P.G. AND RESEARCH DEPARTMENT OF ECONOMICS KHADIR MOHIDEEN COLLEGE ADIRAMPATTINAM Dr. Mrs. N. CHITHRA, M.A., M.Phil., Ph.D., Associate Professor & Research Advisor, CERTIFICATE This is to certify that the thesis entitled “THE IMPACT OF NEW AGRICULTURAL TECHNOLOGY ON INCOME AND EMPLOYMENT OF FARMERS IN THANJAVUR DISTRICT ” submitted by A. RAJA MOHAMED (Ref. No. 004646 / PhD2 / Eco / PT / July 2008) is a bonafide record of research work done by him under my guidance in the Department of Economics, Khadir Mohideen College, Adirampattinam and that the thesis has not previously formed the basis for the award of any degree or any other similar title. The thesis is the outcome of personal research work done by the candidate under my overall supervision. Date : (N. CHITHRA) Station: DECLARATION I hereby declare that the work embodied in this thesis has been originally carried out by me under the guidance and supervision of Dr. N. CHITHRA , Associate Professor & Research Adviser, Department of Economics, Khadir Mohideen College, Adirampattinam. This work has not been submitted either in whole or in part for any other Degree or Diploma of any university. (A. RAJA MOHAMED) ACKNOWLEDGEMENT At the outset, I wish to express my gratitude to Dr. N. CHITHRA , M.A., M.Phil., Ph.D., Department of Economics, Khadir Mohideen College, Adirampattinam, for her expert guidance and invaluable help throughout the study. Mere words would not suffice to explain her persistent encouragement, advice and help to complete this research. It is a great pleasure and excellent experience to work under her guidance. I am thankful to Dr. Mohamed Abdul Khadir, M.A., M.Phil., Ph.D., Principal and Secretary, Management Committee, for having granted permission to do Ph.D. (Part-Time) programme in Khadir Mohideen Colllege, Adirampattinam. I am sincerely thanking to all the Faculty Members of the Department of Economics, Khadir Mohideen College, Adirampattinam, for their timely help and moral support. I am greatly indebted to Dr. D. Kumar, M.A., M.Phil., DPMIR., B.Ed., Ph.D., Reader in Economics, Jamal Mohamed College, Trichy for his valuable help and timely suggestions. Last but not the least, I owe a great deal to my beloved Parents and Wife for their selfless and constant help. A.A.A. Raja Mohamed CONTENTS Chapter Page Title No. No. I. Introduction 1 II. Review of Literature 34 III. Profile of the Study Area and Materials and Methods 74 IV. General Description of Tamil Nadu 90 V. Analysis and Discussion - I 122 VI. Analysis and Discussion – II 143 VII. Summary and Conclusion 193 Bibliography B1 Appendices A1 1. Interview Schedule 2. Papers Published LIST OF TABLES Table Page Title No. No. Details of the sources and extent of irrigation in Thanjavur 3.1 77 District The land utilization in Thanjavur district, Thanjavur, 3.2 78 Orathanadu and Papanasam block (2008-09) Annual rainfall in Thanjavur district in 2007-2008 and 3.3 79 2008-09 3.4 Temperature of Thanjavur district 80 Density of population in Tamilnadu and India 1991 and 4.1 91 2001 Demographic characteristics of Tamilnadu and its sub-region 4.2 92 1991 and 2001 4.3 Land use pattern in Tamilnadu 93 4.4 Rainfall 94 4.5 Crop wise area irrigated 96 4.6 Per cent of area irrigated under crops 98 4.7 Land utilization in Tamil Nadu 99 4.8 Rainfall during 2003-2009 100 4.9 Normal Rainfall: 967.2mm 101 4.10 Crop pattern of Tamilnadu 103 4.11 Productivity (yield) of major crops in Tamilnadu 104 Growth rate of Area, Production and Yield of Major crop in 4.12 105 Tamilnadu Distribution of household across size of grass land for rural 4.13 107 Tamilnadu 4.14 Districtwise data - waste land in Tamilnadu 108 4.15 Paddy production on 31.9.2010 110 Details of regulated markets, check posts, rural godowns, 4.16 commercial grading centres, kapas grading centres and 113 tobacco grading centre in Tamil Nadu 4.17 Infrastructure facilities available in the regulated markets 114 4.18 Infrastructure facilities available in the regulated markets 115 4.19 Marketing institution during 2007-2008 (upto December) 117 4.20 Marketing of agricultural produce in 2008-2009 (upto December) 118 4.21 The number of godowns and their capacities 119 5.1 Type of farming of the sample respondents 122 5.2 Agewise schedules of the respondents in the study area 124 5.3 Educational Status of the respondents in the study area 125 5.4 Type of family respondents of the farmers in the study area 127 5.5 Caste-wise distribution of the respondents in the study area 129 5.6 Sources of Irrigation to sample farmers 131 5.7 Sources of money for irrigation 133 5.8 Type of seed use pattern of paddy cultivators 134 5.9 Purchase of water irrigation 136 5.10 Pattern of fertilizer and manure used by sample farmers 139 5.11 Sources of mass media for irrigation 14 6.1 Family Composition in the Study Area 143 6.2 Percentage of population with different levels of education 146 Occupational Analysis of Persons in the Working Age 6.3 149 Group in Percentage 6.4 Pattern of Household Income per annum 151 6.5 Pattern of Household Expenditure 153 6.6 Assets of the Farmers 155 6.7 Liabilities of Farmers 157 6.8 Area under different soil type in Study Area 158 6.9 Source of Irrigation in the Sample Villages 158 6.10 Area under Different Crops in Sample Farms 159 Extent of Spread of New Varieties of Major Crops in 6.11 162 Sample Farms 6.12 Constraints for Adoption of Mechanization 165 6.13 Pre Acre Yield of Major Crops in Sample Farms 168 Gross Income, Farm Business Income, Net Income for 6.14 175 Major Crops in Sample Farms Operation wise distribution of Human Labour for Major 6.15 180 Crops in Sample Farms (mandays / acre) Relationship between Level of Literacy rate and New 6.16 191 Agricultural Technology LIST OF FIGURES Figure Page Title No. No. 5.1 Type of farming of the sample respondents 123 5.2 Educational Status of the respondents in the study area 126 5.3 Type of family respondents of the farmers in the study area 128 6.1 Family Composition in the Study Area 145 6.2 Percentage of population with different levels of education 148 Occupational Analysis of Persons in the Working Age 6.3 150 Group in Percentage 6.4 Pattern of Household Income per annum 152 6.5 Annual Expenditure on Food Item 154 6.6 Assets of the Farmers 156 6.7 Constraints for Adoption of Mechanization 167 Chapter --- III Introduction 1 CHAPTER – I INTRODUCTION 1.1. Introduction The Indian Agricultural sector provides employment to about 65 per cent of the labour force, accounts for 27 per cent of GDP, contributes 21 per cent of total exports, and raw materials to several industries. The Livestock sector contributes an estimated 8.4 per cent to the country’s GDP and 35.85 per cent of the agricultural output. India is the seventh largest producer of fish in the world and ranks second in the production of inland fish. Fish production has increased from 0.75 million tons in 1950-51 to 5.14 million tons in 1996-97, a cumulative growth rate of 4.2 per cent per annum, which has been the fastest of any item in the food sector, except potatoes, eggs and poultry meat. The future growth in agriculture must come from [G.B. Singh, 2000] viz., new technologies which are not only "cost effective" but also "in conformity" with natural climatic regime of the country; technologies relevant to rain-fed areas specifically; continued genetic improvements for better seeds and yields; data improvements for better research, better results, and sustainable planning; bridging the gap between knowledge and practice; and 2 Judicious land use resource surveys, efficient management practices and sustainable use of natural resources. A central issue in Agricultural Development is the necessity to increase productivity, employment, and income of poor segments of the agricultural population. Among the rural poor, the small farmers constitute a sizeable portion in the developing countries. Studies by FAO have shown that small farms constitute between 60-70 per cent of total farms in developing countries and contribute around 30-35 per cent to total agricultural output [Randhawa & Sundaram, 1990]. Liberalisation era (1990-91) began in India when over 40 per cent of rural households were landless or near landless, and over 96 per cent of the owned holdings and 68.53 per cent (over 2/3rd ) of owned land belonged to the size groups (marginal, small and semi-medium). The decade of 1981-82 to 1991-92 seems to have witnessed a marked intensification of the marginalisation process - the percentage of small owners increased from 14.70 per cent to 21.75 per cent. Small farmers emerged as the size group with the largest share of 33.97 per cent in the total land, which has just doubled during this decade. As regards the large farmers, they were 1 per cent of the total owners in 1990-91 but owned nearly 13.83 per cent of the total land. An interesting, but speculative, inference is that the changing position of the large owners represents the other side of the marginalisation process, i.e., the presence, and possibly growing 3 strength, of a small but dominant and influential group in agriculture. Analytical reports reveal that marginalisation process could gather further momentum in the years ahead to become an explosive source of economic and political turbulence, due to the features of prevailing policy-cum-market environment in the country.