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The IUP Journal of Agricultural Economics
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. Third and fourth papers deal with different topics like the economics of rubber production in the nontraditional areas and willingness to buy genetically modified foods in the US.

Sanjay Rode, in his paper, “Inequality in Food Grains Production in Maharashtra: A Study of Vidarbha Region”, says that Maharashtra shows inequality in terms of productivity and production of agricultural commodities across its different regions. It may be attributed to differences in soil, climatic conditions, use of fertilizers, etc. This paper compares the production, yield and area under food grains in the pre- and post-Green Revolution periods in the selected region. It is evident from the study that though Maharashtra has experienced significant improvement in yield of major crops in the post-Green Revolution period by use of high yielding varieties of seeds, pesticides, insecticides, fertilizers, and irrigation facilities, the yield of crops has not increased in all parts of Maharashtra. In the Vidarbha region, the yield of all major crops except cotton has declined after Green Revolution, while yield of almost all crops has increased in Western Maharashtra. It was observed that the farmers of lower yield areas usually suffer high cost of cultivation. The author suggests that agricultural policy should be designed in such a manner that it gives priority to small farmers, as this will help to improve the yield of various crops. Besides, farmers must be given more information about crop cultivation, climate change, water management, and use of fertilizers.

Rangalal Mohapatra, in his paper, “Farmers’ Education and Profit Efficiency in Sugarcane Production: A Stochastic Frontier Profit Function Approach”, states that in a globally competitive environment where everything is commercialized, agriculture also needs more sophistication. In this process, education of the effective heads of the farm households and their families, and their experience play a significant role, in addition to the primary inputs, in improving the profit efficiency of the farm households. This study empirically tests the profit efficiency of 200 sugarcane farm households in Orissa. The results of the joint estimation of parameters of profit function and the inefficiency components conclude that 93% differences in the efficiency scores are due to profit inefficiency and it can be significantly reduced through the education of the farmers. Further, the results show that the mean profit efficiency of the farmers is 79%. The author recommends that farming practice awareness programs and the reorientation of the formal education toward farm-oriented curriculum are very crucial at grassroots level in order to improve the profit efficiency of farm households.

Dharmendra Nath and M P Bezbaruah, in their paper, “Economics of Rubber Production in the Nontraditional Area of Goalpara District in North-East India”, show that rising demand, steep rise in the price of synthetic rubber, and decline in supply from some previously dominant rubber-producing countries have contributed to a sharp growth in the price of natural rubber and its production over the last decade. Since there is no scope for further area expansion in the traditional rubber growing areas of India, there is a need to extend rubber plantation to nontraditional areas, such as Tripura, Assam and Meghalaya in the northeastern part of the country. The present study examines the economic viability and sustainability of the activity in such nontraditional areas. Rubber production in the selected district has recorded impressive growth with the support of Rubber Board. The farm-level survey shows that the rate of returns on investment in this plantation is highly impressive and stable under the prevailing price scenario, and remains economically viable and sustainable even at much worse price scenarios. Further, it is evident that this new form of economic activity has contributed significantly to economic empowerment at the grassroots. Besides, this study suggests the need to solve the issues relating to ownership of land holdings under group growers in order to avoid long-term adverse consequences on land use in the district.

Venkata S Puduri, Ramu Govindasamy and Isaac Vellangany, in their paper, “Willingness to Buy Genetically Modified Foods: An Analysis of Plant and Animal Origins in the US”, estimate the perception of and attitude toward Genetically Modified Organisms (GMOs) in the US, by taking into consideration the socioeconomic, demographic and knowledge variables influencing consumer acceptance of both plant and animal-based GMOs for human consumption in the US. The results of the study reveal that more respondents accept plant-based biotechnology in comparison to genetic modification of animal food products. Further, the authors suggest that health professionals, policy makers, food producers and marketers should provide information regarding potential benefits, regulations and food safety issues relating to biotechnology.

- 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