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RA 00048.pdf - OAR@ICRISAT

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Table 1. All India area ('000 ha) under various careals and their relative ahara in the total cereals area.<br />

Crops 1954/57 1958/61 1968/71 1972/75 1975/78<br />

Rice 31 520 33 706 37 413 37 621 39 329<br />

(36.2) (37.0) (37.1) (37.6) (38.2)<br />

Sorghum 17 021 18 026 18 237 16 139 16 045<br />

(19.6) (198) (18.1) (16.1) (15.9)<br />

Pearl millet 11 318 11 197 12 486 12 345 11 119<br />

(13.0) (12.3) (12.4) (12.3) (10.8)<br />

Maize 3 734 4 338 5 8 1 0 5 905 5 9 1 0<br />

(4.3) (4.8) (5.8) (5.9) (5.7)<br />

Finger millet 2 294 2 524 2 497 2 3 8 4 2 592<br />

(2.6) (2.8) (2.5) (2.4) (2.5)<br />

Small millets 5 3 1 3 5 087 4 754 4.432 4 697<br />

(6.1) (5.6) (4.7) (4.4) (4.6)<br />

Wheat 12 383 12 974 16 941 18 685 20 859<br />

(14.3) (14.2) (16.8) (18.7) (20.3)<br />

Barley 3 450 3 298 2 692 2 661 2 345<br />

(4.0) (3.6) (2.7) (2.7) (2.3)<br />

Total cereals 87 036 91 183 100 831 100 174 102 899<br />

(100) (100) (100) (100) (100)<br />

Figures in parentheses are percentages.<br />

Source: Government of India, All India Estimates of Area. Yield and Production (various issues)<br />

Market Channels<br />

Sorghum is primarily grown for home consumption<br />

in India. Estimates from various studies<br />

indicate that from 1972 to 1977 in the major<br />

producing areas, about 1 0 - 1 5 % of sorghum on<br />

average was sold in the market. Market arrivals<br />

varied from state to state (Table 3). In Uttar<br />

Pradesh, Gujarat, and Rajasthan more than 15%<br />

arrived in the market, while for Tamil Nadu,<br />

Andhra Pradesh, and Karnataka this was less than<br />

10%. For Maharashtra, unfortunately figures are<br />

not available. Looking at the data on market<br />

arrivals over time at the all-India level, it is found<br />

that after a low in 1974, market arrivals increased<br />

not only for sorghum but also for wheat and<br />

especially rice. This may be attributed not only to<br />

higher production during those years but also to<br />

price policies which made market access and<br />

interregional trade in food grains increasingly<br />

attractive, by the provision of market places as<br />

well as by the removal of food zoning and other<br />

trade barriers. As has been shown elsewhere (von<br />

Oppen 1978), this increasing commercialization<br />

leads to increasing specialization of crop production<br />

accompanied by a growth in aggregate<br />

productivity. In view of the fact that these policies<br />

continued, it can be expected that market arrivals<br />

at present of sorghum are between 15 and 2 0 %<br />

of the all-India level. To better understand the<br />

market channels of sorghum and other ICRISAT<br />

crops, several studies were conducted by ICRI-<br />

SAT's Economics Program, some results of which<br />

are reported below.<br />

Market Surplus and<br />

Market Access for<br />

Different Farm Sizes<br />

A detailed study of 20 villages was conducted in<br />

Mahbubnagar district to study the effect of<br />

market access on market surplus and aggregate<br />

productivity.<br />

In these villages, farmers' marketable surplus<br />

on average is 28% of the total sorghum production<br />

for the three landholding classes (Table 4).<br />

The market surplus increases with landholding<br />

size. It varies from 5% for the small landholding<br />

class to 4 0 % for the large landholding class. Table<br />

5 also classifies the data on the basis of distance<br />

to the market, and the influence of the distance on<br />

the market surplus. On an average for all landholding<br />

classes, the market surplus is the highest with<br />

660

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