Economic analysis of agricultural Transformation process in Karnataka towards inclusive growth

Abstract

In this study, the economic analysis of agricultural transformation process in Karnataka is analyzed using Factor Analysis, Markov Chain Analysis and Marketable surplus. The study was based on both primary and secondary data wherein primary data has been collected from the farmers and secondary data obtained from Village Dynamic Study in South Asia from ICRISAT. The results revealed that, in Bijapur district farmers have transformed from technology and market lead to surface irrigation lead agriculture while in the case of Tumkur district, farmers transformed from cultivation of diversified low value crops to irrigated high value crops. In Kappanimbargi, The probability of shift from the vegetables to pulses and oilseeds is 0.86. In Markabbinahalli, the probability of shift from sorghum and bajra to redgram is substantial (1).In Tharati, the probability of moving from Acorus calamus to chrysanthemum is substantial (0.93) while in the case of Belladamadagu, transition from cereals and millets to pulses and oilseeds as 1.00 and the volume of Milk collected by the Dairy increased from 180 litres per day in 2000 to 500 litres per day in 2010, an increase of 17.8 percent per year. In Bijapur district; the marketable surplus was low (30 %) in the case of sorghum and bajra crop while in Tumkur district it was low (38 %) for ragi crop. The development programs in Bijapur district are providing higher benefit of 15 %(Rs.9170) per family than that of Rs.7982 received per family in Tumkur district. The research study found that, the sample households have been accessing agricultural information from word of mouth (40 %) followed by progressive farmers, input dealers and State Raitha Samparka Kendra. In Tharati, by selling water for agriculture purpose, the groundwater sellers realized higher net returns (Rs. 46883) which is 48 % compared to the farmers buying irrigation water for chrysanthemum cultivation (Rs.31620) and the groundwater buyer paid 1/3rd of produce income to groundwater seller (Rs.22200)