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Agricultural Economics,
Marketing and Statistics

AGRICULTURAL ECONOMICS AND down and in some cases, farmers were found
MARKETING diversifying away from high-value crops towards
low-value, less-risky and less-input demanding
Total factor productivity in livestock crops. Terms of trade for agriculture showed
sector of India deterioration, and agricultural incomes were highly
India’s livestock sector has grown at an annual unstable in recent years. Low level of input-use
rate of 4.3% as against the annual growth of 2.7% and low-productivity in most of the states offer
in the crop sector during 1970-71 to 2003-04. It scope for revival of agricultural growth, but it
has provided a cushion to the agricultural growth would require simultaneous efforts on several
and livelihood of poor farmers, for whom livestock fronts. These include: (a) stepping-up investments
are important source of income and employment. and putting in place suitable institutional
Robust growth in the livestock sector has been mechanisms to exploit irrigation potential that exists
the result of interplay of several factors public in most of the states, (b) increasing power supply
investment in dairying, private investment in to agriculture sector, (c) promoting fertilizer-use
poultry, technological change in breeding, feeding by expanding distribution network and improving
and health, and market infrastructure. Facilitated credit facilities for farmers, (d) establishing
by investment and expanding markets, technology competitive seed markets and ensuring attractive
played a critical role in boosting growth of livestock prices for seed; (e) improvement in terms of trade
sector. The total factor productivity (TFP), grew for agriculture, and (f) evolving measures to
at an annual rate of 2.3% during the period, and mitigate risk in farming.
accounted for over half of the growth in livestock
sector. The TFP-led growth in livestock sector Diversification of agriculture towards high-
would sustain agricultural growth, reduce rural value crops: Role of smallholders
poverty and alleviate pressure of number-led growth Gradual diversification of agriculture towards high-
on natural resources, which are already facing value crops exhibits a pro-smallholder bias, with
smallholders playing a proportionally larger role
quantitative and qualitative deterioration.
in the cultivation of vegetables versus fruits. The
observed patterns are consistent with simple
Growth crisis in Indian agriculture
comparative advantage-based production choices.
The growth of Indian agriculture during the The comparatively high labour endowments of the
post-WTO period declined sharply in almost all small farmers, as reflected in their larger family
sub-sectors and commodity groups. Agriculture sizes, induce them to diversify towards
vegetables. Although fruit cultivation is also
and non-agriculture sectors are also on a disparate
labour-intensive (as compared to cultivation of
growth path. The main reasons for deceleration staples), it is highly capital-intensive, making it a
and stagnation in agricultural output after 1995- less advantageous choice for smallholders who
96 are–slowdown in growth of use of fertilizers, tend to have low capital endowments. Small or
irrigation, and energy (electric power) in some medium holders do not appear to allocate a
cases, stagnation or even decline in other cases. greater share of land to fruits or vegetables.
However, the share allocated to vegetables is
Crop intensity and area under cultivation also significantly higher if the family size is bigger, while
showed either poor growth or decline. reverse is true in case of fruits.
Diversification towards high-value crops slowed

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 Demand for foodgrains towards 2011
and 2020 Economics and marketing of goat
Per caput production of foodgrains had increased enterprise
from 183 kg during early 1970s to 207 kg by mid The large and progressive farmers, businessman
1990s, even though country’s population increased and industrialists have adopted the commercial
goat farming, and their entry into this activity
by more than 50%. However after mid 1990s, would help in realizing the potential of goat
foodgrains production could not keep pace with enterprise as they have better access to technical
the population growth. Per caput production of knowledge, resources and market. Goats were
cereals declined by 17 kg and pulses by 3 kg during economically viable under intensive system of
the past decade. This could create a serious threat management on 46% of commercial goat farms.
This fact that the commercial goat farming could
to food security, as the country identifies its food
be taken up under intensive system of
security with foodgrains security. Direct, indirect management would encourage the aspirant
and total demands for foodgrains in India towards commercial goat farmers not having access to
2011-12 and 2020-21 were estimated by taking into grazing resources. Majority of the commercial goat
account population growth, composition of rural farms are operating with positive net returns, 39%
and urban population, growth in per caput income are earning good profit, and their annual net
returns per goat ranged from Rs 968 to 2,069.
in rural and urban areas and changes in taste and
Intensification and commercialisation of goat
preferences. Total demand for cereals would grow enterprise is also important because of shrinking
to 218.9 Mt by 2011-12 and would reach 261.5 resources for grazing. The marketing of goats
Mt by 2020-21. Demand for pulses during this suffers from involvement of middlemen garnering
period would grow to 16.1 Mt and 19.1 Mt, high margins, avoidable marketing costs,
respectively. Domestic demand for foodgrains is unnecessary transportation, and mortality of
animals during transit. The poor farmers had to
projected to reach 235.0 Mt by 2011-12 and 280.6 sale their goats per head, per pair or per group
Mt by 2020-21. It is important to mention that basis. With the awareness building by the
these projections do not include export demand. institute, the goat farmers in the adopted villages
could have better understanding on appropriate
Economic losses from avian flu marketing strategy viz., the type of goats to be
The impact of ‘bird flu’ outbreak in Manipur sold, place of sale, right time and age of sale and
state in July 2007 was analyzed. It caused a massive right method of sale of goats. A number of farmers
started preparing castrated male goats for selling
economic loss due to culling of nearly 3.4 lakh
then during the festival season. The average price
birds after the Government of India notified it. realization during Eid for a male of 1-2 years of
age was about 70% higher than the price realized
Impact of avian flu during normal sale in the villages
Poultry farmers: The producers lost about
Rs 316 lakh, as against of Rs 99.13 lakh given to
them as compensation. Inadequate compensation
may have two consequences: (i) it would affect
the livelihood and sustenance of poultry farmers
and their families, particularly in Manipur, which
is already experiencing internal disturbances on
account of economic reasons, and (ii) it might
lead to poor compliance in culling and disinfection
operations and hence lack of eradication of disease Initial linkages were created among the
commercial goat farmers of different states
outbreak, which will have more serious resulting in creation of large demand of good
implications. quality breeding goats for breeding purpose.
Consumers: The price of chicken dropped after Consequently the farmers who earlier got market
the outbreak of avian flu. The overall financial rate of Rs 55 to Rs 65/kg live body weight for
impact on the poultry sector in Manipur was their goats started getting Rs 110 to 150/kg live
body weight. At the same time the traders were
estimated to be of around Rs 2,455.17 lakh on
not paying premium price even for the purebred
account of avian flu outbreak, which amounted to goats. The increased prices of breeding goats due
14% of total value of livestock outputs and 0.5% to strengthened linkages created large
of State Gross Domestic Product. opportunities and interest for private investment
in commercial goat farming projects. And also
Exploring market opportunities for encouraged the existing commercial goat farmers
fisheries sector in India to produce good quality pure breed animals (germ
plasm) of different goat breeds, which would be
Survey work was attempted in major fish critically important for goat enterprise
markets and a mini consumer survey in Chennai development in the country.
metro city to explore the possibilities for developing

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 with replacement. Ratio method of estimation
Asynchronous e-learning module on for the population mean was also included
aquaculture in the software for the simple random
Asynchronous e-learning module on mud crab sampling and stratified random sampling. The
fattening (Scylla tranquebarica) for diversification results of the schemes are presented in the
in brackishwater aquaculture was developed. This
module offers selected topics on mud crab
form of crystal reports available under Visual
fattening to users, viz. culture systems and Studio, 2005 (IDE).
contact addresses. ● The estimates of area and production of
important fruits and vegetables are being
obtained under the scheme on Crop
domestic fish markets in India and compilation Estimation Survey on Fruits and Vegetables
of fish marketing policies of Tamil Nadu State (CES-F&V). To improve the methodology,
government. Chennai wholesale markets source a project entitled “Pilot study to develop an
fish from across the country’s major fish markets alternative methodology for estimation of
like Howrah and Calicut to fill the demand supply area and production of horticultural crops”
gap for particular fish varieties arising due to was undertaken. The study was conducted
ban on fish capture from the seas of east coast. in Maharashtra and Himachal Pradesh
These markets also source their fish from fish covering important fruits and vegetables. This
farms of Andhra Pradesh (Indian Major carps, alternative methodology is cost effective, less
Shrimp), Tamil Nadu and Kerala. Chennai has time consuming and its survey procedure is
presently five major wholesale cum retail fish more simple. It is easy to implement and
markets and 150 medium and small size provide estimates for more than one fruit/
neighbourhood fish markets. The consumer survey vegetable at district level. Market arrival data
indicated that the performance of these markets was used for obtaining state level estimates.
could be considerably improved if sanitation, There is a significant decrease in sample
parking facilities, proper weighing and icing size i.e., from 150-200 villages per district
facilities are introduced. Share of these markets (under CES-F&V) to either 80 or 43 villages
is slowly being taken away by modern chain stores per district depending upon the desired
as these suit the busy schedule of consumers’ precision. This methodology is required to
lifestyle. be tested in few more states before actually
implementing it on a large scale.
● The institute initiated a study to examine the
Evaluation of e-marketing and traditional feasibility of the developed sampling
marketing systems
methodology for estimation of crop yield at
E-marketing systems like e-choupal are fresh
Gram Panchayat level for large scale adoption.
initiatives in aquaculture as it helps in reaching
out to the unreached via this initiative. The The field work of the study was undertaken
aquachoupal model received the highest priority in one district per state of Uttar Pradesh,
of 64% and traditional system received 36% of Karnataka, Andhra Pradesh, Punjab and
priority within the priorities set for assessment of Rajasthan. The farmer appraisal data about
the marketing system. Further, efforts should be crop produce and crop cutting experiments
made to incorporate information modules targeted
data as obtained from general crop estimation
specially towards women farmers.
survey (GCES) were analyzed using small area
crop estimation methodology (SACEM) to
AGRICULTURAL STATISTICS AND develop estimates of crop yield at GP level.
COMPUTER APPLICATION The GP level estimates were very precise.
● Under the project weather based models for
● A window based software for survey data forecasting potato yield, weather indices (W
analysis was developed for the selected 1) based regression models were developed
sampling schemes. It includes methods for by taking combinations of linear and square
various sampling schemes such as simple indices with yield/detrended yield. Complex
random sampling (SRS), probability polynomial (CP) models, using GMDH
proportional to size (PPS), stratified, cluster, technique, were developed.
two stages and stratified two stage. It ● Design resources server (www.iasri.res.in/
considers both types of cases i.e., when the design) was developed to popularize and
units have been selected with or without disseminate research in design of experiments
replacement. This software also estimates among experimenters and research
the parameters in the situation when units statisticians were strengthened by adding the
are selected with unequal probability and following material/links:

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97
 The material available on the server has been design resources server, copyright, disclaimer,
partitioned into four main components: contact us and site map.
– Useful for experimenters: Electronic books, The design resources server www.isari.res.in/
online generation of randomized layout of design is like a mobile library on design of
designs, online analysis of data and analysis experiments in particular and statistics in general.
of data using various softwares. It provides useful information both for active
– Useful for research statisticians: Literature researchers in statistics as well as stakeholders
and catalogues of BBB designs, designs for like scientists in NARS and others all over the
making test treatments-control treatment globe. The server is dynamic in nature and new
comparisons, supersaturated designs, online links on various topics are added to it regularly.
generation of Hadamard matrices, MOLS and Developed a method of construction of designs
orthogonal arrays. for incomplete multi-response experiments. The
– Other useful links: Discussion Board, Ask a designs were economical from resource point of
Question, Who-is-where and important links. view. Developed a step-wise procedure of analysis
– Site information: Feedback, how to quote of incomplete multi-response designs.

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