APPENDICES

APPENDIX I : AGRO BASED INDUSTRIES IN INDIA-

SCOPE AND DEFINITIONS

APPENDIX II : IMPACT OF OILSEED POLICY

APPENDIX III : HISTORY OF COCONUT

APPENDIX IV : A BRIEF PROFILE OF THE

STUDY AREA – KANNUR DISTRICT

APPENDIX V- XIII : TABLES

APPENDIX XIV -XV :QUESTIONNAIRE

234

AGRO BASED INDUSTRIES IN INDIA

SCOPE AND DEFINITIONS

APPENDIX I

The planning Commission of India has set forth the following criteria for

distinguishing the agro-industries. The industries which satisfy the criteria are those which 1

• Encourage greater input into agriculture

• Lead to better processing and conversion of agricultural commodities;

• Ensure high returns on processed goods, and

• Increase agricultural production

Obviously, Planning Commission has included not only those industries, which

are concerned with the processing of agricultural products, but also such industries, which

are involved in the production of farm inputs and farm implements under agro-industries.

A joint group consisting of the representatives of the Planning Commission,

Ministry of Food and Agriculture, Industrial Development and Internal Trade and

Company Affairs has also prepared a list of agro-industries. The list includes those

industries, which manufacture:

i) Products of animal and marine origin

ii) Products of nature and mineral origin

iii) Products of nature and mineral wealth, and

iv) Inputs required in agriculture and agricultural industries

235

The Famine Enquiry Commission (1944) said that agro-based industries are

those, which not only assist in the industrialisation of the state, but also those involved in

supplying the farms with the agricultural inputs.

U.K Srivastava defines an agro industry as an enterprise that process biomass

i.e., agricultural raw materials, which include ground and tree crops as well as livestock and

fisheries, to create edible or usable forms, improve storage and shelf life, create easily

transportable forms, enhance nutrive value and extract chemicals for other uses. But the

degree of processing varies tremendously, ranging from the cleaning and grading of apples

to the milling of rice, to the cooking, mixing and chemical alteration that create a textured

vegetable food. In the context of modern technological advancement and diversification in

the field of agro-based activities, it will be rather obsolete to confine the agro-industry to

the area of agro-processing alone. The agro-industry can be sub-grouped under agro-

processing (rice mill, cotton ginning, oil milling, fruit canning, dairy products etc),agro-

input manufacturing (compounded fertilizers ,insecticides, pesticide formulations,

agricultural implements, etc,) and agro service centres to undertake repairs, maintenance

and servicing of farm machinery and equipments.2

To Austin, agro-industries can be roughly categorized according to the degree

of the raw material transformed. In general, capital investment, technological complexity

and managerial requirements increase in proportion with the degree of transformation. It

may be noted that as the transformation of raw materials moves from category I to IV, the

value added as well as the price of finished products also rises. 3

236

Appendix Table 1.1

Categories of agro- industry by levels of transformation process

Types of processing activity

I II III IV

Cleaning Ginning Cooking Texturisation

Grading Milling Pasteurisation Chemical

Cutting Dehydration Alteration

Mixing Freezing

Weaving

Extraction

Assembly

Illustrative products

Fresh fruits Cereals Dairy products Infant foods

Fresh vegetables Grains Fruits &vegetables Textured

Eggs Meat Meats Vegetable products

Spices Sauces Tyres

Animal feeds Textiles &garments

Jute Oil

Cotton Furniture

Lumber Sugar

Rubber Beverages

Source: Austin (1981, p 4)

237

Badar 4, placed industries having ‘backward and forward linkage’ with

agriculture, irrespective of their size i.e. small or medium scale and having a direct bearing

on agriculture and rural economic life in the category of agro based industry. Agro-

industries set up in rural areas have to be designed in such a way that they operate more as

catalytic agents for developing infrastructure that would bridge the gap between rural and

urban economies. He classified small agro-industries as processing industries and non-

processing industries. Industry engaged in processing of agricultural produce or raw

materials cover khandasari and gur, grain mills, edible oil mills, tea factories, cold storage,

bakery products, tobacco manufacturers, jute manufacturers, cotton ginning and pressing,

leather products and canning preservation of fruit and vegetables.

Non-processing industries produce farm implements and basic inputs like

fertilizers, agricultural implements, tractors, and oil engines etc., which are essentially

required for intensification of agricultural development. Thus, agro industries comprise

such manufacturing industries, which are involved in the production of agricultural inputs

and implements.

Some economists have used the term ‘agro-based industries’ instead of agro-

industries in the view that it is difficult to give a precise definition of agro-industries,

because in the ultimate analysis, the whole economy depends on agricultural sector directly

or indirectly, as agriculture is the feeder to industry. Agro-based industries are dependent

upon the growth of agricultural production. Such dependence can be of two types.

• Industries using agricultural produce as raw material

• Industries providing inputs to agriculture

As such, agro-industries may be of two types - processing industries and

supply industries. The processing industries process agricultural produce for further use

238

while supply industries are those, which produce inputs for agriculture. In other words,

agro industries are either based on agricultural produce or supported by agriculture. Thus,

Bhattacharya5 has classified four types of agro-based industries as mentioned below and he

states that agriculture and industry are closely inter related in the economy.

I) Agro-Produce Processing Units

They simply process the agricultural produce and they do not manufacture

new product. So it can be preserved and transported at cheaper costs. e.g., rice mills dal

mills, oil mills

II) Agro-producing Manufacturing units

The manufactured finished goods will be entirely different when compared to

its original raw material. e.g., sugar factories, bakery, textile mills, solvent extraction units

etc

III) Agro-inputs manufacturing units

These units produce goods either for mechanization of agriculture or for

increasing productivity. These are the industries manufacturing agricultural implements,

fertilizers, pesticides, insecticides etc.

IV) Agro-service centres

Agro service centres are workshops, which are engaged in repairing and

servicing of pump sets, diesel engines, and all types of farm equipments.

Attempt has also been made to classify the term agro-industries based on the

nature and stage of the processing of agricultural produce. These processing industries fall

into two broad categories-primary processing and secondary processing. Primary

processing industries are those industries which are engaged in the first stage of processing,

such as sugar,gur and khandasari manufacturing ; coffee, tea and tobacco curing;

239

processing of oilseeds by village ghanis and oil mills ,fruits and vegetable processing,

cotton ginning, jute baling; rice, wheat and dal mills etc. Secondary processing industries

are engaged in the further stage of processing or more sophisticated treatment of the

product or in the utilisation of the by-product, viz. bakery and confectionary, cotton

spinning and weaving, manufacturing of cigarette etc.

According to Papola6, rural industries can be classified as – pottery, carpentry,

black smithy, bamboo products, mat making, ring making, leatherwork, bread making,

lampshades and wire knitting.

Similarly, Panandikar 7 has classified agro industries as -village oil industry,

soap making with neem oil, paddy husking, palm gur industry, gur and khandasari, leather,

woolen, hand made paper, bee-keeping, cottage match, khadi and coir.

1.2.3. Differentiate agro based and agro-industries

By the above definitional framework of the agro based industries we can see

that, there is an organic link between agriculture and industry and emphasises the

interdependence between the two sectors which is so important for their mutual growth and

generation of large-scale employment opportunities in rural areas. Agro-industries are

divided into two categories as primary processing industries and primary servicing

industries.

Primary processing is carried out by the two sectors-traditional and modern. The

traditional processing can be distinguished from the modern processing on the basis of

1) The type of technology

2) The coverage of market served

3) Linkages with the rest of the economy

240

The traditional processing is primarily concerned with the processing of local

raw materials for serving local markets, with simple techniques. As a result, its scope for

the development of links with the rest of the economy either is wholly absent or is very

much restricted. On the other hand, modernisation in processing connotes processing of

agricultural raw materials by the modern technology. This sector uses a technology, to

serve larger markets, and to develop vital links with the rest of the economy and it forms an

integral part of the agro-industrial economy. Modernisation of processing industries will be

instrumental in modernizing agriculture and in developing the region, and it advocates

modernisation at the primary processing level.8

The Agricultural Credit Review Committee of the RBI has adopted the value

added concept for classifying the industries into agro-based and other categories. According

to the report, “agro-processing industries would be those which use not less than 50% of

the raw materials from agriculture and where the value added as result of the processing

undertaking is not more than 50% of the final value of output.”

In the present study, only such an industry which are engaged in the primary

processing of agricultural produce with modernisation of technology have been included to

limit the scope of the study. Agro-industries may be both big and small units. A number of

small units in rural areas as against a big unit will not only encourage agricultural

development but also increase employment opportunities on vast scale, and it is one of the

important objectives of agro-industries.

1.2.4. Role of agro-industries in Economic Development

Agro-industries play a vital role in economic development. They serve as a

means, by which there can be an equitable distribution of national income. Agro-industries

also help to decentralize the development process leading to peaceful and concurrent socio-

241

economic development of all classes. Our planners giving accent to the key industries,

failed to appreciate this fact, and committed a blunder of creating petty islands in the sea of

stagnation. Gunnar Myrdal in his Asian Drama warns, “South Asian countries now run the

risk of creating petty islands of highly organized western type industries that will remain

surrounded by a sea of stagnation. If this fate is to be averted and as complemented by

policies in other fields as to permit simultaneous development outside the sphere of modern

large scale industries”

It is through the decentralized effort of industrial development via development

of small-scale industries that Japan, which was virtually demolished and ruined during the

Second World War, has turned into a workshop of the world today. It may be taken as an

eye-opener in India which has a bulk of rural labour force and growing inequalities in the

distribution of income and wealth. The focus deserved by the agro-based industries in

India is reflected in the following statement of the Government of India, viz “as a major

policy initiative to give further boost to small, village and agro-based industries, the

Government has decided to set up a new department for small scale, agro and rural

industries. The new department will help to strengthen the existing support system for

promotion of small scale and village industries”9.

1.2.5. Importance

Agro-processing industries provide the throughput between farm and industry,

accelerating agricultural development through the creation of backward linkages- supply of

credit, inputs and other production enhancement services and forward linkages- processing

and marketing. These add value to farmers’ produce and create employment opportunities,

thereby increasing the net income of the farmers.

242

With the introduction and absorption of technology and advanced farming

systems, the labour-output ratio in rural areas is declining. Rural decentralized industries

can prove to be the most viable generators of employment opportunities by absorbing the

displaced surplus rural labour at reasonable levels of productivity and incomes.

Given the changing socio-economic conditions and the resultant consumer

profiles, urban areas are emerging as important demand centres for processed commodities.

Therefore, product development should aim at meeting the needs of the expanded market.

Agro-based non-farm activities curb the flow of migrants into the urban areas,

reducing the pressure on urban infrastructure. Local production and services also check the

flight of money to urban markets apart from facilitating the occupational mobility among

the rural communities.

Agro-industries can be established near the source of raw materials and thus can

increase the profitability and reduce the cost of production. As a feed back effect,

agricultural productivity increases and thus makes agriculture in an economic position.

Agro-industries assure a ready market for the farm products and thus stabilize farmers’

income. The human and material resources of the country can thus be utilized in a better

way by developing agro-industries.

Besides bringing prosperity to rural areas through a desired ‘push to

agriculture’, agro-industries also act as catalytic agent for the development of infrastructure

in rural areas. As a result, the gap between rural areas and urban areas had narrowed.

One imperative need for the creation of more agro-industries is to mitigate

unemployment of all forms in our country. In India, problem of unemployment and

underemployment has a serious dimension. It is not necessary that all those who are

presently unemployed should leave their villages and accept work on roads or soil and

243

water conservation projects. “Though, the task of solving unemployment problems is very

hard, agro-industries can do their right by laying a strong foundation of decentralized

industries located in the rural areas which use locally available raw materials and the

indigenous technical know-how. The educated rural youth can easily be absorbed by these

industries because they are well versed with the local conditions and their local influence

and proximity with the local population may give a moral boost for these industries.”10

The importance of agro industries in the Indian context can be stated as follow.

a) Agro-industries are comparatively easy to establish and provide income in the rural

areas with less investment.

b) These industries facilitate effective and efficient utilisation of agricultural raw

materials.

c) Agro-industries transmit an industrial culture in rural areas bringing a wake of

modernisation and innovation in agriculture itself.

d) Some of the agro-industries like processed food and fruit preparations have

tremendous export potential.

e) Agro-industries could be promoted in the cooperative sector ensuring the

participation of the producer farmers in the development process.

In view of the above points, and further in view of the fact that the agriculture is

mired in what has been called as ‘green reaction’ characterized by mediocre growth, the

stagnation of yields and persistent instability of output, agro-industries can be looked upon

to produce a mass of livelihoods.11

Kojimo concluded that the most productive way for India to pave the way

towards early arrival of an economic turning point would be to initiate industrial growth

based on durable and non-durable consumer goods suited to the Indian market place. It can

244

be said that the rural industrialisation with special emphasis on agro-industries has assumed

crucial importance in the economic planning and progress of the country because of the

defects in the spatial and structural aspects of the economy, the conspicuous feature of

which has so far been the concentration of industries in a very few regions and that, too, in

a few urban centres12. In a nutshell, the salient features of agro-based industries are as

follows 13

• These integrate agriculture with industry, which is a prerequisite for the

prosperity of developing countries

• Agro-based industries provide new avenues of employment and they serve

as a means for providing better employment opportunities to labour during

the off-seasons

• They require a much smaller proportion of imported equipment

• The share of agro-industries in the total production of all the industries is

nearly 50%

• Agro-based industries operate as a catalytic agent for the development of

infrastructure, which would bridge the gap between the rural and urban

economies

1.2.6. Scope/potential/future of agro-processing industries

The agro-based industries provide crucial link between agriculture and

industrial sectors. To encourage the development of agro processing an unbounded input

supply and production system together with a favourable policy environment is required.

The industry needs appropriate linkages with primary producers for productivity

enhancement.

245

An analysis of the input output table of the Indian economy for 1983-84 says

that a shift in product- mix in favour of agro-based industries would have a favourable

impact on income and employment generation. It has also been pointed out that in respect

of import internalization these industries are efficient as compared to other industries.

Further they are significant export earners and hence, special emphasis on development of

agro-processing and agri-business.14

Y.K. Alagh 15 has very well articulated that the success of the agro-based

industrial sector would determine by the extent to which agro-processing activities:

a) Are linked with the farming operations helping in improving farm productivity

b) Increase the income of the primary producers like small farmers, fisherman,

tribal etc

c) Generate local employment and through better wages, increase the income of the

local people, especially, of the land less and small farmers with inadequate land

support.

d) Contribute to the development of dynamic rural institutions both of an economic

nature and of welfare activities, there by contributing to the reduction of migrants to

urban areas.

e) Operate as a dynamic engine for the development of a region by further investments

in the region through expansion and diversification; and

f) Contribute to the growth of entrepreneurship in rural areas

It is worthwhile to think about a word of caution given by Ansgar Eussner with

reference to the expectations from the agro-based industries and their policy implications.

He states, “in view of the difficult general conditions, industrial policy makers should avoid

overloading agro-industry projects with goals, financial viability, contribution to regional

246

development, reduction in unemployment, utilisation of local resources and promotion of

small farmers and concentrate on priorities. Only in exceptional circumstances will the

ideal of the small rural enterprises obtaining its raw materials from small farmers and

processing them via labour intensive technologies into marketable products to meet the

basic needs of the needy urban and rural populations be economically viable. If an

enterprise succeeds in attaining one or two of the goals specified and manages to make a

profit at the same time, great deal has already been achieved. More broadly defined aims

will require either state subsidy or will have to be incorporated into development projects

without applying the criterion of profitability”16.

References.

1. Srivatava U.K., (1989) “Agro- processing industries: constraints and task ahead”

.Indian Journal of Agricultural Economics, Vol. 44, No3, July –September.

2. Srivastava U K and Vathsala. S., (Ed)(2002) “Agro processing : Strategy for

acceleration and exports” p 398 .

3. Austin E James., (1981) “Agro-industrial Project Analysis, Johns Hopkins

University Press Baltimore and London, p 4.

4. Badar A, Iqbal.,(1980) “Financing of Agro Industrial Development in India”, pp2-

3.

5. Bhattacharya S.N., “Rural industrialisation in India its nature and problems”

pp191-198

6. Papola T.S., (1982) “Studies on Development of Uttar Pradesh, Rural

industrialisation; Issues and some evidence”. pp130-175.

7. Panandikar , V.A Pai., “Rural industrialisation”, P 12.

247

8. Kamala G.V and Khot S.M., (1972) “Policy Vacuum in agro processing

industries”, Indian Journal of Agricultural Economics(IJAE) Issue (2) November

pp 38-50.

9. Annual Survey of Industries- 1989-90- Dept. of Industrial development, Ministry of

industry ,GOI.

10. Gupta S. K .Op.Cit p 13

11. Barbara Harris-White and Janaki Rajan S.,(1997) “From green revolution to rural

industrial revolution in South India”, EPW XXXII, No.25,June, p21-27.

12. Kojimo,Makota.,(1986)“Industrialisation,income,distribnution and labour

migration; The case of India”, 8th World Economic Congress of the International

Economic Association, 3rd December, New Delhi.

13. Som Nath Sharma., (1992), Op. Cit , p 26

14. Bagalkoti S. T and Dadibhavi R.V., (1999): “Growth of agro-processing industries

in India”, Yojana, p13.

15. Alagh Y.K.,(1989) “Farm industry linkage”, Srivastava U.K and Vatyhsala (Ed)

Agro processing: Strategy for acceleration and exports, IIM,Ahmedbad p6.

16. Ansgar Eussner.,(1990) “Agro-industry in Sub –Saharan Africa Experience;

Problems and Prospects”, Economics, Vol II, Institute for scientific

Cooperation,Tubingen,p 90.

248

IMPACT OF OILSEED POLICY APPENDIX II

The oilseed production has increased tremendously by the setting up of

(Technology Mission on Oilseeds) TMO through an integrated approach by introducing

new crop technologies, better supply of inputs and extension services, support for

marketing and post harvest processing technologies. The analysis of the changes in area,

production and productivity of oilseeds before and after the TMO are depicted in the

table 2.1.

249

APPENDIX TABLE 2 .1

Changes in Area, Production and Productivity of Nine Oilseeds Year Area(Million Hectares) Production(Million Tonnes) Productivity 1973-74 16.9 9.39 555

1974-75 17.31 9.15 529 1975-76 16.92 10.61 627

1976-77 16.47 8.43 512

1977-78 17.17 9.66 563

1978-79 17.71 10.1 570

1979-80 16.94 8.74 516

Average 17.06 9.44 553

1980-81 17.67 9.37 531

1981-82 18.91 12.19 645

1982-83 17.76 10 563

1983-84 18.69 12.69 679

1984-85 18.92 12.95 684

1985-86 19.02 10.83 570 1986-87 18.63 11.27 605 Average 18.51 11.33 612

Post - TMO( 1987-88 to2003-04)

1987-88 20.13 12.65 629 1988-89 21.9 18.03 824

1989-90 22.8 16.92 742 1990-91 24.15 18.6 770

1991-92 25.89 18.6 718

1992-93 25.24 20.11 797 1993-94 26.9 21.5 799

1994-95 25.3 21.34 843 Average 24.04 18.47 768

1995-96 25.96 22.11 851

1996-97 26.21 24.39 930

1997-98 26.12 21.32 816

1998-99 26.23 24.76 944

1999-2000 24.28 20.72 853 2000-01 23.25 18.44 793 2001-02 22.76 20.66 908 2002-03 21.12 14.84 703 2003-04 23.7 25.29 1067 Average 24.4 21.39 877 Pre-TMO 17.79 10.38 582 Post-TMO 24.23 20.02 823 Source; CMIE,2006

250

The oilseed production has increased drastically from 11.27 Million tones in

1986-87 to 25.29 Million tonnes in 2003-04 i.e. an increase of 55.43%, which is quiet

appreciated. It is evident from the table that area, production and productivity of

oilseeds between 1973-74 and 1986-87 (i.e. pre-TMO) are more or less stagnant. But

from 1987-88 (post- TMO) onwards an upward trend is visible in area, production and

productivity of oilseeds, which clearly shows the impact of TMO in the economy. These

figures are graphically represented in figure 2.1.

APPENDIX FIGURE 2.1

Changes in area and production of oilseeds in different periods

0

5

10

15

20

25

30

1973-74

1979-80

1985-86

1991-92

1997-98

2001-02

2002-03

2003-04

Years

Are

a an

d Pr

oduc

tion

AreaProduction

251

The percentage changes in area, production and productivity of oilseeds in

both pre-TMO and post- TMO emphasise the above fact and it is given in the table 2.2.

APPENDIX TABLE 2.2

Percentage Change in area ,production and productivity &Sources of growth of

oilseeds

Period Area Production Productivity Area effect

Yield

effect

Inter action

Effect

Pre-

TMO 10.2 20.03 8.93 50.9 44.55 4.55

Post

TMO 27.24 124.41 76.37 21.89 61.38 16.73

Source: Computed

It shows that the huge increase in production in the post TMO period is due

to yield increase as against the area increase in the pre-TMO period.

2.1 Oilseed Economy of India

Oilseeds are producing practically in all the states of India. Directorate of

Economics & Statistics, Department of Agriculture & Cooperation and Ministry of

Commerce & Industry include groundnut, rapeseed & mustard, sesamum, linseed,

castor seed, Niger seed, safflower, sunflower and soyabean under the oilseed group in

India. The basic statistics relating to area, production, and productivity of oilseeds in

India of 2003-2004 are given 2.3.

252

APPENDIX TABLE 2.3

Area, Production and Productivity of oilseeds in India in 2004

Oilseeds Area(000Ha)

Production

(000Tonnes) Productivity

% to Total

area

% to Total

production

Groundnut 5998 8182 1364 25.31 32.35

soyabean 6497 7863 1210 27.41 31.09

Rapeseed 5387 6198 1151 22.73 24.51

Sesamum 1773.8 803 453 7.48 3.18

sunflower 2000 992 496 8.44 3.92

Niger seed 436.5 110.6 253 1.84 0.44

Linseed 525.5 212 403 2.22 0.84

Castor 732.2 801 1094 3.09 3.17

Safflower 349.2 128.3 367 1.47 0.51

Total 23699.2 25290 1067 100 100

Source: CMIE, Agriculture 2006

253

APPENDIX FIGURE 2.2

Area, Production and productivity of oilseeds in 2004

0

2000

4000

6000

8000

10000

12000

14000

16000Gro

undn

ut

soya

bean

Rap

esee

d/M

usta

rd

Ses

amum

sunf

lower

Niger

see

d

Lins

eed

Cas

tor

Saf

flower

Oilseeds

Are

a, P

rodu

ctio

n an

d Pr

oduc

tivity

Area(000Ha) Production(000Tonnes) Productivity

The table and diagram reveal the fact that ground nut, soyabean and

rapeseed consumes 75 % total area and 88% production of total production of oilseeds

in India. The productivity too is high in these oilseeds is a notable feature. The

percentage change in area, production and productivity of oilseeds in India during two

periods are given in the table 2.4. Their absolute figures of oilseed production in various

years can be seen in Appendix XI.

254

APPENDIX TABLE 2.4

Percentage change in area, production and productivity in two periods

Years % change (1986-87 over 1973-74) % change (2003-04over 1986-87)

Oilseeds Area Production Productivity Area Production Productivity

Groundnut -0.59 -0.96 -0.37 -14.09 39.26 62.11

soybeans 3080.8 2185.6 -28.14 325.53 782.1 107.29

Rapeseed/Mustard 7.57 52.83 42.07 44.87 137.95 64.26

Sesamum -9.31 -7.56 1.93 -18.02 79.36 118.8

sunflower 331.43 148.46 -42.41 95.6 136.25 20.78

Niger seed 6.26 -3.53 -9.22 -25.63 -15.7 13.34

Linseed -43.32 -37.17 10.85 -54.51 -33.04 47.21

Castor 5.67 0.52 -4.87 26.77 247.81 174.37

Safflower 45.36 84.5 26.97 -60.86 -63.6 -7.01

Total 10.2 20.03 8.93 27.24 124.41 76.37

Source: Computed from the Secondary data.

The oilseeds, which underwent a negative growth in production before 1986-

87, are groundnut, sesamum, niger seed and linseed. But after 1986-87, negative growth

is seen in the case of niger seed, linseed and safflower. It is a contrasting feature that

safflower and rapeseed are the crops which shows a positive sign of growth in area,

production and productivity before 1986-87 and safflower is the only crop which

shows a negative sign of growth in area , production and productivity after 1986-87

over our period of analysis. The 10.2 percent increase in area under oilseeds before

TMO leads to 27.24 percent increase after TMO. Similarly the productivity increases

from 8.93% to 76.37% and the production of oilseeds is increased tremendously from

20.03 % to 124.41% .The oilseeds which shows a quantum jump in area, production and

productivity are soyabean, rapeseed-mustard, sunflower and castor and the highest

255

increase in production occurred in case of soyabean (782.10%) and castor(247.81%).

The highest increase in productivity is seen in castor, sesamum, soybeans, and the

highest area increase is in soyabean, rapeseed and sunflower. The sources of growth in

production are imputed upon the contributions made by the growth in area and the

growth in productivity, and it is in the table and diagram.

APPENDIX TABLE 2.5

Sources of growth in production of major oilseeds (2003-04over1986-87)

Crops Increase in Production (%) Area effect Yield effect

Groundnut 39.26 -35.90 158.20

soybeans 782.10 41.62 13.72

Rapeseed/Mustard 137.95 32.52 46.58

Sesamum 79.36 -22.71 149.69

sunflower 136.25 70.17 15.25

Niger seed -15.70 163.21 -84.99

Linseed -33.04 165.00 -142.90

Castor 247.81 10.80 70.37

Safflower -63.60 95.69 11.02

Total 124.41 21.89 61.38

Source: computed

256

APPENDIX FIGURE 2.3

Sources of growth in production of oilseeds in 2004 over 1987

-150

-100

-50

0

50

100

150

200G

roun

dnut

soya

bean

s

Rap

esee

d/M

usta

rd

Ses

amum

sunf

low

er

Nig

erse

ed

Lins

eed

Cas

tor

Saf

flow

er

Tota

l

Oilseeds

Perc

enta

ge

Area effect Yield effect

The increase in production of groundnut and sesamum is mainly by the

contribution of yield increase as against the area increase in case of soyabean and

rapeseed-mustard. Again, the fall in the production of niger seed, linseed and safflower

is imputed upon the area fall rather than yield effect. However, it is worthwhile to note

that oilseed group as a whole has performed well due to productivity rather than area

increase.

2.2 Changes in cropping pattern

It is evident from the above analysis that the area, production and

productivity of oilseeds increased drastically as 27.24%, 124.41%, and 76.37%

respectively over the last 17 years. This raises certain fundamental questions: Is India

attaining this envious position at the cost of an adverse cropping pattern or Is India

marching for the dream of attaining self-sufficiency in edible oils at the cost of our

attained self-sufficiency in food grains. We can examine these possible outcomes by

257

analyzing the percentage changes in the area, production and productivity of major

crops in 2003-04 over 1986-87.The absolute figures of area, production and

productivity of theses crops in India is given in Appendix XII.

Analyzing the ratios in the table one finds that the area under the cultivation

of food grains, coarse cereals and pulses have reduced, where as the area under the

cultivation of oilseeds and sugarcane has increased substantially. It is interesting to note

that the area under coarse cereals has reduced by 30 percent and the area under oilseeds

has increased by 27 percent. It means that the increase in area under oilseeds has

occurred at the cost of coarse cereals and to some extent by the food grains. It can be

analysed by the decomposition of the growth in oilseeds production into its area and

yield effect and it is diagrammatically shown as follows.

Appendix figure 2.4

Sources of growth in production of various crops (2003-04 over 1986-87)

-150

-50

50

150

250

350

Food

gra

ins

Rice

Whe

atCo

arse

cer

eals

Puls

esSu

garc

ane

Gro

undn

ut

soyb

eans

Ra

pese

ed/M

usta

rdSe

sam

umsu

nflo

wer

Nige

r see

dLi

nsee

dCa

stor

Saf

flow

er

oils

eed

Area effect Yield effect

The decomposition results demonstrate that the yield increases account

for the major part of growth in the production of food grains, coarse cereals, rice and

wheat, while area increase account for much of the growth in production of various

258

oilseeds and sugarcane. However, when oilseeds as a whole is concerned the yield

effect is stronger than the area effect. A substantial contraction of area under coarse

cereals clearly indicates that the increase in production is solely attributable to the

improvement in yield. In contrast, the contribution of productivity to the increased

oilseed production is very little due to the miserable performance of linseed, nigerseed

and safflower. In a nutshell, we can conclude that the increased oilseed production is

achieved by reducing the area under the cultivation of coarse cereals and not by

strengthening the productivity of oilseeds especially in case of safflower, linseed and

nigerseed.

Even though the oilseed production has increased at the cost of our

cropping pattern, the TMO has failed to achieve the self-sufficiency in edible oil

production, and it is a debatable issue. The basic statistics relating to the edible oil

production of India in the last twenty years will help us to reach a solid conclusion. The

table shows that the country’s self-sufficiency eroded to around 62% from 98% in 1994.

Since 1995 when edible oil imports were liberalized, domestic oilseed based industry

has been going a daunting period. The last ten years have been characterized unsteady

domestic output; inexorable growth in domestic requirement, yet a persistent skew in

consumption pattern. 1

259

APPENDIX TABLE 2.6

Availability of Edible oils for human consumption

Year Domestic production Imports Total availability % of imports

1983-84 3282 1634 4916 33.24

1984-85 3446 1368 4814 28.42

1985-86 2964 1179 4143 28.46

1986-87 3049 1474 4523 32.59

1987-88 3463 1945 5408 35.97

1988-89 4735 1083 5818 18.61

1989-90 4567 324 4891 6.62

1990-91 4877 526 5403 9.74

1991-92 5022 226 5248 4.31

1992-93 5250 103 5353 1.92

1993-94 5397 114 5511 2.07

1994-95 NA NA NA NA

1995-96 6468 1161 7629 15.22

1996-97 7127 1406 8533 16.48

1997-98 6058 1266 7324 17.29

1998-99 6960 2622 9582 27.36

1999-2000 6015 4196 10211 41.09

2000-01 5499 4831 10330 46.77

2001-02 6300 4422 10722 41.24

2002-03 5500 5111 10611 48.17

2003-04 7100 4420 11520 38.17

Source: (1) DES,. GOI, New Delhi (Till 1995)

(2)Ministry of food consumer affairs public distribution system, Dept of public distribution New

Delhi(Till 2005)

(3)The Hindu Survey of Indian Industry 2006

260

APPENDIX FIGURE 2.5

Production and import of edible oils in india

0%10%20%30%40%50%60%70%80%90%

100%19

83-8

4

1985

-86

1987

-88

1989

-90

1991

-92

1993

-94

1996

-97

1998

-99

2000

-01

2002

-03

Years

Prod

uctio

n an

d im

port

in p

erce

ntag

e

Domestic production Imports

The import of edible oil production had decreased tremendously from

33.24% in 1983-84 to 2.07 % of total availability in 1993-94. From 1994-95 onwards

the import of edible oil bill shows an upward trend and reaches its highest peak of

48.17% in the history of Indian economy in 2002-03. Here arises a question. Is

government has set up the TMO to achieve self-sufficiency in oilseed production for

just five or six years (i.e. from 1989-90 to 1993-94) by compromising our favourable

cropping pattern? Over the last ten years, the percapita availability has gradually risen

from 6.5 kg to present 11 kg; yet the nutritionists recommend 16 Kg usage of edible oil.

Therefore, the country has some way to go before the need is satisfied. 2 In this

situation, if the policy makers are not vigilant with the increase in the production of

261

oilseeds by improving the productivity, the future import bill of edible oil should be an

alarming one. As against 97 percent self-sufficiency achieved in 1993, only about 62

percent of consumption requirements are now being met from indigenous sources and

this a serious situation and we should find a panacea for all these problems.

Referecnces

1. Chandrasekhar G., (2005): “The Hindu Survey of Indian Industry”, p 368

2. Chandrasekhar G., (2006): “The Hindu Survey of Indian Industry” p 283

262

HISTORY OF COCONUT

APPENDIX III

There are three views about the origin of coconut. According to the first, the

palm evolved from a stock, which gave rise to the American members of the genus

Cocos and originated in the northern end of the Anmdes in Tropical America from

where it was taken into the Pacific. The second view is that from a place of origin on the

coasts of Central America, the equatorial currents of the sea took it to the pacific

islands. According to the third, which is more generally accepted, it is assumed to have

originated in the South Asia or in the pacific from where it reached America.

References have been made on coconut in Reghuvamsa of Kalidasa and

Sangam literatures, which testify the antiquity of coconut over 3000 years in India.

However, its origin in India remains disputed. Marco Polo, the famous European

traveler who visited India in the 13th century called coconut the Indian nut and the logic

for such a reference needs investigation by historians.1

3.1 Legends of the divine palm

Rishi Viswamitra created the coconut tree by his spiritual strength and

arranged to produce a human child from it. Brahma, the Lord of creation worried about

the abuse and he appeared before Viswamitra along with Lord Vishnu and Lord Siva to

insist him to give up the idea of creating the human child out of the fruit of a tree by

263

making him aware of the consequences of such an act. The reasonable advice of Vishnu

touched the heart of Viswamitra and he agreed to refrain from creating the human child

from the fruit. Vishnu was pleased at the turn of Viswamitras mind and said “we shall

pay due regard to the fruit of the tree, which you have produced for the purpose of

creating a human child. You planned to create Nar (or the human being) hence, we are

giving it the name Narikel (coconut fruit). This coconut will be acknowledged as the

best of fruits in the world. No other fruit on the earth will be its equal. The man who

will be eating this fruit daily will turn out to be a great genius like you and he will be as

highly spirited and as a great saint as you are. This fruit will also be filled with sweet

water. This delicious water will cure the diseases of patients.”2 According to another

legend popular in Kerala, Sage Parasurama brought down the palm from Heaven for the

prosperity of the Keraliate. Whatever the truth may be, the palm is revered as a divine

tree and the palm products are used in religious functions throughout India. Guru

Nanak, the saint and the founder of Sikh religion considered coconut as the most

auspicious fruit fit for presenting to his disciple during the solemn occasion. It is

revealed from the writings of Gopal Singh as “Knowing his end to be near, Guru Nanak

anointed Bhai Lehna as his successor , placing five paisa and a coconut in front of him

and going round him four times”

3.2. Origin and history of coconut.

The coconut is the most familiar palm of the tropics. Yet, until now, its

origin was hotly disputed. It is now believed to come from the western Pacific and

spread via human activity and ocean currents to most of the topics. Today it is a

domesticated plant and has become an essential resource for food, shelter, fuel and

tools.

264

Coconut palms feature in Indian writings is dating back more than 2,000

years. The coconut is featured in early Sanskrit writings dating from the 4th century BC.

The palms are also frequently mentioned in early Tamil literature dating from by the

middle of 1st century AD to the 4 th century AD. Coconut is portrayed in the Hindu epic

stories Ramayana and Mahabharata and in Puranas. It seems to have been adopted quite

late into Aryan rituals. The people of Northern India might have become familiar with

the nut long after it was used in south. The origin of this plant is a subject of

controversy. Some authorities claim that it is a native of South East Asia, while others

claim that its origin is in Northwestern South America. Fossil records from New

Zealand indicate that small coconut-like plants grew there as far back 15 million years

ago. Even, older fossils have been uncovered in Rajasthan and Maharashtra in India.

Apart from the controversies of its origin, the coconut has spread across much of the

tropics, probably aided in many cases by sea-faring peoples. 3

There was a long controversy about whether Coconut Palm originates in

America or in the Cook Islands when the first Polynesians arrived. The first Western

record of Coconut Palms was in 545 A.D by Cosmos, an Egyptian, who saw them in

India and in Sri Lanka. Other reports followed, and Marco Polo found it in Indonesia in

1280. Vasco de Gama did not find Coconut Palms on the Atlantic coast of Africa nor in

southern Africa in his journey to India. His first record of ‘coquos’ was at Malindi in

Kenya. On his way to home, he left coconuts at Cape Verde, the first in the Atlantic.

In the 1490s, Columbus erroneously reported Coconut Palms in the

Caribbean. It is now concluded that Diego Corenco, a former pastor of Cape Verde,

introduced the first coconuts into the Caribbean to Puerto Rico in 1549. A recent

re-evaluation of early Spanish records has concluded that coconuts were pre-Spanish on

the Pacific coasts of Costa Rica, Panama and northern Colombia. The writers concluded

265

that coconuts had reached America naturally by floating or ancient voyagers might have

carried them.

In 1995, a fossil coconut fruit was reported in southern Queensland, which

showed that the Coconut Palm has been found for at least two million years. Two

million years is an ample time for a widespread dispersal of coconut as proposed by

Harries

The Cook Islands contribution to the debate is very significant. During the

1990s, Coconut Palm pollen was found in lake sediments on Atiu dated at 6,600B.C,

and in the lake sediments on Mangaia at 5,300BC. The earliest direct evidence of

Polynesian settlement in the southern Cook Islands is from Rarotonga on Motu Tapu at

around 900AD, with other islands a little later. The earliest indirect evidence of human

activity is on Mangaia at 500BC and on Atiu at 600AD. It is obvious that the Coconut

Palm pollen of Atiu and Mangaia greatly pre-dates settlement by people, and this

indicates that this palm is native in the Cook Islands. 4

References

1. Singh.H.P (1998)Coconut Industry in India-Challenges and opportunities,

Indian Coconut Journal, August, P4

2. Shrimat Swami Shivananda Saraswathy in Yogic Therapy,Re produced

from Indian Coconut Journal ,(Souvenir 2001)P113

3. Figueiredo, Cândido.(1940)_ Pequeno Dicionário da Lingua Portuguesa.

Livraria Bertrand. Lisboa 1940. (in Portuguese) ; wikipaedia

4. McCormack, Gerald (2005) The Origin of the Coconut Palm. Cook Islands

Natural Heritage Trust, Rarotonga. Online at

http://cookislands.bishopmuseum.org wikipaedia)

266

A BRIEF PROFILE OF THE

STUDY AREA – KANNUR DISTRICT APPENDIX IV

Kannur is a beautiful miniature of the picturesque state of Kerala. Now

history of Kannur commence since the arrival of Europeans. In 16th century Portuguese,

Dutch’s, English and French people landed at Kannur. In February 1766, Hyder Ali

invaded and subdued Kolathunadu, subsequently during his invasion, Tippu Sultan

subdued Malabar and Kannur being then in Malabar came under Mysore Regime. In

1792, the English people attacked and defeated Tippu Sultan and former Malabar

District was brought under British Regime.

The former Kannur district was carved out of the portions of Malabar district

and the Kasaragod Taluk of the Madras state, linked to Kerala as per the state Re-

organisation Act. There upon Ist January 1957 it was bifurcated for administrative

convenience, into three districts namely Kannur, Kozhikode and Palakkad. Then

Kannur district had six taluks namely Kasaragod, Hosdurg, Taliparamba, Kannur,

Thalassery and North Wayanad. On 1.1.1979, North Wayanad was linked to Wayanad

District. On formation of Kasaragod district, the taluks namely Kasaragod & Hosdurg

were de-linked from Kannur district and the present Kannur district was formed with

the remaining taluks namely Taliparamba, Kannur & Thalassery.

267

The district is bound by the western ghat in the East ((Kodagu district of

Karnataka), Kozhikode & Wayanad District in the South, Lakshadweep Sea in the west

and kasaragod District in the North. It is located between latitudes 11 degree 40 minute

and 12 degree 48 minute towards north and between longitude 75 degree 10 minute and

75 degree 57 minute towards east.

Payyannur in Kannur district is believed to be one of the 64 villages founded

by Lord Parasurama and one of the first regions in the state inhabited by Aryan

emigrants. As stated earlier Kannur district is comprised of 3 taluks and the area of the

district is 2967.97 Sq Kms. This is about 7.6% of the area of the state. There are 129

villages in the district. Based on the geological features the district may be classified

into three regions. Coastal region of about 157 Sq.Kms touching the Lakshadweep Sea,

midland comprised of small hills, sloped area and plain surface of about 1216.82

Sq.Kms and hilly forest area of about 1594 Sq.Kms. It is rainy season in the district

from June to August due to South-west monsoon and from September to November, due

to Northeast monsoon. From December to February it is cold season and from March to

the end of May the weather is hot.

There are 13 medium scale industrial units in the district. Handloom forms a

major portion of the industrial units in the district. The district is also well known for its

Beedi industry. Prohibition of smoking has adversely affected this industry recently.

The major Beedi company viz; Dinesh Beedi has adopted product diversification. In the

small scale sector there are 12206 industrial units as on 31-3-2001 out of which 2929

are textile based industrial units which forms a major portion (24%) of the total SSI

units. Population in Kannur district as per 2001 census in 24, 12,365 out of this 11,

54,144 are males and 12, 58,221 are females. This shows a sex ratio of 1090. Density of

268

population in the district is 813. During 1991-2001, the growth rate of population in the

district is 7.13 percent.

Total literates in the district are found to be 19, 88,014 out of which 9, 79,240

are males and 10, 08,774 are females. Literacy rate of the district is 92.80 (Percentage

of literates to the population aged 7 and above).The district has 9 development blocks,

81 panchayats, 6 Municipalities and one cantonment.

4.1. Agricultural scenario of Kannur District

Kannur is pre-eminently an agricultural district endowed with abundant

natural resources and a wealth of traditional skills for the production of the large variety

of agricultural crops. The district occupies a predominant position in respect of several

commercial crops like coconut, areca nut, rubber, cashew, lemon grass etc. The land

utilization pattern of Kannur district is also attempted by making a comparison with

other districts of the state in the table 3.1. As population increases and the state develop,

the area under barren land, cultivable wasteland, fallow and the current fallow land

should decrease, and the Net Area Sown (NAS) and Total Cropped Area (TCA) should

increase.

269

APPENDIX TABLE 4.1

From the analysis, one can see that Kannur, Wayanad, Kasaragod and Idukki

are the districts, which show a positive NAS, it exhibits the increasing cultivation of

long duration crops i.e. commercial crops, and thus the future agricultural development

of Kerala is depending upon the northern districts of Kerala especially Kannur and

Kozhikode. The contribution made by the Kannur district to the agricultural production

of Kerala elevates the position of the District. It shows that with 4.45% share of

geographical area, Kannur contributes 8.60% of TCA, 9.25% of NAS and feeds 7.58%

of population. The share in the production of Cashew nut, Arecanut and coconut is

substantial because these items contribute more than the share of TCA of Kannur to

Kerala.

Land utilisation pattern in Kerala (percentage change in 2004-05 over 1986-87)

Districts TGA

Barren

land

Cultivable

waste

land

Fallow

land NAS ASMO TCA

Trivandrum 218600 -81.55 -81.79 -30.55 -4.46 -40.78 -16.60 Kollam 251838 -67.69 -50.58 75.42 -4.52 -31.77 -13.87 Pattanamthitta 268750 -63.73 142.83 185.11 -11.92 341.10 8.60

Alappuzha 136058 -79.78 287.76 148.71 -7.71 -48.43 -23.39

Kottayam 219550 -35.63 60.39 88.39 -8.94 -14.23 -10.26

Idukki 514962 -84.57 -95.08 -57.35 37.48 130.70 51.44

Ernakulam 235319 -45.26 34.22 79.62 -11.53 -19.71 -13.80

Trissur 299390 -81.47 -45.46 92.46 -13.57 9.86 -7.41 Palakkad 438980 -71.41 -3.68 111.58 -8.57 27.59 2.74

Malappuram 363230 -71.05 -57.79 19.56 -3.93 137.58 16.16

Kozhikode 233330 -40.67 -50.13 -39.89 -3.89 104.07 15.06

Wayanad 212560 -89.06 -83.71 -41.69 2.76 160.24 40.36

Kannur 296797 -70.56 -38.17 -15.27 2.34 202.64 20.31

Kasaragod 196133 -30.84 -56.81 129.10 1.16 164.43 10.34

Total 3885497 -64.91 -45.91 147.53 -2.35 26.80 4.39

Source: computed from the Agricultural statistics of Kerala-1987& 2006

270

APPENDIX TABLE 4.2

4.2. Industrial scenario of Kannur District. As we know, the economy of the district is mainly agrarian in nature and is

considering as one of the industrially backward districts of Kerala.The district is world

famous for its high quality products like handlooms, Cashew nut, Beedi and companies

like Western India Ply woods, KELTRON, Baliapattam Tiles Works etc. The Kerala

Dinesh beedi workers Central Cooperative Society is recognized as one of the biggest

success stories of cooperative movement not only in the state but also in India.

The district has five minor industrial estates, one major industrial estate

at Palayad .The district possesses no such large-scale industrial units, and there are only

15 medium scale units and a preponderance of small-scale industrial units. The

important traditional and non- traditional industries are handloom, beedi, hosiery,

handicrafts, coir, cotton textiles, Plywood and timber, china clay units, agro based units,

Contribution of Kannur to Kerala Economy in terms of various indicators

Indicators Kerala Kannur % share of Kannur

TGA 6676198 296797 4.45

Population 31838619 2412365 7.58

TCA 2996293 257543 8.60

NAS 2154885 199414 9.25

ASMO 841408 58129 6.91

Rice 667105 17098 2.56

Pepper 74980 4716 6.29

Pulses 8390 555 6.62

Rubber 690778 54980 7.96

Cashew nut 60584 25230 41.64

Areca nut (Betal nuts Ton.) 110340 14743 13.36

Tapioca 2400043 66969 2.79

Coconut(million nuts) 6001 642 10.70

Source: Computed from Agricultural statistics- 2006

271

etc. An analysis of small-scale units in Kannur district is in the table 3.3 and it shows

the dismal performance of agro based units.

APPENDIX TABLE 4.3

Distribution of Small Scale industrial units in Kannur District

Industry No. Of Units Share

Agro based 1709 14.00

Forest based 1342 10.99

Animal husbandry 70 0.57

Textiles 2929 24.00

Chemical based 794 6.50

Engineering 2075 17.00

Minerals 75 0.61

Building materials 293 2.40

Others 2919 23.91

Total 12206 100

Source: Panchayat level Statistics,Govt. of Kerala.

In Kannur the share of agro based industries are low as compared to other

industries even though a plentiful supply of agricultural raw materials are available and

thus the district opens up the new prospects of agro based industries. Among the agro

industries bakery units, oil mills, rice and wheat flourmills, chappal units constitutes

major portion that shows the traditional nature of the units. Therefore, what is needed is

to encourage the entrepreneurs to start fresh modern units and it can be achieved

through relevant and proper policies by the government.

272

APPENDIX 5.1 Classification of Small Scale industries in Kerala (2001)

DISTRICTS Agro based

Rubber based

Plastic Based

Forest based

Animal Husbandry Textiles Chemical Engineering ElectronicsMinerals

Building materials others Total

TRIVANDRUM 951 257 225 792 31 1520 112 877 631 46 543 1278 7263 KOLLAM 2961 314 308 2233 143 2677 1208 1894 772 816 1031 2061 16418 PATTANAMTHITTA 604 269 92 365 95 1316 220 731 353 76 516 2138 6775

ALAPPUZHA 2582 116 196

1448 0 2525 116 1482 2118 0 625 5769 16977 IDUKKI 356 51 23 49 17 489 25 115 92 1 178 904 2300 KOTTAYAM 5061 326 84 1277 68 3373 651 1403 658 75 776 5724 19476 ERNAKULAM 4425 1729 3391 0 2684 2378 4964 1217 0 0 10038 30826 PALAKKAD 2365 176 146 1219 228 2805 579 2806 271 2 454 6243 17294 MALAPPURAM 950 169 83 697 106 518 68 531 167 22 221 1354 4886 WAYANAD 425 118 31 219 0 1287 269 304 143 44 252 567 3659 KOZHIKKODE 1258 14 0 1638 147 2622 1515 1784 531 69 479 5340 15397 KANNUR 1709 - - 1342 70 2929 794 2075 - 75 293 2919 12206 KASARAGOD 665 129 68 472 43 1200 176 665 254 294 111 1682 5759 THRISSUR N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A 7954 7954 TOTAL 24312 1939 2985 15142 948 25945 8111 19631 7207 1520 5479 53971 167190 Source:Panchayath level statistics,Govt.of Kerala.

273

APPENDIX 6.1

Source; Agricultural statistics of Kerala-1986-87 and 2004-05

Percentage change in area of various crops in various districts of Kerala between 1986-87 and 2004-05

Districts/crops Rice Pulses Food grains Cashew Sugarcane Pepper Tapioca coconut Tea Coffee Rubber

Trivandrum -79.58 -98 -81.37 -65.99 652.63 46.34 -59.86 11.31 -5.58 82.35

Kollam -72.74 -63.3 -72.33 -30.35 -88.61 89.3 -33.87 -6.3 109.67 S1.30

Pattanamthitta -66.95 -91.09 -67.53 -50.43 -91.55 32.81 -39.43 -16.89 -88.06 66.66

Alappuzha -52.6 -98.17 -53 -5.57 -83.35 -38 -66.15 14.65 0.76

Kottayam -60.83 -77.65 -61.8 -50.82 47.8 -13.68 -69.77 -17.48 -2.29 25.93

Idukki -55.31 -65.67 -56.16 14.83 30.71 184.53 -34.82 49.95 0.39 118.46 38.64

Ernakulam -65.17 -93.28 -65.85 -67.37 512.5 9.5 -55.22 -0.87 32.03

Trissur -59.4 -86.07 -60.16 -50.57 3280 53.51 -63.79 39.08 18.57 34.39

Palakkad -28.31 -46.27 -28.89 -58.12 29.7 384.74 -62.13 116.24 28.12 102.88 72.49

Malappuram -73.12 -73.12 -73.14 -50.3 12657.14 138.86 -66.98 73.06 62.76

Kozhikode -74.49 -87.35 -75.26 -13.49 8466.67 13.42 -21.99 22.04 7.87

Wayanad -62.23 60.97 -60.64 16.76 914.29 175.03 -6.96 207.74 2.88 21.1 20.28

Kannur -66.24 -77.2 -67.4 -32.17 278.26 39.46 -66.7 49.31 77.87

Kasaragod -73.33 -97.82 -74.64 -33.1 400 -19.35 -81.28 67.98 55.31

Total -56.32 -69.79 -56.58 -38.94 7.4 84.43 -54.12 27.36 1.16 28.95 38.19-

274

APPENDIX 7.1

Source; Agricultural statistics of Kerala-1986-87 and 2004-05

Percentage change in production of various crops in various districts of Kerala between 1986-87 and 2004-05

Districts/crops Rice Pulses Food grains Cashew Sugarcane Pepper Tapioca coconut Tea Coffee Rubber

Trivandrum -71.66 -85.6 -71.87 -59 -100 93.33 -39.03 65.6 -87.62 309.18

Kollam -62.32 -19.37 -61.37 -50.83 -97.19 148.05 7.07 30.59 15.32 148.54

Pattanamthitta -55.9 -77.45 -56.13 -75.55 -95.78 10.57 -18.84 -13.64 302.97

Alappuzha -33.37 -95.95 -33.65 -35 -81.95 -82.7 -46.09 29.64 89.18

Kottayam -51.71 -78.11 -52.39 -59.34 -86.46 32.1 -60.91 -7.43 50 197.55

Idukki -47.99 -66.08 -49.05 278.21 -30.47 682.31 9.86 107.14 -13.36 165.37 229.55

Ernakulam -58.42 -18.04 -58.08 -57.85 -93.84 16.02 -32.47 1.62 278.63

Trissur -38.96 -93.52 -39.65 -47.96 -61.54 15.25 -47.75 127.24 41.82 241.76

Palakkad -10.6 -46.38 -11.55 -52.56 -73.04 358.8 -29.81 503.51 38.47 111.56 432.4

Malappuram -61.81 -46.67 -61.68 -53.34 -16.22 34.67 -27.78 262.9 237.39

Kozhikode -66.34 -79.93 -66.93 17.15 -100 -22.83 83.53 62.05 100.81

Wayanad -49.4 60.2 -48.84 44.1 -72.97 160.68 40.13 1233.33 51.58 136.87 276.2

Kannur -55.8 -76.32 -57.01 -33.9 -46.28 -16.72 -53.99 149.81 467.86

Kasaragod -61.64 -78.1 -62.14 3.21 -87.3 -23.3 -70.15 216.11 335.06

Total -41.16 -58.18 -41.42 -31.71 -73.34 146.82 -27.1 89.13 -S1.64 130.57 241.75

275

APPENDIX 8.1

Percentage change in productivity of various crops in various districts of Kerala between 1986-87 and 2004-05

Districts/crops Rice Pulses Food grains Cashew Sugarcane Pepper Tapioca coconut Tea Coffee Rubber

Trivandrum 38.77 619.8 50.97 20.56 0 32.11 51.92 48.77 -86.89 124.4

Kollam 38.21 119.71 39.61 -29.41 -75.28 31.04 61.92 39.36 -45 151.8

Pattanamthitta 33.43 153.1 35.12 -50.67 -50.04 -16.74 33.99 3.92 141.79

Alappuzha 40.56 120.7 41.18 -31.16 8.4 -72.09 59.24 13.07 87.76

Kottayam 23.28 -0.04 24.65 -17.32 -90.84 53.03 29.29 12.18 53.52 136.27

Idukki 16.39 -1.21 16.2 229.37 -46.8 174.95 68.56 38.14 -13.7 21.47 137.7

Ernakulam 19.41 1119.48 22.75 29.2 -98.99 5.95 50.81 2.52 186.77

Trissur 50.32 -53.46 51.48 5.29 -98.86 -24.92 44.3 63.39 19.61 154.3

Palakkad 24.69 -0.2 24.38 13.29 -79.21 -5.35 85.34 179.09 8.08 4.28 208.65

Malappuram 42.06 98.38 42.67 -6.12 -99.34 -43.62 118.73 109.69 107.29

Kozhikode 31.93 58.71 33.69 35.42 -100 -31.96 135.27 32.78 86.17

Wayanad 33.97 -0.48 29.99 23.42 -97.34 -5.22 50.62 333.27 47.34 95.6 212.76

Kannur 30.93 3.87 31.89 -2.56 -85.8 -40.29 38.18 67.31 219.25

Kasargod 43.83 903.49 49.28 54.27 -97.46 -4.89 59.43 88.18 180.13

Total 34.69 38.45 34.91 11.86 75.18 33.83 58.9 48.5 2.77 78.81 147.3

Source;Agricultural statistics of Kerala-1986-87 and 2004-05

276

APPENDIX 9.1 Area, Production and Productivity of Coconut in various Panchayats of Kannur District

Panchayats Area Production Productivity Total Cropped

Area

%share of area

under coconut

% share of coconut

production

Irikkur

Eruvessy 868 7086000 8164 4485.58 0.89 1.09

Irikkur 265 1590000 6000 739.2 0.27 2.45

Kolachery 980 6860000 7000 1691.1 1.01 1.06

Kuttiyattoor 980 5880000 6000 3651.25 1.01 0.9

Malappattam 390 2730000 7000 1700 0.4 0.42

Mayyil 990 6682500 6750 2789 1.02 1.03

Padiyoor- Kalliyad. 1384 7225000 5220 11659 1.42 1.11

Payyavoor 860 6020000 7000 5782.5 0.88 0.93

Sreekandapuram 1100 5512500 5011 5916.62 1.13 0.85

Total 7817 49586000 6343 38580.6 8.04 7.63

Payyanur

Cheruthazham 1255 9440000 7522 3271 1.29 1.45

Eramam-Kuttoor 1065 7400000 6948 5609 1.1 1.14

Ezhome 790 2468750 3125 1345.9 0.81 0.38

KadannappaliPanappuzha 620 3517200 5673 4470.5 0.64 0.54

Kankole-Alappadamba 1400 7219000 5156 3729.7 1.44 1.11

Karivellur-Peralam 775 3500000 4516 1951.9 0.8 0.54

Kunhimangalam 1060 6492500 6125 1375.2 1.09 1

Madayi 1105 8840000 8000 1284 1.14 1.36

Mattool 1025 11799000 11511 1076.4 1.05 1.82

Payyanur 3360 16800000 5000 4652 3.45 2.58

Peringome-Vayakkara 3590 29925000 8336 15519.8 3.69 4.6

Ramanthali 612 5355000 8750 1210.04 0.63 0.82

Total 16657 1.13E+08 6769 45495.4 17.13 17.35

Taliparamba

Alakode 2060 17510000 8500 6999 2.12 2.69

Andoor 510 4462000 8749 1521.25 0.52 0.69

Chapparappadave 680 4216000 6200 6469.25 0.7 0.65

Chengalayi 385 1963500 5100 4845.5 0.4 0.3

Cherukunnu 458 2930000 6397 888.02 0.47 0.45

Kalliasseri 875 4462500 5100 1098.1 0.9 0.69

Kannapuram 620 4588000 7400 949.5 0.64 0.71

Kurumathur 390 3712800 9520 2947.25 0.4 0.57

Naduvil 4575 32575000 7120 12764 4.7 5.01

277

Narath 750 5250000 7000 963.3 0.77 0.81

Pappinisseri 1076 6950960 6460 1251.5 1.11 1.07

Pariyaram 700 4480000 6400 3988.2 0.72 0.69

Pattuvam 449 3812000 8490 1235.5 0.46 0.59

Taliparamba 278 700000 2518 911.5 0.29 0.11

Udayagiri 2240 19050000 8504 6796 2.3 2.93

Total 16046 1.17E+08 7271 53627.9 16.5 17.95

Peravoor

Kanichar 642 5617500 8750 4851.2 0.66 0.86

Kelakam 1227 10601280 8640 7571.65 1.26 1.63

Kolayad 785 4808000 6125 3768 0.81 0.74

Kottiyoor 1280 16800000 13125 8038.2 1.32 2.58

Maloor 816 9016800 11050 3515 0.84 1.39

Muzhakunnu 350 1680000 4800 2715.5 0.36 0.26

Peravoor 1114 6910000 6203 3676.5 1.15 1.06

Total 6214 55433580 8921 34136.1 6.39 8.53

Edakkad

Anjarakandy 1190 4900000 4118 1574 1.22 0.75

Chelora 1120 10080000 9000 1727.6 1.15 1.55

Chembilode 1860 13020000 7000 2184.95 1.91 2

Edakkad 1003 8500000 8475 1084.2 1.03 1.31

Elayavoor 580 4000000 6897 732 0.6 0.62

Kadamboor 780 6240000 8000 847 0.8 0.96

Munderi 1220 8540000 7000 1910.7 1.25 1.31

Muzhappilangad 515 3296000 6400 578.5 0.53 0.51

Peralasseri 1295 10360000 8000 1893.61 1.33 1.59

Total 9563 68936000 7209 12532.6 9.83 10.61

Kannur

Azhikode 1235 7200000 5830 1500.5 1.27 1.11

Chirakkal 1225 7710500 6294 1308.55 1.26 1.19

Kannur 730 525000 719 762.06 0.75 0.08

Pallikkunnu 495 3700000 7475 0.51 0.57

Puzhathi 755 4530000 6000 799.2 0.78 0.7

Valapattanam 38 380000 10000 45.65 0.04 0.06

Total 4478 24045500 5370 4942.1 4.6 3.7

Iritty

Aralam 850 5057500 5950 5568.4 0.87 0.78

Ayyankunnu 1070 7575600 7080 13823 1.1 1.17

Keezhallur 755 3600000 4768 2587 0.78 0.55

Kizhur Chavasseri 1555 9252250 5950 4855.5 1.6 1.42

278

Koodali 2240 11424000 5100 3716.11 2.3 1.76

Mattanur * 3445 27132525 7876 5463 3.54 4.17

Payam 475 1064000 2240 3883 0.49 0.16

Thillankeri 675 4428000 6560 2897.3 0.69 0.68

Total 11065 69533875 6284 42793.3 11.38 10.7

Thalassery 0

Chokli 955 7640000 8000 1072.95 0.98 1.18

Dharmadam 814 4150000 5098 904.5 0.84 0.64

Eranholi 752 6016000 8000 865.46 0.77 0.93

Kadirur 997 7478000 7501 1307.3 1.03 1.15

Kariyad 905 8470800 9360 1039 0.93 1.3

Kodiyeri 766 5745000 7500 814.95 0.79 0.88

kottayam 686 4116000 6000 843 0.71 0.63

New Mahe 385 2695000 7000 441 0.4 0.41

Peringalam 920 4600000 5000 1091 0.95 0.71

Pinarayi 1630 9190800 5639 1998.9 1.68 1.41

Thalasseri 1045 5600000 5359 1095.7 1.07 0.86

Total 9855 65701600 6667 11473.8 10.13 10.11

Kuthuparamba

Chittariparamba 1365 8190000 6000 3314.7 1.4 1.26

Kuthuparamba 1170 6142500 5250 1738.4 1.2 0.94

Kunnothparamba 1845 14529375 7875 2617.2 1.9 2.24

Mangattidam 2742 16794750 6125 3967.33 2.82 2.58

Mokeri 830 726250 875 1066.9 0.85 0.11

Panniyannur 835 6680000 8000 947.49 0.86 1.03

Panoor 725 4080000 5628 833 0.75 0.63

Pattiam 1825 5201250 2850 2948.8 1.88 0.8

Tripangottur 2005 13400000 6683 3176 2.06 2.06

Vengad 2215 11628750 5250 2681.05 2.28 1.79

Total 15557 87372875 5616 23290.9 16 13.44

KANNUR 97252 650028640 6684 266873 100 100

Source: Krishibhavan, Kannur

279

APPENDIX TABLE 10.1

PRESENT VALUE OF ANNUITY OF Re 1

280

281

APPENDIX 11.1

Source: CMIE, Agriculture, 2006

Area, production and productivity of oilseeds in India in various years

Years 1973-74 1986-87 2003-04

Oilseeds Area Production Productivity Area Production Productivity Area Production Productivity

Groundnut 7023.7 5932.2 845 6982.1 5875.4 841 5998 8182 1364

soyabeans 48 39 813 1526.8 891.4 584 6497 7863 1210

Rapeseed/Mustard 3456.8 1704.3 493 3718.6 2604.7 700 5387 6198 1151

Sesamum 2385.8 484.3 203 2163.8 447.7 207 1773.8 803 453

sunflower 237 169 713 1022.5 419.9 411 2000 992 496

Nigerseed 552.3 136 246 586.9 131.2 224 436.5 110.6 253

Linseed 2038.2 503.9 247 1155.3 316.6 274 525.5 212 403

Castor 546.6 229.1 419 577.6 230.3 399 732.2 801 1094

Safflower 613.8 191 311 892.2 352.5 395 349.2 128.3 367

Total 16902.2 9389 555 18625.8 11269.7 605 23699.2 25289.9 1067

282

APPENDIX 12.1

Source;CMIE, Agriculture , 2006

Area, Production and Productivity of various crops in India in 1986-87 and 2003-04 (A Comparison) Area Production Productivity Percentage change in 2003-04 over1986-87

Crops 1986-87 2003-04 1986-87 2003-04 1986-87 2003-04 area production productivity Area effect Yield effect

Food grains 127.3 123.3 146.47 213.5 11.51 17.32 -3.14 45.76 50.49 -6.87 110.33

Rice 41.15 42.5 60.91 88.2 14.8 20.75 3.28 44.8 40.2 7.32 89.73

Wheat 23.23 26.6 45.15 72.1 19.44 27.11 14.51 59.69 39.46 24.3 66.11

Coarse cereals 39.47 27.3 28.07 34.2 7.11 12.53 -30.83 21.84 76.15 -141.19 348.71

Pulses 23.44 23.4 12.34 14.9 5.26 6.37 -0.17 20.75 20.95 -0.82 100.99

Sugarcane 2.96 4 175.69 237.3 593.55 593.25 35.14 35.07 -0.05 100.19 -0.14

Groundnut 6.98 6 5.88 8.18 8.41 13.64 -14.09 39.26 62.11 -35.9 158.2

soybeans 1.53 6.5 0.89 7.86 5.84 12.1 325.53 782.1 107.29 41.62 13.72

Rapeseed/Mustard 3.72 5.39 2.6 6.2 7 11.51 44.87 137.95 64.26 32.52 46.58

Sesamum 2.16 1.77 0.45 0.8 2.07 4.53 -18.02 79.36 118.8 -22.71 149.69

sunflower 1.02 2 0.42 0.99 4.11 4.96 95.6 136.25 20.78 70.17 15.25

Niger seed 0.59 0.44 0.13 0.11 2.24 2.53 -25.63 -15.7 13.34 163.21 -84.99

Linseed 1.16 0.53 0.32 0.21 2.74 4.03 -54.51 -33.04 47.21 165 -142.9

Castor 0.58 0.73 0.23 0.8 3.99 10.94 26.77 247.81 174.37 10.8 70.37

Safflower 0.89 0.35 0.35 0.13 3.92 3.72 -60.86 -62.86 -5.1 96.82 8.11

oilseed 18.63 23.7 11.27 25.29 6.05 10.67 27.24 124.47 76.42 21.88 61.39

283

APPENDIX 13.1

Recent statistics of oil seed production in India

Years Production in Million tonnes

1960-61 7

1970-71 9.6

1980-81 9.4

1990-91 18.6

1999-2000 20.7

2000-2001 18.4

2001-2002 20.6

2002-2003 14.8

2003-2004 25.2

2004-2005 24.4

2005-2006 28

2006-2007 23.8

Source: Economic survey,2008

284

APPENDIX 14.1

All India Final Estimates of area and production of Coconut

2004-2005 (Revised) 2005-2006 (Final)

States /Union Territories

AREA ('000

Hectares)

Production (Million nuts)

Productivity (Nuts/ha)

AREA ('000

Hectares)

Production (Million nuts)

Productivity (Nuts/ha)

Andhra Pradesh 104 1199.3 11532 104.0 892.0 8577

Assam 21.3 154.3 7244 19.1 204.9 10728

Goa 25.2 123.5 4901 25.3 125.3 4953

Gujarat 16.4 138.3 8433 16.4 138.3 8433

Karnataka 385.4 1209.6 3139 385.4 1209.8 3139

Kerala 897.8 5727.0 6379 897.8 6326.0 7046

Maharashtra 18.0 273.4 15189 18.0 273.4 15189

Nagaland 0.9 1.2 1333 0.9 1.2 1333

Orissa 50.5 274.8 5442 50.8 274.6 5406

Tamil Nadu 357.1 3243.5 9083 370.6 4867.1 13133

Tripura 3.3 7.0 2121 3.3 7.0 2121

West Bengal 24.6 310.9 12638 24.9 323.5 12992

A & N Islands 25.6 87.1 3402 25.5 87.1 3416

Lakshadweep 2.7 53.0 19630 2.7 53.0 19630

Pondicherry 2.2 30.0 13636 2.1 27.9 13286

All India 1935.0 12832.9 6632 1946.8 14811.1 7608

Source: Directorate of Economics & Statistics, Ministry of Agriculture, Govt. of India.

285

Appendix - XIV

GOVT.COLLEG, KOTTAYAM

ECONOMICS RESEARCH CENTRE.

QUESTIONNAIRE

Survey on coconut oil milling industrial units.

I General Information

1. Name of the unit and address

2. Village Panchayath Block

3. When Set up

4. Ownership type (1-4)

Proprietorship Partnership Cooperative Any Other

5. Name of Owner :

6. Age :

7. Is the unit located near to the house :

8. If No, Distance of the unit from the house :

9 .Nature of activity -Manufacturing /Jobwork :

II Socio economic characteristics of the Entrepreneur

10. Did you start this enterprise :

11. If No, who did :

12. Prior occupation of the entrepreneur :

13. Father's Occupation :

14. Education of the entrepreneur :

15. Reasons for choosing this location :

16. Reasons for choosing this location :

286

III Linkages

17. Investment on plant and machinery :

18. Total Square feet of the Building :

19. Total Square feet of the Drying yard :

20. Number of days of credit while the supply of CNO :

21.Quantity of Copra stock :

22. Working Capital :

23. Where did you procure the equipment :

24. Where did you procure the tins,canns, pouches etc :

IV Raw material linkages

25. Where did you purchase copra :

26. Is raw material available through out the year :

27. If No, State the season :

V Consumption Linkages

28. Did you market your product your self :

29.If Yes, Whether-Local or non local :

30. Does your product faces competition :

31. If Yes ,Where :

VI Forward Production Linkages

32. Who uses your product :

Households Industry Others

33. With in Industry is it with whom :

34. Do you have a sub contracting arrangement with any one :

VII Labour linkages

35. Number of laboureres in the unit :

36. Number of males :

287

37. Average distance of the worker from the place of residence to the unit :

Worker I Worker II Worker III Worker IV Worker V Worker V

38. Wage per worker

Worker I Worker II Worker III Worker IV Worker V Worker V

39. Number of casual workers in the unit :

VIII Performance data

40. Type of machinery

Wooden Rotary 4 Bolt 6 Bolt 9 Bolt Oil mills

41. Installed capacity (in 8 Hours) :

42. Utilised Capacity :

43. Number of working days in a month :

IX Details of Production

44. Revenue Calculation

Copra Purchased Items Produced

Coconut Oil Oilcake

Quantity Value Quantity Value Quantity Value

45. Cost calculation :

46. Total raw material cost (Copra) :

47. Cost of Labour (Wages) :

48. Rent :

49. Electricity charges :

288

50. Water, Fuel, Oil etc. :

51. Taxes :

52.Transportation costs :

53. Commission :

54. Interest payments :

55.Others :

X Total cost of the unit

56.Profit of the unit :

57. Do you think demand for your product has grown in the past year :

58. If yes/No, why? :

59. What are your future plans :

60. To expand production to diversify new products to start another units

61. Are you aware of government policies of SSI? :

62. What should be done to make them more effective :

XI Problems facing

63. Whether you are facing any shortage of raw materials. If Yes, give details :

64. Whether you are facing any problems in marketing. If Yes, give details :

65. Whether the power cuts /Power failures affect the working of your unit :

66. Whether price fluctuations of copra and CNO affect your profitability :

67.Are you happy with the government policies with the milling Industry, If No, why? :

68.Any other problems (Specify) :

289

Appendix - XV

GOVT.COLLEG, KOTTAYAM

ECONOMICS RESEARCH CENTRE.

QUESTIONNAIRE

Survey on the Consumption Pattern of Coconut oil by various families

1. Name :

2. Number of members in your family :

3. Land possessed :

4. Number of coconut palms :

5. Production of coconut in an year :

6. Type of oil used

Coconut oil alone All oils other oils only

7. Why do you prefer this? :

8. If coconut oil, from where do you get it?

Shop Oil mills Crushing copra

9. If from shop, which oil do you purchase? :

Tin oil Branded

10. How much do you purchase? :

11. If crushing, how much copra is crushed in an year? :