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

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The viability <str<strong>on</strong>g>of</str<strong>on</strong>g> paddy cultivati<strong>on</strong> was been challenged by certain PrICe:<br />

depressing policy interventi<strong>on</strong>s as an integral part <str<strong>on</strong>g>of</str<strong>on</strong>g> providi ng social \\ e I fan:<br />

measures m the state. These policy interventi<strong>on</strong>s were aimed at keeping f<strong>on</strong>d<br />

gram prIces low through (a) ensurIng availability <str<strong>on</strong>g>of</str<strong>on</strong>g> subsIdised rice from the<br />

central pool; (b) inflow <str<strong>on</strong>g>of</str<strong>on</strong>g> rice from neighbouring states; <strong>and</strong> (c) effective<br />

implementati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> Public Distributi<strong>on</strong> System in the state. These policy<br />

interventi<strong>on</strong>s acted as a disincentive am<strong>on</strong>g <strong>farm</strong>ers to c<strong>on</strong>tinue with the<br />

otherwise cost-ineffective paddy cultivati<strong>on</strong> in the state. It is important to note<br />

that paddy cultivati<strong>on</strong> was less remunerative even under the group <strong>farm</strong>ing<br />

programme as revealed from the lower rate <str<strong>on</strong>g>of</str<strong>on</strong>g> returns from two villages in the<br />

Kallada irrigati<strong>on</strong> project (Table 7.13). As is evident from the table, the benefit<br />

cost ratio <str<strong>on</strong>g>of</str<strong>on</strong>g> paddy cultivati<strong>on</strong> under group <strong>farm</strong>ing was not very high in hoth the<br />

villages when compared to pre-group <strong>farm</strong>ing level. While there was almost 16<br />

per cent increase in yield <strong>and</strong> income in the case <str<strong>on</strong>g>of</str<strong>on</strong>g> Koodal village, it was <strong>on</strong>ly<br />

n per cent in the case <str<strong>on</strong>g>of</str<strong>on</strong>g> Kalanjoor village because <str<strong>on</strong>g>of</str<strong>on</strong>g> group <strong>farm</strong>ing, which is<br />

not at all commendable. Though the group <strong>farm</strong>ing was expected to bring down<br />

the cost <str<strong>on</strong>g>of</str<strong>on</strong>g> paddy cultivati<strong>on</strong> through ensuring ec<strong>on</strong>omies <str<strong>on</strong>g>of</str<strong>on</strong>g> scale, it was not<br />

achieved in respect <str<strong>on</strong>g>of</str<strong>on</strong>g> Koodal (rather, there was an increase in cost) <strong>and</strong> there<br />

was marginal improvement in the case <str<strong>on</strong>g>of</str<strong>on</strong>g> Kalanjoor village. An important re~s<strong>on</strong><br />

why the cost <str<strong>on</strong>g>of</str<strong>on</strong>g> paddy cultivati<strong>on</strong> could not be reduced under the group <strong>farm</strong>ing<br />

was the enormous labour intensity involved in paddy producti<strong>on</strong> to processing.<br />

The wage rates increased substantially owing to the multiplicati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> tasks<br />

.:aused by fragmentati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> operati<strong>on</strong>al holdings in the state. In the past, many<br />

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