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The IUP Journal of Agricultural Economics

April'11
Focus

This issue consists of four papers on topics associated with production and consumption. The first two papers deal with inequalities in food grains production and impact of farmers’ education on the profit efficiency of farm households with a view to analyzing the current scenario and prescribe remedial measures.

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Inequality in Food Grains Production in Maharashtra: A Study of Vidarbha Region
Farmers' Education and Profit Efficiency in Sugarcane Production: A Stochastic Frontier Profit Function Approach
Economics of Rubber Production in the Nontraditional Area of Goalpara District in North-East India
Willingness to Buy Genetically Modified Foods: An Analysis of Plant and Animal Origins in the US
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Inequality in Food Grains Production in Maharashtra: A Study of Vidarbha Region

-- Sanjay Rode

Maharashtra has inequality in terms of district domestic products. The inequality is also reflected in variations in productivity and production of agricultural commodities across different regions of the state. Such difference is observed because of soil, climatic conditions, use of fertilizers, etc. Post-Green Revolution farmers have been using the high yielding varieties of seeds, pesticides, insecticides, fertilizers, and irrigation facilities. Therefore, the yield of the major crops has considerably increased in the Post-Green Revolution period. But yield of crops has not increased all over Maharashtra. In the Vidarbha region, the yield of all major crops except cotton has declined after Green Revolution. But yield of almost all crops has increased in Western Maharashtra. It has been observed that the farmers of lower yield areas usually suffer high cost of cultivation. Thus, farmers must be given more information about crop cultivation, climate change, water management, and use of fertilizers. The construction of farm ponds and check dams through NREGA will improve irrigation. Further, small farmers must be given priority in the formulation of agricultural policy, as this will help to improve the yield of various crops.

Article Price : Rs.50

Farmers' Education and Profit Efficiency in Sugarcane Production: A Stochastic Frontier Profit Function Approach

-- Rangalal Mohapatra

In a globally competitive environment where everything is commercialized, agriculture is no exception. The role that education of the effective head of the farm household, education of the family of the farm household and their experience plays, in addition to the primary inputs, in improving the profit efficiency of the farm household has been empirically tested for the primary data collected from 200 sugarcane farm households in Orissa. The results of the joint estimation of parameters of profit function and the inefficiency components suggest that 93% differences in the efficiency scores are due to profit inefficiency, and profit inefficiency reduces significantly with higher education. The mean efficiency is 79% and more than 80% of the farmers achieve 70-99% profit efficiency. A grassroots level farming practice awareness program both by government and private agencies as well as the reorientation of the formal education curriculum toward farm-oriented curriculum are highly recommended.

Article Price : Rs.50

Economics of Rubber Production in the Nontraditional Area of Goalpara District in North-East India

-- Dharmendra Nath and M P Bezbaruah

Rising demand, steep rise in the price of synthetic rubber and reduced supply from some previously dominant rubber-producing countries have contributed to a sharp rising trend of the price of natural rubber over the last decade. The price rise has naturally induced steps for increased production. In India, the scope of further area expansion in traditional areas being limited, there has been some effort to extend rubber plantation to nontraditional areas, such as Tripura, Assam and Meghalaya in the northeastern part of the country. The present study on rubber production in Goalpara District of Assam is induced by the necessity to examine the economic viability and sustainability of the activity in such nontraditional areas. Backed by the Rubber Board, rubber production in Goalpara has recorded impressive growth. Investigation at the farm level shows that the rate of returns on investment in rubber is highly impressive under the prevailing price scenario and remains economically viable and sustainable even at much worse price scenarios. The fact that small and marginal landholders, especially from tribal communities, are the majority participants in the rubber plantation in the district, implies that this new form of economic activity has contributed significantly to economic empowerment at the grassroots. However, there are some ambiguities regarding ownership of land holdings under group growers, which need to be sorted out to avoid long-term adverse consequences on land use in the district.

Article Price : Rs.50

Willingness to Buy Genetically Modified Foods: An Analysis of Plant and Animal Origins in the US

-- Venkata S Puduri, Ramu Govindasamy and Isaac Vellangany

Genetically Modified Organisms (GMOs) invoke emotions ranging from outright refusal to lukewarm acceptance within and across nations. In order to gauge the perception of and attitude toward GMOs in the US, a random sample of 1,201 adults was interviewed using Computer-Assisted Telephone Interview (CATI) system between May 4, 2004 and June 14, 2004. The computational framework of this interview was to capture the relationship between socio-cultural-demographic and knowledge factors determining acceptance of GMOs based on both plant and animal origin. There is a widespread acceptance of plant-based biotechnology in comparison to genetic modification of animal-based food products.

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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