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The IUP Journal of Agricultural Economics
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”, the author, Tilak Raj, elucidates the significance of diversification in agriculture sector, which includes shift in cropping pattern and adoption of allied activities like dairy, poultry, fishery, sheep and goat rearing, horticulture, etc., in the hilly state of Himachal Pradesh. The study assesses the extent of agricultural diversification by performing a comparative analysis of crop diversification in tribal and non-tribal areas of the state. Moreover, it makes an attempt to find out the reasons for gradual decline in the diversification of agricultural activities in the state. Herfindhal and Entropy indices are used to estimate the degree of crop diversification in the sampled farms of the study. It concludes that there is high level of crop diversification in tribal area and among small farmers. Further, the number of crops also decline during the study period, resulting in a low level of diversification in both the selected areas of the state.

In the second paper, “Biopesticides in Ghana: Vegetable Farmers’ Perception and Willingness to Pay”, the authors, Ramatu Al-Hassan, John Baptist D Jatoe and Irene S Egyir, examine farmers’ perceptions of pests, pest control practices and their willingness to pay 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 as the significant determinants of farmers’ willingness to pay for the new biopesticide. Finally, the study suggests the need to educate the farmers about the use of botanical products such as neem extracts, and wider dissemination of biological control and integrated pest management techniques.

In the next paper, “Perceptions, Practices and Constraints Regarding Availing of Government Subsidies: An Empirical Study of Fruit Growers in Punjab”, the authors, Pavninder Singh and Lalit Mohan Kathuria, analyze the fruit growers’ perceptions toward government subsidies and constraints faced while availing the government subsidies. 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. Further, 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 of Punjab in the process of availing government subsidies. Finally, the study prescribes certain measures to remove these constraints, in order to make the government programs successful.

In the fourth paper, “Health Condition and Health Awareness Among the Tea Garden Laborers: A Case Study of a Tea Garden in Tinsukia District of Assam”, the authors, Dukhabandhu Sahoo, Konnaki Konwar and Bimal Kishore Sahoo, attempt to examine the health condition of the laborers working in the tea industry with reference to the Beesakopie tea garden located in Tinsukia District of Assam. The study reveals that a significant share of labor families are suffering from the problem of calorie deficiency. Further, a wide gap between per capita requirement and intake of both protein and carbohydrate among the laborers and their families is also observed. As a result of this, the laborers of the tea garden have been suffering from various health problems. Moreover, a significant number of members of labor families have also died during the recent years due to the various diseases and lack of proper treatment. 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, and are ignorant or are not conscious about personal hygiene, sanitation practices and safe drinking water. 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 as well as for the welfare of the labor community.

In the final paper, “Milk and Dairy Products Consumption in Assam: An Economic Analysis”, the author, Manesh Choubey, analyzes consumers’ preferences and trends in consumption of milk and dairy products and their impact on dairy production and marketing opportunities in Assam. A primary study conducted in nine project districts of the Assam Agricultural Competitiveness Project reveals that the rural consumers are older and less educated, and have larger household size on average than the urban consumers. Further, almost all consumers of this study are found to be non-vegetarians and the majority of their household members are lactose tolerant. Further, it is very interesting to know that the urban and rural consumers have shown differential preferences for certain quality attributes of milk and dairy products. Urban consumers gave the main preference to powdered milk, while rural consumers preferred raw milk for availability. Interestingly, in terms of price, urban consumers preferred raw milk, while rural consumers preferred powdered milk. 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.

- L Krishna Veni
Consulting Editor

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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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Agricultural Economics