Socio economic status and economics of agriculture in an intensively cultivated watershed of Andhra Pradesh, India

R.Vijayakumari, M.D.Reddy, M.Umadevi, Mahalakshmi, Rao Mylavarapu and G.B.Reddy

Water Technology Centre, Acharya N.G.Ranga Agricultural University, Rajendranagar, Hyderabad Abstract: The Kothakunta sub watershed (482 ha) of Wargal village, Dist Medak of Andhra Pradesh was selected to study the socio economic status and economics of agriculture. The geographical area of Wargal village is 2618 ha with 2522 ha cultivable land, of which 1460 ha is rain fed. The sample surveyed for primary data collection includes 2 land less, 54 marginal (<1 ha land), 52 small (1-2 ha) and 13 large (>2 ha) farmers. Out of 121 total sample farmers, greater number of farmers (89.26%) belongs to backward caste. There is 17-23 Percent farmers studied up to secondary education among marginal, small and large farmers. The average size of land holding of marginal, small and large sample farmers in the study area are 0.55 ha, 1.40 ha and 2.71 ha respectively. The farm inventory (value of assets owned) on the farm is Rs. 78,210 with agricultural labor, Rs. 9, 89,242 on marginal farm, Rs. 13, 89,409 on small farm and Rs. 24, 01,113 on large farm. The economic analysis of different crops cultivated by the farmers in the study area revealed maximum net returns are obtained from cotton crop under supplemental irrigation (Rs. 35575/ha) followed by rain fed cotton (Rs. 31996/ha), sunflower under Id conditions (Rs. 29100/ha), beans (Rs. 15980/ha), potato (Rs. 13535/ha), irrigated maize (Rs. 12392/ha). On an average each sample farmer in the study area is in debt of Rs. 86,508, while the same with an agricultural labor is Rs. 4000, marginal farmer Rs. 69,758, small farmer Rs. 94,527 and large farmer Rs. 1, 08,834. Introduction: The Wargal village of Wargal mandal (administrative unit containing 18 villages) is located at latitude 170 4119.4 N, longitude 780 2924.0 E, and is 55 km from Hyderabad at an elevation of 576-590 m above sea level in Medak district of Andhra Pradesh. The geographical area of Wargal village is 2618 ha with 2522 ha cultivable land, of which 1460 ha is rainfed, 167 ha under tank irrigation and 235 ha under bore wells. The soils of the village is mostly red chalka (Red sandy/sandy clay loams alfisols, 2336 ha) and black cotton soils (vertisols, 280 ha). The watershed area (about 15 sq km) selected for the study consists of red soil. The physiography of the area is undulating having a slope of 1-5%, slight erosion, and moderately drained. The depth of the soil is shallow to medium having coarse to medium texture

with a pH range of 6.5 to 7.5. The nitrogen and phosphorus content of the soil is low and potassium content is medium to high. The major amount of rainfall is received during the SouthWest monsoon and the normal rainfall is 773 mm. In this village, the watershed programmes of the government are not taken during last 15 years. As the village is a cluster of 7 hamlets with one big village, there are 23 small to big kuntas with a command area of 0.4 ha to 18.0 ha. Further, there are three big kuntas with an area of 21.42 27.32 ha. There are two tanks irrigating 47.2 and 119.04 ha. These small kuntas and tanks are interconnected one and another through drains forming water conservation structures. Further, most of the cultivated as well as waste land is draining into kunta or a tank. From the 2618 ha of Wargal village, 482 ha sub-watershed under Kothakunta was selected as the study area. In the study area, there are 206 bore wells, the only source irrigating 192.91 ha. The major crops cultivated under bore wells include paddy, maize, vegetables (bhendi, brinjal, beans, potato, ridge guard, onion, bitter guard, and pea), cotton, sunflower, mango and grapes. Methodology: A baseline survey of Wargal watershed, Madak District of Andhra Pradesh was undertaken during 2008 using a pretested questionnaire by adopting interview method to assess the social and economic status, livelihood pattern and cropping pattern and economics of crop production. For primary data collection, 121 sample farmers from the total 157 farmers in the sub-watershed are selected using purposive simple random sampling technique. The selected sample farmers were post classified in to different size groups depending on their land holdings i.e., agricultural labour (do not hold any land), marginal farmers (holding < 1 ha of land), small farmers (holding 1-2 ha of land) and large farmers (holding > 2 ha of land). Results: Social status: The sample surveyed for primary data collection includes 2 land less, 54 marginal, 52 small and 13 large farmers (Table 2). Thus, the total sample covered for baseline survey in the study area largely comprises marginal (44.63%) and small (42.98%) followed by large (10.74%) and agricultural labour (1.65%). Out of 121 total sample farmers greater number of farmers (89.26%) belongs to backward caste (Table 1). On the other hand only 4.9%are OC, 4.96% Sc and 1.65% are sts.

Table 1: Social status of sample farmers of Kothakunta sub watershed of wargal, Medak dist, A.P. No. of sample farmers Total BC SC ST (Percent) 2 2 (100.00) (1.65) Marginal 1 46 5 2 54 (1.85) (85.19) (9.26) (3.70) (44.69) Small 4 47 1 52 (7.69) (90.38) (1.92) (42.97) Large 13 13 (100.00) (10.74) Total 5 108 6 2 121 (4.13) (89.26) (4.96) (1.65) Figures in parenthesis indicate the percentage to total number of sample farmers under respective farm size OC Family Size: On an average each sample farmer family comprises 5 members (3 male and 2 female) out of which more than 60 per cent are available for farm work (Table 2). Within the work force, 66% of male and 50% of female are available for farm work. Among the farmers category, 50% of the total number of members in a family are available for farm work in case of agricultural laborers and marginal farmers, while it is 60 percent in case of small farmers and 71 percent in case of large farms. Table 2: Average family size of sample farmers of Kothakunta sub watershed of wargal, Medak dist, A.P. Total number of Farmer category Agril labour Marginal Small Large Pooled Males 3 2 3 4 3 Females 1 2 2 3 2 Total 4 4 5 7 5 Number available for farm work Males 1 (33.33) 1 (50.00) 2 (66.67) 3 (75.00) 2 (66.67) Females 1 (100.00) 1 (50.00) 1 (50.00) 2 (66.67) 1 (50.00) Total 2 (50.00) 2 (50.00) 3 (60.00) 5 (71.43) 3 (60.00)
3

Farmer category Agril labour

Figures in parenthesis indicate percentage to their respective totals Education: The majority of the selected sample farmers are illiterate (59.5%) followed by secondary (18.18%), primary (12.4%) and high school (7.44%) education (Table 3). There are 50, 72, 50, and 46 percent of farmers are illiterate among Agricultural labour, marginal, small and large farmers respectively. There are 17-23 Percent farmers studied upto secondary among marginal, small and large farmers. Only 3-12 percent opf farmers studied upto high scholl, and 4 per cent up to graduate level and only 25 up to post graduate level mostly in small farm group. Table 3: Educational status of sample farmers of Kothakunta sub watershed of wargal, Medak dist, A.P. No. of sample farmers High Post Illiterate Primary Secondary school Graduate Graduate Total Agril labour 1 1 2 (50.00) (50.00) Marginal 39 3 10 2 54 (72.22) (5.56) (18.52) (3.70) Small 26 8 9 6 2 1 52 (50.00) (15.38) (17.31) (11.54) (3.85) (1.92) Large 6 3 3 1 13 (46.15) (23.08) (23.08) (7.69) Total 72 15 22 9 2 1 121 (59.50) (12.40) (18.18) (7.44) (1.65) (0.83) Figures in parenthesis are the percentage to total number of sample farmers under respective farm size Farmer category Occupation: The major occupation of all the sample farmers is agriculture except one marginal farmer who practices beedi rolling (Table 4). The other occupation by the water shed farmers is negligible. Table 4: Major occupation of sample farmers of Kothakunta sub watershed of wargal, Medak dist, A.P. Number of sample farmers Farmer category Agril labour Marginal Agriculture 2 (100.00) 53 Beedi rolling 1 Total 2 54
4

(98.15) (1.85) Small 52 52 (100.00) Large 13 13 (100.00) Total 120 1 121 (99.17) (0.83) Figures in parenthesis indicate the percentage to their respective totals Land holding: The average size of land holding of marginal, small and large sample farmers in the study area are 0.55 ha, 1.40 ha and 2.71 ha respectively (Table 5). Maximum of the average land holding of each sample farmer is under dry / rain fed condition (56.11%) followed by irrigated (40.5%) and ID (1.47%) conditions. Table 5: Land holding particulars of an average sample farmer (ha) of Kothakunta sub watershed of wargal, Medak dist, A.P. Cultivable land Farmer category Agril labour Non cultivable land Total Pasture 0 0.002 (0.36) 0.01 (0.57) 0.05 (1.77) 0.01 (0.83) 0 0.55 1.40 2.71 1.14

Dry Irrigated ID Orchard Barren 0 0 0 0 0 0.30 0.24 0.002 Marginal (54.55) (44. 36) (0.36) 0.82 0.54 0.02 0.01 Small (58.57) (38.86) (1.43) (0.57) 1.43 1.11 0.08 0.02 0.03 Large (52.69) (40.89) (2.80) (0.59) (1.18) 0.64 0.46 0.02 0.002 0.01 Pooled (56.11) (40.50) (1.47) (0.15) (0.68) Figures in parenthesis indicate percentage to their respective totals Farm Inventory:

The farm inventory (value of assets owned) on the farm reflects the economic conditions of the farmers (Table 6). On an average each sample farmer in the study area owns assets of worth Rs. 12, 97,845. The same is Rs. 78,210 with agricultural labor, Rs. 9, 89,242 on marginal farm, Rs. 13, 89,409 on small farm and Rs. 24, 01,113 on large farm. Of the different assets owned, land forms the maximum share 975.52%) of the total farm inventory worth in all size groups of farms followed by buildings(18.775) and consumer durables (3.45%). The agricultural machinery and live stock form only 0.43 and 1.83 percent respectively. The lands among different farm sizes vary from 71 to 82 percent. The buildings / house are the major asset for agricultural labor.
5

Table 6: Farm inventory or value of assets on an average sample farm (Rs/farm) of Kothakunta sub watershed of wargal, Medak dist, A.P. Agril Buildings machinery Livestock 62500 185 (79.91) (0.24) Marginal 770370 171650 1327 15491 (77.87) (17.35) (0.13) (1.57) Small 987952 318423 3861 25875 (71.11) (22.92) (0.28) (1.86) Large 1970769 271608 31012 52764 (82.08) (11.31) (1.29) (2.20) Pooled 980111 243661 5586 23702 (75.52) (18.77) (0.43) (1.83) Figures in parenthesis indicate percentage to their respective totals Land Cropping pattern: Maize and cotton are the major crops in dry lands under rain fed conditions with an average area of 0.43 and 0.68 ha respectively (Table 7). The crops grown under Id conditions are maize followed by vegetable crops like potato and beans which are mostly rotated with maize . The paddy crop occupies major area under each well and one to two crops crops are grown depending on the availability of ground water during kharif and rabi or only in one season. Table 7: Average area of crops (ha) grown by different farms under rain fed and irrigated conditions during kharif, rabi and summer under Kothakunta sub watershed of wargal, Medak dist, A.P. Dry / Rainfed Kharif Rabi Summer Marginal Maize (0.29) Cotton (0.44) Kharif Maize (0.32) Maize (0.32) Maize (0.48) Maize (0.50) ID Rabi Potato (0.28) Potato (0.26) Potato (0.33) Potato (0.30) Potato (0.27) Summer Kharif Beans Paddy (0.23) (0.36) Paddy (0.31) Beans Paddy (0.24) (0.17) Beans (0.23) Tomato (0.30) Irrigated Rabi Summer Paddy Paddy (0.33) (0.27) Paddy (0.23) Farmer category Agril labour Consumer durables 15525 (19.85) 30404 (3.07) 53298 (3.84) 74960 (3.12) 44784 (3.45) Total 78210 989242 1389409 2401113 1297845

Beans (0.30) Small Maize (0.45) Cotton (0.74) Maize (0.34) Maize (0.46) Maize (0.70) Maize (0.80) Maize (0.50) Beans (0.16) Potato Beans (0.41) (0.38) Potato (0.34) Sunflower (0.80) Beans (0.50) Potato Beans (0.36) (0.36) Potato (0.33) Sunflower (0.93) Potato Beans (0.75) (0.47) Potato (0.80) Beans (0.20) Potato Beans (0.40) (0.40) Potato Beans (0.48) (0.35) Potato Beans (0.35) (0.32) Beans (0.31) Beans (0.30) Potato Tomato (0.30) (0.30) Beans (0.16) Potato (0.34) Potato (0.30) Sunflower (0.67) Sunflower (0.93) Paddy (0.51) Paddy (0.54) Paddy (0.41) Paddy (0.38) Paddy (0.43) Paddy (0.24)

Large

Maize (1.00) Cotton (0.83)

Maize (0.77) Maize (0.40) Maize (0.80) Maize (0.55) Maize (0.53) Maize (0.40) Maize (0.34) Maize (0.50) Maize (0.67)

Paddy (1.07) Paddy (0.45) Paddy (0.60) Paddy (0.48) Paddy (0.44) Paddy (0.36)

Paddy (0.43) Paddy (0.35)

Paddy (0.29)

Pooled

Maize (0.43) Cotton (0.68)

Paddy (0.36) Paddy (0.34)

Paddy (0.26)

Maize Tomato (0.35) (0.01) Figures in parenthesis indicate the average area under crops in ha Economics: The economic analysis of different crops cultivated by the farmers in the study area revealed maximum net returns are obtained from cotton crop under supplemental irrigation (Rs. 35575/ha) followed by rain fed cotton (Rs. 31996/ha), sunflower under Id conditions (Rs. 29100/ha), beans (Rs. 15980/ha), potato (Rs. 13535/ha), irrigated maize (Rs. 12392/ha) (Table 8). However, maximum net returns per rupee investment (BCR) is observed with sunflower (1.20) followed by rain fed cotton (0.98), irrigated cotton (0.82) and beans (0.58). The BCR for paddy crop very low asw compared to rain fed or irrigated dery crops. The paddy is the major consumer of ground water which is scarce resourse. This survey indicate that there is a greater scope for diversification of paddy to that of irrigated dry crops like maize, cotton, vegetables for realizing higher returns. Table 8: Economics of various crops cultivation in the study area of Kothakunta sub watershed of wargal, Medak dist, A.P. Paddy Total costs (Rs/ha) Yield (q/ha) Market price (Rs/q) Gross returns (Rs/ha) Net returns (Rs/ha) Benefit cost ratio 35520 45.31 805 36475 955 0.03 Maize (Dry) 22495 41.39 781 32326 9831 0.44 Maize (Irri) 28408 51 800 40800 12392 0.44 Cotton (Dry) 32574 31.36 2059 64570 31996 0.98 Cotton (Irri) 43175 37.5 2100 78750 35575 0.82 Beans 27680 45.91 951 43660 15980 0.58 Potato 55150 91.58 750 68685 13535 0.25 Field beans SunTomato flower 24554 55.71 450 25070 516 0.02

29607 24283 50.67 784 23.21 2300

39725 53383 10118 29100 0.34 1.20

Income from various sources by different farms: The farmers in the study area are getting a net income of Rs. 67678 per annum. The maximum net returns (68.5%) are obtained from agricultural crop production, 19% through agricultural wages, 8.3% by hiring their livestock and 7.2% through the sale proceeds of their livestock products (Table 9). Among the farm size groups, small farmers (Rs. 90245) are earning more net income as compared to the other farm size groups and agricultural labour. Table 9: Average net income of sample farmers (Rs/farm/annum) of Kothakunta sub watershed of wargal, Medak dist, A.P. Marginal Small 20226 74529 Agricultural crops (42.48) (82.59) 30000 18296 5548 Agricultural labour (100.00) (38.43) (6.15) 5088 3698 Livestock products (10.69) (4.10) 3998 6470 Livestock hiring (8.40) (7.17) Total 30000 47608 90245 Figures in parenthesis indicate percentage to their respective totals Agricultural credit: The cooperatives, RRBs and commercial banks are the major sources of credit. The noninstitutional agencies (local money lenders, fertilizer & pesticide traders and market middlemen in the villages) are also providing credit to some extent (Table 10). On an average each sample farmer in the study area is in debt of Rs. 86,508, while the same with an agricultural labour is Rs. 4000, marginal farmer Rs. 69,758, small farmer Rs. 94,527 and large farmer Rs. 1, 08,834. Marketing: All the sample farmers are marketing their farm produce in the nearby markets only. Majority of the farm produce from the study area is being marketed at Wargal, Mulugu, Vantimamidi, Gajwel, Boinpalle, Hyderabad city and Karimnagar. Production constraints: For paddy, the pests like stem borer and BPH and diseases like sheath blight and blast. For maize hairy caterpillar, stem borer and leaf eating cater pillar and wilt are the biotic problems. For cotton Spodoptera, bollworms, whitefly, jassids, thrips and Leaf spot, wilt, boll rot, bacterial leaf spot, powdery mildew are the problems. For potato root grub, Spodoptera, tuber rot, leaf shedding, stem rot and for bean Helicoverpa, pod borer, aphids, jassids and diseases rust, wilt, leaf spot are the major problems.
9

Agril. labour

Large 34615 (52.67) 13385 (20.37) 9367 (14.25) 8350 (12.71) 65717

Pooled 44979 (68.48) 12483 (19.01) 4754 (7.24) 5462 (8.32) 67678

Shortage of labour is the major constraints. Further, for paddy cultivation decline of water table is of greater concern. The low market price and high commission to middle men in markets and some shortage of inputs like fertilizer and pesticides are the constraints. Table 11: Production and marketing constraints of crop cultivation in the study area of Kothakunta sub watershed of wargal, Medak dist, A.P. Crop Paddy Biotic constraints Pests - stem borer, BPH Diseases - Sheath blight, blast Abiotic constraints Shortage of labour Unawareness of improved / new practices Declining water table in bore wells Low market price High commission for middlemen in markets Heavy rainfall Shortage of labour Unawareness about new practices High commission for middlemen in markets Shortage of fertilizers Shortage of labour Unawareness of improved / new practices High commission for middlemen in markets Shortage of labour Unawareness of improved / new practices Declining water table in bore wells (summer) Low market price High commission for middlemen in markets Flower drop due to heavy rainfall at flowering Shortage of fertilizers Shortage of labour Unawareness about new practices Low market prices

Maize

Cotton

Potato

Pests - Spodoptera, hairy caterpillar, stemborer, leaf eating caterpillar Diseases - Wilt Pests - Spodoptera, bollworms, whitefly, jassids, thrips Diseases - Leaf spot, wilt, boll rot, bacterial leaf spot, powdery mildew Pest - Root grub, spodopter Diseases - Tuber rot, leaf shedding stem rot Pests - Helicoverpa, pod borer, aphids, jassids Diseases - Rust, wilt, leaf spot

Beans

The declining water table in the study area and poor water management in crops are the major issues need attention. Majority farmers felt that even in the years of good rainfall, they are unable to store the water because of lack of proper storage structures. Hence, desilting, strengthening of existing ponds / kuntas numbering in 28 in Wargal village under government programmes is needed to increase the water storage capacity. Further, organization of training programmes on improved / advanced water management techniques in crops are also needed.

10

Table 10: Agricultural credit particulars of sample farmers (Rs/farm) of Kothakunta sub watershed of wargal, Medak dist, A.P.
Agril. labour Source of credit Local money lenders Fertilizer & Pesticide traders Market middlemen RRB/ Grameena bank Co-op credit society Commercial bank Total Loan amount taken 10000 (100.00) Loan amount repaid 6000 Loan amount outstanding 4000 Loan amount taken 10950 (11.80) 2750 (2.96) 10000 (10.78) 24100 (25.97) 15000 (16.16) 30000 (32.33) 92800 Marginal Loan amount repaid 4264 1000 0 8278 5000 4500 23042 Loan amount outstanding 6686 1750 10000 15822 10000 25500 69758 Loan amount taken 16370 (13.39) 3400 (2.78) 15000 (12.27) 24500 (20.04) 50000 (40.89) 13000 (10.63) 122270 Small Loan amount repaid 6738 1680 0 7125 10000 2200 27743 Loan amount outstanding 9632 1720 15000 17375 40000 10800 94527 66000 (43.37) 30000 (19.72) 40000 (26.29) 152167 7500 14250 15000 43333 58500 15750 25000 108834 Loan amount taken 13167 (8.65) 3000 (1.97) Large Loan amount repaid 4583 2000 Loan amount outstanding 8584 1000 Loan amount taken 13095 (11.07) 3167 (2.68) 12500 (10.57) 30000 (25.37) 31250 (26.42) 28250 (23.89) 118262 Pooled Loan amount repaid 5133 1600 0 7596 10875 6550 31754 Loan amount outstanding 7962 1567 12500 22404 20375 21700 86508

10000

6000

4000

11

12