RA 00048.pdf - OAR@ICRISAT

trated by a linear p r o g r a m m i n g analysis I perf
o r m e d using s o m e factorial e x p e r i m e n t s c o n -
d u c t e d by t h e All India Coordinated Research
Project for Dryland Agriculture. There w e r e four
technique choices possible, each having different
costs and profits (Table 6). Land w a s limited to 5
ha and o p t i m u m plans w e r e calculated for various
a m o u n t s of w o r k i n g capital available to a farmer to
invest in his land. No other constraints w e r e
i m p o s e d . Only after t h e f a r m e r had access to
m o r e than Rs. 1000 of w o r k i n g capital (Rs.
2 0 0 / h a ) did t h e solution to t h e p r o b l e m indicate
that it w a s desirable to apply fertilizers to t h e
C S H - 1 hybrid s o r g h u m (Fig. 2). If Rs. 1000 or less
w e r e available, C S H - 1 w i t h local inputs w a s only
c h o s e n . The balance of land w h i c h could not be
s o w n t o C S H - 1 d u e t o shortage o f capital i n s u c h
instances, w o u l d be leased out to others.
These results highlight t h e n e e d for t h e design
and d e m o n s t r a t i o n of a range of technological
options rather t h a n a package of practices if we
are to cater effectively to t h e great variability
w h i c h exists a m o n g farmers, even w i t h i n relatively
h o m o g e n e o u s regions, in their resource e n d o w ­
m e n t ratios and access to factor markets. These
issues are addressed in m o r e detail by Ryan and
Rathore (1978) and
(1975).
Markets, Infrastructure,
and Policy
Ryan and S u b r a h m a n y a m
It s e e m s clear f r o m t h r e e of t h e f o u r papers in this
session, and f r o m t h e w o r k of Harriss (1981) that
marketing a r r a n g e m e n t s for coarse grains in t h e
SAT countries, especially t h o s e in W e s t Africa,
adversely affect production and also probably
technological change. Arakeri (1982) points out
that sorghum/fertilizer price ratios in India are
inferior to t h o s e of rice and w h e a t . Support pricing
policies for coarse grains are virtually ineffective in
India; w h e n this is c o m b i n e d w i t h their generally
l o w e r price elasticity of d e m a n d c o m p a r e d to rice
and w h e a t (Radhakrishna and M u r t y 1980, p. 51)
t h e pricing policy leads to substantial depressions
in price in periods of abundant supplies.
Peterson (1979)
has calculated t h e average
" r e a l " p r i c e s o f f a r m c o m m o d i t i e s i n w h e a t
equivalents, e x p r e s s e d in t e r m s of t h e kilograms
of fertilizer (at local d o m e s t i c prices) that c o u l d be
purchased w i t h t h e m . Real f a r m prices are m o r e
favorable to farmers in the d e v e l o p e d countries
T a b l e 6 . P r o f i t s a n d c o s t s o f a l t e r n a t i v e s o r g h u m
a c t i v i t i e s in a linear p r o g r a m m i n g e x e r ­
cise.
Profits C o s t s
A c t i v i t i e s — R s / h a —
Local s o r g h u m variety w i t h 5 0 0 1 0 0
local i n p u t s
Local s o r g h u m variety w i t h 9 7 3 5 3 5
1 0 0 kg N / h a
C S H - 1 s o r g h u m h y b r i d w i t h 1607 2 0 0
local i n p u t s
CSH-1 s o r g h u m hybrid w i t h 3 3 0 0 8 5 3
1 5 0 kg N / h a
L e a s i n g - o u t land 2 0 0 —
S o u r c e : A l l I n d i a C o o r d i n a t e d R e s e a r c h P r o j e c t f o r D r y l a n d
A g r i c u l t u r e ( u n p u b l i s h e d d a t a ) .
5
C S H - 1 h y b r i d w i t h
4
1 5 0 k g / h a of N
3
C S H - 1 h y b r i d
w i t h t r a d i t i o n a l
2
i n p u t s
1
0
2 0 0 5 0 0 1 0 0 0 2 0 0 0 3 0 0 0 4 0 0 0 5 0 0 0
W o r k i n g c a p i t a l a v a i l a b l e ( R s / - )
Figure 2. Optimum choice of activities for m a x -
imizing profits on a farm of 5 ha.
than to their counterparts in t h e developing
countries. For t h e 12 developing SAT countries in
Peterson's analysis, t h e average real price w a s
19, w h i l e for 22 d e v e l o p e d countries t h e price
w a s 35. H e n c e o n average t h e production and
sale of 100 kg of w h e a t grain equivalents in t h e 12
SAT countries w o u l d buy about half t h e fertilizer
that it w o u l d buy if p r o d u c e d and sold in dev
e l o p e d countries. Real prices in Niger are only 7,
in Upper Volta 14, in Senegal 19, and in t h e
C a m e r o o n s 16.
Peterson's analysis suggests t h e s e distortions
f r o m w o r l d price levels involve social costs, in 11
of t h e 12 SAT countries w h i c h he considered, of a
total of U.S. $ 1970 million annually. Niger's social
7 0 6