economics of on-farm development - Institute for Social and ...

acked up by financial incentives and subsidies, research and
development (R&D) support and extension activities.
3.3.3 Labour institutions
Labour institutions are otherwise called labour unions! organisations have
emerged to ensure better wage and improved working conditions for the
agricultural labourers. It needs to be examined as to how these institutions have
influenced the agricultural operations in irrigation commands. The labour
institutions act as wage setters. irrespective <strong>of</strong> the production gains to the farmers
from farming activities. Labour institutions also affect the production process
through various push and pull factors.
3.3.4 Development interventions by the state
The development interventions by the state as a social institution and its impact
on paddy cultivation needs to be examined. These interventions have been
mainlY in terms <strong>of</strong> re-distribution <strong>of</strong> land as part <strong>of</strong> the land reforms in the state;
ensuring food security through an effective public distribution system; and the
labour oriented social welfare programmes. These development interventions
have also been instrumental in enhancing the reserve price <strong>of</strong> labour in most
cases (Kannan. 1999). Further. the effective implementation <strong>of</strong> the public
distribution system in the state as well as the cheap import <strong>of</strong> food grains. mainly
rice had depressing effect on the price <strong>of</strong> rice in the open market and farmers
have become reluctant to continue the otherwise cost-ineffective paddy
cultivation. This sounded the gradual but definite withdrawal <strong>of</strong> farmers from the
Moreover. the group efforts at various stages <strong>of</strong> cultivation from sowing to harvesting
a[1d processing have also failed.
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