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The IUP Journal of Agricultural Economics
Focus

This issue brings out six papers on issues associated with agriculture such as crop diversification, shrimp culture, and seed production vs. commercial grain production, contract farming, tenancy-labor contracts, and dynamics of agricultural production.

Samik Shome, in his paper, "An Analysis of Crop Diversification: Experience in the Asia-Pacific Region", articulates that in the process of structural transformation of any country, diversification is very essential. This paper analyzes crop diversification in 44 countries of Asia-Pacific region. This study reveals that significant crop diversification has been made during the past few years; however, the degree of diversification differs from country to country. Although this region has achieved remarkable success in crop diversification, there is a need to identify high specialty crops, new crops, off-season varieties and production systems. This study suggests that there is a need for development of an information database on crop diversification for use in strategic planning.

Poulomi Bhattacharya, in her paper, "Determinants of Yields in Shrimp Culture: Scientific Vs. Traditional Farming Systems in West Bengal", aims at identifying various determinants of shrimp yield in the case of scientific and traditional farming systems in two districts of West Bengal. The empirical results show that education and capital costs have a positive impact on the yield in both the systems. In the case of scientific farming, farmers' association with other occupations other than shrimp farming has a negative effect on the yield. The culture of shrimp in lease land has a positive impact on the yield. Similarly, in traditional farming, labor cost has a positive impact on the yield. This study suggests that the government should promote incentives which will help the farmers to concentrate entirely on shrimp instead of other diversified activities.

A Pouchepparadjou, K Thimmappa, G Sarada, K Vijayasarathy and K S Kumaravel, in their paper, "Comparative Economics of Seed Production Vis-a-Vis Commercial Grain Production of Paddy in Puducherry", examine the economics of paddy seed production vis-a-vis commercial grain production and the variables that discriminate the seed production from commercial production in Puducherry. Primary data on the cost of cultivation of both seed crop and commercial production of paddy were collected from the selected sample of 120 farmers. Results of the study indicate that the cost of cultivation in seed production was relatively higher when compared to the commercial production of paddy. The results of discriminant analysis reveal that there are significant differences in the gross return and the expenditure on miscellaneous items between seed production and commercial production of paddy.

Braja Bandhu Swain, in his paper, "Contract Farming and Agricultural Development: A Case Study of Orissa", reveals that in the recent era of rapid economic changes, slow agricultural growth has become a matter of serious concern to the academicians as well as the policy makers. In order to galvanize this sector, there are increasing efforts from various corners of the economy through contract farming, which is an alternative institutional arrangement. In the light of this discussion, the present study analyzes how the contract-farming system will be suitable for agricultural development by considering the study of sugar industry in a village of Orissa. The study concludes that after entering into contractual arrangement, the farmers' income and employment opportunities in the rural economy have increased despite certain problems faced by the farmers like delayed payment, delay in procurement and low supply of inputs.

Amit Kundu, in his paper, "Causes and Consequences of Tenancy-Labor Interlinked Contract in the Agricultural Labor Market of West Bengal", establishes a new type of interlinked contract emerging in the agricultural labor market of West Bengal, where land market is tied with the labor market. This study explains that larger number of able-bodied family members and savings habit encourages the landless agricultural labor households to tie themselves with such interlinked contracts. However, the higher possibility of getting full days of employment both in the farm and non-farm sector discourages these household to tie themselves with such interlinked contracts. The results explain that the maximum size of land taken by a laborer on lease at the beginning of kharif season depends positively on his family labor force and net earnings from leased-in land in the earlier year, but not on the basis of land irrigation and age of the family members. This paper also establishes the fact that the interlinked contract can reduce the intensity of poverty of the landless agricultural laborer and also reestablishes the importance of land reforms.

Santosh Kumar Verma, Rupali Praminik and Gyan Prakash, in their paper, "Consistency, Growth Rates and Decomposition Dynamics of Agricultural Production in Madhya Pradesh: A Study", explains that rigid growth in agricultural production and productivity is important for the overall stability of any economy. The production of total pulses, oilseeds and food grains has increased due to increase in the overall yield. However, the area under production of food grains has declined in the post-economic reform period. The area of oil seed production has increased in the post-economic reform period and similar trends are noticed in production and yield. The increase in production of both food grains and oilseeds resulted mainly due to increase in yield only. The study, thus, reflects that future growth in food grain production requires a substantial government commitment to the technology-based growth in agriculture.

- 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