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

non-viable paddy. Even the farmers preferred keeping paddy land fallow for
years together rather than pursuing paddy cultivation.
3.3.5 Market as an institution
Market signals playa vital role in the adoption <strong>of</strong> a specific cropping pattern by
the farmers in irrigation commands. The price incentives for commercial crops
tend to change cropping pattern from the originally designed to market friendly
ones. Thus. the consistent remunerative prices and the resultant pr<strong>of</strong>itability <strong>of</strong>
cash cropsl perennial and dry crops influenced the cropping decisions <strong>of</strong> the
farmers. who always preferred a less labour intensive cash crop production
system as an alternative to the high-cost and labour intensive paddy. The
attractive prices <strong>of</strong> commercial crops may also boost the land values leading to
enormous capital gains to landowners. Thus. the peasant rationality plays a vital
role in deciding a crop pattern.
It is in this institutional framework that the problems and prospects <strong>of</strong>
irrigation development are analysed. The details presented above may help
understanding the results presented in the subsequent chapters In proper
perspective.
The process <strong>of</strong> institutional failure as theoretically argued out above
needs to be critically examined in terms <strong>of</strong> explaining the empirical scenario <strong>of</strong>
the performance <strong>of</strong> irrigation systems in the state and its effect on the process <strong>of</strong>
agricultural development in the state. This has been presented in chapter four,
where a detailed and critical analysis <strong>of</strong> the lack <strong>of</strong> one to one correspondence
between irrigation and agricultural development in Kerala is attempted and the
missing links highlighted.
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