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The IUP Journal of Agricultural Economics

October'10
Focus

This issue contains five papers covering various topics associated with agriculture and allied activities. In the first paper, “Diversification of Small and Marginal Farms in Himachal Pradesh”,

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Diversification of Small and Marginal Farms in Himachal Pradesh
Biopesticides in Ghana: Vegetable Farmers' Perception and Willingness to Pay
Perceptions, Practices and Constraints Regarding Availing of Government Subsidies: An Empirical Study of Fruit Growers in Punjab
Health Condition and Health Awareness Among the Tea Garden Laborers: A Case Study of a Tea Garden in Tinsukia District of Assam
Milk and Dairy Products Consumption in Assam: An Economic Analysis
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Diversification of Small and Marginal Farms in Himachal Pradesh

-- Tilak Raj

Diversification in agriculture is considered as an important means for rapid economic growth and development in the hilly state of Himachal Pradesh. It includes shift in cropping pattern, i.e., growing high-value crop in place of traditional crops, and adoption of allied activities like dairy, poultry, fishery, sheep and goat rearing, and horticulture, etc. The present study seeks to examine the extent of agricultural diversification in Himachal Pradesh through a comparative analysis of crop diversification, in tribal and non-tribal areas. An attempt has also been made to find out the reasons for decrease in diversification over time. Herfindhal and Entropy indices are used to determine the degree of crop diversification in the sampled farms. The results show high level of crop diversification in tribal area and among small farmers. Further, between 1980-90 and 2004-05, the number of crops decreased resulting in low level of diversification in both the areas of the state.

Biopesticides in Ghana: Vegetable Farmers' Perception and Willingness to Pay

-- Ramatu Al-Hassan, John Baptist D Jatoe and Irene S Egyir

The study investigates farmers' perceptions of pests, pest control practices and their Willingness to Pay (WTP) for a new biopesticide in Ghana. The survey results suggest a rising trend in vegetable pest intensity with significant variation in farmers' pest control practices, especially their choice of pesticide(s). Farmers are willing to pay a substantial price premium for improved agricultural environmental safety and cost reduction or yield enhancing benefits of a new biopesticide. Farmers' perception that vegetable pest intensity is increasing, and their experience in farming and with the use of Dipel, a biopesticide, are identified to be the statistically significant determinants of farmers' WTP for the new biopesticide. Evidence of farmers trying out other biopesticides or botanical products is an indication that there is good market potential for new biopesticides, although the market growth is likely to be slow. However, existing pest control practices combined with other results of this study indicate a need for enhanced and targeted education of farmers on the use of alternative pest control methods. Other recommendations include intensifying current initiatives geared at reducing the misuse of chemical pesticides, education of specific target groups, increased promotion of botanical products such as neem extracts, and wider dissemination of biological control and integrated pest management techniques.

Perceptions, Practices and Constraints Regarding Availing of Government Subsidies: An Empirical Study of Fruit Growers in Punjab

-- Pavninder Singh and Lalit Mohan Kathuria

The present study was undertaken to analyze the fruit growers' perceptions toward government subsidies and constraints faced while availing the government subsidies. The study was conducted among the fruit growers of Ludhiana District of Punjab. The study points out that rate of subsidy, lack of information about prevalent subsidies, and long documentation procedure are the major factors, that influence the decision regarding availing of subsidies. Also, it is found that low awareness, lack of orientation programs and non-proximity to sanctioning authority's office are the major constraints faced by the fruit growers while availing government subsidies. The present study suggests certain measures to remove these constraints, in order to make the government programs a success.

Health Condition and Health Awareness Among the Tea Garden Laborers: A Case Study of a Tea Garden in Tinsukia District of Assam

-- Dukhabandhu Sahoo,
Konnaki Konwar and Bimal Kishore Sahoo

The Assam Human Development Report of 2003, acknowledged the fact that the health status of its tea garden laborers is much below the state average; the state itself is languishing at the bottom. The present study is an attempt to explore the health condition of the tea industry laborers, especially laborers of the Beesakopie tea garden, a garden in Tinsukia District of Assam. The study reveals that a significant percentage (23%) of labor families suffer from calorie deficiency of more than 1,200 calories. Further, it is also observed that there is a huge gap between the per capita requirement and intake of both protein and carbohydrate among the laborers and their families. Therefore, it was observed that the laborers are suffering from various disorders like fever, cough, anemia, hypertension, gastric problems, skin problems, etc. Moreover, the data reflect that a considerable percentage of members of labor families died during the last five years due to tuberculosis, high blood pressure, lack of proper treatment and so on. Child mortality is also observed whose reasons are not known to the laborers, indicating the lack of awareness among the laborers. Further, the laborers do not show any interest to go to hospital for treatment. The laborers are ignorant or are not conscious about personal hygiene and sanitation practices. Moreover, only 1% of labor families use filter to purify water. Therefore, health awareness among the tea industry laborers is very poor. Thus, the government as well as the authority of the tea industry should consider this serious issue as an integral part of the developmental plan, for equitable and sustainable economic growth of the country.

Milk and Dairy Products Consumption in Assam: An Economic Analysis

-- Manesh Choubey

The present study aims to analyze consumers' preferences and trends in consumption of milk and dairy products and their impact on determining dairy production and marketing opportunities in Assam. The survey was done on 1,500 households in nine project districts of the Assam Agricultural Competitiveness Project. The results reveal that the rural consumers are older and less educated, and on average, have larger household size than urban consumers. Almost all consumers are non-vegetarians and the majority of their household members are lactose tolerant. Urban and rural consumers have shown differential preferences for certain quality attributes of milk and dairy products and this finding does not support the hypotheses of the same preferences by these two types of consumers. In terms of taste, nutritive value, health risk and hygiene, boiled milk scored the highest preference rating among both urban and rural consumers, on average. On the other hand, powdered milk scored the highest preference rating in terms of shelf life and packaging. Urban consumers also gave the highest preference score to powdered milk for availability, while rural consumers did the same for raw milk. In terms of price, urban consumers gave the highest preference rating to raw milk, while rural consumers preferred powdered milk for this particular attribute.

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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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