1

Chapter I

INTRODUCTION AND DESIGN OF THE STUDY

1.1. Introduction
Agriculture is one of the most important activities in both developed and

developing countries which provide basic raw material to man and various agro

based industries. It continues to be the mainstay of the Indian

economy and an effective antidote to poverty and unemployment. Recognizing its

importance in the economic development of the country, sustained efforts have

been taken for improving agriculture during the successive five year plans.

Agriculture plays a vital role in India’s economy. About 54.6 per cent of Indian

population is engaged in

agriculture and allied activities (Census, 2011).

The Directorate of Economics and Statistics (DES) has released the area,

production and yield of principal crops of food grains, oilseeds, sugarcane, fibers

and important commercial and horticulture crops. As per the latest National

Accounts Statistics, during the period from 2017-18 the horticulture crops together

account for about 58 per cent in the Gross Value Added in the agriculture and

allied sectors (at constant prices). As per the land use, the statistics of 2017-18

indicate the total geographical area of the country as 328.7 million hectares, of

which 141.4 million hectares reported as net sown area and 200.9 million hectares

as the gross cropped area with a cropping intensity of 142 per cent. The net sown
2

area works out to be 43 per cent of the total geographical area. The net irrigated

area is 68.2 million

hectares1.

An increase in the production of various agricultural products is not

sufficient for the economic development process in this country. It also requires a

systematic and scientific marketing system for the purpose of marketing

agricultural products in domestic market as well as the

international market. Marketing of agricultural products means a series of

activities involved in the moment of agricultural produces from the point of

production to the point of consumption. Since independence, in India, agricultural

marketing has been characterized by pervasive government intervention. This

intervention has been taking place for various purposes in various forms. With the

passage of time, the need for agricultural

marketing also changed.

At the beginning, marketing for agriculture was required to increase

the productivity, provide a market for Agri-products, arrange for

agricultural credit, etc. But, in the present scenario, agricultural marketing has the

need to enhance the efficiency of the producers to a market their

1 Annual Report 2018-19, Department of Agriculture, Cooperation & Farmers Welfare, Government of
India.
 3

agriculture produce so can get good market margin. It also, helps in eliminating

or rather minimizing the role of middlemen. The agricultural production system

in India is characterized by the small scale production is

the seasonality of production and demand2.

The development of agriculture directly raises employability to agricultural

laborers and income to farmers along with the reduction of under employment in

agriculture by providing more labor days for the workers. Further, apart from

agricultural growth it improves the income in non-agricultural sector.

Agricultural marketing comprises all the operations involved in the movement of

goods from farm to the end user. Agricultural marketing is defined by the

National Commission on Agriculture as “a process involving the functional and

institutional aspects of the determination to produce a salable farm produce

starting with pre and post-harvest operations the latter such as assembling,

grading, storage,

transportation and distribution3.

There are several challenges involved in marketing of agricultural produce.

There is limited access to the market information, literacy level among the

farmers is low, multiple channels of distribution

2 Shashi Yadav, “Problems and Prospects of Agricultural Marketing in India”, Management Insight,
Vol. XII, No; 2, 2016, pp 58-65.
3 Government of India, Ministry of Agriculture and Irrigation, “Report of the National Commission
on Agriculture”, Part XII, Supporting Services and Intensives, New Delhi, 1976, pp 110.
4

eats away the pockets of both farmers and consumers. The farmers still depend on

the local money lenders for their requirement of money and the private money

leaders charge high rate of interest. There are too many vultures that eat away the

benefit the farmers are supposed to get. Although we say that technology has

improved, agriculture, it has not gone to the rural levels as it is confined only to

the urban areas. There are several loopholes in the present legislation and no

organized and regulated marketing system is available for marketing the

agricultural produce. The farmers have to overcome several hurdles to get fair

and just price for their produce4.

1.2. Status of Agriculture in India

As per the first advance estimates released by the Central Statistic Office,

the growth rate of Gross Value of Added (GVA) at constant basic prices is

estimated at 6.1 per cent in 2017-185. This account indicates the lower growth in

‘Agriculture with allied sector’ and ‘industry’ sector, which are expected to grow

at 2.1 per cent and 4.4 per cent respectively. In 2017-18, the services sector was

expected to grow at 8.3 per cent as

compared to 7.7 per cent in 2016-17.

4 Sunita Solanki and Dr. Sara Attari, “Agricultural Marketing in India: Problems and Prospects”,
Imperial Journal of Interdisciplinary Research, Vol. 2, Issue. 5, 2016, pp 670-673.
5 Economic Survey 2017-18, Volume II, Ministry of Finance and Department of Economic Affairs,
Government of India
Table - 1.1

Area, Production and Yield of Paddy in India

 5

Area.
Production (Million Yield
Year (Million
Tonnes) (Kg/Hectare)
Hectares)
2001-02 44.90 93.34 2079
2002-03 41.18 71.82 1744
2003-04 42.59 88.53 2079
2004-05 41.91 83.13 1984
2005-06 43.66 91.79 2102
2006-07 43.81 93.36 2131
2007-08 43.91 96.69 2202
2008-09 45.54 99.18 2178
2009-10 41.92 89.09 2125
2010-11 42.86 95.98 2239
2011-12 44.01 105.30 2393
2012-13 42.75 105.23 2461
2013-14 44.14 106.65 2416
2014-15 44.11 105.48 2391
2015-16 43.50 104.41 2400
2016-17 43.99 109.70 2494
2017-18 43.77 112.76 2576
2018-19 43.79 116.42 2659
Source : Directorate of Economics & Statistics, Department of Agriculture, Co-
operation and Farmers Welfare (DAC & FW).

Table 1.1 shows the area of cultivation, volume of production and

productivity per hectare of paddy in India during the period from 2001-02 to 2018-

19, the area of cultivation of paddy in 2001-02 was 44.90 million hectares and at the

end of the study period, during 2018-19 it was 43.79 million hectares. The

cultivation area of paddy during the study period was in fluctuating trend; the

cultivation area of paddy in India was higher in 2008-09 and low in 2002-03 with

45.54 million hectares and 41.18 hectares respectively. The production of paddy
6

was in increasing trend during the period from 2001-02 to 2018-19. The production

of paddy was 71.82 million tons in the year 2002-03 and 116.42 million tons in

2018-19. The productivity of the paddy, in India was increased compared to 2002-

03, the yield of the paddy

per hectare was 1744 kilograms in 2002-03 and 2659 kilograms in 2018-19.

Table - 1.2
Area, Production and Yield of Paddy in Major Producing States of India
2017-18 2018-19
Sl. Area Production Yield Area Production Yield
State
No. Million Million Kg / Million Million Kg /
Hectares Tonnes Hectare Hectares Tonnes Hectare
1. West Bengal 5.12 14.97 2926 5.52 16.05 2906
2. Uttar Pradesh 5.81 13.27 2283 5.75 15.54 2704
3. Punjab 3.07 13.38 4366 3.10 12.82 4132
4. Andhra Pradesh 2.16 8.17 3788 2.21 8.25 3733
5. Odessa 3.77 6.55 1739 3.71 7.31 1972
6. Telangana 1.96 6.26 3192 1.95 6.70 3436
7. Chhattisgarh 3.76 4.93 1311 3.61 6.53 1810
8. Tamil Nadu 1.83 6.64 3630 1.72 6.45 3748
9. Bihar 3.31 8.09 2447 3.18 6.04 1902
10. Assam 2.43 5.28 2171 2.46 5.14 2086
11. Haryana 1.42 4.52 3181 1.45 4.52 3121
12. Madhya Pradesh 2.04 4.12 2026 1.98 4.50 2270
13. Others 7.11 16.56 2330 7.16 16.58 2316
14. All India 43.77 112.76 2576 43.79 116.42 2659
Source: Directorate of Economics & Statistics, DAC&FW.
Table 1.2 shows the Area, Production and Yield of paddy in Major

Producing States of India, during the period 2017-18 and 2018-19. The area under

cultivation of paddy, in India during 2017-18 and 2018-19, was 43.77 million
 7

hectares and 43.79 million hectares respectively, which the area under cultivation

of paddy in the state of Uttar Pradesh, West Bengal, Odessa, Chhattisgarh, Bihar

and Punjab recorded as 5.81, 5.12, 3.77, 3.76,

3.31 and 3.07 million hectares respectively, during the period 2017-18. Whereas it

was 5.75, 5.52, 3.71, 3.61, 3.18 and 3.10 million hectares for the states during period

2018-19. West Bengal, Uttar Pradesh, Punjab, Andhra Pradesh, Bihar, Odessa,

Tamil Nadu and Telangana were the major paddy

producing states in India, during 2018-19.

Average Productivity of paddy per hectare in India, was 2576 kilograms

during 2017-18 and 2659 kilogram during 2018-19. The yield of paddy was very

high in the state of Punjab, Tamil Nadu, Andhra Pradesh, Telangana and Haryana

Punjab, Tamilnadu, Andhra Pradesh, Telengana

and Haryana ranked first, second, third, fourth and fifth place respectively

in producing rice in India when compared to the other states in India.

Table - 1.3

Area, Production and Yield of maize in India

Area. (Million Production Yield
Year
Hectares) (Million Tonnes) (Kg/Hectare)
2001-02 6.58 13.16 2000
2002-03 6.64 11.15 1681
2003-04 7.34 14.98 2041
2004-05 7.43 14.17 1907
2005-06 7.59 14.71 1938
2006-07 7.89 15.10 1912
8

2007-08 8.12 18.96 2335

2008-09 8.17 19.73 2414
2009-10 8.26 16.72 2024
2010-11 8.55 21.73 2542
2011-12 8.78 21.76 2478
2012-13 8.67 22.26 2566
2013-14 9.07 24.26 2676
2014-15 9.19 24.17 2632
2015-16 8.81 22.57 2563
2016-17 9.63 25.90 2689
2017-18 9.38 28.75 3065
2018-19 9.18 27.23 2965
Source: Directorate of Economics & Statistics, DAC & FW.

Table 1.3 shows the area of cultivation, production and productivity per

hectare of Maize in India, during the period from 2001-02 to 2018-19, the area of

cultivation of Maize in 2001-02 was 6.58 million hectare and at the end of the study

period 2018-19, it was 9.18 million hectares. The and the cultivation area of Maize

during the study period was in increasing trend year by year; cultivation area of

maize in India was higher in 2016-17 and low in 2001-02 with the yield of 9.63

million hectares and 6.58 million hectares respectively. The production of maize

was increasing year by year during the period from 2001-02 to 2018-19. The

production of maize was 11.15 million tons in the year 2002-03 and 27.23 million

tons in 2018-19. The average yield of the maize in India was fluctuating during the

period from 2001-02 to 2018-19. The yield of the maize per hectare was 1681

kilogram in

2002-03 and 2965 kilogram in 2018-19.

 9

Table - 1.4
Area, Production and Yield of Maize in Major Producing States of India
2017-18 2018-19
Yield
Sl. Area Production Yield Area Production
State Kg/
No. Million Million Kg/ Million Million
Hectare
Hectares Tonnes Hectare Hectares Tonnes

1. Karnataka 1.31 3.85 2948 1.34 3.73 2777

2. Madhya Pradesh 1.35 3.54 2615 1.37 3.68 2697
3. Bihar 0.68 2.35 3476 0.68 3.02 4451
4. Tamil Nadu 0.32 2.59 7986 0.38 2.51 6551
5. Telangana 0.63 2.56 4057 0.56 2.03 3658
6. Rajasthan 0.87 1.79 2063 0.86 1.96 2285
7. Maharashtra 1.06 3.05 2868 0.95 1.93 2032
8. Andhra Pradesh 0.34 2.32 6912 0.27 1.56 5861
9. Uttar Pradesh 0.72 1.60 2208 0.73 1.53 2090
10. West Bengal 0.24 1.13 4805 0.24 1.38 5780
11. Others 1.86 3.96 2129 1.81 3.89 2149
12. All India 9.38 28.75 3065 9.18 27.23 2965
Source: Directorate of Economics & Statistics, DAC & FW.
Table 1.4 shows the Area, Production and Yield of maize in Major

Producing States of India during the period 2017-18 and 2018-19, the area of

cultivation of maize, in India, during 2017-18 and 2018-19

was 9.38 million hectares and 9.18 million hectares respectively, of which

the area under cultivation of Maize in Madhya Pradesh, Karnataka, Maharashtra,

Rajasthan and Uttar Pradesh was 1.35, 1.31, 1.06, 0.87 and 0.72 million hectares

during period 2017-18, Whereas the area under cultivation recorded as 1.37, 1.34,

0.95, 0.86 and 0.73 million hectares during period 2018-19. Karnataka, Madhya

Pradesh, Bihar, Tamil Nadu and Telangana were the major Maize producing

states in India during 2018-19. Average Productivity of Maize per hectare in India
10

was 3065 kilograms during 2017-18 and 2965 kilogram during 2018-19. The yield

of maize was very high in the states of Tamil Nadu, Andhra Pradesh, West

Bengal, Bihar and Telangana which rank first, second, third, fourth and fifth place

respectively compared to the other states in India. It is concluded that Tamil

Nadu has recorded more than double the yield of the

average productivity in India.

Table - 1.5

Area, Production and Yield of Groundnut in India

Area (Million Production Yield
Year Hectares) (Million Tonnes) (Kg./Hectare)
2001-02 6.24 7.03 1127
2002-03 5.94 4.12 694
2003-04 5.99 8.13 1357
2004-05 6.64 6.77 1020
2005-06 6.74 7.99 1187
2006-07 5.62 4.86 866
2007-08 6.29 9.18 1459
2008-09 6.16 7.17 1163
2009-10 5.48 5.43 991
2010-11 5.86 8.26 1411
2011-12 5.26 6.96 1323
2012-13 4.72 4.70 995
2013-14 5.51 9.71 1764
2014-15 4.77 7.40 1552
2015-16 4.60 6.73 1465
2016-17 5.34 7.46 1398
2017-18 4.89 9.25 1893
2018-19 4.81 6.69 1393
 11

Source: Directorate of Economics & Statistics, DAC & FW.

Table 1.5 shows the area of cultivation, volume of production and

productivity per hectare of groundnut in India during the period from 2001-02 to

2018-19, the area of cultivation of groundnut in 2001-02 was 6.24

million hectares and at end of the study period 2018-19 it was 4.81 million

hectare. The cultivation area of groundnut during the study period was in the

decreasing trend; the cultivation area of groundnut in India was higher in 2005-06

and low in 2015-16 totalling 6.74 million hectares and 4.60 million hectares

respectively. The production of groundnut was in

fluctuating trend during the period 2001-02 to 2018-19. The production of

groundnut was very low at 4.12 million tons during the period of 2002-03 and

high in 9.71 million tons during the period 2013-14. The Average productivity

of the groundnut per hectare in India has increased compared

to 2002-03 period. The yield of the groundnut per hectare was 694

kilograms in 2002-03 and 1893 kilograms in 2017-18.

Table - 1.6
Area, Production and Yield of Groundnut in
Major Producing States of India
2017-18 2018-19
Sl. Area Production Yield Area Production Yield
State
No. Million Million Kg/ Million Million Kg/
Hectares Tonnes Hectare Hectares Tonnes Hectare
1. Gujarat 1.68 3.94 2345 1.59 2.20 1377
2. Rajasthan 0.64 1.26 1966 0.67 1.38 2053
3. Tamil Nadu 0.33 1.01 3078 0.34 0.88 2620
12

4. Andhra Pradesh 0.74 1.05 1426 0.76 0.48 629

5. Karnataka 0.56 0.55 980 0.59 0.47 803
6. Madhya Pradesh 0.22 0.35 1558 0.24 0.37 1570
7. Telangana 0.17 0.37 2230 0.13 0.30 2364
8. Maharashtra 0.29 0.34 1183 0.22 0.21 966
9. West Bengal 0.07 0.17 2343 0.07 0.18 2797
10. Others 0.19 0.22 1144 0.21 0.23 1081
11. All India 4.89 9.25 1893 4.81 6.69 1393
Source: Directorate of Economics & Statistics, DAC & FW.
Table 1.6 shows that Area, Production and Yield of groundnut in Major

Producing States of India during the period 2017-18 and 2018-19, the area under

cultivation of groundnut in India during 2017-18 and 201819 was 4.89 million

hectare and 4.81 million hectare respectively, which the area under cultivation of

groundnut in state of Gujarat, Andhra Pradesh, Rajasthan, Karnataka and Tamil

Nadu was 1.68, 0.74, 0.64, 0.56 and 0.33 million hectare during period 2017-18,

whereas 1.59, 0.76, 0.67, 0.59 and 0.34 million hectare during period 2018-19.

Gujarat, Rajasthan, Tamil Nadu, Andhra Pradesh and Karnataka were the

major groundnut producing states, in India during 2018-19. Average Productivity

of groundnut per hectare in India was 1893 kilogram

during 2017-18 and 1393 kilogram during 2018-19. The average

productivity of groundnut in India has decreased during the year 2018-19

compared to the previous year. The yield of groundnut was very high in the state

of Tamil Nadu compared with other states, whereas Tamil Nadu, West Bengal,

Gujarat, Telangana and Rajasthan ranked first, second, third, fourth and fifth

place respectively in groundnut yield and recorded

 13

productivity compared with the average yield in India.

Table - 1.7
Area, Production and Yield of Gram in India
Area (Million Production Yield
Year
Hectares) (Million Tonnes) (Kg./Hectare)
2001-02 6.42 5.47 853
2002-03 5.91 4.24 717
2003-04 7.05 5.72 811
2004-05 6.71 5.47 815
2005-06 6.93 5.60 808
2006-07 7.49 6.33 845
2007-08 7.54 5.75 762
2008-09 7.89 7.06 895
2009-10 8.17 7.48 915
2010-11 9.19 8.22 894
2011-12 8.30 7.70 928
2012-13 8.52 8.83 1036
2013-14 9.93 9.53 960
2014-15 8.25 7.33 889
2015-16 8.40 7.06 840
2016-17 9.63 9.38 974
2017-18 10.56 11.38 1078
2018-19 9.44 10.13 1073
Source: Directorate of Economics & Statistics, DAC & FW.

Table 1.7 shows that area of cultivation, volume of production and

productivity per hectare of gram in India during the period from 2001-02 to 2018-

19, the area under cultivation of gram in 2001-02 was 6.42 million hectares and at

the end of the study period 2018-19 it was 9.44 million hectares. The cultivation

area of gram during the study period in held a fluctuating trend; the cultivation

area of gram in India was higher in 2017-18 and low in 2002-03 with 10.56 million

hectares and 5.91 hectares respectively. The production of gram held fluctuating
14

trend during the period 2001-02 to 2018-19. The production of gram was 4.24

million tons in the year 2002-03 and 10.13 million tons in 2018-19. The

productivity of the gram in India has

increased 1073 kilograms in 2018-19 compared to 2001-02 period.

Table - 1.8
Area, Production and Yield of Gram in Major Producing States of India
2017-18 2018-19
Sl. Area Production Yield Area Production Yield
State
No. Million Million Kg / Million Million Kg/
Hectares Tonnes Hectare Hectares Tonnes Hectare
1. Madhya Pradesh 3.59 4.60 1280 3.43 4.61 1344
2. Rajasthan 1.57 1.69 1074 1.60 1.76 1103
3. Maharashtra 2.00 1.83 917 1.29 1.07 829
4. Uttar Pradesh 0.50 0.58 1155 0.57 0.73 1272
5. Karnataka 1.27 0.78 619 1.09 0.57 525
6. Chhattisgarh 0.32 0.32 1010 0.32 0.33 1026
7. Andhra Pradesh 0.52 0.59 1132 0.48 0.24 506
8. Gujarat 0.29 0.38 1285 0.17 0.23 1324
9. Jharkhand 0.23 0.29 1228 0.19 0.22 1143
10. Others 0.27 0.33 1223 0.29 0.36 1259
11. All India 10.56 11.38 1078 9.44 10.13 1073
Source: Directorate of Economics & Statistics, DAC & FW.

Table 1.8 shows the Area, Production and Yield of gram in Major

Producing States of India during the period 2017-18 and 2018-19, the area

under cultivation of gram in India during 2017-18 and 2018-19 period was

10.56 million hectares and 9.44 million hectares respectively, of which the

area under cultivation of gram in the states of Madhya Pradesh,

 15

Maharashtra, Rajasthan and Karnataka was 3.59, 2.00, 1.57 and 1.27 million

hectares during the period 2017-18, whereas 3.43, 1.29, 1.60 and 1.09 million

hectare were recorded during period 2018-19. The cultivation of gram in

India deceased in 2018-19 compared to the previous year 2017-18. Madhya

Pradesh, Rajasthan, Maharashtra, Uttar Pradesh and Karnataka have been

the major production state of gram in India. Average Productivity of gram

per hectare in India was 1078 kilograms during 2017-18 and 1073 kilogram

during 2018-19. The yield of gram was very high in the state of Madhya

Pradesh, Gujarat, Uttar Pradesh and Jharkhand compared to the average

yield in India.

1.3. Major Contributors in Tamil Nadu State

Tamil Nadu has the second-largest economy in India. Over 60 per cent of

the state is urbanized, accounting for 10.6 per cent of the urban population in the

country, which comprises 6 per cent of India’s total population. A service sectors

contribute to 55 per cent of the economic activity in the state, which is followed by

manufacturing sector contributing 34 per cent and agriculture at 11 per cent.

Government is the major investor in the state with 52 per cent of the total

investment, 29.9 per cent private Indian investors and 14.9 per cent foreign

private investors shoulder the burden of investment. Tamil Nadu has been ranked

as the most economically free state in India by the economic freedom ranking for

the states of India6. Tamil Nadu state’s economy is supported mostly by the SGDP

of 15.96 lakh crore from Paddy, Black gram, Groundnut,

16

6 https://en.m.wikipedia.org Economy of Tamil Nadu Wikipedia.

Maize and others in the agricultural sector. The following table shows the area

under cultivation, production and yield of major crops of Tamilnadu.

Table - 1.9
Area, Production and Productivity of Principal Crops 2016-17 in
Tamil Nadu State
Area Production Productivity
Sl. Crops
(Hect) (Tons) (In Kg /Hec)
No. A. CEREALS

1. Paddy * 1442841 3554113 2463

2. Cholam (Jower) 268391 153856 573
3. Cumbu (Bajra) 49673 102250 2058
4. Ragi 61362 114429 1865
5. Maize 315030 953377 3026
6. Small millets 23568 21224 901
7. Total cereals 2160865 4899249 2267
B. PULSES

8. Bengal gram 5227 3394 649

9. Red gram 56560 37053 655
10. Green gram 165974 56087 338
11. Black gram 429784 184610 430
12. Horse gram 38602 12361 320
13. Other pulses 88939 44202 497
14. Total pulses 785086 337707 430
15. Total Food grains (A+B) 2945951 5236956 1778
C. OIL SEEDS

16. Groundnut 282488 588854 2085

17. Gingelly 28231 10837 384
18. Coconut (in lakh nuts) 435621 47064 11170
19. Castro 4705 1470 309
20. Other oil seeds 12971 - -
21. Total oil seeds 764016 - -
D. OTHER CROPS

22. Cotton(in bales of 170 kg) 148211 201516 231

23. Sugarcane 218262 18987555 87
24. Tobacco 1799 2744 1525
 17

25. Chillies 44839 20585 459

26. All other crops 1005564 - -
Source : www.tn.gov.in Index number of Agricultural Production and
Productivity, Time Series Data, page 98-156.

Table 1.9 shows the area of cultivation, production and productivity per

hectare of major crops in Tamilnadu during the year 2016-17, the area under

cultivation of paddy was 14.43 lakhs hectare, the production of paddy was 35.54

lakhs tons and productivity per hectare was 2463 tons during the year 2016-17

which is the highest one in the state production. Next following area of cultivation

was more in black gram, Maize, Groundnut, Cholam and Sugarcane was 4.30,

3.15, 28.25, 2.68 and 2.18 lakhs hectare respectively where as production were

1.85, 9.53, 5.89, 1.54

and 189.87 tons respectively.

Table - 1.10
Districts Wise Area under Principal Crops in Tamil Nadu 2016-17
(Area in Hectares)
Sl. Black
District Paddy Groundnut Maize
No Gram
1 Kancheepuram 72617 4517 9634 17
2. Thiruvallur 96967 1896 6541 10
3. Cuddalore 131906 50981 8597 20558
4. Villupuram 95560 95135 24100 14139
5. Vellore 44570 3720 34174 3103
6. Tiruvannamalai 78149 31703 50730 1642
7. Salem 5024 7187 15765 30362
8. Namakkal 2188 1411 27405 5898
9. Dharmapuri 11432 3153 7677 5852
18

10. Krishnagiri 15987 1922 13329 2845

11. Coimbatore 872 614 3318 3987
12. Thiruppur 1703 2978 5417 18297
13. Erode 695 869 17164 14683
14. Tiruchirappalli 27068 3543 7415 11011
15. Karur 3672 826 1574 410
16. Perambalur 3319 533 1207 48537
17. Ariyalur 15398 6962 8620 15343
18. Pudukkottai 69142 4649 8434 3199
19. Thanjavur 147193 24343 7231 540
20. Thiruvarur 186958 43051 2546 0
21. Nagapattinam 166312 29839 1686 5
22. Madurai 10407 1272 1900 11864
23. Theni 6210 3064 1428 7804
24. Dindigul 1522 14487 3641 21326
25. Ramanathapuram 121849 3372 3121 662
26. Virudhunagar 13826 4777 5401 27144
27. Sivaganga 65207 822 2769 19
28. Tirunelveli 29881 27254 842 12514
29. Thoothukkudi 4808 54338 788 33212
30. The Nilgiris 243 0 4 0
31. Kanniyakumari 12156 566 30 47
State 1442841 429784 282488 315030

Table 1.10 shows that district wise cultivation of principal crops in

Tamilnadu, the major districts involved in paddy cultivation Tamilnadu include

Thiruvarur, Nagapattinam, Cuddalore, Ramanathapuram, Thiruvallur and

Villupuram. Major districts cultivating blockgram in Tamilnadu include

Villupuram, Thoothukkudi, Cuddalore, Thiruvarur and Tiruvannamalai. The

 19

major districts cultivating groundnut in tamilnadu include Tiruvannamalai,

Vellore, Namakkal, Villupuram and Erode. Major districts maize, cultivating in

Tamilnadu include Perambalur, Thoothukkudi and Selam during the year 2016-17.

1.4. Villupuram District

Villupuram is the 23rd district, in Tamil Nadu formed on 30 th September

1993 by bifurcating the erstwhile composite South Arcot

district. It is the second largest district in Tamil Nadu with an area of 7194 sq.km.

The district is administratively divided into 4 revenue divisions, 15 administrative

taluks. The residual parts of the district was named as Cuddalore district. The

district lies between 110° 38 25" and 120° 20 44" N (Latitude), 78° 15 00" and 79° 42

55" E (Longitude). The district is located on agro climatic zone of North East zone,

the Northern part of Tamil Nadu

and is close to the State capital, Chennai.

The workforce of the district has recorded a decadal increase by 1.4 per cent.

The total workforce of the district is 17.03 lakh, of which about 58

percentages are male workers and the rest are female workers. The workforce

accounts for 49.24 percentage of the total population. The district has higher

proportion of workforce population compared to the State average (45.58%).

Agricultural labourers constitute 48.86% of the total work force. Other workers

constitute 27.19 per cent and the Cultivators account for 21.70 per cent.

Agricultural labourers predominant by form the

20

workforce if the district.

As the rivers in the district are not perennial, the major sources of irrigation

are tube wells and open dug wells. The net irrigated area in the district is 2.00 lakh

hectares, which forms 27.7 per cent of the total area in the district and 49.85 per

cent of the net cultivated area of 3.60 lakhs hectares. River irrigation account for

less than 5 per cent of the total irrigated area and the district is largely dependent

on ground water and tanks. Out of the 2.48 lakh hectare meters of utilizable water

recharge about 2.05 lakh hectare meters have already been utilized and the

remaining 0.43 lakh hectare meter can be

economically exploited.

The major irrigated crops in the district include paddy, millets, pulses,

groundnut, sugarcane, gingerly, vegetables, fruits, medicinal plants, yam,

watermelon and flowers. Judicious use of water with modern water

management techniques, can increase the yield of these crops and enhance the

export potential. The productivity of food crops like paddy, millets, groundnut

and pulses can also be increased to the target levels by proper water management

practices.

1.5. Cropping Pattern and Major Crops in Villupuram District

Crop pattern in Villupuram district, comprises a wide variety of crops such

as paddy, black gram, groundnut, cumbu, maize, thenai, varaku, red gram,

turmeric, guava, watermelon, tapiaco, yam (karnai), small onion, indigo dye,

coleus medicine, jasmine and sugarcane. The most important cash crops in the
 21

district are sugarcane, groundnut, turmeric, non-food crops and coleus. It is

cultivable under both irrefutable and rainfed condition. In terms of area, paddy

occupies is 40% of the total cultivable area of the district, which is second highest

in Tamil Nadu (2016-17). Sugarcane is the most important cash crop in the district.

The

main cropping pattern in the district is as follows

Table - 1.11
Crop wise Production, Area and Yield Data
Total Area
Sl. Production Yield
Name of the Crop Covered
No (tonnes) (Kg/hectare)
(in Hectares)
1 Paddy 170443 796608 4674
2 Cumbu 15834 40490 2557
3 Maize 32736 196692 6008
4 Thenai 468 995 1138
5 Varaku 1088 1412 1998
6 Black gram 61681 62493 1013
7 Turmeric 2252 5040 2238
8 Sugarcane 88786 10598908 119000
9 Guava 409 835 2042
10 Watermelon 1399 52462 15000
11 Cashew 5103 2409 472
12 Tapioca 12705 328328 25842
13 Yam 217 27125 25
14 Small Onion 106 1084 10227
15 Other Vegetables 600 12000 12500
16 Groundnut 45487 148526 3265
17 Gingerly 8580 6285 732
18 Indigo dye 14 84 2000
19 Coleus 819 81900 62500
Source: Season and Crop Report Tamil Nadu 2016-17
Based on the Season and Crop Report of Tamilnadu, during 2016-17,
22

the major crops in the district, based on the area under cultivation, production

and yield are Groundnut, Blackgram, Cumbu, Thenai and Gingerly (excluding

Paddy and Sugarcane). Paddy and sugarcane are the major crops in Villupuram

District, but both these crops require more water. Groundnut, Blackgram, Cumbu,

Thenai and vegetables stand as prioritized crop. It is inferred that, in terms of

cultivated area, paddy occupies 40 percent of the total cultivated area in the

district, sugarcane occupies 21%, black gram occupies 14 percent and groundnut

occupies 11 percent. The district contributes significantly to the State area of

production in Cumbu, Black gram, Gingerly. Groundnut and maize are also seen

to be cultivated in priority at major areas of the district, which comprises about

13.51 percent

and 8.60 percent of the state’s total production respectively.

The district significantly contributes to the state’s production on

Groundnut, Cumbu, Black gram, Gingerly and Maize. Although these crops are

grown in Villupuram, in the production of Groundnut puts Villupuram District at

the second place in the State. Other crops like Cumbu, Black gram

and Gingelly occupy first place in the state, which is a remarkable contribution by

the district. Maize occupies fourth place in the State. The district significantly

contributes to the state’s yield on Groundnut, Cumbu, Blackgram, Gingerly and

Maize. In terms of yield, Groundnut occupies second place in the State. Other

crops like Cumbu, Black gram and Gingelly occupy first place in the state, which is

a remarkable contribution by the district. Maize occupies fourth place in the State’s
 23

total yield. It is concluded that the major area under cultivation found utilized for

paddy, sugarcane,

black gram, groundnut and maize which occupy the first five places.

Table 1.12
Trend of Last Three-Year Major Crop Cultivation, Production and Yield
2015-16 2016-17 2017-18
A rea (L .H a.)

P rod n . (L .M T )

Y i el d (K g /H a)

A rea (L .H a.)

P rod n . (L .M T )

Y i el d (K g /H a)

A rea (L .H a.)

P rod n . (L .M T )

Y i el d (K g /H a)
Sl.
Crop
No.

1 Paddy 1.823 7.733 4242 0.956 3.542 3707 1.63 7.443 4418

2 Maize 0.431 2.217 2408 0.339 1.874 1752 0.635 2.870 2527

3 Blackgram 0.779 0.672 888 1.032 0.552 509 0.973 0.824 119

4 Groundnut 0.406 1.058 2966 0.282 0.534 1715 0.51 1.338 2425
Source: Data from Office of Joint Director of Agriculture, Villupuram.

Table 1.12 shows that cultivation area, production and yield of major

crops in Villupuram district, the area under cultivation of paddy occupies more

area (1.823 lakhs hectare in 2015-16 and 1.63 lakhs hectare in 2017-18) compared

to other crops. Other crops like Groundnut, Black gram and maize exhibit a crop

trend as above. Paddy and Sugarcane are the major crops in Villupuram District.

Both these crops intake high water and hence both these crops are excluded from

further interventions.
24

1.6. Role of Agriculture in Indian Economy

Here, we give a detailed report about the seven important roles of agriculture in

Indian economy.

1.6.1. Contribution to National Income

Agriculture contributes a major portion to our national income. In 1950-51,

Agriculture and allied sector have contributed about 59 per cent of the total

national income. Although the share of agriculture has been declining gradually

with the growth of other sectors, the share still remained very high when a

compared to that of the developed countries of the world.

1.6.2. Source of Livelihood

In India, over two-third of our working population is engaged directly on

agriculture and depended for their livelihood. According to an estimate, about 66

per cent of our working population is engaged in

agriculture at present unlike the 2 to 3 per cent engaged in agricultural in the U.K.

and U.S.A, 6 per cent in France and 7 per cent in Australia. Thus the employment

pattern of our country is very much common to other

under-developed countries of the world.

1.6.3. Source of Food Supply

Agriculture is the only major source of food supply as it provides a regular supply

of food to such a huge size population of our country. It has been estimated that

about 60 per cent of the household consumption is met by agricultural products.

 25

1.6.4. Role of Agricultural for Industrial Development

Agriculture in India has been the major source of supply or raw

materials to various important industries of our country. Cotton and jute textiles,

sugar, vanaspati edible oil plantation industries (viz. tea, coffee and rubber) and

agro-based cottage industries are also regularly collecting their raw materials

directly from agriculture. About 50 percent of income generated in the

manufacturing sector, comes from all these agro-based industries in India.

Moreover, agriculture can provide a market for industrial products as an increase

in the level of agricultural income may lead to expansion of market for industrial

products

1.6.5. Commercial Importance

Indian agriculture plays a very important role both in the internal and external

trade of the country. Agricultural products like tea, coffee, sugar, tobacco, spices,

cashew-nuts, etc. are the main items of our exports

and constitute about 50 percent of our total exports. Besides,

manufacturing jute, cotton textiles and sugar also contribute another 20 percent of

the total exports of the country. Thus, about 70 per cent of India’s exports originate

from the agricultural sector. Further, agriculture

helps the country in earning precious foreign exchange to meet the

required import revenue of the country.

26

1.6.6. Source of Government Revenue

Agriculture is one of the major sources of revenue to both the Central and State

governments of the countries. The government receives a substantial income from

rising land revenue. Some other sectors like railway and roadways also derive

good part of their income from the movement of Agricultural goods.

1.6.7. Agriculture in Economic Planning

The prospect of planning in India also depends much on the Agricultural sector.

A good crop always provides impetus toward a planned economic development

of the country by creating a better business climate for the transport system,

manufacturing industries,

international trade, etc.

A good crop also brings a good amount of finance to the government for meeting

its planned expenditures. Similarly, is a bad crop leading to a total depression in

the business of the country, which ultimately leads to failure of economic

planning. Agricultural sector plays a very important role in a country like India

and the prosperity of the Indian economy still largely depends on the agricultural

sector. Thus, from the foregoing analysis, it is observed that agricultural

development is the basic precondition of sector diversification and development of

the economy.

1.7. Agriculture Problems Faced by Farmers in India

Indian agriculture suffers from several problems, some of them are natural and

some others are man-made. Some of the major problems are

 27

discussed as follows.

1.7.1. Small Land-Holding

Small landholding is the major problem in India, which records the

productivity of agriculture product. Even though India produces

agricultural products in large area, land per person seems to be very small; even it

is less than an acre for a person. It reduces productivity.

1.7.2. Quality Seeds

Seed is a critical and basic input for attaining higher crop yields and sustained

growth in agricultural production. Distribution of assuring quality seed is as

critical as the production of such seeds. Unfortunately, good quality seeds are out

of reach of majority of farmers, especially, small and marginal farmers mainly

because of the exorbitant prices of better seeds.

1.7.3. Manures, Fertilizers and Biocides

Indian soils have been used for growing crops over thousands of years without

caring much for replenishing. This has led to depletion and exhaustion of soils

resulting in their low productivity. The average yields of almost all the crops are

among the lowest in the world. This is a serious problem which can be solved by

using more manures and

fertilizers.

1.7.4. Irrigation
Although India is the second largest irrigated country of the world, after China,

only one-third of the cropped area is under

28

irrigation. Irrigation is the most important agricultural input in a tropical

monsoon country like India, where rainfall is uncertain, unreliable and erratic.

India cannot achieve sustained progress in agriculture unless and until more than

half of the cropped area is brought under assured

irrigation.

1.7.5. Climate Changes

Climate change is the major challenge for farmers; it is expected to have an

adverse impact on the living conditions of farmers. Climate change causes

unpredictable weather conditions.

1.7.6. Lack of Mechanization

In spite of the large scale mechanization of agriculture, in some parts of the

country, most of the agricultural operations in large parts are carried

on by human using simple and conventional tools and implements like

wooden plough, sickle, etc.

1.7.7. Soil Erosion
Large tracts of fertile land suffer from soil erosion by wind and water. Such areas

must be properly treated and restored to its original

fertility.

1.7.8. Agricultural Marketing

Agricultural marketing still continues to be in a bad shape in rural India. In the

absence of sound marketing facilities, the farmers have to depend upon local

traders and middlemen for the disposal of their farm produce which is sold at
 29

throw-away price. In most cases, the farmers are forced, under socio-economic

conditions, to carry on distress sale of their produce to the money lender from

whom they usually borrow money.

1.7.9. Inadequate Storage Facilities

Storage facilities in the rural areas are either totally absent or grossly inadequate

under such conditions and so the farmers are completed to sell their produce

immediately after the harvest at the prevailing market price which is normally

low, and such distress sale deprives the farmers of their legitimate income.

1.7.10. Low Productivity

Productivity is the number of kilograms of crops produced per acre. As per the

statistics of any organization, productivity of almost all agricultural products in

India is found to be lower than other countries. It is because of non-usage of

modern cultivation method and lack of using modern machineries.

1.7.11. Inadequate Transport

One of the main handicaps with Indian agriculture is the lack of

cheap and efficient means of transportation. Even now, there are lakhs of village

which are not well connected with main roads or with market

centers.

1.7.12. Scarcity of Capital

Agriculture is an important industry and like all other industries it also requires

capital. The role of capital input is becoming more and more

important with the advancement of farm technology since the

30

agriculturists’ capital is locked up in his lands and stocks; he is obliged to borrow

money for stimulating the tempo of agricultural production.

1.8. Statement of the Problems

Indian farmers are economically and socially weaker people and faced with

various problems such as under employment, lack of financial resources and

involvement of intermediaries. The cultivation and marketing of agriculture

commodities involve a considerable amount of manpower and hence play a vital

role in the economic activities in India. However, in the recent years, the farmers

are unable to obtain optimum yield and return. The problems associated with its

cultivation and

marketing do not permit the farmers to reap optimum yield.

Higher risk associated with cultivation, is a major constraint in increasing

production. Yield of production fluctuates due to high

susceptibility of crops to diseases and pests and rain fed situations, overall

fluctuations in yield as estimated through the coefficient of variation was lower

because of marginal increase in yield. Since the average productivity itself is very

low, the higher risk associated with its production further retards the adoption of

new technology and the use of

high yielding inputs.

Most of the farmers are illiterate and therefore they are not aware of

production and marketing strategies to their produce. Moreover, they are not
 31

aware of the prevailing price trend in different markets. There is no well-

organized marketing system and co-operation among the farmers. Commission

agents and middlemen are exploiting the illiterate farmers by fixing the prices

below the cost of production and many a times the farmers are at the mercy of

unscrupulous village traders. Generally, agriculture commodity prices are fixed

by the middlemen, not by the growers with the result they have lost their share in

the agriculture commodities. So, the farmers are not sure of his revenue also.

The producer of industrial goods gets information from various sources.

But, the poor and illiterate farmers have not proper information of agriculture

markets for the purpose of certain basic knowledge like, improving the quality of

the crop, high yielding hybrid varieties and postharvest management with an aim

of accessing the information on prices, policies, trade regulations, information

related to strengthening of backward and forward linkages and disease forecasting

system to regulate

the pesticide usage.

Agricultural production is seasonal, but they have demand for the whole

year. This means that they need to be stored in the warehouse so that they can be

made available at the right time in the markets. The farmers may not have own

storage facilities, Absence of storage forces the farmer to sell their produce at the

earliest. Sometimes, they sell at a very

low price. Thus, the farmers get a very low or even no profit.

Farmers face a number of problems during their cultivation,

32

operation and marketing practices. Therefore, it is very much essential to study the

problems in the production and marketing of agriculture commodities, since large

numbers of farmers involve themselves in this field. Based on the findings, anyone

can easily understand the background of the farmers and also take appropriate

decisions for the benefit of farmers. In this context, the present study highlights

the production and marketing practice of major agriculture commodities in

Villupuram

District.

1.9. Objectives of the Study

The objectives of the study are as follows:

1. To study the cultivation practices and the problems faced by the

farmers in Villupuram District in cultivation.

2. To identify the marketing practices and the marketing problems of

selected agriculture commodities in the study area.

3. To access the level of awareness about the cultivation and marketing

strategies of the select agricultural commodities in the study area.

4. To summarize the findings, conclusions and provide suitable

suggestions.

1.10. Hypotheses
Based on the objectives, the following null-hypotheses have been

framed in this study:

 33

1. There is no significant relationship between the cultivation practice of

select agriculture commodities and the category of the farmers in the
study area

2. There is no significant difference between various Problems of

cultivation and the category of the farmers among the paddy, black
gram, ground nut and maize.
3. There is no significant relationship between the level of awareness of
cultivation practice and the category of the farmers in Villupuram
District

4. There is no significant relationship between the marketing practices of

select agriculture commodities and the category of the farmers in
Villupuram District

5. There is no significant relationship between various marketing

Problems and the category of the farmers among the paddy, black
gram, ground nut and maize.

6. There is no significant relationship between the level of awareness of

marketing and category of the farmers in Villupuram District

7. There is no significant relationship between the farmers’ opinion to

improve the cultivation and marketing strategies of select agriculture
commodities and the category of the farmers.

1.11. Methodology
1.11.1. Methods of Data Collection
In this study, both primary and secondary sources of data have been used.

The primary data were collected from farmers in Villupuram District. Regarding
34

the collection of primary data, interview schedule has prepared and administered

on farmers in Villupuram district.

1.11.2. Primary Data

The study focuses on the perceptions of farmers about cultivation and

marketing practice of agriculture commodities. The information about the study

was collected from major sources of primary data through a pre-tested interview

schedule. The views and opinions on broad issues have been collected from

selected farmers from the District. The sample

respondents in the Villupuram District form the main source of

information for this study.

1.11.3. Secondary Data

The secondary data have been collected from various textbooks, journals,

administrative records, periodicals, different websites, annual reports and special

project reports. The data have been largely used in providing the theoretical

background of the study.

1.11.4. Pilot study and Pre-testing

Each question item was improved for its relevance and meaning by

constant interaction with the experts in the areas. Pre-testing of the interview

schedule involved 60 farmers to know the relevance of the questions. In the light

of the pre-testing resects, necessary changes were incorporated in the formation of

items, questions and their sequences.

 35

1.11.5. Population
The target population for data collection was the farmers involved in

major agriculture crop cultivation in Villupuram district. Villupuram district has

a total geographical area of 7.22 lakh hectares 487273 of which hectares are under

cultivation, the net cultivation areas in the district grow paddy, black gram,

sugarcane, groundnut and maize in 436226 hectares in all seasons (90 per cent of

total cultivation area) in 2015-167. The major agriculture crops in the district

include paddy, black gram, sugarcane, groundnut and maize. For the purpose of

the study the researcher has

chosen four major crops out of five crops, except sugarcane, due to its fixed price

and distribution through organized sugar mills.

1.11.6. Sampling Technique and Data Collection

The target population for data collection is the farmers in the study area. As

the selected area of the study is Villupuram district, an attempt was made to

distinguish the district into different strata. The stratification

was done on the basis of geographical and administrative factors. Villupuram

district constitutes four revenue divisions: Villupuram,

Tindivanam, Thirukoilur, and Kallakurichi which are, further, divided into

Thirteen Taluks. In order to collect primary data for the purpose conducting the

study, multi-stage sampling technique was adopted. At the first stage, all the four

revenue divisions were selected. In the second stage, eight taluks out of the

thirteen taluks were selected purposely from the four revenue divisions: two taluk
36

from each division. In the final stage, from each of the selected taluk, modest

sample of 65 were randomly

selected to reach the total the sample size of 520.

7 Area, production and productivity report, joint director of agriculture, Villupuram

Table – 1.13
Selection of Samples
Sl.
Revenue Division Taluk Sample
No.
Villupuram 65
1. Villupuram
Vikiravandi 65

Tindivanam 65
2. Tindivanam
Melmalayanur 65

Kallakurichi 65
3. Kallakurichi
Sankarapuram 65

Thirukovilur 65
4. Thirukovilur
Thirunavalur 65

Total 520

1.11.7. Statistical Techniques

The collected primary data were subject to various statistical techniques

from simple percentage, descriptive statistics like Mean and Standard deviation,

co-efficient of variation, Friedman ANOVA with Kendall’s Coefficient of

Concordance, t-test for independent samples, and chi-square test, One way

ANOVA was used.

1.12. Limitations of the Study

The study was confined to the following limitations.
 37

1) Due to paucity of time, the size of the sample was restricted to 520
from Villupuram District.
2) The respondents are busy and could not give information in one
sitting. The researcher has to visit these units a number of times to
get the information completely. Many of the units did not keep any
systematic documentation related to their computerization and gave
answers based upon their memory.

3) Major crop cultivation in the study area include paddy, black gram,
groundnut, maize and sugarcane. The researcher studied four
selected commodities of paddy, black gram, groundnut, maize,
except sugarcane since it attract a standard price and distribution
system through organized sugar mills.

1.13. Chapter Scheme

The study has been divided into in six chapters.

The first chapter, “Introduction and design of the study” consists of

introduction, historical background of the select agriculture commodities, trends

in the production areas, production and productivity and provides the reason

behind conducting the study, statement of the problem, objectives of the study,

hypotheses framed and the research methodology,

limitations and the chapter schemes of the study.

The second chapter, “Review of Literature,” deals with the related studies

and find out the gap between the existing literature and the

necessity of the present study.

The third chapter, “farmers’ opinion towards production of

agriculture commodities in Villupuram District” examines the cultivation

38

practices and the problems the farmers face in the study area.

The fourth chapter “farmers’ opinion towards marketing of

agricultural commodities in Villupuram District, deals with the marketing

practices of agriculture commodities and the problems in marketing of

agriculture commodities.

The fifth chapter, “farmers’ suggestion to improve production and

marketing of agriculture commodities” deals with the farmers suggestion

to reduce the problem of cultivation and marketing.

The sixth chapter presents the summary of findings, suggestions and

conclusion