kerala’s agricultural sector -...

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Chapter 2 KERALA’S AGRICULTURAL SECTOR: AN OVERVIEW Introduction Kerala state, branded as God’s Own Country under tourism, is located at the Southern part of the Indian sub-continent. The state has a rich past. The easy access through sea routes attracted the Greeks, Portugese, Dutch, Egyptians, Romans, Chinese, Arabs, etc. even before the era of Jesus Christ for its spices, medicinal and aromatic plants, high value timber like Sandal, Rose, Teak, Anjili wood, Ivory and ship-building skills. The flourishing opportunities for trade and commerce attracted people from different regions and culture. As a result, along with the Indian sub-continent’s religions such as Jainism, Buddhism and Hinduism, Jewish, Christianity and Islamism also flourished from the time of their formations. Geographical Setting The state is a small strip of land in the West Coast of India. It has a length of 560 km and maximum width of 132 km and has a geographical area of 38,863 sq.km. It constitutes only 1.2 per cent of the geographical area of India; but holds 3.1 per cent of her population. The state has three distinct geographical formations like low land, mid land and high land. The low land in the state constituted less than 10 per cent of the geographical area but accommodates 18 per cent of the people; whereas, mid land constitutes 72 per cent of the area and accommodates 77 per cent of the population 1 . The high land constitutes 18 per cent of the area and accommodates 6 per cent of the people. The population in high land has increased mainly due to encroachment and conversion of such land under commercial crops. The State is rich in water resources. It is blessed with two rainy seasons, viz. the South-West and North-East Monsoons. The average

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Page 1: KERALA’S AGRICULTURAL SECTOR - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/12576/8/08_chapter 2.pdfKERALA’S AGRICULTURAL SECTOR: AN OVERVIEW Introduction Kerala state,

Chapter – 2

KERALA’S AGRICULTURAL SECTOR:

AN OVERVIEW

Introduction

Kerala state, branded as God’s Own Country under tourism, is

located at the Southern part of the Indian sub-continent. The state has a rich

past. The easy access through sea routes attracted the Greeks, Portugese,

Dutch, Egyptians, Romans, Chinese, Arabs, etc. even before the era of

Jesus Christ for its spices, medicinal and aromatic plants, high value timber

like Sandal, Rose, Teak, Anjili wood, Ivory and ship-building skills. The

flourishing opportunities for trade and commerce attracted people from

different regions and culture. As a result, along with the Indian

sub-continent’s religions such as Jainism, Buddhism and Hinduism, Jewish,

Christianity and Islamism also flourished from the time of their formations.

Geographical Setting

The state is a small strip of land in the West Coast of India. It has a

length of 560 km and maximum width of 132 km and has a geographical

area of 38,863 sq.km. It constitutes only 1.2 per cent of the geographical

area of India; but holds 3.1 per cent of her population. The state has three

distinct geographical formations like low land, mid land and high land. The

low land in the state constituted less than 10 per cent of the geographical

area but accommodates 18 per cent of the people; whereas, mid land

constitutes 72 per cent of the area and accommodates 77 per cent of the

population1. The high land constitutes 18 per cent of the area and

accommodates 6 per cent of the people. The population in high land has

increased mainly due to encroachment and conversion of such land under

commercial crops. The State is rich in water resources. It is blessed with two

rainy seasons, viz. the South-West and North-East Monsoons. The average

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rainfall is about 2,590 mm per annum and the state has also a good number

of rainy days. It is also blessed with a good number of perennial rivers and

water canals to talling 3,092 km. The well- spread precipitation coupled with

the rich rivers and canals make the state lush green throughout the year.

Such natural resource availability enables the cultivation of a variety of

commercial crops. The state also has a rich forest cover. These are well

protected and makes life in the state pleasant and peaceful. These factors

attract millions of tourists from far and wide and make the land “God’s Own

Country”.

Demographic Details

As per 2001 census, Kerala State’s population totals 3.2 crore,

consisting of 1.5 crore males (49%) and 1.6 crore females (51%). The

population growth during 1991-2001 is recorded at 9 per cent and the

annual growth of population woks out less than one per cent. The rural

population is about 74 per cent and the remaining 26 per cent constitute

urban population. Kerala is densely populated; 819 persons/sq.km when

compared to the national average at 324 persons/sq.km. Estimates on

Human Development Index and Gender Equality Index for the Indian s tates

make Kerala the first rank holder. The literacy rate as per 2001 census is 91

per cent compared to 61 per cent at all-India level.

Administrative Set up

Kerala is a diluted city. It has 14 districts, 63 taluks, 152 development

blocks and 1,453 revenue villages. A well defined administrative and

development system prevails in each of the above administrative set up. At

the district-level it is headed by the District Collector along with the

Departmental Heads of Revenue, Police and other Development

Departments. At the block-level, the Block Development Officer (BDO)

along with in-charges of various development departments takes care of the

functioning at the block-level. Similarly, at the village-level, the panchayat

secretary with his colleagues share the responsibility of development as

well as administration.

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In order to ensure public participation at each level, it is ensured

through democratic election process mainly at the panchayat-level and

subsequently at the block/taluk and the district-level. The permanent

missionary, thus support the elected representatives to translate the

people's aspiration in both administration and development activities.

Land Utilization

Out of the total geographic area of 38.85 lakh hectares, 10.82 lakh

hectares (29%) are under forest. The forest area shrinked over a period

owing to encroachment, development of various projects, etc. Based on the

studies of the Survey of India it is reported that during 1905, the forest cover

was as high as 44 per cent 2.

The pattern of land utilization for crop production purposes also

records a steady increase in terms of non-agricultural purposes. Details of

land utilization during five points of time, viz. 1960-61’, 1975-’76, 1995-’96,

2003-’04 and during 2006-’07 is indicated in Table 2.1.

Table 2.1 Pattern of Land Utilization in Kerala

(000’ Ha)

Particulars 1960-‘61 1975-‘76 1995-‘96 2003-‘04 2006-‘07

Total Geographical Area 3885 3885 3885 3885 3885

Forest 1082 1082 1082 1082 1082

Land under Non-Agri: use 205 259 313 388 423

Barren & Uncultivable Land 151 78 43 30 21

Permanent Pastures & Grazing Land

45 20 1 0.5 0.2

Land under Misc. Tree Crops 204 84 27 12 5

Cultivable Waste 144 113 74 71 60

Fallow other than Current 62 23 29 39 47

Current Fallow 67 37 51 71 90

Net Area Sown 1924 2189 2265 2194 2021

Total Cropped Area 2349 2981 3067 2976 2606

Area Sown More Than Once 425 792 802 783 805

Cropping Intensity 122 136 135 136 137

Source : Agriculture Census

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Table 2.1 indicates that the Net Area Sown steadily increased from

1960-61 to 1975-76 and 1995-96. However, it recorded declining trend

during 2003-04 and 2006-07. Similarly, the land put under non-agricultural

purposes also recorded increasing trends; whereas the land under

permanent pastures and grazing steadily declined. The cultivable waste

also recorded steady declining trends due to its use under various

purposes. The increasing trend of fallow land after 1975-76 is a cause for

serious concern. The increasing trend in keeping the paddy land fallow

appears to be the reason for this trend.

Pattern of Land Holdings

Out of the total Geographical area of 38.85 lakh hectares a sizable

portion (40%), is under various land holdings by public and private sector.

Based on the latest available data, there are 66.6 lakh operational land

holdings constituting 15.7 lakh hectares. More than 95 per cent of the land

holdings are very small in size, less than one hecteare. The average size of

holdings works out to 0.24 ha. The average holding over time has also

decreased from 0.74 ha in 1966-67 to 0.49 ha during 1976-77 and further

decreased to 0.33 ha during 1990-91. The pattern of land holding at four

different points of time is given in Table 2.2 to have an idea on the pattern of

holding 3

Table 2.2

Pattern of Operational Holdings

Size of Land Holding

1966-‘67 1976-‘77 1990-‘91 2006-‘07

% holding

Average size

% holding

Average size

% holding

Average size

% holding

Average Size

Marginal < 1 ha 82 0.28 87.1 0.24 92.6 0.18 95.3 0.15

Small 1-2 9 1.43 8.4 1.37 5.2 1.36 3.7 0.90

Semi-Medium 2-4 7 2.79 3.4 2.70 1.8 2.60 0.66 2.40 Medium 4-10 2 5.60 1.0 5.49 0.4 5.27 0.30 5.01

Large > 10 0.5 19.86 0.1 19.06 0.06 55.74 .04 53.20 All 0.74 0.49 0.34 0.23

Source : Agriculture Census

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It may be observed from Table 2.2 that the average size of holding in

respect of all the five categories, viz. marginal, small, semi-medium,

medium and large categories decreased over a period. Only in respect of

large holding, the average size of holding recorded a sizable increase from

19.06 ha in 1976-77 to 55.74 ha during 1990-91.The relatively better

consolidation of land among the large land owners appears to be due to

their commercial viability.

Water Resources

Water is required for the daily use of human beings, animals, birds,

plants and the whole life system. It is also required for irrigation and for

industrial purposes. Thus, careful harvesting and economic use of water

assume importance. In Kerala, the annual yield of water in a normal

monsoon year is estimated at 70,300 Million Cubic Metre (MCM) and the

groundwater availability is estimated at 7,048 MCM. The utilizable water

resources are estimated at a conservative figure at 42,000 MCM. Kerala

requires about 30,000 MCM of water for agriculture, 7,500 MCM for

domestic purposes and 12,200 MCM for prevention of salt water intrusion.

Along with the increasing living standards, there is an increased

demand for water for domestic as well as irrigation and commercial

purposes. As the crop productivity and cropping intensity is having a direct

relation with increasing water requirement, any attempt on optimisation of

the above two factors results in the requirements of more water. But,

currently, more than 40 per cent of the available water resources are lost as

run off resulting in heavy floods, soil erosion, damage to crops, livestock

and the local infrastructure. A commitment to harness water is yet to

become a part of our culture and governance.

Attempts were made to strengthen the irrigation capacity in the state

right from the second half of the 19th century. During the Five Year Plan

periods concerted efforts are being made to optimize the irrigation potential

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through a variety of instruments such as major, medium and small irrigation

projects, laying water canals and exploiting the groundwater using deep

tube wells, shallow tube wells and dug wells. For better management of the

available water, instruments like drip irrigation and sprinkle irrigation are

also promoted with technology and subsidy supports.

As against the estimated net irrigation potential of 15 lakh ha and

gross irrigation potential of 24 lakh ha as on March 2007, only 5.35 lakh

(22%) gross irrigation potential has been created. During the XI Five Year

Plan period a target of 2.5 lakh ha has been addressed of which 2 lakh ha

are under minor irrigation. Currently, the major part of the irrigation facility in

the state is made available through the development of surface water

sources 4. Establishment of Lift Irrigation projects and development of

instruments like Dug Wells, Bore Wells, Filter points and introduction of

various water conservation and management devices appear to be the

possible methods for careful exploitation.

Government of Kerala with the help of Central Ground Water Board

(CGWB) carries out regular studies for assessing the groundwater

availability and enabling water users for their careful exploitation. As per the

estimation made by Ground Water Estimation Committee, as on 31 March

2004 the Ground Water Development in the state is 46.87 per cent. As

against the annual recharge of 6,840 MCM the existing rate is 2,920 MCM.

Out of the remaining balance of 3,920 MCM the allocation provided for

future domestic construction is estimated at 1,396 MCM, 48 per cent.

In order to have a better idea on ground water availability at

district-level the same is presented in Table 2.3.

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Table 2.3

Ground Water Availability vis-à-vis their Exploitation

(In MCM)

Sl.

No District

Ground Water

Recharge

Present Draft

Allocation for Domestic

Supply

Net Ground Water

Availability for future purposes

% level of Exploitation

1 Thiruvananthapuram 309 186 117 81 67

2 Kollam 496 205 99 225 46

3 Alappuzha 466 129 77 279 31

4 Pathanamthitta 347 101 48 210 32

5 Kottayam 521 134 82 322 28

6 Idukki 269 92 49 145 37

7 Ernakulam 618 294 115 249 52

8 Thrissur 775 326 117 354 46

9 Palakkad 824 328 190 397 44

10 Malappuram 557 308 183 148 61

11 Wayanadu 325 72 55 196 25

12 Kozhikkode 366 213 111 121 62

13 Kannur 592 261 96 272 48

14 Kasargod 376 272 58 75 79

Total 6841 2921 1397 3074 47

Source: the Dynamic Ground Water Resource of Kerala, CGWB

From the above Table it may be observed that the groundwater

exploitation ranges from 25 per cent in Wayanad district to as high as 79 per

cent in Kasargod district. The exploitation level is above 60 per cent in

Thiruvananthapuram, Malappuram, Kozhikkode and Kasargod districts. For

the state as a whole, the stage of development approximate at 47 per cent.

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In respect of Kottayam and Wayanad the development is observed below

30 per cent.

A closer look at taluk-level is essential for understanding the stage of

development of groundwater in each taluk/block. Out of the 152 Blocks, five

blocks are over-exploited, 15 are under critical stage, 30 are in semi critical

stage and another 33 blocks are under more than 70 per cent of the

exploitation of groundwater availability. Details of the district-wise critical

blocks and over-exploited blocks are given in Table 2.4.

Table 2.4

Critical and Over Exploited Blocks

Sl.

No District Critical Blocks

Over Exploited Blocks

1 Thiruvananthapuram Chirayinkeezhu, Parassala Athiyanoor

2 Palakkad Kollencode,Thrithala, Palakkad Chittoor

3 Kozhikkode Balussery,Tooneri Kozhikode

4 Kasargod - Kasargode

5 Thrissur - Kodungallur

6 Idukki Kattappana -

7 Ernakulam Angamali, Pampakkuda, Parakkadavu, Vyttila

-

8 Malappuram Wandur -

9 Kannur Thalassery, Koothuparambu -

Source : CGWB

In 2003, Govt. of Kerala enacted the Ground Water Regulation and

Control Act. Based on this Act, the State Ground Water Authority was

constituted in 2005; and on detailed study they have declared five Blocks as

over-exploited and it was published in the November 2005 gazette. In

accordance with the notification any further exploitation of groundwater in

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these blocks using new instruments were totally banned, except for drinking

purposes. The State Ground Water Authority also periodically conducts

awareness programmes and advocates the users to meticulously follow

them.

The state is also increasingly becoming aware of pricing of water. In

order to cope up with the ever increasing expenditure under irrigation,

states such as Maharashtra, Madhya Pradesh, Gujarat and Karnataka have

revised their water rates. But in Kerala, it is not revised since 1974. Recently

the State Government is feeling the necessity of revising them.

Based on the above situation, the Kerala Ground Water (Control

&Regulation) Act 2003 was enacted. Under this Act quantification of the

groundwater on watershed concept is followed. The Act insists on each user

of groundwater to register the existing groundwater structure with the district

office of the State Ground Water Department. Under this Act, investment in

any new structure to exploit groundwater from restricted area is also

banned.

The State Water Policy also insists on introducing better

management practices in both groundwater exploitation and its use.

Following are the important features of the State Water Policy, 2008.

Micro watershed should form the basic unit for sustainable harness

and exploitation.

The water resource system should be based on the river basin as the

basic unit and all related problems should be integrated with this

basic concept.

An integrated and multi-sectoral approach in planning, formulation,

development and management of the water resources is to be

followed.

All development plans should emphasize comprehensive watershed

conservation, water quality management plan, long term sub-basin

and river basin operation.

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Strictly implement institutional and legal mechanism for sustainable

water resource development, use and management.

The State Ground Water Department has prepared detailed action

plans for the implementation of the above objectives during XI Five Year

Plan period. The department has considered minor irrigation as projects

covering 1-15 ha, medium irrigation as 16-10,000 ha and major irrigation as

those covering more than 10,000 ha. Construction and renovation of

irrigation tanks, construction of diversion works, salt water prevention

works, reclamation of backwaters, strengthening of streams & canals,

installation of new lift irrigation schemes, etc. are given importance.

Partner agencies implementing various irrigation programmes,

advocates for the estimation of groundwater resources in all blocks jointly

by CGWB and State Ground Water Board (SGWB). They also feel that

there is an urgent need for the formation of Water Users Associations

(WUAs) especially in the command areas of all Major & Medium Irrigation

projects and Larger Lift Irrigation projects.

Both the public and the project implementing agencies equally feel

the necessity of suitable legislation to control the present state of pollution

happening in our water bodies. Similarly, there is an increasing awareness

on harvesting the rainwater and recharging the groundwater availability.

There is a common concern for the speedy implementation of the Govt. of

India- supported scheme on artificial recharge of dug wells through suitable

methods of rain harvesting.

Cropping Pattern

Out of the total geographical area of 38.86 lakh ha, the net sown area

totalled 21.11 lakh ha, 54 per cent of the geographical area during 2006-’07.

The gross cropped area totalled 29.17 lakh ha, keeping the cropping

intensity at 138 per cent 5. The current cropping pattern in the state is given

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in Table 2.5.

Table 2.5

Area Production and Productivity of Major Crops in Kerala

Crop

Area (Ha) Production (MT) Productivity (Kg/ha)

2005-06

2006-07

% Change

2005-06

2006-07

% Change

2005-06

2006-07

%

Change

Paddy 275742 263529 -4.4 629987 641577 1.8 2285 2435 6.6

Pulses 8000 6870 -14.1 8080 5211 -35.5 1010 759 -24.9

Pepper 240551 226094 -6.0 75704 64264 -15.1 315 284 -9.8

Ginger 9285 11082 19.4 38747 42497 9.7 4173 3835 -8.1

Turmeric 3000 3917 30.6 6477 9978 54.1 2159 2547 18

Cardamom 38865 41362 6.4 9329 8545 -8.4 240 207 -13.8

Arecanut 108207 102078 -5.7 110641 109968 -0.6 1022 1077 5.4

Banana 62141 59143 -4.8 488061 463766 -5.0 7854 7841 -0.2

Plantains 55460 53060 -4.3 421415 435635 3.4 7599 8210 8

Cashew 80727 70461 -12.7 57624 61680 7.0 714 875 22.5

Tapioca 94982 87128 -8.3 2585096 2518999 -2.6 27217 28911 6.2

Coconut* 899943 870939 -3.2 6013 6054 0.7 6575 6951 5.7

Coffee 84644 84571 -0.1 60175 59475 -1.2 711 703 -1.1

Tea 35043 35364 0.9 56384 53659 -4.8 1609 1517 -5.7

Rubber 494400 502240 1.6 739225 780405 5.6 1495 1554 3.9

*Production in million nuts and productivity in nuts/ha

Source : Agriculture Census

Coconut, Rubber, Paddy, Pepper, Arecanut, Coffee, etc. are the

major crops cultivated in the state. As may be observed in Table 2.5 except

in the case of rubber, in most of the other major crops, the area under

cultivation declined during 2006-07 compared to the area recorded under

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the same crops during the previous year, 2005-06. Among the major crops,

the decreasing area was more under pulses (14.1%) followed by cashews

(12.7%) and tapioca (8.3%). The area under paddy declined at 4.4 per cent

during the period 2005-06. In the case of ginger (19.4%), turmeric (30.6%),

cardamom (6.4%) and tea (0.9%) the area recorded increasing trends. A

sizable increase in area was observed in the case of rubber at 1.6 per cent

during the reference period.

Unlike other states, Kerala has a peculiar cropping pattern. Most of

its cultivation happens under Homestead Farming. Under this system a

variety of crops, both seasonal and perennial in nature are cultivated in the

surrounding areas of one’s home. Along with the crops they also rear the

livestock, poultry and pets. The system is mutually dependable and it

enables optimization of the rare resources including family labour. Recently

this is accepted as a role model and is advocated in areas having limited

land availability for crop production.

Perusal of the Table 2.5 reflects a complex system in the case of

both production and productivity. Out of the 15 crops under the analysis, in

the case of eight crops there is an increase in crop productivity. But in the

case of remaining seven crops the productivity has declined during the

reference period, 2005-06 and 2006-07. The increase in productivity is

observed as high as 22.5 per cent in the case of cashew followed by

turmeric (18%) and plantains (8%)tapioca (6.2%) and coconut (5.7%). The

productivity under banana marginally fell at 0.2 per cent. The maximum fall

in productivity was observed in the case of pulses at 24.9 per cent, followed

by cardamom at 13.8 per cent and for tea at 5.7 per cent respectively.

The above analysis thus indicated that coupled with a sizable

decrease in area under major crops and sharp fall in crop productivity, the

production has serious adverse effects. Out of the 15 crops under detailed

study, in respect of eight crops the quantity of production recorded sizable

decrease during the reference period. The deceleration trends were at a

larger size in respect of pulses at 35.5 per cent followed by pepper 15.1

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percent, cardamom 8.4 per cent and banana at 5.0 per cent. In the case of

tapioca (2.6%), coffee (1.2%) and arecanut (0.6%) the production recorded

marginally decreasing trends.

Thus, the data on area, production and productivity analysis

indicated the growing concern under Kerala agriculture. In the absence of

concerted efforts, the production efficiency is likely to further fall offsetting

the economy. This may adversely affect the rural economy through

withdrawal of a sizable number of farmers from traditional crop cultivation.

The process may add to the ongoing migration in search of better

alternatives.

Table 2.6

Area under major Crops in Kerala

(000’ ha)

Crop 1960-61 1975-76 1995-96 2003-04 2006-07

Paddy 779 876 471 287 264

Coconut 501 693 914 906 871

Tapioca 242 327 114 111 87

Rubber 136 212 449 476 502

Pepper 100 108 192 207 226

Cashewnut 54 109 103 88 70

Arecanut 54 77 71 93 102

Plantains& Banana 44 52 73 107 53

Tea 38 38 37 37 35

Cardamom 29 54 44 32 41

Coffee 17 42 82 85 85

Ginger 12 12 13 9 11

Total Cropped Area 2319 2981 3067 2976 2347

Source: Agricultural Census

A study of Table 2.6 reveals interesting observations on the pattern

of land utilisation in Kerala during the last 47 years. The net cropped area

which was at 23.19 lakh ha during 1960-61 has almost remained the same

during the year 2006-07 at 23.47 lakh ha even after 47 years. However, the

area under major 12 crops recorded a sizable increasing trend during

1960-61 to 1975-76, the first 15-year period. It has also further increased to

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30.67 lakh ha up to 1995-96 in another 20-year period. Subsequently, the

area under major crops declined to 29.76 lakh ha during 2003-04 and

further decreased to 23.47 lakh ha during 2006-07. Thus, from 1960-61, for

a 25-year period, the area under major crops recorded increasing trends

and subsequently another 20-year period it recorded decreasing trend.

Presently, the area under major crops remains almost at par with those

under 1960-61 period. This indicates serious concern on the subject. The

increase in net area sown and further decline in the same will throw

interesting light on the use of land other than crop development and change

in crop production.

Out of the 12 major crops covered under the above analysis, the

maximum decrease in land use is recorded under paddy. During 1960-61

the area under paddy was about 7.8 lakh ha. It further increased to 8.8 lakh

ha during 1975-76 and subsequently decreased to 4.71 lakh ha during

1995-96 and further declined to 2.64 lakh ha during 2006-07. Thus, the

present paddy cultivation in Kerala is just 1/3 of the land under paddy during

1960-61.

Similarly, the area under tapioca also declined from 2.42 lakh ha

during 1960-61 to 0.8 7 lakh ha during 2006-07. The decrease was also

equally high in the case of paddy. Availability of other food crops coupled

with the cultivation of higher profit making commercial crops such as rubber

and spices appear to be the reason for lesser area allocation. Among

commercial crops the area increase was observed relatively larger in

respect of rubber, coconut, pepper, cashewnut, and arecanut, cardamom,

plantains and banana.

While the area under Rubber has increased almost four times (1.36

lakh ha to 5.02 lakh ha) the area under coffee has increased by five times,

pepper slightly more than two times, arecanut almost two times, cardamom

increased by 1.4 times and banana experienced a marginal increase of 1.2

times. In order to have a better insight on the shift in cropping pattern, the

percentage allocation of land for each major crop was worked out at five

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different point of time. They were further ranked and it is tabulated in Table

2.7.

Table-2.7

Share of major Crops in the Cropped Area and their Ranks

Crop

1960-61 1975-76 1995-96 2003-04 2006-07

Share %

Rank Share

% Rank

Share %

Rank Share

% Rank

Share %

Rank

Paddy 33.2 1 29.4 1 15.4 2 9.6 3 11 3

Coconut 21.3 2 23.3 2 29.8 1 30.4 1 37 1

Tapioca 10.3 3 11.0 3 3.7 5 3.7 5 3.7 6

Rubber 5.2 4 6.9 4 14.6 3 16.0 2 21 2

Pepper 4.3 5 3.6 6 6.3 4 7.0 4 10 4

Cashew nut 2.3 6 3.7 5 3.4 6 3.0 8 3.0 8

Arecanut 2.3 7 2.6 7 2.3 9 3.1 7 4.3 5

Plantains& Banana

1.9 8 1.8 8 2.4 8 3.6 6 2.3 9

Tea 1.6 9 1.3 11 1.2 11 1.2 11 1.5 11

Cardamom 1.2 10 1.8 9 1.4 10 1.4 10 1.7 10

Coffee 0.7 11 1.4 10 2.7 7 2.9 9 3.6 7

Ginger 0.5 12 0.4 12 0.4 12 0.3 12 0.5 12

Source : Agricultural Census

During 1960-61 paddy, coconut, tapioca, rubber and pepper were

the most important crops cultivated in Kerala. During 1975-76 also the same

pattern continued except for a minor change in the case of pepper which

has slipped from rank number five to six. However, during 1995-96 paddy

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became a lesser important crop compared to coconut, slipping from number

one to two. Rubber has risen to 3rd position and pepper also improved its

status and reached the 4th position. During 2003-04 paddy lost once again

against coconut and rubber which rank one and two respectively. During

2006-07 also same status continued for paddy at the 3rd position. Pepper,

areca nut and tapioca notched 4th, 5th & 6th rank respectively. All these crops

are not cultivated generally in wetlands. Thus, it appears that a large portion

of the wetland was either kept uncultivated or put under other than

agricultural purposes.

Crops like plantains, cardamom, ginger, tea and coffee recorded

almost steady trends in the area allocation except for minor changes in

certain periods. It may be due to their price fluctuations. The higher prices

prevailed during certain periods might have encouraged farmers to allocate

new areas suitable for their cultivation. Similarly, any adverse price effect

coupled with relative advantage of comparable crops might have prompted

the decision on area allocation under these crops.

Total agricultural production under a crop is determined by both area

allocation and crop productivity, viz. Yield per Hectare (YPH). A perusal of

Table 2.7 indicated that both Area and YPH has equally contributed in the

increase of production of majority of the crops during 1960-61 to 1975-76. In

the case of paddy, tapioca, rubber and plantains YPH appeared to have

played a significant role in production during the above referred period.

Whereas, in the case of coconut, cashew nut, cardamom and coffee

increase in area has played a major role in their total production during the

period under review. In order to have a detailed perusal on YPH the same

has been worked out on major crops for different periods of time and the

same is given in Table 2.8.

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Table 2.8

Yield Levels of Major Crops in Kerala

(Kg/ha)

Crop 1960-61 1975-76 1995-96 2003-04 2006-07

Paddy 1371 1520 2023 1984 2435

Coconut 6430 4963 5638 6052 6951

Tapioca 6845 16491 22008 22484 28911

Rubber 187 623 1056 1377 1554

Pepper 271 227 358 275 284

Cashewnut 1659 1122 801 737 875

Plantains 7381 7556 6585 7446 8210

Tea 1073 1148 1762 1513 1517

Cardamom 45 38 122 208 207

Coffee 442 345 546 754 703

Ginger 938 2479 3594 3330 3835

Source: Agricultural Census

It may be observed from Table 2.8 that almost all the crops have

recorded an increase in YPH during the reference period. In the case of

paddy, YPH increased from 1371 Kg/ha during 1960-61 to 2435 kg/ha

during 2006-07. During the same period YPH under tapioca, rubber,

cardamom and coffee has increased three folds. Whereas, the YPH under

coconut, pepper, plantains and tea has increased moderately. The YPH

under ginger recorded an appreciable increase during the reference period.

From productivity stage at 938 kg/ha during 1960-61 it increased to 3835

kg/ha during 2006-07. The data also show a steady increase in productivity

in the case of cardamom. Whereas, the productivity under Pepper has

recorded a marginal rise. From 271 kg/ha during 1960-61 it increased to

284 kg/ha during 2006-07, within a span of 46 years. In the case of crops

which had an advantage of appropriate technology recorded relatively

higher increase in YPH 6.

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The analysis also highlights the importance of productivity increase

under both food crops and commercial crops, especially for spices. For

addressing the efficiency in crop productivity each factor of production, viz.

land, labour, capital and management has a larger role to play. The capital

requirement is generally felt under capital formation process in agriculture

as well as to meet its operational expenditure 7. Here, institutional finance

has a larger role for timely meeting the requirement of the farmers with

respect to the above two factors. In addition to the above, quality aspects of

the input such as seeds, manure/fertilizers, farm machinery,

pesticides/insecticides, etc can also influence the crop productivity.

Thus, for augmentation of the crop productivity, a collective effort by

all partner agencies such as the farmers, bankers, input manufacturing

agencies; etc along with efficient management can only address this

subject. Therefore, the subject assumes its importance. During the course

of the study, we shall focus on the role of institutional credit assistance

especially for development of Agriculture and Allied Activities.

Table 2.9

Production of Major Crops in Kerala

(000’ Metric Tones)

Crop 1960-61 1975-76 1995-96 2003-04

A

2006-07

B

% Change

B-A

Paddy 1050.7 1331.2 953.0 570.0 641.6 12.56

Coconut* 3220 3439 5155 5484 6054.0 10.39

Tapioca 1656.5 5390.2 2500.1 2503.6 2519.0 0.6

Rubber 23.2 128.8 474.6 655.8 780.4 19.0

Pepper 27.0 24.6 68.6 55.9 64.26 14.96

Cashew nut 83.3 119.9 82.8 65.2 61.68 -5.4

Plantains 322.7 395.0 592.4 775.4 899.4 16.0

Tea 40.0 45.8 64.8 55.9 53.66 -4.0

Coffee 7.0 17.5 45.0 63.8 59.48 -6.8

Ginger 11.1 28.8 46.5 29.7 42.50 43.1

*Production in Million nuts and Productivity in nuts/ha

Source: Agricultural Census

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As may be observed from Table 2.9, out of the 10 crops under study,

the production has declined in the case of cashew nut, tea and coffee during

the period, 2003-04 and 2006-07. In the case of tapioca, the production

almost remained stagnant. Whereas, in the case of ginger, rubber,

plantains, pepper, paddy and coconut the production recorded increase.

However, the increase was sizable in respect of both ginger and rubber. In

respect of the remaining four crops the production increase was marginal.

Production of both paddy and cashew nut sizably decreased during

the period 1960-61 and 2006-07. In respect of all remaining eight crops, the

production recorded increasing trends. Among them, the maximum

difference is recorded by rubber, ginger, coffee and coconut. The

production of rubber which was at 23,000 MT during 1960-61 had increased

to 7,80,000 MT during 2006-07. Similarly, the production of ginger has

increased from 11,000 MT to 43,000 MT during the same period. In the case

of coffee, the production increased from 7,000 MT to 59,000 MT during the

under review period. coconut, one of the major crops grown, had also

realized a production increase from 3,220 million nuts during 1960-61 to

6054 million nuts during 2006-07.

The production of major crops also had undergone considerable

variations over time. It was more prominent in the case of paddy, tapioca

and cashew nut. It was relatively less prominent in the case of ginger, tea,

coffee and pepper. In the case of rubber, plantains and coconut, increasing

trends were recorded in the case of production, right from 1960-61 8. All the

three are relatively better commercial crops. Rubber has an increasing

demand in the market for commercial purposes and farmers might have

received a better stabilized net return from its cultivation. Recently the policy

support was also in favour of high-tech commercial crops compared to the

food crops9. In the case of plantains and coconut, they served as both food

crops and a source for value addition. This might have prompted the

farmers for its regular cultivation and maintaining a steady increase in

production.

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Animal Husbandry (Livestock)

Majority of the rural households find supplementary income rearing

livestock such as cows, buffalos, pigs and poultry. Based on the Livestock

Census 2003, the cattle population in Kerala totalled 21.22 lakh, of which

17.35 lakh (82%) was cross-bred animals compared to the national average

of 12 per cent. As against the estimated demand for milk at 24.53 lakh

tonnes, the production during 2006-07 was estimated at 21.18 lakh tonnes,

86 per cent of the demand. Thus, Kerala continued to be a milk deficient

state. Optimisation of per cattle milk productivity appears to be the solution

to address this problem.

As against the desired average milk yield of 8-10 ltrs/day, the current

realised milk yield averages only six ltrs/day. In spite of the larger number of

cross-bred animals available in the state, favourable climate and

satisfactory infrastructure availability for modern dairy farming, the stagnant

state of milk yield poses challenging initiatives for achieving optimum milk

yield. The financial institutions can play significant role in helping the dairy

farmers to address the issues relating to production efficiency. Calf-rearing,

introduction of better management practices in breeding, feeding and better

maintenance of the milch animals during the inter-calving periods, etc can

be initiated by the dairy farmers with the support of timely required credit

assistance.

Kerala is also deficient in egg production. As against the per capita

egg consumption of 66 per year during 2006-07, the state’s production

approximates only 36 eggs/year, about 55 per cent of the requirement. The

remaining 45 per cent is imported from other states, especially from Tamil

Nadu and Andhra Pradesh. The present situation open up ample scope for

poultry based investments in the state. However, once again the efficiency

in production only will help the state to compete with the relatively matured

poultry farmers of the neighboring states. The banks can play a major role in

enabling the required support to the farmers.

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The per capita consumption of chicken meat is also relatively higher

in Kerala. During 2006-07, the effective demand of chicken meat was about

60,000MT. Out of which about 16,200MT (27%) was produced within the

state and the remaining 73 per cent was supplied by the neighbouring

states. The total meat requirement in the state (including mutton, beef,

chicken, pork and others) is estimated at 2.62 lakh tonnes during 2006-07.

As against the demand, about 1.96 lakh tonnes (75%), are produced in the

state and the remaining 0.66 lakh tonnes are brought from other states.

These figures once again highlight the existing potential on further

development.

Earlier, backyard poultry was a part of the rural household economic

activity in Kerala. Though it was promoted during the first three Five Year

Plan periods, due to the entry of commercial poultry, especially larger

availability of broiler, cull birds and quills (weaned male birds), backyard

poultry in Kerala assumed lesser importance. However, recently there is an

increasing enthusiasm for the revival of backyard poultry. Institutional credit

can play a major role in its revival through extending suitable credit support.

As the investment is more eco-friendly, it is likely to get larger importance in

future.

Fisheries

Kerala has a rich history in capture fisheries. However, the fishermen

in Kerala belong to the most backward economic community. In spite of the

mechanization process introduced through Indo-Norwegian project as early

as 1950s the fishermen under the sector remain less modernized compared

to the people in other sectors. The state has rich water resources suitable

for capture fisheries and development fisheries. It has about 590 km coastal

line, inland water spread across 4 lakh ha enriched by 44 rivers and

infrastructure for water storage through 30 major reservoirs and

innumerable ponds and large stretch of brackish inland water bodies.

As per the latest census data, the State has about 2.20 lakh

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fishermen; of which 1.79 lakh, constituting 81 per cent, depend on marine

capture fisheries. And the remaining 19 per cent, 0.41 lakh depend on either

capture fisheries in inland water bodies and a few are also engaged in the

development of fresh water fish varieties and prawns and shrimps. The

fisheries activities are spread over in 222 fishing villages. Among them,

about 113 fishing villages are engaged in inland fisheries and the remaining

109 fishing villages are engaged in marine fisheries. The fishermen

constituted about 8.43 lakh of the state’s population.

The fishermen deploy Mechanized Fishing Vessels (MFVs),

Kattamarams, Traditional Canoes, Fiber Glass Boats with Out Board

Motors (OBMs), a variety of fishing gears, insulated boxes carrying ice and

fresh water containers. Liberal bank credit facilities are extended for the

procurement of these equipment and also to meet the daily operational

expenditure. However, a large number of the traditional fishermen are yet to

make use of the support system for augmenting their productive efficiency

and living standards.

The marine fish production in Kerala recorded sizable increasing

trends. Recently Kerala is the second largest marine fish production centre

in the Indian Union. The ever increasing number of MFVs and

Non-Mechanized Fishing Vessels resulted in larger and unhealthy

competitions resulting in sizable reduction in per vessel fish catch. This has

also resulted in frequent confrontations between the MFV and Non-MFV

operators. The poaching happening during restricted fish breeding seasons

also results in reduction in the availability of various fish varieties.

A perusal of the quantum of fish catch under marine fisheries reveals

interesting results. During the 80s, the annual average was around 3 lakh

MT. It increased to almost 6 lakh MT during the 90s. Subsequently, it

stagnated around 5.5 lakh MT. During the same period, the number of

MFVs increased from 9,914 in 1988-89 to 29,395 in 2003-04. During the

same period, in the case of non-motorized crafts it increased from 24,093 to

26,106. The indiscriminate use of fishing vessels and frequent violation of

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the Marine Fisheries Regulation Act results in depletion of capture per

vessel.

In spite of the large availability of suitable water bodies for

development of inland fisheries, it is yet to take off on a commercial basis in

the state. The inland fish production was about 0.26 lakh MT during the

eighties. It increased to 0.36 lakh MT during the 90s and further increased to

0.85 lakh MT during the subsequent period. Compared to the achievements

made by Andhra Pradesh, there is large scope for further exploitation under

inland fisheries in Kerala. Careful utilization of the rainwater and

eco-friendly development programme without polluting the local

environment will give rich dividends under inland fisheries development.

Bank credit can also play major role in such developments.

Infrastructure Availability

For accelerated development of Agriculture & Allied Activities,

certain essential infrastructure and support services are required10.

Availability of appropriate technology with regard to quality seeds and input

production, efficient management of irrigation, efficient farm machineries,

well developed farm lands which can properly harvest the rain water and

recharge groundwater, proper storages for the agriculture produce, suitable

cold storages and supply chain system for perishables, proper harvesting

yards, transportation, markets, information dissemination centres and

service providing agencies/professionals to address the unexpected crisis

due to crop diseases, insects attack, fall in prices, bulk production, etc. In

order to meet the above, a well defined extension system is required.

In Kerala, Agricultural University and Dept. of Agriculture are the

Nodal Agencies to carry out research, teaching and extension on the

subject. At each panchayat level there is a Krishi Bhavan functioning with a

qualified Agricultural Officer and other staff for technical guidance. Often the

state is highlighted as a role model11. Their efforts are further supplemented

by the various institutions and forums such as Coconut Development Board,

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Tea Board, Coffee Board, Rubber Board and Spices Board, Krishi Vikasa

Kendras (KVKs), Farmers Clubs initiated by NABARD, the initiatives by

Co-operative Sector, emerging concepts under Self-Help Groups (SHGs) &

their Federations , Farmers Organizations/ Marketing Forums, etc.

The Primary Agricultural Credit Societies (PACS), Agricultural

Produce Marketing Co-operative Societies, the branches of Commercial

Banks, Co-operative Banks, Regional Rural Banks, etc also extend a

variety of support systems to the farmers like Kissan Credit Card (KCC),

information on market prices and distribution of major inputs, collection of

items like milk through well spread co-operative collection centres, sharing

information on larger markets, etc.

Project Specific Support System

In addition to the above mentioned infrastructure support for the

development of agriculture, government periodically introduces certain

projects for strengthening agriculture. A few important such ongoing

projects in Kerala are briefed below.

In order to mitigate the distress among the farmers, Govt. of India

(GoI) had identified three distress districts in Kerala during 2006 and

introduced the concept of watershed development project in these

districts. Under the project, a family-based livelihood in the command

area of a watershed is addressed with grant and credit assistance. A

technology package is given and supported with loan development

activities for retaining the soil moisture, intensifying the cropping

intensity and for cultivation. The projects initially introduced in

Kasargod, Wayanad and Palakkad districts were subsequently

introduced to all districts having potential for the development of

watershed projects. Successful implementation of these projects

with people’s participation, it is hoped, will accelerate the process of

economic development in the project area.

The GoI has also introduced in 2006 a special package

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programmeme for farmers in distressed districts in Indian Union. In

Kerala, three districts, viz. Palakkad, Wayanad and Kasargod

benefited out of the project. Under the project special allocation was

made for the development of Check Dams and other Minor Irrigation

(MI) instruments. For better management of irrigation, sprinkler and

drip irrigation were promoted. Special package programmemes for

Horticulture Development, Farm Extension Services and a host of

supplementary income generating activities were also promoted.

For increasing the capital formation process under agriculture and

especially by the public sector, GoI has introduced Rashtriya Krishi

Vikas Yojana (RKVY) during XI Five Year Plan period. Among the 56

districts identified for special focus, both Wayanad and Palakkad

from Kerala were included. Out of the total budget of ` 5,000 crore,

about ` 1,500 crore was earmarked for 2007-08. Govt. of Kerala

(GoK), of late, is preparing suitable projects for the above two

districts.

Realising the importance of increasing demand on fruits and nuts in

the country, GoI framed a special mission called National Horticulture

Mission to address accelerated growth under this sector. Banks are

advised to give liberal credit and GoI gives incentives for the farmers

for both intensive and extensive cultivation of horticultural crops. In

Kerala, the State Horticulture Mission started functioning from 2005

onwards. Its programmeme cover crops such as mango, banana,

gooseberry, pineapple, pepper, ginger, turmeric, nutmeg, cashew,

coco, medicinal plants, flower crops, mushroom, bee keeping and

vegetable cultivation. Under this programmeme, all need-based

extension network is offered by Vegetable and Fruit Promotion

Council of Kerala (VFPCK). The agency imparts training and

handholding services for the cultivation of banana, pineapple and

vegetables.

For addressing the development programmemes and specific issues

under Sericulture, GoK has instituted Sericulture Federation

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(SERIFED). The agency takes care of farmers’ requirement for the

cultivation of mulberry, rearing cocoons, spinning and weaving.

For the development of need-based infrastructure under agriculture,

GoI has introduced a variety of credit-linked promotional schemes for

the construction of rural warehouses, development of suitable

infrastructure for marketing of agricultural produce, for setting up and

development of cold storages and supply chain systems especially

for the perishables like fruits and vegetable, dairy, poultry products,

etc. Young agricultural graduates were also supported for the setting

up of Agri-Clinics in rural areas for rendering the professional

services and also to provide quality inputs, High Yielding Variety

(HYV) seeds, extending the services of agricultural machineries, etc.

For revitalisation of the plantation crops, viz. pepper, cardamom,

rubber, coconut, cashew, coffee and tea, GoI has formulated a

package programmeme for XI Five Year Plan period with a financial

support of `3,000 crore. The project included re-plantation in 68,000

ha of Pepper involving `476 crore, 5,000 ha under cardamom with

assistance of `60 crore, 50,000 ha under rubber with `450 crore, 3

lakh ha under coconut with an assistance of `1,350 crore, 50,000 ha

under cashew with an assistance of `60 crore, 20,000 ha under

coffee with a support of `160 crore and 35,000 ha of tea with the

assistance of `350 crore.

For the timely technology dissemination at the district level, GoI has

introduced a scheme called “Support to State Extension

Programmes for Extension Reforms”. For this purpose, a new

agency called Agriculture Technology Management Agency (ATMA)

was constituted. It will work at the district level for addressing

research and extension under agriculture with the support of KVKs.

ATMA will serve as a nodal agency for integrating the research and

extension activities and will shoulder the responsibility of translating

research findings to the farmers and commercialization of

agriculture.

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Recently GoK has also constituted a “Debt Relief Commission” for

assuring timely protection of the farmers when a natural calamity

strikes them. The Commission is given various powers under

adjudicatory, conciliatory and negotiating functions for redress of

grievances of the affected farmers and to recommend suitable relief

measures for them. The GoK is also looking forward to help the

farmers with an assured farm gate price for their major crops.

For strengthening the availability of infrastructure in rural area, GoI

has constituted Rural Infrastructure Development Fund (RIDF) in

1995-96 with an initial amount of `2,000 crore. State Governments

are generally eligible for borrowing the fund under RIDF especially

for completing projects under irrigation, rural roads, developing

infrastructure for agriculture marketing, etc. The Finance Department

of GoK submits suitable projects and avail of the credit support from

NABARD. Currently, XIV Tranche is ongoing and so far 2,947

projects with a sanctioned amount of `2,523 crore has been

sanctioned by NABARD to GoK as on 30th November 2008. As

against the sanction, GoK has availed of `1,444 crore, (57%).

GoK is also having a regular system of monitoring the progress of

agricultural sector within the state. Through automated software

called AIMS (Agriculture Information Management System), the

Directorate of Agriculture connects more than 1,500 offices and

1,054 Krishi Bhavans spread across the state. Through regular

collection of field data the directorate brings in timely and efficient

management of the sector.

Summary

The above analysis brings in more hopes with a variety of issues and

problems. The changing cropping pattern in favour of commercial crops

appears to be favourable for the farmers. On the other side, the decreasing

trend in food production especially under the staple food rice is a larger

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threat on food security. The increasing fragmentation of land, higher wage

rates coupled with the ever-increasing input costs make cultivation of most

of the food crops uneconomic. This results in keeping a large portion of the

cultivable land fallow. The alternative job availability and the increasing

urbanisation make scarcity in the supply of agricultural labour. This adds to

the existing confusion. The resource allocation in the state has larger scope

for its judicious allocation. It needs more serious efforts for formulating

concrete and meaningful programmes to address the local area based

development potential12.

In the above context, collective focusing on the following issues by

the developmental agencies assumes importance.

Assurance of remunerative prices to all agricultural produce is

required for encouraging farmers to continue their farming activities.

Currently, farmers have no control on both inputs and the prices of

their produce. This situation needs changes. There should be an

appropriate regulatory authority through which the farm inputs can be

supplied to the farmers at a steady price. Similarly, there should be a

mechanism for plugging the leakages and minimizing the risk due to

climate, pest, diseases and other natural calamities.

The adverse effect of fragmentation of land may be addressed

through contract farming, farming under leased land, group farming,

farming through Farmers’ Club and through SHGs etc.

Modern system of precision farming, farming under green house,

tissue culture, etc may be promoted on a large scale.

Institutional credit availability may be made easier and operation-

wise better user friendly. A larger acceptance of instruments such as

KCC and the use of instruments like ATM in rural areas have to be

added for better professionalisation of farmers.

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References

1. Changes on land use pattern in Kerala – Recent trends and Future

Perspectives – V.T. Jose (2008) P (123). Kerala’s Development Issues

in the New Millennium. Edited by B.A. Prakash & V.K. Prabhakaran Nair,

Serials Publications, New Delhi .

2. Bio-diversity and Tropical Forests, the Kerala Scenario. Chief Editors, P.

Pushpangathan & KSS Nair (1997). The State committee on Science,

Technology and Environment, Kerala. The Forest Wealth of Kerala, T.K.

Raghavan Nair- P(127)

3. Agriculture Census 1990-91, Kerala Estimated number of Operational

Holdings.

4. Irrigation and Agricultural Development in Kerala, M.V. George & N.G.

Nair. (1982) Agriculture Development in Kerala edited by P.P. Pillai,

Agricol Publishing Academy.

5. Agriculture Census-1976-77. Report for Kerala State, Vol.1, Agricultural

Census Division, Directorate of Economics and Statistics, Trivandrum,

1982.

6. Agricultural Development in a Regional Perspective. A Study of Kerala,

K.P. Kannan & K. Pushpangadan, (1999) CDS Studies, 1999. See for

details Technological breakthrough for increasing Productivity,

Research in Development support for Paddy cultivation. P (145).

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P (52). Kerala Economy, Slumber to Perform, Edited by Meera Bai. M,

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