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The IUP Journal of Agricultural Economics

October '08
Focus

This issue brings out six papers on various issues associated with agricultural marketing and trading in certain commercial crops such as coffee, turmeric and sericulture and food crop—rice

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The Implication of Market Access and Production Levels for Coffee Profitability by Smallholder Farmers in Post-Liberalized Marketing, Tanzania
A Study on the Direction of Trade in the Indian Turmeric Exports: Markov Chain Approach
Potential and Prospects of Sericulture Activities in UP
The Sensitivity of Agricultural Trade in the Proposed FTA Between Australia and Japan: A Quantitative Assessment
Rice Marketing in Cambodia: The Role of Growers
Institutional Financing and Determinants of Agricultural Overdue
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The Implication of Market Access and Production Levels for Coffee Profitability by Smallholder Farmers in Post-Liberalized Marketing, Tanzania

--Agnes Godfrey Mwakaje

This study tests the hypothesis whether there was significant difference in the input use, costs and coffee profitability by farmers of varied socioeconomic background as described by the level of production and accessibility to District Headquarters (DHQ). The study was conducted in Rungwe District, Southwest Tanzania. One hundred and forty smallholder coffee farmers were randomly selected for interview. Consultations were also made with the coffee buyers, district authority and the Ministry of Agriculture focusing mainly on the policy and intervention strategies. Findings show a significant low input use by all sample farmers after market liberalization but still profitable by all farmer categories. Nevertheless, large producers and farmers in easily accessible areas to the DHQ had significantly higher input use, low input cost, high producer prices and profits compared to low producers and the farmers in remote areas. It is concluded that improving accessibility to input and output markets, enhancing production levels and facilitating farmers' organizations for marketing may reduce the marketing costs and enhance coffee profitability by smallholder farmers.

Article Price : Rs.50

A Study on the Direction of Trade in the Indian Turmeric Exports: Markov Chain Approach

--D Murugananthi, S Selvam, N Raveendaran and S T Meena

India is the largest producer, consumer and exporter of turmeric. Globally, Indian turmeric is considered to be the best because of its high curcumin content. Turmeric ranks third in the total exports of spices from India. The major importing countries of Indian turmeric are the United Arab Emirates, Bangladesh, United States of America, Sri Lanka, Japan, United Kingdom, Iran, and South Africa. Even though India plays a major role in turmeric export, its export quantity and value varied over the years. In order to retain India's leadership, there is a need to study the export performance due to the increasing domestic demand and a threat from the competing countries. Hence, the present study is undertaken with a view to analyze the export performance of turmeric from India. The export performance is measured in terms of growth rate, instability index and Markov chain analysis. The data on export quantity and export value from 1996-2006 was taken for the purpose of this study. Both exported quantity and value recorded a positive and significant growth of 6.2 and 9.61% per annum respectively. There was high instability in export value when compared to the export quantity, which might be due to the export unit value fluctuation. The results of Markov chain analysis confirmed that UAE and Bangladesh remained as the stable markets for Indian turmeric compared to other markets. The study suggests that appropriate positioning and pricing strategies should be used to strengthen India's position in the unstable global market.

Article Price : Rs.50

Potential and Prospects of Sericulture Activities in UP

--Sanjeev Kapoor, Alok Asthana and Abhishek Shukla

This study projects sericulture as having the potential for increasing the income. In order to assess the performance of the sericulture industry, a quick survey was conducted in the two districts of Bahraich and Shravasti in the state of Uttar Pradesh. This paper measures the performance of sericulture industry in order to develop proper strategies for its expansion on a large scale. Farmers do not take proper care of the plantation and they simultaneously face scarcity of functional equipment, rearing-house facilities and weak extension support. The authors mainly analyze the economic and technical constraints facing the rural producers involved in the sericulture activities, which ought to be relaxed to achieve full potential contribution in the livelihood of rural households. The results of this study further proved that additional income can be obtained from sericulture by providing technical training and proper follow-up.

Article Price : Rs.50

The Sensitivity of Agricultural Trade in the Proposed FTA Between Australia and Japan: A Quantitative Assessment

--Mahinda Siriwardana

The Australia-Japan Free Trade Agreement (AUJA-FTA) is already in the process of negotiation by the two governments. The success of this FTA will depend on the manner in which it deals with the problem of agricultural trade between the two countries. This paper analyzes the economic effects of the proposed FTA between Australia and Japan on both economies and on their trading partners. The Global Trade Analysis Project (GTAP) model and its version 6 database is used to simulate the effects of AUJA-FTA. The paper offers some preliminary evidence concerning the welfare impact of the FTA with special reference to the sensitivity of the decision to include agricultural trade into the proposed FTA. The responses of various production sectors to the FTA show the structural changes that may take place in the two economies. The results reveal that the inclusion of agricultural trade into the FTA is essential for Japan to maximize its gains. The benefits from the FTA will outweigh the costs.

Article Price : Rs.50

Rice Marketing in Cambodia: The Role of Growers

--Meas Wat Ho

The strong emergence of competition in the marketing system of rice has a largely positive impact on the role of rice growers in Cambodia. It not only brings a close link between the growers and other entrepreneurs and a strong connection between the agricultural and manufacturing sectors, but also demonstrates the various roles that growers can play in the marketing system in order to modernize their agricultural practice. It also gives them an opportunity to build a strong competitive advantage and enables them to standardize the quality of paddy. The contribution of growers to the marketing system and vice versa has a potential to bring sustainable development to the rural economy by giving mutual benefit within the system.

Article Price : Rs.50

Institutional Financing and Determinants of Agricultural Overdue

-- Vijay Kumar Sharma

The study analyzes institutional financing for the agriculture sector and identifies those factors that are responsible for the overdue among the farmers of Himachal Pradesh. The objective is to examine the factors affecting the overdue among the farmers in the state. The results reveal that in case of marginal farmers, out of the seven selected variables, only four variables—amount borrowed, loaning agency, period of loan and repaying capacity—had a significant relationship with the amount of overdue. In case of small farmers—amount borrowed, loaning agency, period of loan, dependency ratio, repaying capacity and unproductive use of loan affected the overdue. The findings can be successfully applied for the improvement of recovery climate and minimizing the quantum of overdue. The results recommended a more careful scrutiny of the loan applications by the loaning agencies, appropriate policy to monitor credit utilization, conduct of 'Recovery Melas' and prompt efforts for the early recovery of the loan.

Article Price : Rs.50
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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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