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The IUP Journal of Agricultural Economics

January '09
Focus

This issue brings out six papers on issues associated with agriculture such as crop diversification, shrimp culture, and seed production

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An Analysis of Crop Diversification: Experience in the Asia-Pacific Region
Determinants of Yields in Shrimp Culture: Scientific Vs. Traditional Farming Systems in West Bengal
Comparative Economics of Seed Production Vis-a-Vis Commercial Grain Production of Paddy in Puducherry
Contract Farming and Agricultural Development: A Case Study of Orissa
Causes and Consequences of Tenancy-Labor Interlinked Contract in the Agricultural Labor Market of West Bengal
Consistency, Growth Rates and Decomposition Dynamics of Agricultural Production in Madhya Pradesh: A Study
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An Analysis of Crop Diversification: Experience in the Asia-Pacific Region

-- Samik Shome

In the process of structural transformation of any country, diversification is very essential. In this direction, crop diversification is considered as one of the best options for maintaining food security and thereby helping for income growth, poverty alleviation, employment generation and judicious use of natural resources, sustainable agricultural development, and environmental and ecological balance. Against this scenario, this paper analyzes the crop diversification in the Asia pacific region, which consists of 44 countries. This study reveals that significant crop diversification has been made during the past few years; however, the level of success varies from country to country. Despite the significant progress in crop diversification, there is a need to further promote crop diversification on scientific lines for the realization of its untapped potential.

Determinants of Yields in Shrimp Culture: Scientific Vs. Traditional Farming Systems in West Bengal

-- Poulomi Bhattacharya

This paper aims at identifying various determinants of shrimp yield in scientific and traditional farming systems in West Bengal. The primary data was collected from two shrimp farming districts—North 24 Parganas and Purba Midnapur during 2004-05. The empirical results derived from the multiple regression analysis show that education and capital costs have a positive impact on the yield in both the systems. But apart from these two variables, some other factors specific to the farming systems also have a significant impact on the yield. In the case of scientific farming, the farmers' association with other occupations besides shrimp farming has a detrimental effect on the yield. The culture of shrimp in the leased land has a positive impact on the yield. Similarly, in traditional farming, the labor cost has a positive impact on the yield. These evidences suggest that the government should promote alternative income generation schemes in traditional farming especially for the farmers completely dependent on shrimp culture. In the case of scientific farming, the government should promote incentives like crop insurance schemes, which will help the farmers to concentrate entirely on shrimp instead of getting engaged in diversified activities.

Comparative Economics of Seed Production Vis-a-Vis Commercial Grain Production of Paddy in Puducherry

-- A Pouchepparadjou, K Thimmappa, G Sarada,
K Vijayasarathy and K S Kumaravel

This study attempts to examine the economics of paddy seed production vis-a-vis commercial grain production and the variables that are discriminating the seed production from commercial production in union territory of Puducherry. Primary data on the cost of cultivation of both seed crop and commercial production of paddy were collected from 120 selected sample farmers through a suitable pre-tested schedule. The conventional tabular and linear discriminant functions were used to analyze the data. The findings of the study indicate that the cost of cultivation is higher in seed production as compared to the commercial production of paddy. But the total return is higher in seed production than commercial crop production. Further, the results of discriminant analysis reveal that there are noteworthy differences in the gross return between seed production and commercial production of paddy. Besides, it is evident from the analysis that the expenditure on miscellaneous items also contributed to the significant differences between the seed and commercial production of paddy.

Contract Farming and Agricultural Development: A Case Study of Orissa

-- Braja Bandhu Swain

In the recent era of rapid economic changes, slow agricultural growth has become a major area of concern in academic and public domains. In order to galvanize this sector, there are increasing efforts from various corners of the economy through an alternative institutional arrangement. In response to this, contract farming has evolved as an alternative institution. However, there is a growing debate in the academic world whether contract farming would benefit Indian agriculture or not. The pro-contract farming researchers argue that the contract-farming system could raise the income of farmers by increasing productivity. The critics argue that contract production is one mode of capitalist penetration into agriculture for capital accumulation and exploitation of the farming sector. This even leads to loss to the farmers and gain to the companies. However, the contractual arrangement depends upon the structure of the economy and how the market functions. The present study tries to analyze how the contract-farming system would be suitable for agricultural development by considering a village from the state of Orissa, whose economy is closely associated with a sugar industry. The study concludes that by entering into the contractual arrangement, the income level of the farmer and employment level in the rural economy has increased despite certain problems faced by the farmers like delayed payment, delay in procurement and low supply of agricultural inputs to them.

Causes and Consequences of Tenancy-Labor Interlinked Contract in the Agricultural Labor Market of West Bengal

-- Amit Kundu

In order to alleviate acute poverty and vulnerability in the absence of sufficient employment opportunities both in the farm and non-farm sectores, the landless agricultural laborers of West Bengal have a tie with the landlord in an interlinked contract, where the land market is linked up with the labor market. This type of interlinked contract is a new version of Employer's risk hypothesis. A landless agricultural laborer will be inclined to bind himself with such an interlinked contract at the beginning of each year provided he has a large family labor force, and a regular savings habit. But he will not be inclined to such a contract if he gets sufficient employment in terms of man days either in the farm or non-farm sector in his locality. If he enters into such a contract, then the total size of land he has to take on lease from the landlord prior to the agricultural season is positively related to the total number of able-bodied family labor force. This paper also explains that the interlinked contract, besides abating poverty of the landless agricultural laborer, also reiterates the importance of land reforms for poverty eradication.

Consistency, Growth Rates and Decomposition Dynamics of Agricultural Production in Madhya Pradesh: A Study

-- Santosh Kumar Verma, Rupali Praminik and Gyan Prakash

This study explains that rapid growth in agricultural production and productivity is very important for an agriculturally predominant state like Madhya Pradesh. The production of total pulses, oilseeds and food grains has increased due to increase in the overall yield. However, the area under the production of food grains has declined in the post-economic reform period compared to that in the pre-economic reform period, but the production has increased due to increase in yield. The area of oil seed production has increased in the post-economic reform period and in the same way production and yield have also increased significantly. The increase in production resulted mainly due to the increase in yield only. So the study suggests that future growth in food grain production would demand a substantial government commitment to the technology-based growth in agriculture. Based on the findings, this study suggests that the government should come forward to supply all inputs in time and in adequate quantities for the rapid growth of agriculture in future.

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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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