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The IUP Journal of Agicultural Economics

October '04
Focus Areas
  • Agricultural Production and Productivity
  • Agricultural Finance and Marketing
  • Development of Agro-Based Industries
  • Exports of Food. Raw Materials and Processed Foods
  • Marketing of Agricultural Products
  • Agricultural Policy and Environmental Issues
  • Natural Resources
Articles
   
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Post World War II Wool Policy Reform in Australia, 1946 -1991: Lessons for Developing Countries
Agricultural Insurance in India:A Perspective
Agricultural Marketing: Stop Cheating the Farmer
Development of Agro-based Industries in India
India's Agricultural Exports: Some Challenges
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Technical Efficiency of Paddy Farmers in Andhra Pradesh : A Stochastic Frontier Production Approach with Panel Data

-- D Sree Rama Raju

The present study followed Battese and Coelli (1988) approach to analyze the role of firm-specific factors in technical efficiency. The farm level panel data of Andhra Pradesh for the years 1990-91, 1991-92 and 1992-93, has been used in the study. This data was collected from the Cost of Cultivation unit, Dept. of Agricultural Economics, College of Agriculture, Rajendranagar, Hyderabad. Significant intra-farm variations (in both the seasons) in the usage of important inputs at the zonal and state levels, leads to variations in the efficiency levels of the farmers in paddy cultivation. The results of this study showed that education, power and fuel and rainfall have had significant influence on the technical efficiency levels of the farmers.

Post World War II Wool Policy Reform in Australia, 1946 -1991: Lessons for Developing Countries

-- Dr. Frank W Agbola

Since the end of World War II, Governments in almost all developed and developing countries have pursued protectionist policies aimed at protecting their domestic economies. The agricultural sector in these countries has experienced profound changes in economic conditions and undergone considerable policy change and institutional reform. These changes are some of the key dynamic forces that have reshaped the agricultural sector. This paper seeks to explain the motivation for the growth of regulation of the Australian wool industry until the demise of the reserve price scheme in 1991. It is argued that the pace and direction of policy were driven by politics of the day and pressures from wool growers rather than economic themes. It is argued that the success of the regulatory reforms was due to the ability of the marketing authorities to enforce and monitor the production and marketing of wool. Drawing on the Australian wool industry experience, this paper outlines some policy implications for other countries.

Article Price : Rs.50

Agricultural Insurance in India:a Perspective

-- Dr. A Amarender Reddy

The ongoing National Agricultural Insurance Scheme (NAIS) along with experimental income insurance and weather insurance, is a good step forward to insure risk of millions of farmers whose livelihood depends on the pattern and distribution of monsoon rain in India. NAIS is based on area-yield approach and is suffering from low penetration and adverse selection with consequent high claim to premium ratio. With this backdrop, the paper reviews the innovative techniques in agricultural/rural insurance, which overcome some of the disadvantages of the above insurance and which advocate simple rainfall index insurance as a better alternative to the existing agricultural insurance scheme. The rainfall insurance is in practice in many countries for years and has been very simple to understand by a common farmer. It is put into practice with minimum existing resources with very little administrative and overhead costs. It also covers agricultural laborers and non-farm workers whose income is affected adversely by failure of rainfall and it is a very effective mechanism to increase insurance penetration ratio. The rainfall insurance is also more compatible with reinsurance practices, which make primary insurers cover their local/regional risks in catastrophic events by pooling their resources with reinsurance. The reinsurance agents can also effectively transfer their risks by issuing catastrophic bond/options like instruments in stock exchanges (NSE and BSE), as our stock markets are relatively well-developed and it may effectively fit into the portfolios of some of the fund managers and hedge funds.

Article Price : Rs.50

Agricultural Marketing: Stop Cheating the Farmer

-- Dr. A Ranga Reddy

This paper highlights the agricultural marketing issues like its structural aspects, current concerns and competitiveness relating to the Indian farmer in the present scenario. This study shows that the state keeps a watch and monitors the market conduct through several mandatory regulations. This paper examines the trade policy for major farm products, price policy instruments and direct market intervention and marketing system improvements, in order to inject vibrancy and competitiveness in the agricultural sector. It concludes that the markets have failed to give remunerative prices to the farmers both at input and output pricing. It also emphasizes that there is an urgent need to curtail the domination of private sector, especially the urban markets which are cheating the farmers, in order to put an end to the numerous suicidal deaths.

Article Price : Rs.50

Development of Agro-based Industries in India

-- Dr. Srinivasulu Bayineni and Dr. Ramesh Babu Vooka

Agro-based industry would mean any activity involved in cultivation, under controlled conditions of agricultural and horticultural crops, including floriculture and cultivation of vegetables and post-harvest operation on all fruits and vegetables. The development of agro-industries has assumed crucial importance in the economic planning and progress of the country. This paper highlights the development proposals of agro-based industries during the tenth five year plan. This study also points out that Andhra Pradesh occupied the first place with 10,183 processed food industry units and the least place was occupied by Meghalaya with only 3 units in the year 2002-03. However, there are extreme variations among different states in the number of processed food industries. It is also evident from this study that except potatoes, all the other perishable products have been showing inadequate number of cold storage plants and low capacity utilization of the existing units. This study suggests that there is a need to develop the processed food industries throughout the country in order to provide more employment opportunities and to reduce the regional imbalances.

Article Price : Rs.50

India's Agricultural Exports: Some Challenges

-- Dr. L Krishnaveni and Sangita Ghosh

The agricultural sector has been playing a key role in the composition of Indian exports. This paper highlights the surprising fact that the share of Indian agricultural exports has been slowly declining in recent years. In the era of globalization, the agricultural exports from India have been facing many internal and external challenges. Its share has declined from 18.2% in 1998-99 to 13.5% in 2000-01 and further reduced to 11.7% in 2002-03. It points out that India's share of exports in tea and mate, tobacco, sugar and molasses has been slowly declining in the global market. Inspite of many hurdles, coffee, rice, fish and preparations have been entering the global market by raising their shares. This study concludes that the production bottlenecks like cost diseconomies, poor quality and increasing domestic demand are the major hurdles to the Indian agricultural exports on the domestic front. Apart from this, declining world demand, competition from other countries, threat from substitutes, etc., are the major external constraints to Indian agricultural exports. The authors suggest that the increase in the supply of agricultural products, diversification of agricultural exports, quality improvement, improvement of the cold storage facilities for the highly perishable agricultural exports, timely delivery of goods etc., are very crucial for the maximization of agricultural exports. Above all, the government has to take some timely measures through some reforms in its EXIM policy, to fulfill the needs of the exporters of agricultural 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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