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

The rise in price <strong>of</strong> paddy has also been less than that <strong>of</strong> other important
crops grown in the state and this, in turn, has adversely affected the purchasing
power <strong>of</strong> paddy over time as indicated in table 7.16.
Table 7.16: Purchasing power <strong>of</strong> paddy in real terms, 1956-97
Year Coconut (nos) Tapioca (kg.) Banana (nos.) Arecanu! (nos.)
1956 2.31 4.53 6.16 18.05
1960 1.92 4.41 6.04 15.28
1970 1.59 4.38 5.41 24.13
1980 1.10 4.04 3.93 20.01
1990 0.99 1.99 3.97 10.55
1997 1.32 1.96 3.94 13.25
Source: Suresh, 2000
The table shows that the purchasing power <strong>of</strong> paddy has drastically
declined in respect <strong>of</strong> all the crops. While one kg. <strong>of</strong> paddy could get four kg. <strong>of</strong>
tapioca in exchange during 1956, it is possible to get only less than two kg. <strong>of</strong>
tapioca in 1997. Similarly, when the purchasing power <strong>of</strong> paddy in relation to
coconut declined from 2.31 to 1.32, that in relation to banana, it declined from
6.16 to 3.94 and so on.
Paddy land conversion in the Peechi and Kallada projects
The cumulative effect was that there was large-scale conversIOn <strong>of</strong> paddy
fields l9 into various other land uses, including commercial crops, resulting In
tremendous decline in area under paddy over time. The overall trends in change
in paddy area in Kerala including the area under high yielding variety <strong>of</strong> paddy
have been represented in figure 7.1.
19- For a very comprehensive analysis <strong>of</strong> the dynamics involved in the process <strong>of</strong> paddy
land conversion in Kcrala, see, Chapter 5.
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