Food Security and Efficacy of the Intervention Mechanism in India

Rice and wheat are the two major foodgrains in India and their level of production determines the country self-sufficient. Forecasts on cereals supply range from 250 to over 300 million tones in the country by the year 2020. Mere availability of foodgrains is not a sufficient condition to ensure food security but also necessary that the poor have sufficient means to purchase food. Poor economic access leads to food security and it has been checked by the government mechanism through the operation of Targeted Public Distribution System (TPDS) and foodgrains are distributed at subsidized prices to the people living Below Poverty Line (BPL). It is a safety net to more than 330 million poor and those nutritionally at risk and an important delivery channel with a network of half million Fair Price Shops (FPS) catering to the needs of 199 million of ration cardholders. Food subsidy amounting to Rs. 25,800 (approximately US$ 5,730 million) was allotted during the period 2004-05, which rose ten times in the past 15 years. Higher level of procurement, revising the Minimum Support Price (MSP), inventory cost for stocking foodgrains and a lower level of issue price together absorb huge subsidy. Monte Carlo Technique was used to examine the implications of several policy options by simulating the 2002-03 base scenario. Optimum or the normative level of procurement, improving offtake from Food Corporation of India (FCI) godowns, private participation, issuing food stamps and food credit cards are the possible options to improve the efficacy of the system and reduce the budgetary burden due to subsidy.Food Security, Targeted Public Distribution System, Fair Price Shops, Minimum Support Price, Monte Carlo Technique, Food Security and Poverty, J21, H4, H5, O2, Q18,

Risk Management Strategies for Drought-Prone Rice Cultivation: A Case Study of Tamil Nadu, India

This study aimed to understand the issues associated with rainfed rice production in dry and semidry areas in Tamil Nadu, India. Farmers face risks such as input, output, market-price, and income, as these areas are prone to rainfall shortage. Secondary data about Tamil Nadu and various water limited rice environments were studied. A farm survey of 230 farm households in selected districts was conducted in 2001-02 and 2003-04. Fertilizer use in rainfed areas was reduced due to rainfall shortage. In drought period, crop response to fertilizer declined, causing a decrease in rice yields. Yield variability was higher (44 percent to 60 percent) in drought-prone areas. In rainfed areas, a 10-percent increase in drought risk resulted in a 5.4 percent decline in the yield of modern varieties. In contrast, the effect on landraces was minimal. Farmers in the rainfed areas are operating at sub-optimal level of Production. About 90 percent were inefficient since crop yields were lower than the optimal yield. Farmers incurred an additional cost of INR 899 to increase yield by 228 kg/ha. An increase in rice productivity by one ton per hectare would replace rice area by 189,208 hectares in Tamil Nadu. Area expansion under rice was noticed in the selected rainfed areas, revealing that infusing high productivity traits in drought-tolerant rice varieties enable farmers to allocate part of their land to other crops. Traits (genetic and marketability) of widely adopted modern varieties and landraces should be considered in breeding varieties for water-limited environments to earn profits. The results confirm that drought intensity is higher during the maximum-tillering stage, therefore, continued research on development of drought-tolerant rice varieties to withstand early drought is crucial. Finally, rice income variability in rainfed areas was explained more by variability in yields rather than prices both during normal and risk periods. In other areas, income variability was due to price variability. Yield stabilization would be more effective in keeping revenues stable in rainfed areas, while price stabilization, is an appropriate strategy for reducing revenue risk in irrigated areas

Poverty, Private Property and Common Pool Resource Management: The Case of Irrigation Tanks in South India

Irrigation tanks are one of the oldest and most important common property water resources in the resource-poor regions of South India. Tanks are also important from an ecological perspective because they serve as a geographically well-distributed mechanism for the conservation of soil, water and bio-diversity. Unfortunately, tank irrigation has undergone a process of rapid decline in the recent past, much of which can be attributed to the disintegration of traditional irrigation institutions. In response, people adopt various coping strategies such as migration, non-agricultural employment, and private tube-wells. Adoption of private coping mechanisms has serious implications for community coping mechanisms, i.e., for collective conservation efforts. Against this background, this study tries to understand the main causes of tank degradation and the complex interrelationships among poverty, private coping mechanisms and community coping mechanisms that affect tank performance. Primary and secondary data are used to estimate three regressions models: a macro model on tank degradation, a household-level model on collective action, and a production function incorporating collective action as an input. // In general, poor people are more dependent on tanks for various livelihood needs and hence they contribute more towards tank management compared to non-poor households. The analysis of tank degradation shows that there has been a decline in the performance of tanks. Population pressure is found to have accelerated the process of tank degradation. Though the emergence of private tube-wells contributes towards mitigating tank degradation within a narrow range, a continuous increase in the number of wells beyond limits exacerbates the process of tank degradation. This result is further validated by the micro-level econometric model of collective action towards tank management, which indicates that the increase in the number of private wells has a strong negative effect on the participation of rural communities in tank management. The size of the user group has a negative impact on cooperation, while the existence of traditional governance structures, such as rules for water allocation, promotes collective action. Wealth inequality is found to have a U-shaped relationship with collective action. The production function analysis shows that collective action has a positive and significant impact on the rice yields. Therefore, collective action is important for higher productivity and income. The study proposes several policy measures to revive and sustain tanks so as to provide livelihood security to the poor, who are the most affected by resource degradation

Transformation to Organic Production among the Small Tea Holders for Sustainability – Myth or Reality?

The focus of the paper is to analyze the problems and issues in transformation to organic tea production, price benefits that can be accrued, present level of organic production and farmers’ awareness and adoption using both the primary and secondary data collected from various published sources and personal interview of the sample of farmers. The sample of farmers comprises of 100 beneficiaries of Participatory Guarantee System of India (PGSIndia), four Small Tea Growers Societies, Certified Organic Tea Estate sector and three organic large tea growers including Small Tea Farmers’ Producer Company. Time series data on domestic prices, export prices for tea and organic tea, area under tea cultivation, productivity - before and after conversion were collected and analyzed. Though organic tea production is gaining momentum among the small tea growers, yield reduction after conversion is a major threat. Despite the fact that there is a yield reduction, our sample of organic tea growers were benefitted from higher remunerative price for their green tea leaves due to adoption of quality tea plucking practices with opinion that formal certification would help them to realize better prices due to market acceptance. As long as Small Tea Growers (STGs) could be able to realize premium market prices, they are ready for conversion. We also found from the soil sample analysis that there would be long term beneficial impact of organic tea cultivation on soil and productivity. Export price for organic tea is twice than that of normal tea but export share was minimal emphasizing the need for higher level of export for which formal certification is crucial since the organic tea exporters cannot source tea from uncertified STG organic farms. The awareness for certification is lacking though trainings and demonstration are being carried out by the various agencies. In this context of crisis of continuous price fall and loosing the export markets due to competitiveness, organic production is one of the alternatives among the STGs to have decent livelihood in the Nilgiris district of Tamil Nadu State of India. Creating awareness and resorting to formal certification to compete in the global market are warranted. The role of Primary Producers Societies (PPS) is critical in enforcing the quality for organic tea production and marketing

Transformation to Organic Production among the Small Tea Holders for Sustainability – Myth or Reality?

The focus of the paper is to analyze the problems and issues in transformation to organic tea production, price benefits that can be accrued, present level of organic production and farmers’ awareness and adoption using both the primary and secondary data collected from various published sources and personal interview of the sample of farmers. The sample of farmers comprises of 100 beneficiaries of Participatory Guarantee System of India (PGSIndia), four Small Tea Growers Societies, Certified Organic Tea Estate sector and three organic large tea growers including Small Tea Farmers’ Producer Company. Time series data on domestic prices, export prices for tea and organic tea, area under tea cultivation, productivity - before and after conversion were collected and analyzed. Though organic tea production is gaining momentum among the small tea growers, yield reduction after conversion is a major threat. Despite the fact that there is a yield reduction, our sample of organic tea growers were benefitted from higher remunerative price for their green tea leaves due to adoption of quality tea plucking practices with opinion that formal certification would help them to realize better prices due to market acceptance. As long as Small Tea Growers (STGs) could be able to realize premium market prices, they are ready for conversion. We also found from the soil sample analysis that there would be long term beneficial impact of organic tea cultivation on soil and productivity. Export price for organic tea is twice than that of normal tea but export share was minimal emphasizing the need for higher level of export for which formal certification is crucial since the organic tea exporters cannot source tea from uncertified STG organic farms. The awareness for certification is lacking though trainings and demonstration are being carried out by the various agencies. In this context of crisis of continuous price fall and loosing the export markets due to competitiveness, organic production is one of the alternatives among the STGs to have decent livelihood in the Nilgiris district of Tamil Nadu State of India. Creating awareness and resorting to formal certification to compete in the global market are warranted. The role of Primary Producers Societies (PPS) is critical in enforcing the quality for organic tea production and marketing

Food Security and Efficacy of the Intervention Mechanism in India

Rice and wheat are the two major foodgrains in India and their level of production determines the country self-sufficient. Forecasts on cereals supply range from 250 to over 300 million tones in the country by the year 2020. Mere availability of foodgrains is not a sufficient condition to ensure food security but also necessary that the poor have sufficient means to purchase food. Poor economic access leads to food security and it has been checked by the government mechanism through the operation of Targeted Public Distribution System (TPDS) and foodgrains are distributed at subsidized prices to the people living Below Poverty Line (BPL). It is a safety net to more than 330 million poor and those nutritionally at risk and an important delivery channel with a network of half million Fair Price Shops (FPS) catering to the needs of 199 million of ration cardholders. Food subsidy amounting to Rs. 25,800 (approximately US$ 5,730 million) was allotted during the period 2004-05, which rose ten times in the past 15 years. Higher level of procurement, revising the Minimum Support Price (MSP), inventory cost for stocking foodgrains and a lower level of issue price together absorb huge subsidy. Monte Carlo Technique was used to examine the implications of several policy options by simulating the 2002-03 base scenario. Optimum or the normative level of procurement, improving offtake from Food Corporation of India (FCI) godowns, private participation, issuing food stamps and food credit cards are the possible options to improve the efficacy of the system and reduce the budgetary burden due to subsidy

The Economic Impact of Drought Tolerant Rice Varieties in South India

Drought is the one of the important factors that limit the productivity of rice in the fragile environments of South India. The existing modern varieties of rice do not perform well under drought stress conditions. Tamil Nadu Agricultural University (TNAU) has used a number of techniques to develop drought tolerant (DT) rice varieties – conventional breeding, molecular breeding and genetic engineering. So far the most advanced varieties from DT programs – PMK 3, PMK 4, and RMD 1- were developed through conventional breeding and molecular breeding. The genetic engineering research program for DT is not active at present. DT varieties are based on crosses of land races and high yielding varieties with white slender grain quality. In this study we likely welfare effects generated by the adoption of DT varieties at the regional level. For this purpose a farm level survey was conducted among the 120 farm households in major drought prone districts of Tamil Nadu 2008 – 09. All the selected farmers were provided seeds of DT cultivars (PMK 3, PMK4, RMD 1) as a part of on-farm trials managed by TNAU Scientists. The farmers also grew land races and other HY cultivars of rice in their lands during the season. The results from the cost of cultivation and returns of DT, existing land races and HYVs indicate that the adoption of DT varieties would bring additional benefit to the farmers to the tune of 32.82 per cent despite increase cost of human labor and manures by 15 percent. There was a significant reduction in the cost of other input such as seed, chemical fertilizer and machine power. Reduction in cost and higher productivity together benefited the farmers as a result total returns and the net gain over 20 percent

PERFORMANCE, LEVEL OF PROTECTION AND COMPARATIVE ADVANTAGE OF AGRICULTURE IN TAMIL NADU, INDIA

The paper analyses the performance of agriculture in Tamil Nadu using the exponential growth rates, level of protection and comparative advantage by estimating net protection coefficient, efficient protection coefficient, effective rate of protection and domestic resource cost. Productivity trends in Tamil Nadu have been positive irrespective of food and non-food crops. The potential loss in area of some crops was more than compensated by productivity. Rice and coton have comparative advantage justifying further protection. The factors of production for rice and cotton can be paid more than the present level under free trade and still remain competitive with imports. The protection coefficients and domestic resource cost showed that sugarcane and groundnut are highly protected and have comparative disadvantage domestically as compared to world trade. Given the premise that sugarcane in the state has productivity advantage in the country as a whole, what disturbs one is unit cost of production. The question is now to convert the comparative advantage into competitive advantage globally? The answer lies in diversification of sugar industry. Groundnut is the second largest crop in the state next to rice, which is being grown mainly in rainfed and low fertility soils. Tamil Nadu has comparative advantage in terms of productivity at national level. The strategy lies in reducing the unit cost of production and makes the crop economically viable

Potential Impact of Biotechnology on Adaption of Agriculture to Climate Change: The Case of Drought Tolerant Rice Breeding in Asia

In Asia and Africa the poor tend to live in marginal environments where droughts and floods are frequent. Global warming is expected to increase the frequency of these weather-induced perturbations of crop production. Drought tolerance (DT) has been one of the most difficult traits to improve in genetic crop improvement programs worldwide. Biotechnology provides breeders with a number of new tools that may help to develop more drought tolerant varieties such as marker assisted selection (MAS), molecular breeding (MB), and transgenic plants. This paper assesses some preliminary evidence on the potential impact of biotechnology using data from surveys of the initial DT cultivars developed through one of the main programs in Asia that has been funding DT rice breeding since 1998—The Rockefeller Foundation’s Resilient Crops for Water-Limited Environments program in China, India, and Thailand. Yield increases of DT rice varieties are 5 to 10 percent better than conventional varieties or currently grown commercial varieties than it has been in years. So far we only have experiment station evidence that DT varieties yielded better than conventional or improved varieties during moderate drought years (the one drought year during our study period in South India gave inconclusive results) and in severe drought both the DT and the conventional varieties were either not planted or, if planted, did not yield. We find that the governments could help overcome some of the constraints to the spread of DT cultivars by increasing government funding of DT research programs that take advantage of new biotech techniques and new knowledge from genomics. Secondly, public scientists can make breeding lines with DT traits and molecular markers more easily available to the private seed firms so that they can incorporate DT traits into their commercial hybrids particularly for poor areas. Third, governments can subsidize private sector production of DT seed or provide more government money for state extension services to produce DT varieties.drought tolerant rice; climate change; biotechnology; Asia