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II. Determinants <strong>of</strong> OFD: An Economic Analysis 7.2 Factors determining OFD: A region-specific analysis This section attempts a detailed analysis <strong>of</strong> the various farm specific and regionspecific factors determining the adoption <strong>of</strong> OFD in the two irrigation projects covered under reference. The major factors intluencing farmers' decision to undertake OFD have been examined and analysed in a multiple regression analytical framework. The explanatory variables used in the analysis are different and are speci fic to the study regions. The analytical models as well as the explanatory variables used have been described in detail as follows: While most <strong>of</strong> the studies on OFD have considered the technical aspects <strong>of</strong> OFD and economic benefits <strong>of</strong> its adoption, as perceived and expected by the farmers as well as the irrigation department (say CADA), not many studies have explained the various factors influencing farmers' decision to adopt OFD at the farm level. The analysis <strong>of</strong> farmers' behaviour in the adoption <strong>of</strong> vanous yieldaugmenting technologies has been generally perceived m an 'adoption behavioural model'. This model entails a dichotomous (binary) framework <strong>of</strong> adopting or not adopting a given technological intervention. In other words, ~uch models enables one to understand and explain the innovation decision process <strong>of</strong> the farmers and is extensively applied in the literature to explain the adoption <strong>of</strong> agricultural technologies (Rogers and Shoemaker, 1971; Dasgupta, 1989; Rogers, 1995). Rogers (1995) defines the innovation decision process as the process through which an individual or decision making unit passes: (i) from 283
the knowledge <strong>of</strong> innovation (ii) to forming an altitude towards an innovation, (iii) to dccide whether to adopt or reject, (iv) to implement the new idea, and (v) the confirmation <strong>of</strong> this decision. Thc final outcome as regards the decision <strong>of</strong> adoption or other wise <strong>of</strong> the technological intervention is conditioned by concrete or discrete set <strong>of</strong> variables. The concrete set <strong>of</strong> variables provides some definite measure or evidence (both quantitative and qualitative) for the adoption or otherwise <strong>of</strong> the technology. On the other hand, discrete variables indicate whether or not a specific technology or farming practice is adopted in a binary choice model framework where the choice between two alternatives depends on the specific nature <strong>of</strong> the problem analysed. There are two distinct approaches to explain the 'adoption behaviour' <strong>of</strong> farmers. The first approach is to identify the various factors influencing the adoption <strong>of</strong> a specific technology among the farmers by using a linear multiple regression model (LMR). Second approach is to logistically explain the adoption or otherwise <strong>of</strong> a technology based on the probability models, viz., logit and probit models 10. 7.2.1: Specification <strong>of</strong> the model and variables Given the nature <strong>of</strong> the problem and availability <strong>of</strong> farm level data, we try to explain the farm level adoption <strong>of</strong> OFD in the two irrigation projects in Rerala in terms <strong>of</strong> the linear regression model based on ordinary least squares (OLS). Although the estimates based on OLS are likely to have problems <strong>of</strong> autocorrelation and hetroscedasticity, these are taken care <strong>of</strong> by omitting such 10 A detailed analysis <strong>of</strong> this, see Green and Ng'ong'ola (1993) and Saleth, 1991. 284
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, ECONOMICS OF ON-FARM DEVELOPMENT:
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DEC LARA TION I declare that the th
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I thank Dr. KM Varadan, CWRDM. Kozh
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CONTENTS Chapter 1 1.1 1.2 1.3 1.4
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4.9 Occupational Status of<
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5.3 5.4 5.6 5.7 Financial Investmen
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Figures 6.1 6.2 Chart 6.1 Appendix
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Abbreviations used ASMO BFA's CADA
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An attempt has been made in this ch
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among the people and the process <s
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the Indian state had followed a pol
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water harvesting 7 by arguing that
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(World Register of
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Eighth Plan has been estimated by t
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One of the most im
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integrated development of</
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inadequate attention given to OFD w
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performance of irr
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created. According to the Central W
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7 lagoons, 901 tanks and over 30 la
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competent and responsible agency wi
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physiographic conditions of
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(14 completed and 15 ongoing) proje
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interventions to improve the operat
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a summary of findi
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economic analysis of</stron
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een brought out by many scholars in
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While the economic benefits <strong
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sources, wasteful utilisation <stro
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such as rise in pnces, inadequate i
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the completion of
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of rainfed croppin
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areas being 8 per cent (GO!, 1998).
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investment In irrigation developmen
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Subsequently, an Expert Committee w
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highlighted the problems related to
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2.3.1 Studies on tbe impact <strong
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command area has reduced the labour
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Nanjundappa (1988), while examining
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y the CADA have led to low producti
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agents as against 90 per cent or mo
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among their members; c) insisting t
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Ansari (1989) shows that there have
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unit of land culti
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subgroup increased from 40 per cent
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1) The maIn activity being undertak
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which are unique in several ways, t
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across the states in different agro
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and social setting In which a proje
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The indepth study to examine the fa
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\,;nar~ .NO. ~.~: .t"rocesses ana s
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understand the problems related to
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of the crop produc
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greater differences between the the
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Chart ~o J.2 'Vater Institutions an
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specific promotional programmes und
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Chart No. 3.3 Explaining failure <s
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3.3.2 Crop specific promotional ins
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non-viable paddy. Even the farmers
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'- K01HIKOO --', , .-- :,' , \. ,.'
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strictly adhered to the directions
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4.1.2 Financial aspects The total e
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4.2 The Kallada Irrigation and Tree
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Map 4.4: Kallada Ayacut , IItIJrt ~
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in lands having slopes less than 3
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Table 4.1. Envisa~ed Croppin~ Patte
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in terms of underg
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meters. The end of
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and Kayamkulam branch in Phase II.
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lands. The average holding size is
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The characteristics of</str
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size group is the highest in the mi
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Table 4.10: Occupational status <st
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Appendix 4.1: Physical and technica
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Chapter 5 Dynamics of</stro
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plan. annual plans (1966-69) and th
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gt:ographical concentration <strong
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Concerted efforts were also made fo
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T a bl e 5 3 Ph . I d Ii . I - - vS
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expenditure and p~ysical achievemen
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the state cannot be treated as a pu
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in gross irrigated area. While cana
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development of lan
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The annual compound growth rates in
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5.2.1 Dynamics of
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area and yield of
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A micro level study by Narayanan (1
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ubber cultivation. in Kallada. the
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The debate on conversion of
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(Table 5.10). The table indicates t
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eqUires substantial investment for
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Source: Govt. of K
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the period 1985-86 to 1997-98. For
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The overall scenario suggests that
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project, they tend to undertake yie
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the establishment expenditure (stri
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a CriSIS. As the works involved In
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(ii) In the Karapuzha project. the
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5.15). The table indicates that the
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place. There were three revisions J
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Revenue vis Capital expenditure The
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Let us now examIne the intensity <s
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Cost escalation due to arbitration
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Another source of
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process would be very high. This al
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construction for more than 20 years
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are mainly concentrated in Thrissur
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ApMndlJ ~.1: ProjKI-wlw Ihne tn Tot
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ArlPcndil: ~.J: "'inanchtllnnstmrnl
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Chapter 6 Economics of</str
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conditions of the
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Chart: 6.1 Organisational Chart sho
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and Palakkad together occupy 10 <st
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Table 6.2. Physical and financial t
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the total allocation has been for t
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per cent achievement in physical te
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Besides. it has been reported that
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I , MalamDuzha 387 7.39 1908.53 13.
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~~- ~- --~ In all others. the BC ra
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possible in these lands during Khar
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Hence. it may be argued that since
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It is mainly due to scarcity <stron
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project. where it is very high at R
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proper coordination between variOUS
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Page 253 and 254: 3) Again. due to the high density <
Page 255 and 256: Table 6.13: Details of</str
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Page 263 and 264: large holders have spent two to thr
Page 265 and 266: Farming is considered mostly as a s
Page 267 and 268: The profitability
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Page 271 and 272: The Cobb-Douglas (CD) Function has
Page 273 and 274: · 13 Bank assistance programme and
Page 275 and 276: etween I to 2 ha. are to arrange fo
Page 277 and 278: Table 6.22: Status of</stro
Page 279 and 280: Though almost all the farmers repor
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Page 285 and 286: Appendix 6.1: Project-Wise Physical
Page 287 and 288: Chapter 7 On-Farm Development: Dete
Page 289 and 290: It can be seen from the survey data
Page 291 and 292: een made to examme as to how many f
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Page 295 and 296: The farmers were asked to reflect u
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Page 299: supplies. What is more interesting
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Page 305 and 306: It is evident from the table that t
Page 307 and 308: implications on the dynamics <stron
Page 309 and 310: competitive monocropl2 as no other
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Page 313 and 314: involving farmers as active members
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Page 317 and 318: factors l8 . As a result. the agric
Page 319 and 320: The rise in price of</stron
Page 321 and 322: may be observed that the canal seep
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Page 325 and 326: Table 7.19: Productivity and gross
Page 327 and 328: The technical constraints In the de
Page 329 and 330: 2) Lack of irrigat
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Page 335 and 336: Registration Act, 1860 in the erstw
Page 337 and 338: The pattern of act
Page 339 and 340: eported by CADA of
Page 341 and 342: Appendix 7.2: Paddy land conversion
Page 343 and 344: d,l!llS in the post-independence pc
Page 345 and 346: all(lcatioll ill the absence <stron
Page 347 and 348: irrigation commands. Th;; stud) was
Page 349 and 350: comparative COSI .:conomlcs <strong
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time lag involved in completion uf
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the state has increased by about 46
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cultivation of com
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through the effective implementatiC
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een the highest in Kallada project
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It was noticed that among the vario
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The institutional paradigm evolved
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of India to be rel
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economically viable. This underscor
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The intensity and spread of
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of allocation and
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shows that filed realities have not
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as water management related factors
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labour intensive farming operations
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Given the dynamics, problems and co
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ground realities associated with cr
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Dhawan, B.D. (1989): Sludies in Irr
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Kothari, Rajni, (1989): Politics an
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Vaidyanathan, A (1999): Water Resou
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Ghosh, Prabir De, Budhadeb (1998):
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Nair, Sukumaran, M.K. (1999): 'Rura
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Varadan, K,~ (1999): 'Estimation <s
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GOK (1967b): Evaluation of<
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Ferrer. A.M., .L.e. Lucero (1988):
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Suresh, K.A. (2000): 'Group Managem
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Tomlinson, B.R. (1992): 'The Indian
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