296 5.68 VI 7 Problems due to pests 3120 5.38 VII 8 Lack of technical Know how 2314 3.99 IX 9 Cost of input materials 2224 3.83 X 10 Low level of output 2939 5.07 VIII

The Table 3.35 reveals that the Shortage and High cost of Labour is the main

problem faced by the farmers in cultivation of onion with the Mean score of 6.37,

followed by High cost of seeds, Lack of support from government, Unavailability of

hybrid seeds, Lack of finance, Unfavourable climate, Problems due to pest, Low level of

output, Lack of technical know how, and Cost of input materials.

Hence, it is concluded that the Shortage and High cost of labour is the major

problem in cultivation of onion.

ONION CULTIVATION PROBLEMS: GARRETT RANKING ANALYSIS

Garrett Ranking has been used to trace out the cultivation problems faced by the

onion growers.

Scale values as per Garrett ranking technique for first to ten ranks are: 81, 70, 63,

57, 52, 47, 42, 36, 29 and 18 respectively.

The percentage position of each rank is made into score by referring factors and

summed up for assigning rank.

The Table 3.36 shows that the cultivation problems faced by the onion growers:

Garrett Ranking Analysis.


120

TABLE 3.36

PROBLEMS IN CULTIVATION OF ONION: GARRETT RANKING ANALYSIS

S. No. Factors

SCALE AND SCORE VALUES OF RANKS Total score

Mean score RankRanks I II III IV V VI VII VIII IX X

Scale value(x) 81 70 63 57 52 47 42 36 29 18

1 Shortage and High cost of labour

F 76 111 16 89 69 89 42 20 27 41 580 54.79 I Fx 6156 7770 1008 5073 3588 4183 1764 720 783 738 31783

2 Lack of finance F 34 88 113 80 46 24 91 26 47 31 580 53.08 V Fx 2754 6160 7119 4560 2392 1128 3822 936 1363 558 30792

3 High cost of seeds F 57 30 189 77 60 24 30 10 54 49 580 54.06 II Fx 4617 2100 11907 4389 3120 1128 1260 360 1566 882 31329

4 Un availability of Hybrid seeds

F 31 83 77 89 51 22 52 51 99 25 580 50.47 IV Fx 2511 5810 4851 5073 2652 1034 2184 1836 2871 450 29272

5 Lack of support from government

F 78 117 39 66 29 44 70 30 89 18 580 53.84 III Fx 6318 8190 2457 3762 1508 2068 2940 1080 2581 324 31228

6 Unfavourable climate

F 80 61 40 67 85 94 38 54 18 43 580 53.04 VI Fx 6480 4270 2520 3819 4420 4418 1596 1944 522 774 30763

7 Problems due to pests

F 70 46 34 32 66 91 78 74 36 53 580 49.14 VII Fx 5670 3220 2142 1824 3432 4277 3276 2664 1044 954 28503

8 Lack of technical Know how

F 16 22 58 32 48 52 42 75 92 143 580 39.59 IX Fx 1296 1540 3654 1824 2496 2444 1764 2700 2668 2574 22960

9 Cost of input materials

F 57 9 4 22 36 47 43 162 78 122 580 39.53 X Fx 4617 630 252 1254 1872 2209 1806 5832 2262 2196 22930

10 Low level of output

F 81 13 10 26 90 93 94 78 40 55 580 47.48 VIII Fx 6561 910 630 1482 4680 4371 3948 2808 1160 990 27540TOTAL N 580 580 580 580 580 580 580 580 580 580

Source: Primary Data

Note: Scale value, f= No. of Respondents, fx=Score value


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The Table 3.36 reveals that Shortage and High cost of Labour with the Garrett

Mean score of 54.79 as the main problem in cultivation of onion, followed by High cost

of seeds, Lack of support from government, Unavailability of hybrid seeds, Lack of

finance, Unfavourable climate, Problems due to pest, Low level of output, Lack of

technical know how, and Cost of input materials.

3.11 CONCLUSION

This chapter presents the results of production analysis of onion. These results

are obtained by applying number of analytical techniques using primary data for

defining the production environment of onion in Erode District of Tamil Nadu. This Chapter

is organized in the following sections include broader view of onion production and its

production environment, results of returns to scale, factors influencing the farmers to

cultivate onion, opinion of the farmers about the availability of factors in cultivation of

onion and problems in cultivation of onion.

The study is based on the primary data collected from 580 sample farmers, who

are cultivating onion through an interview schedule constructed in this regard.

FACTORS MOTIVATING FARMERS TO CULTIVATE ONION

To examine the motivating factors, ten factors like suitability of soil, availability

of limited water, quick returns, less risk, traditional practices, less cost of cultivation, less

fertilizer consumption, less application of plant protection chemicals, availability of

human labour, easy marketability have been considered. Simple ranking and garret

ranking analyses have been applied in this regard.

Both of the ranking analysis revealed that the traditional practices is the main factor

which motivated the farmers to cultivate onion followed by availability of limited water,

suitability of soil, less risk , less fertilizer consumption, availability of human labour, quick

returns, less cost of cultivation, easy marketability and less plant protection chemicals.

COST OF PRODUCTION OF ONION

In order to analyse the cost of production of onion, the cost is classified into fixed

cost including land input and variable costs including labour and capital inputs. The fixed

cost of production of onion is classified as land input which includes rent of land.


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The prevalent rent of land in the study areas were collected on annual basis and distributed in

the crop standing period including own land. The labour input cost includes all those cost

incurred on field operations and production practices starting from land preparation upto

harvesting and performed by human, animal and machinery. The main labour costs

include the cost of land preparation, sowing, irrigation, weeding and harvesting and shed

curing. The capital cost accounts the cost of seed, fertilizers and farm yard manures,

pesticides and herbicides and interest on input charges. The onion producing farmers

were categorized as small (below 2 acres), medium (2-4 acres) and large (4.1 acre and

above), based on landholding size of the farmers.

It is found that on an average, the cost of cultivation of onion per acre over all

farms, small farms, medium farms and large farms were worked out to Rs. 25,813.32

Rs.24,917, Rs.25,941.42, and Rs.26,539.87 respectively. Among the thirteen input costs,

cost of seed forms the major portion on the total cost of production of onion.

PRODUCTION FUNCTION ANALYSIS

The Cobb-Douglas type of production function is used to study the effect of

various input expenses on return of onion. In Cobb-Douglas production function, returns

per farm is taken as dependent variable and seven inputs like land in acres, machine labour,

bullock labour, cost of seeds, total cost of labour, fertilizer, and pesticides as independent

variables. The regression coefficients of different input used in the production function

were estimated separately for each size group of sample farms. In order to get an optimum

cost return model, cost of labour on land preparation, planting, irrigation, weeding and

shed curing are grouped into a single category as human labour.

Multiple regression analysis has revealed that in all farms, seven variables included in

the analysis explained 88.20 per cent of the variation in gross returns by the coefficient of

multiple determinations (R2). The value of R2 were low in small (83.20 per cent) followed by

medium (89.90 per cent) and quite high in large (90.30 per cent) farms. To analyse

elasticity of production with respect to all farms, students ‘t’ test has been applied. Seed,

total human labour and plant protection chemicals were 0.141, 0.433 and 0.129 respectively.

This implied that 1 per cent increase in seed, labour and plant protection chemical would

increase in gross returns of onion by 0.141, 0.433 and 0.129 per cent evaluated at the


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geometric mean level. The regression coefficients of area of land and machine labour

were 0.0498 and 0.108 respectively and significant at 5 per cent level. Fertilizers and

manures and bullock labour were 0.0418 and 0.0582, respectively and significant at

10 per cent level. Therefore, an increase in fertilizers and manures and bullock labour by

10 per cent evaluated at the geometric mean level would increase the gross returns by

0.0418 per cent and 0.0582 per cent respectively.

The positive but less than unity production elasticities of seed, manures and

fertilizers, human labour, machine labour and plant protection chemicals indicated the use of

these variables stood in the rational zone of the production surface. The coefficients of

expenditure on manures, seeds and plant protection chemicals were positive and

statistically significant for small and medium farms. Hence, it may be inferred that seeds

and plant protection chemicals were the important inputs which significantly increased

farm returns on small and large farms. The production coefficient of human labour was

positive and statistically significant for medium and large farms. In case of small farms,

the production elasticities of total human labour and machine labour turned out to be

negative indicating excessive use of small farms. The gross returns of land were positive

on small, medium and large farms but it was statistically significant on small farms.

Bullock labour has a negative elasticity coefficient indicating a decrease in gross returns

due to increase in the use of this resource on large farms. When the use of all other

resources were kept constant at their respective geometric mean levels, the regression

coefficients of machine labour was also found to be negative in the case of medium

farms indicating excessive use of machine labour on the farms. The results revealed that

the farmers could increase the gross returns in onion by applying more seeds, human labour,

machine power, fertilizers and manures and plant protection chemicals. The coefficients of

other variables were not statistically significant, showing that any increase in their

application would not increase in gross returns of onion.

The calculated value of ‘F’ for small size land holding, medium, large and overall

form sizes were 135.048, 353.012, 123.619 and 609.577 respectively were higher than

the theoretical values of ‘F’ at 1 per cent level of significance in all farms.


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COSTS-RETURN AND INPUT-OUTPUT RATIO OF ONION PRODUCTION ON

THE DIFFERENT SIZE OF FARMS

It is found that average output of onion per acre on small sized farms (4857.58 kgs) is

higher followed by Medium (4821.46 kgs) and large (4762.44 kgs) and is also higher

than the overall farm size (4808.26 kgs). The gross and net return per acre is also higher

in the small farms. The input output ratio for small, medium, large and total farms are

1:2.35, 1:2.21, 1.2.19 and 1:2.24 respectively.

CULTIVATING ONION AS AN INTER CROP

It is found that among 580 sample farmers, only 179 farmers are cultivating onion as

an inter crop. Majority (43.58 per cent) of the farmers cultivate onion as an inter crop among

Turmeric, followed by Tobacco, Sugarcane, Banana and others like Maize, Cotton etc.

Among 179 farmers, more than 50 per cent (94) are cultivating onion as an inter crop

for seeds. Others are cultivating for their home purpose and short term returns. The average

yield of onion per acre when it is cultivated as an inter crop would be around 2,000

kilograms. The sample farmers have a strong opinion that inter cropping of onion would

certainly reduce the cost of cultivation of the main crop.

The cost of cultivation of onion while inter cropping would be only cost of seeds

and labours. Application of fertilizer and plant protection chemicals to main crop would

reduce the pest attacks and the requirements of fertilizers to onion. Therefore, inter

cropping of onion is an additional source of income to the farmers.

MEASUREMENT OF FARMERS OPINION ABOUT THE FACTORS AVAILABLE

FOR THE PRODUCTION OF ONION

Sample respondents have been asked to answer six questions regarding the factors

available for production of onion. When a respondent is highly satisfied with a factor, a score

of 5 was allotted, like wise 4 for satisfied, 3 for neutral, 2 for dissatisfied and 1 for highly

dissatisfied. As such, the maximum score that assigned by a farmer from all the six factors

would be 30 and a minimum score of 5. The respondent who scored below 15 were classified

as dissatisfied and those who scored equal to and above 15 were classified as satisfied about the

factors available for production of onion. Likert’s five point scale has been used in this regard.


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It is found that an average opinion score of all the sample farmers is 17.193.

Among 580 sample farmers 57.2 per cent (332) of the respondents are dissatisfied with

the factors available for production of onion while only 42.8 per cent (248) are satisfied

with the factors available for production of onion.

SOCIO ECONOMIC VARIABLES AND THE OPINION ABOUT AVAILABILITY

OF FACTORS IN CULTIVATION OF ONION

All the identified personal and socio economic variables, which might influence

the level of opinion about the availability factors in cultivation of onion, are Age,

Education, Occupation, Family Income, Number of Family member engaged in

agriculture, Area of land holding, Farm experience, Experience in onion cultivation and

Extent of land used for onion cultivation.

Significance of the relationship of all the above variables with the availability

factors in cultivation of onion have been analysed by applying the statistical techniques

such as ‘Chi-Square’ Test, ‘Z’- Test and ‘Analysis of Variance’ (F-test).

The ‘Chi-Square’ Test applied has revealed that there exists significant

relationship between the opinions about the availability of factors for cultivation of

onion and the different groups of farmers based on Age, Education, Occupation, Family

Income, Area of land holding, Farm experience, Experience in onion cultivation and

Extent of land used for onion cultivation.

The ‘Z’ Test applied has revealed that there exists significant relationship

between the opinions about the availability of factors in cultivation of onion and the

different groups of farmers based on the number of person engaged in agriculture.

The ‘F’ Test applied has revealed that there exists significant relationship

between the opinions about the availability of factors in cultivation of onion and the

different groups of farmers based on Age, Education, Occupation, Family Income, Area

of land holding, Farm experience, Experience in onion cultivation and Extent of land

used for onion cultivation.


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PROBLEMS IN CULTIVATION OF ONION

To examine the problems in cultivation of onion, ten factors viz., Shortage and

High cost of labour, Lack of finance, High cost of seeds, Unavailability of Hybrid seeds,

Lack of support from government, Unfavourable climate, Problems due to pest, Lack of

technical Know how, Cost of input materials and Low level of output have been considered.

Simple Ranking and Garret Ranking analysis have been applied in this regard.

Among the ten problems, Shortage and High cost of Labour is ranked as the

major problem in cultivation of onion under both Simple and Garret Ranking analyses.


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