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

stagnation 9 experienced by the state since the mid 70s. The studies were trying to
explain the price and non-price factors responsible for the stagnant performance <strong>of</strong>
the agriculture sector in the state. Accordingly, a host <strong>of</strong> factors were identified
which primarily included: a) crop shift in favour <strong>of</strong> commercial crops on account <strong>of</strong>
lack <strong>of</strong> pr<strong>of</strong>itability and high cost <strong>of</strong> production <strong>of</strong> food cropslO; b) perceptible
decline in the size <strong>of</strong> operational holdings: c) institutional constraints in the
• For a critical and very extensive discussion on the stagnation controversy, see the series
<strong>of</strong> papers published by the Centre for Development Studies, viz., Pushpangadan (1988);
Kannan and Pushpangadan (1988); Narayana (1990) and Kannan and Pushpangadan (1990).
While Kannnan and Pushpangadan (1988, 1990) explain the problem <strong>of</strong> secular stagnation
"ith particular reference to the seasonal and annual food crops alone, Narayana (1990)
perceive the problem in terms <strong>of</strong> the 'diversion that has taken place in the cropping pattern'
<strong>of</strong> the state in favour <strong>of</strong> perennial cash crops. However, the explanation <strong>of</strong>fered by
:\arJ\ana appears to be more convincing as it covers the non-food crops sector. which
accounts for almost 80 per cent <strong>of</strong> the total cropped area <strong>of</strong> the state. Thus, the problem <strong>of</strong>
stagnation has been regarded as a short-run phenomenon, caused by the replantation
induced cycle <strong>of</strong> 'productivity lag" entailed in the production process <strong>of</strong> commercial!
plantation crops. The life cycle <strong>of</strong> the commercial! plantation crops involves an immature
phase <strong>of</strong> 7-12 years, followed by a mature phase <strong>of</strong> 30-1 00 years depending on the crop. For
instance, under average management conditions, coconut palms start bearing between 7 to
12 years, followed by a productive period <strong>of</strong> about 80 years. However, yield starts declining
around 50 years <strong>of</strong> age. In the case <strong>of</strong> rubber, the immature phase is 5-9 years, followed by
a productive period <strong>of</strong> 25-30 years, depending on the planting material used. However, it is
important to note that the cash crops have marked differences in 'yield pr<strong>of</strong>ile' across crops,
"hich involves increasing. stable and diminishing returns to scale.
10 Varghese (1970) underscores that the redi,tfloutive public policies, which originated in
the state during the 19'h century had been ilhtrlllllcntal in the process <strong>of</strong> commercialisation.
Kicniewics (1989 as cited in Tharakan. I ')'17) shows that Kerala was known for its
cOlllnll:rcial cultivation. It's terrain ;lIld It'r,,O!raphv prevented cultivation <strong>of</strong> its staple grain,
paddy. on the hills and slopes, which \Vcre lIlili,cu for uther crops, which were largely cash
crop .. Scholars (Herring, 1991: lie I kr, 1'1')'1) 11;1\ C explained the process <strong>of</strong> crop shi ft as a
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