Markets, Policy and Impacts ICRISAT Progress Report - 130 Salient features of village economies in the Semi-Arid Tropics (SAT) of India KPC Rao, VK Chopde, Y Mohan Rao and D Kumaracharyulu ICRISAT International Crops Research Institute For the Semi-Arid Tropics June 2005 1
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Markets, Policy and Impacts ICRISAT
Progress Report - 130
Salient features of village economies in the Semi-Arid Tropics (SAT) of India
KPC Rao, VK Chopde, Y Mohan Rao and
D Kumaracharyulu
ICRISAT
International Crops Research Institute For the Semi-Arid Tropics
June 2005
1
Table of Contents
Page Introduction 1
Changes in Population Characteristics 3
Occupational distribution 4
Details of Land Ownership 5
Operated area 6
Livestock Ownership 8
Cropping Patterns 11
Major Production Constraints in rainfed crops 16
Utilization of farm produce 19
Economics of Crop Enterprises 21
Crop economics as per the farm management concepts 27
Comparison of crop economics with the seventies 32
Economics of milk production in VLS villages 33
Economics of maintaining draft animals 35
Economics of small ruminants in VLS villages 36
Changes in the composition of net household income in VLS villages 39
Consumption expenditures and nutritional standards 41
Labour market participation and wages 44
Perceived benefits from soil conservation works 48
Perceptions of respondents about climate changes 52
Conclusions 54
References 57
2
Salient Features of Village Economies in the Semi-Arid Tropics (SAT) of
India K P C Rao, V K Chopde, Y Mohan Rao and D Kumaracharyulu
Introduction
India’s famed green revolution has largely bypassed the dry, semi-arid tropics (SAT). Regions
such as India’s SAT, with comparatively limited potential for agricultural growth but with rapid
population growth, pose difficult problems for an agricultural – based strategy of rural
development. Village Level Studies (VLS) of ICRISAT, which commenced in 1975, studied
three contrasting dryland regions based on the criteria of climate, soils and cropping patterns:
The Telengana region in Andhra Pradesh, the western Maharashtra (Bombay Deccan) and
Vidarbha region, also in Maharashtra. Two villages were selected carefully to represent each of
these regions: Aurepalle and Dokur (Mahaboobnagar), Shirapur and Kalman (Solapur) and
Kanzara and Kinkheda (Akola). These six villages were studied during the period 1975-76 to
1984-85, tracking them by monitoring 40 sample households from each of these six villages
using cost-accounting method. The sample of 40 households was divided equally between the
landless, small, medium and large farmers categories. Among the six villages, Aurepalle,
Shirapur and Kanzara were studied even more intensively on a regular basis by complementing
the regular data collection with several special purpose surveys. This longitudinal database, by
virtue of its quality and richness, attracted several researchers all over the world and formed
basis for a number of publications. It was rated as an International Public Good (IPG) by the
World Bank.
Several changes swept through the semi-arid tropics of India over the 17 years period
between 1984-85, when the first generation VLS was suspended and 2001-02, when the second
generation VLS surveys were resumed. Globalization of agricultural markets, deepening
resource crisis (in terms of land degradation and water depletion), growing population and
integration of labour markets have changed the livelihood options and living standards of the
rural people in the SAT. In order to accommodate the emerging areas of interest, new modules
were added on livestock enterprise economics; natural resource development and water
exploration investments; migration; benefits received from the Government programmes etc. In
3
order to make a comparative study of the changes in the VLS villages, the same size group
classifications as earlier were retained for the landless, small, medium and large farm categories.
But, in order to increase the representativeness of the sample to the village population, 15
percent of the households in the village were selected in the sample. Care was taken to include
all the sample households of the earlier rounds and their split households in the new sample.
After accommodating all these households, the balance sample units were drawn randomly from
the population using the probability proportion to size method. The sample design was finalized
in consultation with the statistician, who advised to take account of the variability with respect to
key parameters in different size groups for deciding the sample distribution between the size
groups. Large farm group exhibited a lot more variability than other groups with respect to both
the key parameters, income and size of the land. In order to take care of the greater variability in
the large farms group, a large proportion of the sample was to be allotted to that group. But it
would amount to biasing the sample in favour of large farms group. Since the study of livelihood
options and development pathways is the major objective of the study, a sample in which the
poorer households are under-represented was not considered desirable. Hence, it was decided to
stick with the probability proportion to size method for drawing a representative sample. The
total sample size has increased from 240 to 446 households (table 1).
Table 1. Sample details of old and new VLS surveys. Landless Small Medium Large Total
Sl No Village Old New Old New Old New Old New Old New 1 Aurepalle 10 25 10 21 10 37 10 17 40 100 2 Dokur 10 20 10 31 10 15 10 14 40 80 3 Kanzara 10 13 10 20 10 14 10 5 40 52 4 Kinkheda 10 8 10 14 10 6 10 4 40 32 5 Shirapur 10 22 10 43 10 17 10 6 40 88 6 Kalman 10 24 10 53 10 14 10 3 40 94
Total 60 112 60 182 60 103 60 49 240 446
The sample size has doubled or more than doubled in the four larger villages belonging to
Mahaboobnagar district (A.P) and Solapur district (Maharashtra). Among the two Akola villages,
sample size increased by 30 percent in case of Kanzara, but it fell by 25 percent in case of
Kinkheda. In case of all the four Maharashtra villages, the number of large farms in the sample
has fallen. In general, the proportion of small farms has increased very much, while the shares of
medium and large farms reduced. This sample distribution reflects the fact that the average size
4
of holding is falling even in the SAT areas due to population pressure on land. Over time, large
and medium farms are becoming smaller on account of fragmentation and sub-division.
Changes in Population Characteristics
Information on the demographic features and educational levels of the sample households in the
six VLS villages is presented in table 2.
Table2. Family size and literacy levels of sample households in VLS villages, 2001-02. S No Details Aurepalle Dokur Kanzara Kinkheda Shirapur Kalman 1 Total family members 420 430 275 147 481 535 2 Average family size 4.2 5.38 5.29 4.59 5.47 5.69 3 Percentage of literates 45 44 82 80 64 64
4 Distribution of literates (%) (a) Primary school 55 48 30 26 30 32 (b) Secondary school 16 18 28 26 26 31 ( c) High school 19 24 27 27 26 22 (d) Intermediate 8 9 11 14 8 5 (e) Graduation 1 1 4 4 8 8 (f) Post graduation 1 0 0 3 2 2
The average size of family decreased over the last two decades from 8.37 to 5.10, as
more and more families became nucleated. Aurepalle village had the smallest family size and
Kalman had the largest family size, on an average in 2001-02. The literacy rates are above 80 in
Akola villages, 64 in Solapur villages and about 45 in Mahaboobnagar villages. Maharashtra
villages also showed higher levels of education among literates when compared to A.P villages.
Educational inequality by gender persists in A.P villages to a substantial extent while this got
eliminated in Maharashtra villages. In Maharashtra villages, women have even higher literacy
levels than men in the 5-30 years age group in Akola villages, while they are slightly lagging
behind men in Solapur villages. The goal of universal education has been nearly reached in the
Maharashtra villages. But the situation in Andhra Pradesh villages is bad with respect to
education. Nearly one half of the girls and young women and nearly one-fourth of the boys and
young men are still illiterate. During 1975-78, about 50 per cent of men and 15 per cent of
women were literate among adults nineteen and above. Compared to that, literacy levels among
5
women improved dramatically. Even male literacy rates improved to some extent, if not by the
same proportion as in case of females.
Occupational distribution
The distribution of the sample households in the VLS villages by principal occupation is
summarized in table 3. These data show that agriculture is not a principal source of income to
more than 50 percent of the households in A.P villages. 39 percent of the households in
Aurepalle consider agriculture as their principal source of income, while only 16 percent of the
households consider it as their principal source of income in Dokur. Persistent drought and water
scarcity have forced the sample households to look for alternate sources of income and
occupation. As many as 28 percent of the households in Dokur depend on migration as their
major source of income. Table 3. Primary occupation of the sample households in VLS villages. S No Primary occupation Aurepalle Dokur Shirapur Kalman Kanzara Kinkheda Total
1 Agriculture 39
(39) 13
(16) 57
(65) 62 (66)35
(67) 23
(72) 229 (51)
2 Agricultural or non-agricultural labor earnings
27 (27) 22 (28) 20 (23) 16 (17)
11 (21)
7 (22)
103 (23)
3 Business 3
(3) 6
(8) 1 (1) 3 (3) 3
(6) _ 16
(4)
4 Service _ _
9 (10) 11 (12)1
(2) 2 (6)23 (5)
5 Caste occupation 27
(27) 8
(10) 1 (1) 2 (2) 2
(4) _ 40
(9)
6 Others 4
(4) 31* (39)
_ _ _ _ 35 (8)
Total 100
(100) 80
(100) 88 (100) 94 (100)52
(100) 32
(100) 46 (100)*22 households mentioned migration as their primary source of income In contrast, about two-thirds of the households in Maharashtra villages consider
agriculture as their principal source of occupation and income. 23 households from Maharashtra
villages regard service as their primary source of income, but none of the households in A.P
villages consider service as their principal occupation. Obviously, the higher literacy and
education levels in Maharashtra villages have catapulted some of them into the formal service
sector. Labour earnings, caste occupations and migration are providing sustenance to a higher
proportion of households in A.P villages than in Maharashtra villages. About four percent of the
sample households derive their major source of income from business. Sample households from
6
Dokur and Kanzara are depending more on business as their principal occupation when
compared to other four villages. Other miscellaneous sources of occupation are also of some
importance, besides migration in A.P villages. These are in the informal services sector.
Details of Land Ownership
Land is the most important asset for agriculture. With the growth in population and subdivision
of families the pressure on land is increasing and the ownership holdings are getting smaller. The
average size of ownership holding which was 5.17 ha in the VLS sample during 1975-78, has
fallen to 2.35 ha in 2001-02. Similarly, the average size of operational holding has also fallen
from 5.90 ha in 1975-78 to 2.38 ha in 2001-02. But wherever irrigation facilities increased, the
intensity of cultivation increased. A comparison with the land ownership in the VLS villages in
1982 is made in table 4. The same methodology followed in 1982 (Walker and Ryan, 1990) was
used to compute the median size of ownership holdings in 2001. The land of each farmer was
converted to standard dryland equivalent hectares by multiplying the irrigable hectares with four
and adding the dryland hectares to that. This land holding in terms of standard dryland hectares
was arranged in an ascending order and the land holding of the middle farmer was picked up as
the median land holding.
Table 4. Median size of owned holding in dryland equivalent hectares in 1982
Since two opposite forces (sub division of holdings and increase in irrigable area) were at
work, the land holding in terms of dryland equivalent hectares decreased in some villages
(Aurepalle, Dokur and Shirapur), remained constant in Kalman and increased in Akola villages
(Kanzara and Kinkheda). The most dramatic reduction was in case of Dokur, where the land
holding in terms of dryland equivalent hectares fell by 50 percent (This would have been even
7
sharper had we considered actual irrigated area instead of irrigable area). Dokur has a large tank,
which was getting filled up every year and was supporting two rice crops in the command area
all through the seventies and eighties. But during the last one decade, there was no water in the
tank due to scanty rainfall and cessation of inflows from the catchment area. Most of the
command area is lying fallow. Yet some respondents reported it as irrigable. In Aurepalle
village, there was no significant increase in irrigable area despite increase in the number of
borewells. The village tank has dried up in this village also and many of the open wells also
dried up. Overall, a 9.7 percent reduction was recorded in the land holding in terms of dryland
equivalent hectares.
In Solapur villages also, both the forces were at work. Irrigation facilities improved in
Shirapur village both due to canal irrigation from Ujni dam (although it is unreliable) and from
the borewells sunk. But the subdivision effect seemed to be stronger here, as the land holding
size (in terms of dryland equivalent hectares) declined by 18.7 percent. In Kalman village, the
only sources of irrigation water are the borewells. The subdivision effect does not seem to be
very strong in this village, due to which the size of land holding remained about the same as it
was in 1982. In both Akola villages, which are receiving canal water for Rabi crops (although
uncertainty is quite high), the irrigation effect seems to be much stronger than the subdivision
effect. The land holding increased by 64 percent in Kanzara and by 9.5 percent in Kinkheda.
Operated area
Walker and Ryan (1990) reported the prevalence of tenancy in the VLS villages, but they
mentioned that tenancy was on the decline when compared with the fifties. We find that the
tenancy has declined even further in 2001(Table 5). The average operational holding was larger
than the average ownership holding in Aurepalle, Dokur, Shirapur and Kanzara.
The reverse was the case in case of Kalman and Kinkheda villages. The sum of land leased in
and leased out relative to the land owned ranged between 5 percent in Kinkheda to 28 percent in
Kanzara, with the average for the six villages being about 15 percent.
8
Table 5. Pattern of land ownership and operation in VLS villages, 2001(ha).
Average land / land owner in the sample
Village
No.of farmers owning land Total land Owned Leased in Leased out Fallow Operated
Aurepalle 81 149.34 1.84
(0.46) 0.26 0.09 0.00 2.01
(0.43)
Dokur 68 94.43 1.39
(0.65) 0.14 0.08 0.02 1.43
(0.64)
Shirapur 66 132.00 2.00
(1.07) 0.16 0.05 0.00 2.11
(1.15)
Kalman 72 225.60 3.13
(1.42) 0.13 0.24 0.00 3.02
(1.50)
Kanzara 39 115.44 2.96
(1.65) 0.47 0.36 0.00 3.07
(1.84)
Kinkheda 25 68.80 2.75
(1.64) 0.00 0.14 0.00 2.61
(1.61) *Figures in parentheses represent irrigable areas.
Walker and Ryan (1990) noted that the share of irrigated area in the gross cropped area
increased from 12 percent in 1975-76 to 20 percent in 1983-84. They also observed that
irrigation figured prominently in the A.P villages, particularly in Dokur, when compared with the
Maharashtra villages. But, over the last two decades, irrigation declined in Dokur, while it
remained stagnant in Aurepalle. But irrigation facilities improved remarkably in Maharashtra
villages during these two decades period. Expect for Kalman, the other three Maharashtra
villages received the benefit of canal irrigation (although not very assured), which also helped in
improving the ground water levels. The share of irrigable area in the gross cropped area ranged
between 45 and 60 percent in the Maharashtra villages, while it was only 25 percent in Aurepalle
and 46 percent in Dokur. The actual irrigated area is of a still lower proportion in A.P villages, as
the irrigation tanks are rarely getting filled up during the last one decade. Maharashtra villages,
which are better endowed with respect to soils are better off now with the irrigation support,
while the two Andhra Pradesh villages are currently worse off with respect to both soils as well
as irrigation support.
9
Livestock Ownership
Table 6. Pattern of livestock ownership in VLS villages, 2001-02 (No. Per household). S No Type of livestock Aurepalle Dokur Shirapur Kalman Kanzara Kinkheda
Rabi sorghum remained the most important crop in both Shirapur and Kalman villages
occupying 49 percent and 65 percent respectively in the gross cropped areas of these villages.
Pigeonpea, Vegetables, Maize, Black gram and Matki + Kulthi were the important Kharif crops
in both the villages. Wheat and chickpea were the important Rabi crops (other than Sorghum).
Sugarcane and fruit crops were the Important annual / perennial crops in both the villages with
the advent of irrigation and ground water exploration, wheat and sugarcane gained areas in both
the villages. Yet, with Rabi sorghum retaining its position, the cropping patterns did not alter
radically in Solapur villages. The cropping intensities remained low. Kharif cropping is still rare
due to the inadequate rainfall in the early part of the season. Table 11. Cropping patterns in Kanzara and Kinkheda villages (Akola district, Maharashtra) in 2001-02 (hectares).
Kanzara Kinkheda Sno Crop Kharif Rabi Summer Total Kharif Rabi Summer Total
Cotton was the dominant crop in both the villages during the Kharif season. Sorghum
and Mungbean were the other important crops. Wheat was the dominant crop in the Rabi season
in both the villages. Vegetables were grown in all the seasons in Kanzara village, but they were
only grown in Rabi in Kinkheda village. In the Rabi season, chickpea was grown to some extent
in Kanzara, while sunflower was grown in Kinkheda by some farmers. The cropping intensities
were higher in Akola villages when compared with either Solapur or Mahaboobnagar villages.
Changes over the years
In table 12, some comparisons were made between 1975-76 and 2001-02 (figures for
1975-76 were drawn from Jodha (1977)). The average size of holding fell by more than one half
in all the villages except Kanzara, where it fell by 47 percent. The average size of holding of the
entire VLS sample fell by 54 percent from 5.23 to 2.38 hectares over the 26 years period. The
relative importance of the food crops decreased in all the villages both in case of sole crops as
well as in case of inter / mixed crops. On an average, the percentage area under food grains to the
gross cropped area under sole crops fell from 72.50 to 37.32 percent in case of the sole crops.
The decline in the share of food grains in the gross cropped area under mixed/ inter crops was
even sharper from 63.50 percent to 7.96 percent. Thus, the shift away from food grain crops was
even greater in the VLS villages than that at the macro – level. This shift in favour of cash crops
was particularly pronounced in case of Mahaboobnagar and Akola villages. In Solapur villages,
Rabi sorghum is still the favourite (or there is no better substitute crop) due to which the share of
food grains in the total area under sole crops remained high. Mixed cropping practice has given Table 12. Changes in the percentage area under food grains under sole and mixed crop systems between 1975-76
Average 5.23 72.50 2.38 37.32 7.96 *No mixed crops were reported to have been grown
way to intercropping. These days, it is uncommon to have more than two crops even in the
intercropping system. In Akola villages, even intercropping practice has vanished, while in
16
Solapur villages, the only intercropping practices is that of two minor pulses i.e., matki and
kulthi.
Productivity levels
The average productivity levels of major crops in A.P villages are furnished in table 13. The
productivity levels were higher in Aurepalle in case of castor, castor + pigeonpea and paddy,
while the yields were higher in Dokur in case of sorghum, sorghum + pigeonpea and cotton. The
yields of groundnut and finger millet were quite impressive in Dokur village. But these crops
were grown in Rabi with irrigation support. Table 13. Average productivity levels of major crops in Aurepalle and Dokur (Mahaboonagar) villages, 2001-02
The productivity levels of major crops in Maharashtra villages are presented in table 14. Table 14. Productivity levels of major crops in Maharashtra villages
Yield levels in Kg per hectare Sno Crops Shirapur Kalman Kanzara Kinkheda
The set of crops grown in Akola villages are different from those grown in Solapur
villages. Among Akola villages, Kanzara farmers recorded higher yields than those in Kinkheda
17
virtually in case of every crop. Among the Solapur villages, Shirapur farmers obtained better
yields in case of wheat, chickpea and onion. Kalman farmers fared better in case of sugarcane,
rabi sorghum, groundnut, maize and pigeonpea. Kanzara farmers obtained a better yield of
chillies than Kalman farmers.
Major Production Constraints in rainfed crops
The major production constraints in case of rainfed crops as perceived by farmers differ by crop
and village. In Aurepalle, drought was perceived as the most important production constraint by
the farmers irrespective of the rainfed crop. Pests, diseases and weeds are the other constraints in
that order of importance. In Dokur village, persistent drought has rendered the paddy fields into
long-term fallows. Prosopis weed has grown like shrub bushes in those lands, harbouring wild
boars. These wild boars have become the biggest menace to all the edible crops in the village.
Wild boar menace was rated as the most serious production constraint in case of millet and
groundnut crops. It was rated as an important constraint in case of sorghum and pigeonpea.
Drought was rated as the most important constraint in case of cotton and as the second most
important constraint in case of castor, millet and pigeonpea. Pests were regarded as the most
important constraints in case of castor, sorghum and pigeonpea. Diseases and weeds were the
important constraints in case of some crops.
In Solapur villages, drought was identified as the most important production constraint in
case of rabi sorghum. Insect pests (pord borer) were the most important production constraint in
case of pigeonpea and chickpea. Diseases were the most limiting production constraint in case of
groundnut. Excess rain was perceived as the most important constraint in case of matki, a minor
pulse crop. Poor soils and weeds were also mentioned as important production constraints in case
of some crops.
18
Table 15. Ranking of major production constraints by crop in VLS villages. Village Crop Drought Pests Diseases Poor seed Poor soil Weeds Excess rain Others (wild boar)
In Akola villages, pests and diseases were important production constraints in case of
pigeonpea, chickpea, cotton and sorghum. Interestingly, excess rain was considered a more
important production constraint than drought in these rainfall assured villages. Poor seed was
regarded as one of the production constraints in case of sorghum, while weeds were regarded as
one of the constraints in case of cotton. Thus, rainfed crops are facing both biotic and abiotic
production constraints with varying degrees of importance across crops and regions.
Sources of Information
Farmers depend on several sources of information, besides learning from their own experience.
Particularly when they want to try something new, they try to get the information and advice
from a source on which they have confidence. Information on the primary sources of information
19
to the farmers in the VLS villages is summarized in table 16. Farmers are relying more on the
shopkeepers for information on purchased inputs like pesticides fertilizers and seeds. They are
relying more on progressive farmers for information on all types of technologies than on any
other sources, particularly for information on agronomic practices and improved seeds.
Extension officers are accessible, to some extent, to the farmers of Solapur villages, but not to
those in Mahaboobnagar and Akola villages. Relatives and friends and mass media are also
serving as supplementary sources of information. Overall, informal sources dominate the formal
sources like extension officers and mass media in providing information to the farmers in the
SAT region.
Table 16. Sources of Information to farmers in VLS villages, 2001-02. Source of Information Village Type of Information
Progressive farmer Extension Shopkeeper Relatives/ friends Mass media Aurepalle Use of Improved seed 17 0 39 1 3 Use of Chemical fertilizers 16 0 46 1 3 Agronomic practices 40 0 1 21 1 pest/disease control 17 0 46 1 2 Dokur Use of Improved seed 7 1 15 3 7 Use of Chemical fertilizers 5 1 23 3 4 Agronomic practices 25 1 1 1 1 pest/disease control 4 1 21 3 3 Kalman Use of Improved seed 42 13 6 3 4 Use of Chemical fertilizers 24 6 19 2 1 Agronomic practices 34 21 1 8 2 pest/disease control 5 1 22 2 1 Shirapur Use of Improved seed 30 7 6 11 6 Use of Chemical fertilizers 21 3 18 4 4 Agronomic practices 29 13 0 4 1 pest/disease control 1 1 21 3 0 Kanzara Use of Improved seed 18 4 2 3 0 Use of Chemical fertilizers 11 2 10 1 1 Agronomic practices 21 1 0 3 0 pest/disease control 6 0 15 0 0 Kinkheda Use of Improved seed 7 1 4 4 1 Use of Chemical fertilizers 9 1 2 3 1 Agronomic practices 7 1 0 5 0 pest/disease control 0 0 3 0 0
Total Use of Improved seed 101 26 72 25 21 Use of Chemical fertilizers 86 13 118 15 14 Agronomic practices 146 37 3 42 5 pest/disease control 33 3 130 9 6
20
Utilization of farm produce
Farmers in the SAT areas were known to be subsistence farmers. But the situation is fast
changing with the farmers shifting to commercial crops and a better linking of the villages with
the markets. The pattern of utilization of farm produce in the Mahaboobnagar villages is
presented in table 17.
Table 17. Utilization pattern of Farm Produce (grain) in VLS villages of Mahaboobnagar district (in Kgs).
Village Crop Total production Used for own consumption Retained for other uses
Less than one half of the production of these food crops only was sold in the market. A
little more than one third of the pigeon pea production was retained by the households for
consumption and other uses and the rest was sold in the market. In case of Onion, sugarcane,
cotton, groundnut and vegetables, the bulk of production was sold in the market. The utilization
pattern of farm produce in Akola villages is presented in table 19. Since the production levels are
quite substantial in the Akola villages, the proportion of produce sold was quite high in these
villages even in case of food crops like hybrid jowar, wheat, pigeonpea and chickpea. In case of
commercial crops, the bulk of production was sold in the market. Data presented in tables 17
22
through 19 highlight the fact that the farmers in the SAT villages are selling a substantial
proportion of their produce in the market. Crop shifts in favour of commercial crops and reduced
transaction costs are mainly responsible for the transformation of subsistence agriculture into
commercial agriculture even in the rainfed areas of Semi-Arid Tropics.
Economics of Crop Enterprises The input-output data collected from farmers was aggregated and analysed to compute the costs
and returns of different crop enterprises in the VLS villages. The details of costs and returns of
crop enterprises in the two VLS villages of Mahaboobnagar are presented in table 20.
Table 20. Costs and returns of crops in Mahaboobnagar villages (Rs/hectare), 2001-02. Village Crop Total fixed costs Total costs Gross Returns Net Returns Aurepalle Castor 5040 9344 4755
*As the only attempt to drill a borewell failed in Kinkheda, it was not considered for averaging of the cots of borewell
Open wells were dug to a greater depth in Andhra Pradesh villages than in Maharashtra
villages. But the borewells were dug to the maximum depth of more than 200 feet in Solapur
villages. The depth of the borewells was around 120 feet in Mahabubnagar villages, while it was
less than 100 feet in Akola villages. The unit cost of a working well as well as a working
borewell was the highest in Dokur village, which is facing the most acute water shortage among
the six villages. Although the initial cost of a digging a well was very low in this village, the cost
of a working well was the highest because most of the open wells in the village dried up. In
general, the costs of water exploration were lower in Akola villages, which are located in a
reasonably assured rainfall zone. They were moderate in Solapur villages, lying in between those
of Akola and Mahabubnagar villages.
Overall, the investments on water exploration were much higher than those on soil and
water conservation measures. The low success rate in striking water did not deter the farmers
from investing on water exploration. Farmers do make infructuous investments and indulge in
competitive drilling to capture a share in the depleting ground water. The groundwater levels did
not improve even in the villages of Kanzara, Kinkheda and Shirapur where partial support of
52
surface irrigation was provided in the recent years during the rabi season. The population
densities in these SAT regions are much higher that which can be supported by the fragile natural
resource base. As the pressure on land increases, the land and water resources are getting
degraded due to excessive exploitation and lack of investment funds. Frequent droughts add to
the woes of the rural people in their search for employment and livelihood. Neglect by policy
makers and administrators also compound the difficulties faced by the rainfed farmers in the
SAT region.
Coping mechanisms
Incomes are quite uncertain in the rainfed SAT regions. The consumption expenditures and
investments are planned based on the expectations of a normal monsoon. But when the rains play
truant, the crops fail and incomes drop. Farmers and agricultural labourers resort to several
strategies to cope up with the falling incomes. The coping mechanisms also depend on the
frequency of droughts and income losses. In Andhra Pradesh villages, drought occurs more
frequently and more farmers and agricultural labourers resort to coping mechanisms than in
Maharashtra villages. The responses of sample households regarding the coping strategies are
presented in table 48. Table 48. Household coping strategies in response to droughts and income shortfalls in AP
Villages, 2001-02.
Sl.No Parameter / coping strategy Aurepalle Dokur Average 1 No.of drought years in the last 10 years 4.00 6.00 5.00 2 Average shortfall (%) in income due to drought 44.50 55.70 50.10 3 Percentage of households adopting different coping strategies 74.70 88.30 81.50 4 Percentage of farmers adopting different coping strategies
a) Shifting to non-farm labour work 30.40 28.30 29.35 b) Borrowing money 42.90 32.10 37.50 c) Selling draft animals and other assets 5.40 9.40 7.40 d) Shifting to other occupations 8.90 9.40 9.15 e) Migration 3.60 11.30 7.45
Drawing up on savings 3.60 3.80 3.70 g) Reducing consumption expenditure 5.20 5.70 5.45 f)
The respondents perceived that drought occurred in 6 out of 10 years in Dokur and in 4
out of 10 years in Aurepalle. During the drought years, the incomes of the households fell down
by one half. More than four fifths of the sample households adopted some strategy or the other to
cope with the falling incomes in drought years. The important coping strategies followed by a
majority of households in AP villages were borrowing and shifting to non-farm labour work.
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Other strategies followed by small sections of respondents were shifting to other occupations,
migration, disposing assets, reduction of consumption expenditure and drawing from savings.
The information on coping strategies followed by the respondents of Maharashtra
villages during droughts are presented in table 49. In Solapur villages, three out the past 10 years
were drought years while in Akola villages two of the 10 years were drought years. About 23 per
cent income loss was associated with the droughts in Maharashtra villages. 73 per cent of the
respondents in Kalman mentioned that they do resort to some coping strategies, while this
proportion was below 30 per cent in the other three villages. The major coping strategies
followed are participation in employment program, cutting down expenditures, participation in
labour markets, reduction of input use and changes in cropping patterns.
Table 49. Coping mechanisms in Maharashtra villages, 2001-02.
Sl.No Parameter / coping strategy Shirapur Kalman Kanzara Kinkheda Average
1 No. of drought years in the last 10 years 3.00 3.00 2.00 2.00 2.50
2 Average shortfall (%) in income due to drought 20.00 22.00 20.00 30.00 23.00
3 Percentage of households adopting different coping strategies 30.00 73.00 15.00 25.00 36.00
4 Percentage of farmers adopting different coping strategies a)Participation in employment guarantee scheme 75.00 75.00 0.00 0.00 37.00
Participation in labour market _ _ 17.00 50.00 17.00
c)Diversification of cropping pattern 10.00 10.00 17.00 _ 9.00
e)Reduction of input use 4.00 4.00 17.00 17.00 10.00
b)
Perceptions of respondents about climate changes
Almost all the respondents perceive that the rainfall has decreased and that the distribution of
rainfall has become more erratic. The number of rainy days were perceived to be decreased and
the outlier events in rainfall have shown an increase. All these changes in rainfall are believed to
have caused a shortage of water in irrigation tanks, wells and borewells. The temperatures were
perceived to be higher now than in the winter as well as in summer. The perceptions of
respondents from Andhra Pradesh and Maharashtra villages are summarized in tables 50 and 51
respectively.
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Table 50. Perceptions of respondents from AP VLS villages, 2001-02 (Percentage respondents
agreeing with the majority view).
Sl.No Parameter Aurepalle Dokur Average 1 Decrease in quantum of rainfall 100 100 100 2 Highly erratic distribution of rainfall 100 100 100 3 Late onset of monsoons 100 100 100 4 Decreased water availability in tanks 100 100 100 5 Decreased water availability in wells and borewells 100 100 100 6 Increase in winter temperatures 37 53 45
95 100 97 7 Increase in summer temperatures
Table 51. Perceptions of respondents from Maharashtra VLS villages, 2001-02 (Percentage
respondents agreeing with the majority view).
Sl.No Parameter Shirapur Kalman Kanzara Kinkheda Average 1 Decrease in quantum of rainfall 99 100 88 100 97 2 Highly erratic distribution of rainfall 100 100 100 100 100 3 Late onset of monsoons 100 97 85 81 91 4 Decreased water availability in tanks 95 100 79 94 92 5 Decreased water availability in wells and borewells 98 100 75 91 91 6 Increase in winter temperatures 100 100 96 100 99 7 Increase in summer temperatures 100 100 100 100 100
In the drought prone villages of Aurepalle, Dokur, Shirapur and Kalman, there was a near
unanimity about the climatic changes. But in the Akola villages, Kanzara and Kinkheda, at least
a few respondents did not agree with the majority views regarding climatic changes and water
availability. Overall, more than ninety per cent of the respondents perceived that the rainfall has
decreased and became more erratic and that the onset of monsoon is delayed. Water availability
in tanks, wells and borewells was perceived to have fallen. Almost all the respondents believed
that the summer temperatures have increased. In Maharashtra villages, the respondents believed
that the winters have become milder. But respondents from Andhra Pradesh villages were
divided about the increase in temperatures during the winter. The India Meteorological
Department (IMD) holds the view that there is no reduction in the quantum of rainfall in the
country. But the respondents from the VLS villages overwhelmingly perceive that the rainfall
has decreased.
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Conclusions
Some broad conclusions can be drawn from the results of 2001-02 survey based on the sample
from the six villages in Maharashtra and Andhra Pradesh.
1) Over the 25 years period, the families have become more nuclear than joint. The average size
of family has fallen from 8.37 to 5.10.
2) The literacy levels have improved substantially. This improvement has been more dramatic in
case of females than the males.
3) The occupational structure has become more diversified. Agriculture was the predominant
occupation for most of the cultivator households in 1975-78. But now less than 50 per cent of the
households in AP villages and two-thirds of the households in Maharashtra villages only
consider it as their main occupation.
4) The average size of ownership holding in the VLS sample has fallen from 5.17 ha in 1975-78
to 2.35 ha in 201-02. Similarly, the average size of operational holding in the VLS sample has
fallen from 5.90 ha in 1975-78 to 2.38 ha in 2001-02.
5) But due to an increase in the irrigable area, the ownership holding in terms of standard dryland
equivalent hectares declined only marginally.
6) There was a reversal of the position of AP and Maharashtra villages with respect to irrigation.
In 1975-78, irrigation figured more prominently in AP villages. But, in 2001-02, Maharashtra
villages are a better access to irrigation than the AP villages due to the advent of surface
irrigation facility in three out of four Maharashtra villages.
7) The number of cattle and buffaloes owned by an average household has decreased. But there
is an increase in the number of small ruminants reared in some of the villages. Livestock
numbers decreased due to tractorisation and due to substitute quantity with quality in case of
dairy animals.
8) A sample household in VLS villages owned assets valued at Rs.2,67,973/-. The asset value in
Andhra Pradesh villages was only Rs.163,488 as against the average asset value of Rs.387,209 in
Maharashtra villages. But the households were short of financial assets and were net borrowers.
9) The share of cash crops decreased in the cropping patterns over the years. Sorghum and other
coarse grains lost areas significantly during the kharif season. But rabi sorghum still holds its fort
in the absence of better alternatives.
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10) The productivity levels of crops were generally lower in the VLS villages. Drought was
regarded as the most important production constraint in Aurepalle, Shirapur and Kalman. Pests
and diseases were regarded as the most important production constraint in Akola villages, while
wild boars along with drought were the important production constraints in Dokur village.
11) Farmers get information on technology and inputs more from progressive farmers and
shopkeepers than from the officials of the agricultural department.
12) Farmers from the SAT villages were found to be selling a substantial proportion of their
produce in the market, signaling a transition from subsistence to commercial agriculture.
13) Farmers were found to be recovering all the costs only in case of about 29 per cent plots. In
37 per cent plots, they were not recovering even the variable costs while in the other 34 per cent
plots, they were recovering the variable costs, but not the fixed costs.
14) Annual net crop income was negative in case of Dokur, Aurepalle and Shirapur villages. In
case of Kalman and Kinkheda, the annual net crop income was smaller than that recorded in
2001-02. The annual net crop income was substantial only in Kanzara village and it was good
enough to match the base year (1975-76 to 1977-78) crop income after adjusting for inflation.
15) Milk production also turned to be not much profitable after paying for the variable costs.
With the exception of Shirapur, the returns from buffaloes exceeded those from cows in all the
VLS villages. Returns from cows did not cover even the variable costs in Dokur and Kalman.
16) Rearing of draft animals turned out to be economical in the VLS villages, except in case of
Dokur where the bullocks found work only for a limited number of days.
17) Rearing of small ruminants turned out to be profitable in the dry areas of Mahabubnagar and
Solapur villages, but not in the Akola region which was wetter.
18) The net income from livestock per household was the highest in Shirapur, followed by Dokur
and Kanzara. It was relatively lower in Aurepalle, Kalman and Kinkheda.
19) The employment opportunities within the agricultural sector were higher in Kanzara,
Kinkheda and Shirapur, which receive some support of surface irrigation in the post-rainy (rabi)
season.
20) Migration of work force to distant places is becoming increasingly common in the two
Mahabubnagar villages of Aurepalle and Dokur.
21) The real wages of workers have shown an increase over the last three decades.
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22) While the income shares of crops, livestock and agricultural labour income declined over the
years, the shares of non-farm income, caste occupations, migration and other sources increased.
23) The percapita incomes increased and doubled even after they were adjusted for inflation.
Income sources have become more diversified now than three decades ago.
24) Despite increases in per capita incomes, the average per capita income worked out to only $
0.40 per day.
25) The households incurred about one-fourth of their consumption expenditure on foodgrains
and another one-fourth on other food items. The remaining half of the consumption expenditure
was spent on non-food items of consumption.
26) Considerable undernutrition was observed in the sample both with respect to calories and
proteins. Calorie undernutrition was more pronounced in case of Maharashtra villages, while
protein undernutrition was relatively more in Andhra Pradesh villages.
27) Sample households benefited to some extent from the developmental and welfare programs
of the Government such as housing, land distribution, subsidized agricultural machinery and
inputs and public distribution system. But the benefits received in a year worked out to only
about 5 per cent of the household income.
28) Farmers invested Rs.822 per hectare on soil conservation measures over a period of 15 years
and spent Rs.104 per hectare per year on the maintenance of these structures. Farmers from
Solapur villages invested more than those in Mahabubnagar and Akola villages on soil
conservation works.
29) Farmers invested seven times more on water exploration than what they invested on soil
conservation. Relatively more investments were made on water exploration in the villages facing
water scarcity than in the villages receiving some support of surface irrigation. But the rate of
success in striking water has decreased over the years.
30) The sample households resorted to many coping strategies in the face of droughts and
income shortfalls. AS the probability of the occurrence of a drought and income shortfall
associated with that are higher in Andhra Pradesh villages, a larger percentage of the households
resorted to coping strategies like borrowing, shifting to non-farm work, migration, reduced
consumption and disposal of asserts.
31) The sample households perceived that the climate change is associated with reduced rainfall,
its uneven distribution and increased temperatures. These perceptions, which are held
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unanimously by a large majority of the sample are not shared by India Meteorological
Department (IMD) which holds that there is no decline in rainfall at the country level.
32) The increasingly non-viable nature of farming (both crops and livestock) in the villages of
Indian SAT are a cause for concern to the researchers, policy makers ands administrators. Many
bold initiatives are needed on the fronts of technology generation, market linkages and policy
formulation to reuse the rainfed farm households in the SAT villages.
References
Jodha, NS. 1997. Resource base as a determinant of cropping patterns, occasional paper 14,
Singh, RP, Asokan M and Walker TS. 1982. Size, composition and other aspects of Rural
Income in the Semi-Arid Tropics of India, progress report 33, Economics program, ICRISAT,
Patancheru, AP – 502324.
Walker, TS and KV Subba Rao. 1982. Yield and net returns distributions in common village
cropping systems in the Semi-arid Tropics of India, progress report 41, Economics program,
ICRISAT, Patancheru, AP – 502324.
Walker, TS, Singh, RP and Jodha, NS. 1983. Dimensions of Farm-Level diversification in the
Semi-arid Tropics of Rural South India, ICRISAT, Patancheru, AP – 502324.
Walker, TS and Ryan, JG. 1990. Village and Household economics in India’s Semi-arid
Tropics, The John Hopkins Universtiy press, Baltimore.
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60
Progress Reports are informal communications about ongoing research, or thoughts of ICRISAT staff members, which are designed to stimulate thinking and comments of professional colleagues within and outside the Institute. These reports are not to be considered as formal publications bearing the endorsement of the Institute. Progress reports were earlier referred to as Occasional Papers/Discussion Papers.
Abstract
The village level studies (VLS) were resumed in 2002 with enlarged sample and additional modules. The data relating to the cropping year, 2001-02 were collected, analysed and presented in this progress report in a brief summary form. Wherever possible, the results were compared with those of the first phase of VLS (1975-85). Although the real household net incomes have gone up substantially for the sample farmers, the crop and livestock enterprises were found to be non-viable in most of the cases due to erratic and sub-normal distribution of rainfall, soaring input costs and stagnant output prices. Poverty incidence is still high and considerable part of the sample population suffers from both caloric and protein malnutrition. Farmers have been investing quite heavily on water exploration despite the low probability of success in striking water. Although the real wages of labour have gone up, they continue to suffer from under-employment. In the low rainfall areas, quite a significant proportion of the labour force migrates to urban areas and distant places in search of work. The welfare and developmental programs of the Government provide some help to the rural poor, but it is not adequate to lift them out of poverty.
Acknowledgements The authors are grateful to Dr. MCS Bantilan, Theme Leader, Markets, Policy and Impacts (MPI) for her constant encouragement, support and guidance to the village level studies. Thanks are also due to Mr. P. Parthasarathy Rao for his contributions to the livestock module. We also thank our field investigators, student interns, data entry operators and programmers for their unstinted support and duty-consciousness. Last, but not the least, all the 446 sample households who responded positively and gave their time to sit through the long and demanding interviews. Our thanks are also due to the administrative and support personnel of MPI theme for their able and timely support. Needless to add, but the authors alone are responsible for any errors contained in the report.