Journal of FARM SCIENCES, Vol 25, No 4 (2012)

Font Size:  Small  Medium  Large

Supply response of Arecanut in Karnataka state

Kirankumar R. Patil, B.L. Patil, H. Basavaraja, L.B. Kunnal, J.S. Sonnad, Y.N. Havaldar

Abstract


The supply behaviour of farmers become important to probe into several aspects like, whether the increase in production is area led (extensive cultivation) or yield led (Intensive cultivation) and the factors responsible for this increase in area and yield, which in turn contributes to the increase in the output supply. Hence, present study was conducted with the objective to analyze the degree of supply response of recanut with respect to price and non-price factors in the six selected districts of Karnataka. Data used for the study was collected from various published sources. Nerlovian adjustment lag model was employed for analyzing the degree of supply response of arecanut. The model explained more than 90 per cent of variation in the dependent variable in all the districts and for the state as a whole. The expected price was found to be positive and significant in Tumkur district, Uttar Kannada district and state as a whole. Among the short run and long run price elasticities , long run price elasticites were found more, signaling the acreage adjustment would normally take place in long run. Area under arecanut in lagged year was found to be an important variable influencing farmer’s decision on acreage allocation. The regression coefficient for price risk factor appeared negative in all the cases, revealing risk averse nature of growers. While coefficient of rainfall factor observed positive indicated a positive relation between acreage and rainfall. The elasticities of area with respect to price risk and rainfall factor were found very low and indicated its inelastic nature, while long run elasticities ranged between -0.02 to -0.64 for price risk factor and between -0.61 to 3.5 for rainfall factor.

Full Text: PDF