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A Study on Economics of Fertilizer Consumption in Agriculture at Lalgudi Block of Tiruchirappalli District, Tamil Nadu

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A Study on Economics of Fertilizer Consumption in Agriculture at Lalgudi Block of Tiruchirappalli District, Tamil Nadu A STUDY ON ECONOMICS OF FERTILIZER CONSUMPTION IN AGRICULTURE AT LALGUDI BLOCK OF TIRUCHIRAPPALLI DISTRICT, TAMIL NADU Thesis submitted to BHARATHIDASAN UNIVERSITY TIRUCHIRAPPALLI for the award of the Degree of DOCTOR OF PHILOSOPHY IN ECONOMICS By A. JUSTIN THIRAVIAM, M.A., M.Phil. Under the guidance of Dr. A. JEBAMALAI RAJA, M.A., M.Phil., Ph.D. PG and RESEARCH DEPARTMENT OF ECONOMICS URUMU DHANALAKSHMI COLLEGE TIRUCHIRAPPALLI - 620 019 DECEMBER 2011 Dr. A. JEBAMALAI RAJA, M.A., M.Phil., Ph.D. Research Advisor PG and Research Department of Economics Urumu Dhanalakshmi College Tiruchirappalli - 620 019 ______________________________________________________________ CERTIFICATE This is to certify that the thesis entitled “A Study on Economics of Fertilizer Consumption in Agriculture at Lalgudi Block of Tiruchirappalli District, Tamil Nadu” is a bonafide record of the research work done by Mr. A. JUSTIN THIRAVIAM, under my guidance and that the thesis has not formed the basis previously for award of any degree or diploma, fellowship or associateship or any other similar title. (Dr. A. JEBAMALAI RAJA) Research Advisor Station : Tiruchirappalli Date : DECLARATION I declare that the thesis entitled, “A Study on Economics of Fertilizer Consumption in Agriculture at Lalgudi Block of Tiruchirappalli District, Tamil Nadu” has been originally carried out by me at the Post-Graduate and Research Department of Economics, Urumu Dhanalakshmi College, Tiruchirappalli affiliated to Bharathidasan University, Tiruchirappalli under the guidance and supervision of Dr. A. Jebamalai Raja, M.A., M.Phil., Ph.D., Research Supervisor, PG and Research Department of Economics, Urumu Dhanalakshmi College, Tiruchirappalli and that it has not been submitted elsewhere for the award of any Degree, Diploma, Associateship and Fellowship. Place : Tiruchirappalli A. JUSTIN THIRAVIAM Date : ACKNOWLEDGEMENTS I wish to thank Almighty God for showering His abundant blessings on me to complete the Research work. First and foremost, I express my deep sense of gratitude to my Guide Dr. A. Jebamalai Raja, Associate Professor of Economics, Urumu Dhanalakshmi College, Tiruchirappalli. In the choice of the problem, review of literature and actual research activities, his guidance was a source of inspiration and direction. His strife for perfection and drive for timely work helped me to finish the work on time. For this I am thankful and grateful to him and wish to express my deep sense of indebtedness to him. I express my sincere thanks to the Principal, Urumu Dhanalakshmi College, and the Principal, St. Joseph’s College (Autonomous), Tiruchirappalli for their generous support to me to complete the research work. I am grateful to Dr. G. Stphen Vincent, Associate Professor of Statistics, St. Joseph’s College (Autonomous), Tiruchirappalli and Dr. Arockiasamy, Professor of Economics, Gandhigram Rural University, Dindigul for helping me in arranging the statistical tools and necessary discussions in related to my research work. I express my deep sense of gratitude to Dr. P. Stanly Joseph, Associate Professor of Economics, St. Joseph’s College (Autonomous), Tiruchirappalli for his gladly consented to take up valuable suggestions and constant encouragement to me in completing the research work. I am very much indebted and thankful to Dr. M. Durairajan, Librarian, St. Joseph’s College (Autonomous), Tiruchirappalli; the Assistant Librarians of Anbil Dharmalingam Agricultural University, Tiruchirappalli; and the librarian of Bharathidasan University, Tiruchirappalli and the Director, M. S. Swaminathan Research Institute, Chennai for their timely help and support by giving necessary related literatures and constant encouragements to complete this research work successfully. I express my sincere thanks to the Heads and Staff Members of the Department of Economics both of St. Joseph’s College (Autonomous) and Urumu Dhanalakshmi College, Tiruchirappalli for their generous support and encouragement to me to complete the research work. I am thankful to Mr. Ramesh, Statistical Department, Lalgudi Taluk, Tiruchirappalli, and the Joint Director of Agriculture, Tiruchirappalli District for helping me by supplying the necessary data for the completion of the research work. I express my special thanks to Mr. S. Jesudoss, Mr. Padmanaban and Mr. Jesus Raja for their tireless work in terms of typing, editing and alignment of my research work in a successful manner. I have great pleasure and express my gratitude to all my Family Members for their timely support and encouragements throughout the period of study. It is my privilege and pleasant duty to acknowledge my deep sense of gratitude to all my friends for their constant love and encouragements to undertake and complete the research work successfully. A. Justin Thiraviam CONTENTS Chapter Page Title № № I. INTRODUCTION AND DESIGN OF THE STUDY 1 II. REVIEW OF THE PAST STUDIES 16 III. FERTILIZER USE ON AGRICULTURE - A FRAME WORK 47 IV. METHODOLOGY 130 V. RESULTS AND DISCUSSION 150 VI. FINDINGS, POLICY RECOMMENDATIONS AND CONCLUSION 232 BIBLIOGRAPHY 243 APPENDICES: Appendix-I: TEST OF HYPOTHESES Appendix-II: QUESTIONNAIRE LIST OF TABLES 3.1 Consumption of Fertilizers at World level (2008-12) ... 48 3.2 Production of Fertilizers in India (2001-10) ... 51 3.3 Consumption of Fertilizers in India (2001-10) ... 54 3.4 Import of Fertilizers by India (2001-10) ... 57 3.5 Consumption of Fertilizers in Southern India (2000-09) ... 61 3.6 Consumption of Fertilizers in Tamil Nadu (2001-09) ... 64 3.7 District-wise Consumption of Fertilizers in Tamil Nadu (2008-09) ... 66 3.8 Consumption of Fertilizers in Selective Agricultural Districts of Tamil Nadu (2008-09) ... 68 3.9 Consumption of Fertilizers at different countries in the World (2008-12) ... 74 3.10 Consumption of Fertilizers in Developed and Developing countries ... 78 3.11 Subsidies for Fertilizers in India (2000-01 to 2008-09) ... 80 3.12 International Prices of Urea, DAP and MOP (Jan 1990 to Sep 2008) ... 83 3.13 The consumption of Nitrogen, Phosphoric acid and Potash in India and other countries (per acre) ... 87 4.1 Land Holding Pattern ... 136 4.2 Rainfall - 2009-10 ... 137 4.3 Occupational pattern ... 138 4.4 Land Utilization (Area in hectares) ... 139 4.5 Important Crops cultivated in the study area ... 140 4.6 Irrigation ... 141 4.7 Fertilizers ... 141 4.8. Pesticides ... 142 4.9 General Features ... 143 4.10 Transport and Communications ... 144 5.1 Gender-wise distribution ... 152 5.2 Age-wise distribution ... 154 5.3 Religion-wise distribution ... 158 5.4 Community wise distribution ... 160 5.5 Distribution based on Educational level ... 162 5.6 Distribution of the family size and type of crop ... 166 5.7 Additional occupation and type of crop ... 168 5.8 Size of farm and additional occupations ... 169 5.9 Annual Income of the family ... 171 5.10 Distribution of respondents by their source of loan ... 172 5.11 Water Sources used by the respondents ... 173 5.12 Distribution of respondents by the method of applying fertilizer ... 175 5.13 Distribution of respondents by their Domicle ... 176 5.14 Distribution of respondents by the cultivated crop ... 177 5.15 Area of land under paddy cultivation ... 178 5.16 Distribution of respondents by the seasons of paddy cultivation ... 180 5.17 Distribution of area of cultivation during Kuruvai season ... 180 5.18 Paddy yield per acre during Kuruvai season cultivation ... 182 5.19 Expenditure on Land Preparation during Kuruvai Season ... 182 5.20 Expenditure towards Fertilizer during Kuruvai Season ... 183 5.21 Net Income per acre during Kuruvai Cultivation ... 183 5.22 Distribution of area of cultivation during Samba season ... 184 5.23 Paddy yield during Samba season cultivation ... 186 5.24 Expenditure on Land Preparation in Samba Season ... 187 5.25 Expenditure on Fertilizer in Samba Season ... 188 5.26 Net Income per acre in Samba Season ... 189 5.27 The area of cultivation during Thaladi Season ... 190 5.28 Paddy Yield during Thaladi season ... 191 5.29 Expenditure on Land Preparation during Thaladi Season ... 192 5.30 Expenditure on Fertilizer during Thaladi Season ... 193 5.31 Net Income from Paddy Cultivation during Thaladi Season ... 194 5.32 Distribution of Area of Land under Banana Cultivation ... 196 5.33 Yield of Banana ... 198 5.34 Expenditure on Land Preparation for Banana Cultivation ... 199 5.35 Expenditure on Fertilizer for Banana Cultivation ... 200 5.36 Net Income for Banana Cultivation ... 201 5.37 Level of satisfaction due to the utilization of fertilizer in the increasing yield ... 203 5.38 Distribution of respondents by their reason for not using bio- fertilizer ... 204 5.39 Distribution of respondents by bio-fertilizer usage ... 205 5.40 Distribution of respondents according to the motivation to use bio-fertilizer ... 206 5.41 Preference of chemical fertilizers ... 207 5.42 Brands of Chemical fertilizer used ... 209 5.43 Respondents and Agricultural Awareness Programme ... 212 5.44 Supply source of chemical fertilizer ... 213 5.45 Opinion on the advantages of chemical fertilizer ... 214 5.46 Opinion about the problems of using chemical fertilizers ... 216 5.47 Opinion about the using mixed form of chemical fertilizer ... 217 5.48 Order of preference of Bio-fertilizers ... 219 5.49 Distribution of respondents according to the actual use of the bio- fertilizer ... 221 5.50 Supply source of bio-fertilizer ... 223 5.51 Source of knowledge about bio-fertilizer ... 224 5.52 Opinion on the advantages of using bio-fertilizer ... 225 LIST OF CHARTS 3.1 World level Fertilizers Consumption (2008-12) ... 50 3.2 Production of Fertilizers in India ... 53 3.3 Consumption of Fertilizers in India ... 56 3.4 Imports of Fertilizers in India ... 59 3.5 Country level Fertilizers Consumption (2008-12 ... 75 5.1 Gender-wise distribution ... 153 5.2 Age-wise distribution ... 155 5.3 Religion-wise distribution ... 159 5.4 Community-wise distribution ... 161 5.5 Distribution based on Educational Level ... 163 5.6 Distribution of the Family Size and Type of Crop ... 167 5.7 Source of Irrigation ..
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