PRODUCTION AND MARKETING OF PIGEONPEA IN ANDHRA PRADESH AND MAHARASHTRA STATES OF INDIA A SYNTHESIS

PRODUCTION AND MARKETING OF PIGEONPEA IN ANDHRA PRADESH AND MAHARASHTRA STATES OF INDIA A SYNTHESIS DRAFT REPORT RG Deshmukh, VK Chopde, VR Kiresur, MCS Bantilan and KC Hiremath International Crops Research Institute for the Semi-Arid Tropics (ICRISAT ) 1

PART-I: PRODUCTION OF PIGEONPEA CHAPTER I: INTRODUCTION Pigeonpea is an important pulse crop in semi-arid tropics of Andhra Pradesh and Maharashtra States. It is a versatile crop and is ideally suited for drought-prone areas. It is a fast growing crop with extensive root system. Its tap root system allows optimum utilization of soil moisture and soil nutrients. It is endowed with diverse useful characteristics and is a multipurpose crop it occupies a pride of place in rainfed farming; it is used as food, feed and fuel; it is grown across slopes to reduce soil erosion; with its high protein content, it is used as an ideal supplement to traditional cereals, it being a leguminous crop fixes atmospheric nitrogen to fortify fertility benefit equivalent to about 40 kg of nitrogenous fertilizer per ha and its heavy shedding adds considerable organic matter to the soil. It is not only a cash (commercial) crop but also a staple food crop. Its area and production, however, are highly fluctuating year after year on account erratic, scanty and uneven rainfall; high infestation of pests and diseases and highly varying market prices. Being a drought tolerant crop, pigeonpea is being raised as a sole main crop in Andhra Pradesh State, while it is grown as an inter-crop and subsidiary crop in Maharashtra State with cotton, sorghum and/or greengram as the main crops. It is interesting to note that pigeonpea is being grown as a sole crop in Andhra Pradesh State, whereas it is raised as a subsidiary and intercrop in 2

Maharashtra State. But achieving the higher and more stable yields remains the prime and high priority objective of both the states. An in-depth study of production of pigeonpea was instituted both in Andhra Pradesh and Maharashtra states to know the problems and prospects of pigeonpea as an enterprise. Specific Objectives of the study: The study was undertaken in both the states of Andhra Pradesh and Maharashtra with the following specific objectives:- (1) To analyse the trend in area, production and productivity of pigeonpea; (2) To evaluate the resource use efficiency; (3) To study the cropping patterns, sources of income and adoption of new production technologies; (4) To identify market outlets of pigeonpea; (5) To determine marketing margins, marketing constraints, preferred traits of pigeonpea etc. of market functionaries; (6) To bring out the economic implications of salient findings of the study; and (7) To recommend policy prescriptions, among others 3. Hypotheses: The following hypotheses were formulated for testing:- (1) There is a significant growth in the area, production and productivity of the pigeonpea crop in the study districts; 3

(2) The sources of growth in the pigeonpea crop production have changed over the years; (3) Improved varieties of pigeonpea have higher yields and more stable yields compared to the traditional varieties both in normal and drought years; (4) Improved varieties of pigeonpea dominate due to lack of better alternatives; (5) The current varieties of pigeonpea cultivated by farmers are economically viable; (6) Farmers are aware of the seed quality parameters; (7) Wages offered in the National Rural Employment Guarantee Project are adversely affecting labour cost and labour availability for crop production on farmers field; (8) For pigeonpea the major factors influencing adoption of new varieties are the yield potential, resistance to pests and diseases and seed availability. (9) There are several constraints pertaining to seed availability (quantity, quality, time and prices) which hinder the adoption of improved varieties; (10) The existing seed delivery system of pigeonpea constrains the technology adoption. (11) Incorporation of preferred traits in the pigeonpea crop improvement programmes will foster adoption; (12) Different stakeholders along the value chain are willing to pay premium prices for preferred traits in the pigeonpea varieties; 4

(13) There are various channels of marketing pigeonpea; (14) Farmers mostly sell their pigeonpea produce through Regulated Markets; (15) Producer s share in consumer s rupee is high, if sold through regulated markets; (16) There is significant value addition to pigeonpea along the value chain; (17) There are several constraints in the marketing of pigeonpea; (18) Improved technologies affect the existing gender division of labour in the community; (19) Increased incomes due to adoption of new technology improves household food security and nutritional status; (20) Women s participation in production and marketing activities is significant; and (21) Women also play a significant role in on-farm operations, in decisionmaking and in utilization of resources. 5

CHAPTER-II: METHODOLOGY 1. Sampling Plan The Rangareddy and Mahabubnagar districts of Andhra Pradesh State, and the Akola district of Maharashtra State, which fall not only under the semi-arid tropics and drought prone areras but also have relatively more area under the pigeonpea crop, were purposively selected for the Baseline Survey and in-depth study. Tandur and Basheerabad Mandals from the Rangareddy district and also Kondangal Mandal from the Mahabubnagar district of Andhra Pradesh State, and Akola and Murtijapur Talukas from the Akola district of Maharashtra State were selected at random for the study and they raised relatively more of pigeonpea crop. The availability of infrastructural facilities in the form of Research Stations too played a role in the selection of these Mandals and Talukas. Six adopted at the rate of one village from the Tandur Mahal and one village from the basheerabad Mahal of the Rangareddy district and also one village from the Kondangal Mahal of the Mahabubnagar district of Andhra Pradesh State; and one village from the Akola Taluka and two from the Murtijapur Taluka of Maharashtra State were selected at random. Thus, the six adopted so selected were (1) Old Tandur from the Tandur Mandal, and also (2) Parwathapally from the Basheerabad Mandal from the Rangareddy district, and (3) Kondangal from the Kondangal Mahal of the Mahabubnagar district of Andhra Pradesh State, and (4) Agar from the Akola Taluka and (5) Kanjara and (6) Sirso from the Murtijapur Taluka of the Akola district of Maharashtra State. 6

Likewise, for each of these six adopted one neighbouring village enjoying almost identical agro-climatic conditions was selected at random as the control. Thus, the six control so selected were; (1) Mittabasapally for Old Tandur, (2) Domarched for Parvathapally and (3) Huanabad for Kondangal of Andhra Pradesh State, and (4) Ujwa for Agar, (5) Kinkheda for Kanjara and (6) Jitapur for Sirso of Maharashtra State. The census data on operational size of landholdings was gathered from each of these 12 sample (six adopted and six control ), and the farmers in each of these 12 sample were classified into four farm size groups, namely, (1) Marginal farmers, (2) Small farmers, (3) Medium farmers and (4) Large farmers based on the size of operational landholdings according to the standard definition. 30 sample farmers from each of the six adopted were selected at random on probability proportionate to the number of farmers falling in each of the four farm size groups. Thus, in all, 180 sample farmers were selected at random for the six adopted by using multi-stage stratified random sampling technique and to ensure equal representation to different farm size groups, the sample farmers were chosen at random with the probability of proportionate to the number of farmers falling in each of the four farm size groups. Likewise, 15 sample farmers for each of the six sample control were chosen at random. Thus, in all, 90 sample farmers were selected at random for the six sample control. 7

So, in all, 270 sample farmers (180 sample farmers from the six sample adopted plus 90 sample farmers from the six sample control ) were selected at random by using the multi-stage stratified random sampling technique with probability proportionate to the number of farmers falling in four different farm size groups. Thus, a panel of 270 sample farmers from the states of Andhra Pradesh and Maharashtra constituted the interviewees for eliciting the necessary primary data. The summary of selected sample farmers is given in Table Zero. State District Mandal Name Sample size Name Sample size Andhra Tandur Old 30 Miltabas 15 Pradesh State Rangareddy district Mandal Basheera- Tandur Parvatha 30 Pally Domarched 15 bad Mandal Pally Mahabubnagar Kondangal Kondangal 30 Huanabad 15 district Mandal Sub Total 90 Sub Total 45 Maharashtra Akola Akola Agar 30 Ugwa 15 State district Taluka Murtijapur Kanjara 30 Kinkheda 15 Taluk Sirso 30 Jitapur 15 Sub Total 90 Sub Total 45 Grand Total 180 Grand Total 90 2. Nature & Sources of Data and Analytical Tool: The study was based not only on primary data but also on secondary data. The primary data was collected from the panel of 270 sample farmers from the 12 sample from the State of Andhra Pradesh and Maharashtra through the personal interview method by using a well-designed and pre-tested comprehensive questionnaire containing several modules. 8

The necessary secondary data was gathered from various sources such as the Directorate of Economics and Statistics, Hyderabad for Andhra Pradesh State and Mumbai for Maharashtra state and 12 village Accountants from 12 sample (six sample of Andhra Pradesh State plus six sample of Maharashtra State). The analytical tool used was simple tabular analysis. 9

CHAPTER-III: SOCIO-ECONOMIC AND DEMOGRAPHIC PROFILE OF SAMPLE FARMERS The socio-economic and demographic characteristics did influence the decision-making process in respect of crop selection, cropping pattern, crop management practices, adoption of modern technologies, farm investment activities, income pattern etc. Hence, these characteristics were studied indepth. The various socio-economic and demographic features of sample farmers were analysed and discussed with a view to providing the necessary background for proper understanding of the economic implications of the salient findings of the study both in Andhra Pradesh and Maharashtra States in correct perspectives. 1. Distribution of Sample Farmers According to Farm Size: The distribution of sample farmers in Andhra Pradesh and Maharashtra States, according to the farm size, is presented in Table-1. The large farmers constituted the bulk of sample farmers in Andhra Pradesh State, while in Maharashtra State, the marginal and small farmers formed the majority. In Andhra Pradesh State, the proportion of farmers increased with increase in the farm size, whereas it declined as the farm size declined. The landholdings were relatively larger in Andhra Pradesh State compared to those in Maharashtra State. 2. Gender-wise Distribution of Land Ownership: 10

The gender-wise distribution of land ownership in Andhra Pradesh and Maharashtra States is detailed in Table-2. The land ownership, in general, was vested with the men both in Andhra Pradesh and Maharashtra States. Among the sample farmers in Andhra Pradesh State only one woman owned the landholding in the small farmers group, while several women were the owners of the marginal small and medium farms. However, it was interesting to observe that no woman in Andhra Pradesh State as well as in Maharashtra State owned any land in the category of large farmers. In general, the land ownership by women tended to diminish with increase in the farm size and it was reduced to zero in the case of large farms both in Andhra Pradesh and Maharashtra states. 3. Distribution of Sample Farmers According to Age: The average age of sample farm owners, according to the farm size both in Andhra Pradesh and Maharashtra States, is given in Table-4. The average age of farm owners was found to increase with increase in the farm size in Andhra Pradesh State, whereas it was decreasing in Maharashtra State. The farm owners, in general, had rich experience in farming in both the states as the average age of the farm owners was about 42 years in Andhra Pradesh State, while that of the farm owners in Maharashtra State was 52. 4. Educational Status of Sample Farm Owners: The educational status of farm owners was measured in terms of the number of years of schooling completed by the sample farm owners. Its 11

distribution in Andhra Pradesh State and Maharashtra State is given in Table-5. The average educational status increased with increase in the farm size in Andhra Pradesh State from 3 years in marginal farmers to 9.5 years in large farmers. The large farmers were better educated in Andhra Pradesh. The average educational status also tended to increase with increase in the farm size in Maharashtra State wherein the marginal farmers had the lowest education status of 6.67 years, while the large farmers had the highest educational status of 8.33 years. The farm owners, in general, had better educational status in Maharashtra State compared to that in Andhra Pradesh State. 5. Participation of Sample Farmers in Local Bodies: The participation of sample farmers both in Andhra Pradesh State and Maharashtra State in local bodies is detailed in Table-6. In Andhra Pradesh State almost all farm size categories of farmers participated in local bodies, while in Maharashtra State only the large farmers category was able to participate in the local bodies. The democracy was more prevalent in Andhra Pradesh State, whereas in Maharashtra a sort of bureaucracy prevailed where only the large farmers were allowed to participate in the local bodies. It was quite evident that in Maharashtra State the size of landholding was the determining factor for participation of farmers in the local bodies. 6. Caste Composition of Sample Farmers: 12

The caste composition of sample farmers in Andhra Pradesh and Maharashtra States is presented in Table-8 and Table-9. As the farm size increased, the backward caste and forward caste became more dominant in Andhra Pradesh State, indicating that the large farms were owned by the backward caste and forward caste, while the marginal and small farms were largely owned by scheduled castes and scheduled tribes. Likewise in Maharashtra State also backward castes and forward castes owned larger farms, while the marginal and small farms were mostly owned by scheduled castes and scheduled tribes. A few larger farms were owned by scheduled caste and scheduled tribe farmers in Andhra Pradesh, whereas no scheduled caste and scheduled tribe farmers owned any larger farms in Maharashtra State. In both the states, however, the proportion of scheduled castes and scheduled tribes declined with increase in the farm size, while that of backward castes and forward castes increased. 7. Religion-wise Distribution of Sample Farmers: The religion-wise distribution of sample farmers in Andhra Pradesh and Maharashtra States is presented in Table-10 and Table-11. Both in Andhra Pradesh and Maharashtra States, the Hindu Community owned most of the landholdings, while the ownership of landholdings by the Muslim Community, was numerically small. The Muslim Community, however, owned small, medium and large farms in both the States but there number was meagre. 13

8. Occupational Structure of Sample Farmers: The occupational structure of sample farmers of both Andhra Pradesh and Maharashtra States is described in Table-12 and Table-13. Agriculture as the main occupation, generally, tended to increase with increase in the farm size both in Andhra Pradesh and Maharashtra States, while business and services were the main occupation in the marginal and small farmers in both the states. The relatively smaller farm size groups in both the states relied more on diverse occupations in order to see that both the ends met. 9. Distribution of Sample Farmers According to Secondary Occupations: The distribution of sample farmers, according to the secondary occupations in Andhra Pradesh and Maharashtra States, is detailed in Table-14 and Table-15. Both in Andhra Pradesh and Maharashtra States, the secondary occupations tended to diminish with increase in the farm size. In other words the farmers who had no secondary occupations increased with increase in the farm size. In both the States, the secondary occupations increased with decrease in the farm size and agriculture was the secondary occupation for a large number of marginal and small farmers. 10. Average Family Size across Farm Size: The distribution of sample farmers, according to the average family size in Andhra Pradesh and Maharashtra States, is given in Table-16. In Andhra Pradesh state the average family size increased with increase in the farm size as also in Maharashtra State. In Andhra Pradesh State, it rose from 5.17 in marginal 14

farmers to 6.33 in large farmers, while in Maharashtra State from 5.5 in marginal farmers to 6.5 in large farmers. 11. Land Ownership Pattern of Sample Farmers: The land ownership pattern of sample farmers in Andhra Pradesh and Maharashtra States is presented in Table-17. In both the states, a large proportion of land ownership consisted of dryland and a small proportion of irrigated land; and the portion of irrigated land increased with increase in the farm size. 12. Pattern of Ownership of Farm Implements: The farm size-wise pattern of ownership of farm implements in Andhra Pradesh and Maharashtra States is detailed in from Table-18 to Table-24. In Andhra Pradesh State, the marginal farmers and small farmers possessed a large number of tractors, Bullock carts, sprayers, harvester, trucks, autos, etc. for the purpose of custom hiring in order to meet both ends because for most of them agriculture was a secondary occupation. Similarly, the marginal and small farmers in Maharashtra State owned a fairly large number of farm implements for the purpose of custom hiring. These farmers were earning a substantial income by hiring out their farm implements. In Maharashtra State, the rental income was the highest source of income, and in Andhra Pradesh State, it formed the third highest source of income. The custom hiring had become an attractive profession in both the states for all the farm size groups of farmers. 13. Distribution of Durable Assets Among Sample Farmers: 15

The distribution of durable assets among the sample farmers of both Andhra Pradesh and Maharashtra States is detailed from Table-25 to Table-34. In both the states all the farmers possessed residential houses and TV or radio and most of them owned two-wheelers. Practically all the farmers had fans. The total value of durable assets increased with increase in the farm size. 14. Financial Assets and Liabilities of Sample Farmers: The financial assets and liabilities of sample farmers of Andhra Pradesh and Maharashtra States are presented in Table-35. In Andhra Pradesh State, though the institutional credit constituted the major source of finance, the private money lenders had lent almost an equal sum of money. The friends & relatives and private finance companies formed an important source of finance, lending of fairly substantial sum of money. In Maharashtra State also the institutional credit constituted the most important and predominant sources of credit. The amount of money borrowed from private moneylenders was the least. In Andhra Pradesh State, most of the savings were in the form of LIC policies and Bank deposits, whereas in Maharashtra State, the savings were in the farm of bank deposits, followed by LIC Policies and Post Office Saving Schemes. 15. Average Interest Rates Charged by Public Institutions, Private Institutions and Individuals: The average interest rates charged by public institutions, private institution and individuals in Andhra Pradesh and Maharashtra States are given in Table-36. 16

In Andhra Pradesh State, the cooperatives charged on an average an interest rate of about 10.5 percent per annum, the Nationalised Banks at about 11.8 percent, the private moneylenders at about 25 percent, the private finance companies at about 35 percent and Friends and Relatives at about 30 percent, while in Maharashtra State, the cooperatives charged at about 7 percent, the Nationalised Bank at about 6.5 percent and private moneylender at 10 percent. The interest rates charged in Andhra Pradesh State were much on the higher side and abnormal as compared to those in Maharashtra State where the interest rates were quite rational and moderate. 17

CHAPTER-IV: RESULTS AND DISCUSSION 1. Area, Production and Productivity of Pigeonpea: During the period from 1970-71 to 2007-08, the area under pigeonpea in Andhra Pradesh state had been on the increase and it rose to an extent of 1,34,000 ha, registering a growth rate of 2.85 percent. The pigeonpea production increased to 1,00,000 tonnes recording a growth rate of 5.57 percent and the productivity was 292 kg per ha registering a growth rate of 2.46 percent. It was both area and productivity led growth in Andhra Pradesh State. Adoption of improved varieties of pigeonpea namely, Abhaya, Asha, Maruti, Lakshmi, Durga, LRG-30, and LRG-41 contributed immensely for the enhancement of productivity, in particular in Andhra Pradesh State. During the long period from 1950-51 to 2006-07, the area in Maharashtra State increased from 2.18 m.ha to 3.63 m.ha, recording a net increase in area of 66.5 percent, while the production rose from 1.13 m.tonnes to 2.77 m.tonnes, registering a net increase in production of 145 percent. The productivity of pigeonpea increased from 448 kg per ha to 867 kg per ha, showing a net increase in the yield of 93.53 percent. In Maharashtra State also it was area and yield led growth. Here also adoption of improved varieties of pigeonpea on a fairly large scale added largely to enhancement of productivity of pigeonpea. Thus both in Andhra Pradesh and Maharashtra states it was area and yield led growth due largely to the adoption of improved varieties of pigeonpea on a large scale. 18

2. Major Sources of Annual Net Income of Sample Farmers: The major sources of annual net income of sample farmers in Andhra Pradesh and Maharashtra States are shown in Table-37. In Andhra Pradesh state, the income from crops formed the highest source of income and rightly so, constituting more than 50 percent of the total annual income, followed by the aggregate livestock income, whereas the rental income obtained from hiring out farm implements constituted the highest source of income in Maharashtra State forming about 30 percent of the total annual income, follows by the income from crops which was about 15 percent of the total annual income. It was interesting to note that in Andhra Pradesh State the income from crops was the dominant source of income, while it was the second highest source of income in Maharashtra State where the rental income fetched the highest income and formed surprisingly the most profitable enterprise. The partial mechanization of agriculture had been in full swing in Maharashtra State on account of nonavailability of adequate labour for time-bound agricultural operations. The rental income, obtained from hiring out farm implements, has been, of late, coming up fast in Andhra Pradesh State also in view of the scarcity of labour for timely agricultural operations at the peak period, while in Maharashtra state livestock industry was upcoming and bringing substantial income to the farmers in the State. 3. Cropping Pattern of sample Farmers: 19

The cropping patterns practised by sample farmers in Andhra Pradesh and Maharashtra States are detailed in Table-38. In Andhra Pradesh State the major crops in the kharif seasons were pigeonpea, cotton, blackgram, castor, greengram, sorghum, paddy as sole crops and in the rabi season rabi sorghum, safflower, paddy and chickpea as sole crops. Pigeonpea was being grown as a sole crop mostly under rainfed conditions with gross returns ranging from Rs.7218 from the local variety to Rs.8480 from the improved variety of pigeonpea, LRG-30. Several improved varieties of pigeonpea such as Asha, Arun, Abhaya, Durga, Lakshmi, LRG-30, LRG-41 and Maruti were being raised under rainfed conditions. The interesting point to note was that pigeonpea was being raised as a sole crop of Andhra Pradesh State unlike in Maharashtra State where it was being grown as an inter-crop with cotton, sorghum and greengram as main crops and largely under rainfed conditions. In Maharashtra State, the major crops raised in the kharif season were cotton+greengram+pigeonpea, cotton+pigeonpea, sorghum+ pigeonpea, cotton+sorghum+pigeonpea and greengram+pigeonpea as inter-crops, and in the rabi season, rabi sorghum, wheat+sunflower and chickpea+sunflower. The important point to note was that pigeonpea was raised as an inter-crop and mostly under rainfed conditions. Only a few improved varieties of pigeonpea such as Maruti, Asha and Ganesh were grown as inter-crops along with cotton, sorghum and greengram as the main crops in Maharashtra State. It was important note that the pigeonpea was being raised throughout Maharashtra State as an inter-crop and a subsidiary crop unlike in Andhra Pradesh State where pigeonpea was being grown a sole crop and an entire crop. 20

In Andhra Pradesh State, the cultivation of LRG-30 improved variety of pigeonpea, LRG-30 as a sale cross brought the highest gross return of Rs.8480 and in Maharashtra State, the contribution of cotton+sorghum+pigeonpea fetched the maximum gross return of Rs.10112 under the rainfed condition, and that of sorghum+pigeonpea brought in a gross return of Rs.14450 under the irrigated condition. 4. Consumption Pattern and Expenditure of Sample Farmers: The annual consumption pattern and expenditure of sample farmers in Andhra Pradesh and Maharashtra States are detailed in Table-39. The farmers is the study area of Andhra Pradesh state were mainly rice eaters, and the rice constituted 75 percent of the cereals and millets consumed by them. They also consumed at the same time an exceedingly large quantity of pigeonpea which formed more than 68 percent of the total pulses consumed by them. Whereas, the farmers in the study area of Maharashtra State were mainly wheat eaters, and the wheat formed 70 percent of the cereals and millets consumed by them, and they also consumed at the same time large quantity of pigeonpea which constituted more than 40 percent of the total pulses consumed. These were the distinctive features of farmers in both the study areas the farmers of Andhra Pradesh State were mainly rice eaters and those of Maharashtra State were mainly wheat eaters and both ate plenty of pigeonpea dal. 5. Reasons for Growing Pigeonpea: 21

The reasons for growing pigeonpea in Andhra Pradesh and Maharashtra States are stated in Table-40. The most important reasons for growing the pigeonpea crop in Andhra Pradesh and Maharashtra States were that it fetched very high income as a cash crop to the farmers and it was best suited to their marginal lands. It also incurred low input costs and it restored soil fertility as a leguminous crop, capable of fixing atomospheric nitrogen directly into the soil. It was being consumed as food, feed and fuel. The pigeonpea crop was being grown every year but in different pieces of land each year both in Andhra Pradesh and Maharashtra States (Table-41). 6. Crop Rotation followed by Sample Farmers: The crop rotation followed by sample farmers of Andhra Pradesh and Maharashtra states is presented in Table-42. In Andhra Pradesh State, in most of the cases pigenopea succeeded pigeonpea and in seldom cases it succeeded chickpea and sorghum crops, while in Maharashtra State, it succeed a variety of crops such as chickpea, wheat, wheat+gram, and wheat+safflower. In Maharashtra State, however, a good rotational system was followed, while in Andhra Pradesh State pigeonpea followed pigeonpea in most of the cases. 7. Change in Area of Pigeonpea crop during the Last Five Years: The change in the area of pigeonpea crop as conceived by the sample farmers of Andhra Pradesh and Maharashtra States is presented in Table-43. In Andhra Pradesh State, the farmers were under the impression that the area under pigeonpea was constant or increasing, whereas the farmers in 22

Maharashtra state thought that the area was either constant or decreasing. Most of the farmers in both the states conceived that the area under pigeonpea was constant during the last five years. 8. Crops Replacing Pigeonpea during the Last Five Years: In Andhra Pradesh state, sorghum and blackgram crops were found to replace the pigeonpea crop, whereas in Maharashtra State, soyabean and greengram crop were reported to be replacing the pigeonpea crop (Table-44). Of late, soyabean has been picking up very fast in Maharashtra State. 9. Whether Pigeonpea was Grown as Sole Crop/Intercrop/Mixed Crop: In Andhra Pradesh State, pigeonpea was being grown as sole crop, while in Maharashtra State it was being raised as inter-crop (subsidiary crop) with cotton, sorghum, soyabean and greengram as the main crops(table-45). 10. The Year in which the Area under Pigeonpea was Maximum: In Andhra Pradesh State the area under pigeonpea was maximum in 2006-07, while in Maharashtra State it was maximum during the year 1974-75 (Table- 46). 11. Average Yield of Pigeonpea in Good and Bad Years: In Andhra Pradesh State the improved yield obtained was about 506 kg per acre in good year and 228 kg per acre in drought year, while in Maharashtra State it was 554 kg per acre in good year and 354 kg per ha in drought year (Table-47). 23

12. Area under Different Improved Varieties of Pigeonpea during the Last 3 years: In Andhra Pradesh State the improved variety Asha occupied the maximum area in 2006-07, while in Maharashtra State. Maruti occupied the maximum area in 2004-05 (Table-48). Maruti was the first improved variety of pigeonpea to be introduced in 2001-02 in Andhra Pradesh State and it occupied the peak area in 2006-07, whereas it was introduced in Maharashtra State in 1999-2000 and it occupied the peak area in the year of its introduction itself (Table-49). 13. Step followed by sample Farmers in Selecting Seeds from their Own Crop and Precautions Exercised in their Preservation: The steps followed by the sample farmers in selecting seeds from their own crops and precautions exercised in their preservation in Andhra Pradesh and Maharashtra States are listed in Table-50 and Table-51 respectively. The steps followed by farmers in selecting seeds from their own crops and precautions exercised in their preservation were practically the same both in Andhra Pradesh and Maharashtra States. There was no difference whatsoever. 14. Factors considered by Sample Farmers, when Purchasing Seeds of Pigeonpea: The factors considered by the sample farmers of Andhra Pradesh and Maharashtra States, when purchasing seeds of pigeonpea are stated in Table-52. The prime factors considered were the market prices and brand name in Andhra Pradesh State, while in Maharashtra State they were brand name first and 24

market prices second. Therefore, pricing of pigeonpea seeds and brand names mattered most both in Andhra Pradesh and Maharashtra States. There was greater need to price the pigeonpea seeds as low as possible and make them available in sufficient quantities of quality seeds in both the States. 15. Major Constraints confronting Sample Farmers in Purchasing Pigeonpea Seeds: The major constraints confronting farmers in purchasing pigeonpea seeds in Andhra Pradesh and Maharashtra States are given in Table-53. Lack of information about the variety of seeds recommended for the concerned areas, non-availability of the required variety of pigeonpea seeds, high pricing of pigeonpea seeds, non-availability of credit sale facility and the need to travel long distance to purchase pigeonpea seeds were the major constraints confronting farmers. Of them, the non-availability of required branch name, high pricing and non-availability of credit sale facility constituted the greatest handicaps and they mattered most in both the states. The quality seeds of pigeonpea must be made available in plenty, and credit sale facility must be available to facilitate farmers to purchase pigeonpea seeds in adequate quantities. Furthermore, the seed depots must be opened at the village level itself in order to avoid the need for farmers to travel long distances for purchasing pigeonpea seeds. 25

16. Major Pests and Diseases Affecting Pigeonpea: The major pests and diseases attacking the pigeonpea crop in Andhra Pradesh and Mahaashtra States are given in Table-54. Both in Andhra Pradesh and Maharashtra States, the pod borers among pests and the Fusarium wilt among diseases played havoc in the production of pigeonpea. They occurred every year in epidemic form and caused tremendous losses. Therefore, the breeding of pigeonpea cultivars resistant to pod borers and wilt has been a dire necessity and a major challenge to our plant breeder vis-àvis to the ICRISAT, Hyderabad. The causes for the occurrence of these pests and diseases in Andhra Pradesh and Maharashtra states are stated in Table-57. Growing pigeonpea every year without any break and raising pigeonpea varieties which were susceptible to these pests and diseases in both the states were the predominant causes. Unless the pigeonpea cultivars, which were totally resistant to these specific pests and diseases were evolved and adopted, it would be a recurring feature every year. The measures adopted by farmers for controlling these pests and diseases in Andhra Pradesh and Maharashtra States are detailed in Table-58. The application of insecticides and fungicides and traditional control measure were found to be effective in both the States. 17. Sources of Information Availed by Sample Farmers on Measures Against Pests and Diseases: 26

The sources of information availed of by the sample farmers in Andhra Pradesh and Maharashtra States on the control measures as to what to apply, when to apply, how to apply and how much to apply are given in Table-59. In Andhra Pradesh State one s fellow farmers constituted the major source of information on the control measures, whereas it was news papers in Maharashtra state. The frequency of these means of communication should be increased to make them more effective and news papers must be made cheaper and their circulation must be physically increased. 18. Constraints in Cultivars of Pigeonpea: The cultivars in pigeonpea, including the improved ones in Andhra Pradesh and Maharashtra States, suffered from the low yields, small grain size, high pest and diseases incidence, poor taste, long duration of the crop, low shelling percentage, etc. (Table-60). The constraints expressed by the farmers should be eye openers for the R&D of the ICRISAT, Hyderabad and the respective State Governments to concentrate their efforts in enhancing crop yields, developing resistance power to pests and diseases, reducing duration of the crop, increasing the grain size, bringing about better taste, enhancing recovery percentage etc. These improvements in the cultivars of pigeonpea should be given top priority in the research agenda. 19. Preferred Traits in Cultivars of Pigeonpea: The preferred traits in respect of production, consumption, fodder values and marketing view points as conceived by farmers of Andhra Pradesh and 27

Maharashtra states are expressed in Table-61 to Table-64. By and large the preferred traits were just the opposite of the defects and deficiencies found in the existing cultivars of pigeonpea in respect of production, consumption, fodder and marketing. These preferred traits served as a good feedback to the ICRISAT, Hyderabad, and the state Governments of Andhra Pradesh and Maharashtra to act and support farmers in achieving their desired goals. 20. Incorporation of Preferred Traits in Cultivars of Pigeonpea and Payment of Premium Prices by Sample Farmers: The percentage of premium prices the farmers of Andhra Pradesh and Maharashtra States were willing to pay are presented in Table-65. The farmers from Andhra Pradesh State were willing to pay a premium price of about 20 percent more than the existing price, whereas the farmers from Maharashtra State were prepared to pay a premium price ranging from about 30 percent to 50 percent more than the ruling price. The farmers from Maharashtra state were more enthusiastic and prepared to pay much higher premium prices for the incorporation of preferred traits in cultivars because they suffered must from the defects and deficiencies in that existing cultivars. The farmers, in general, were in favour of bringing about radical improvements in the new cultivars of pigeonpea. 21. Utilization of Pigeonpea Produce: 28

The variety-wise utilization on pattern of the pigeonpea produce in Andhra Pradesh and Maharashtra states is given in Table-66. More than 95 percent of the pigeonpea produce in Andhra Pradesh state was sold out and the rest was used as food, feed and seed purposes, while nearly 90 percent of it was marketed in Maharashtra state and nearly 9 percent was for home consumption. Pigeonpea constituted as a cash cropand a staple food crop in both the states. 22. Market Outlets of Pigeonpea: The places of marketing of pigeonpea produce in Andhra Pradesh and Maharashtra states are given in Table-67. In Andhra Pradesh state, the pigeonpea produced was sold out solely in the Regulated Markets directly to the commission agents, whereas in Maharashtra State it was mostly sold out in the Regulated Markets and partly in the village markets. Though the prices obtained in the Regulated were much higher in Maharashtra state, additional marketing costs had to be incurred, while no marketing costs were incurred in the village sales. 23. Time of Sale of Pigeonpea Produce by Sample Farmers: The time of sale of the pigeonpea produce by farmers of Andhra Pradesh and Maharashtra States is given in Table-68. A great majority of the farmers from Andhra Pradesh State sold their pigeonpea produce immediately after the harvest to have cash on hand to repay the loans and to meet the household financial obligations, while an overwhelming majority of the farmers from Maharashtra State marketed their pigeonpea produce for the same reasons, 29

besides the lack of storage facilities at home compelled them to sell their pigeonpea produce. In both the states, there was an urgent need for creation of scientific storage facilities at the village level itself in the form of rural godowns. This would enable the farmers not only to store their pigeonpea produce for better prices but also to get pledge loans. 24. Duration of Storage and Structures Used for Storing Pigeonpea Produce by Sample Farmers and Precautions taken: The duration of storage and the structures used for storing the pigeonpea produce by farmers of Andhra Pradesh and Maharashtra states are presented in Table-69. In Andhra Pradesh State, some of the farmers stored the pigeonpea produce for about a month in the gunny bags in their houses, while the farmers of Maharashtra State some farmers stored for over a month after the harvest in their houses in the gunny bags. The number of farmers, who stored the pigeonpea produce, was marginal in both the states. This showed the urgency of creation of rural godowns at the village level to store for better prices and to obtain pledge loans to meet their urgent financial needs. The pigeonpea produce was stored in clean gunny bags to allow free aeration. The pigeonpea produce was mixed with neem leaves in traditional manner, besides spraying gamaxine periodically apart from using aluminum phosphide capsule. 25. Sources of Information on Market Prices: 30

The sources of information about market prices for the farmers of Andhra Pradesh and Maharashtra States are spelled out in Table-71. In Andhra Pradesh State, one s relatives, friends and fellow farmers constituted the major source of information on market prices and partly commission agents also formed an important source of market prices, whereas in Maharashtra state, the news papers were the main source of information about market intelligence and information. 26. Advantages and Disadvantages of Sale of Pigeonpea Produce to Commission Agents at the Regulated Markets and Village Markets. The advantage and disadvantages of marketing the pigeonpea produce to commission agents at the Regulated Markets and Village Markets in Andhra Pradesh and Maharashtra States are listed in Table-72. In Andhra Pradesh state, where the entire marketable surplus was sold out to commission agents stationed at the Regulated Markets, there were some advantages for example, the commission agents provided credit to the farmers as and when required, besides the early settlement of their accounts and correct weighment. There were also some disadvantages, for example, the prices offered were slightly low, payment of interest on the credit borrowed and at times, the payment of sale proceeds were delayed. In Maharashtra State where Village Sales of the Pigeonpea produce dominated, the advantages were spot payment of sale proceeds, and no marketing costs were incurred, while the major disadvantage was that the village rates were definitely much lower than the rates at the Regulated Markets. 31

27. Gender Issues: The gender issues in the (i) pigeonpea cultivation, (ii) ownership of resources, (iii) decision-making with respect to different resources and (iv) utilization of resources in Andhra Pradesh and Maharashtra States are detailed in Table-73 to Table-76. The issues are almost identical in both the states. Land preparation, selection of variety of pigeonpea, inter-culture operations, harvesting, transport of pigeonpea produce and seed selection & storage were the prerogative of men. In hand weeding operations women participated significantly, while sowing seeds and threshing & winnowing operations were decided jointly. The assets such as land, livestock and farm implements were generally owned by men. Men had a major role to play in inputs management such as credit, seeds, fertilizers and pesticides, while use of labour both own and hired labours were jointly decided. Women had a major say in household maintenance, children s education the children s marriage and migration matters women were generally consulted and these matters were jointly settled. 28. Sources of Information to Farm Women on New Technologies: The sources of information to farm women on new technologies in Andhra Pradesh and Maharashtra States are given in Table-77. IN Andhra Pradesh State, one s relatives, friends and fellow farm women constituted the major source of information on new production technologies and new agricultural programmes, while in Maharashtra state the news papers served the purpose. The sources of 32

information were precisely the same as in the case of farm men in the respective states. 29. Constraints Confronting Farm Women in Pigeonpea Cultivars Selection: The constraints confronting farm women in the selection of pigeonpea cultivars in Andhra Pradesh and Maharashtra States are given Table-78. In both the states the major constraints confronting the farm women were low yields, high pests and diseases incidence, long duration, small size, dull coloured grains, poor taste and low recovery percentage. These were precisely the same constraints expressed by the farm men both in Andhra Pradesh and Maharashtra States. Both farm men and women thought alike and they were on the same wave length. The farm women were also willing to pay premium prices, if the cultivars were to include their preferred traits (Table-83). 30. Preferred Traits, of Farm Women in Pigeonpea Cultivars in respect of Production, Consumption, Fodder-Production and Marketing-Purpose: The preferred traits of farm women in the cultivars of pigeonpea in respect of production, consumption, fodder-production and marketing-purpose in Andhra Pradesh and Maharashtra States are presented in Table-79 to Table-82. They were mainly high yields, short duration, drought resistance, resistance to pests and diseases and high recovery percentage in respect of production; better taste, less cooking time and high keeping quality from the consumption view point; more fodder quantity, more portability and more durability from the angle of 33

fodder production; and high demand, higher prices and bigger sized grains from marketing view point. These were precisely the same preferred traits of farm men in both the states. Both farm men and farm women in both the states thought alike and expressed the same preferred traits in respect of production, consumption, fodder-production and marketing-purpose. 31. Input-output Analyses of Pigeonpea: The results of input-output analyses of pigeonpea in Andhra Pradesh and Maharashtra States are presented in Table-84. In Andhra Pradesh state, the pigeonpea production as the sole crop was economically viable and substantially profitable, while in Maharashtra state, it was a losing concern as the inter-crop and as the subsidiary crop in view of the soaring prices of purchased agricultural inputs, and the income from crops was the second highest source of total income in view of recurring droughts in the study area in Maharashtra State. 32. Cost & Return Structures of Improved Varieties of Pigeonpea: The cost and return structures of Asha and Abhaya under rainfed conditions in Andhra Pradesh State and those of Maruti, Asha and Ganesh under rainfed conditions and also of Maruti and Asha under irrigated conditions are presented in Table-85. These improved varieties of pigeonpea in both the states were economically viable and substantially profitable, and their benefit-cost ratios were greater than unity. The net returns from Asha and Abhaya varieties, though grown under the rainfed condition, were substantial as the sole crops, whereas the net returns from Maruti, Asha and Ganesh were marginal under 34

rainfed conditions in Maharashtra State where they were grown as the inter-crop and subsidiary crop. 35

PART-II: MARKETING OF PIGEONPEA CHAPTER-I: INTRODUCTION Agricultural marketing is a study of all marketing activities, agencies and policies involved therein. It includes the movement of agricultural produce from the farmers to consumers. Our farmers have now become more market-oriented and sell most of their pigeonpea produce in the Regulated Markets. Earlier, most of the farmers used to sell most of their pigeonpea produce in their own to the commission agents and/or traders visiting their for buying the pigeonpea produce at the mutually agreed prices, and the payment was made on the spot. The farmers now realize that the pigeonpea produce would fetch a higher price, if it were to be sold in the Regulated Markets. Farmers, however, feel that they are not getting a remunerative price for their produce. The farmers complain that, though the agricultural input prices have more than doubled in the last few years, the pigeonpea price have not risen even by 10 percent. Lack of storage facilities at the household and immediate need for cash on hand to repay the loans and to meet other domestic financial obligations compel the farmers to sell their pigeonpea produce soon after the harvest, when the market prices are at the low ebb, because the market arrivals then are far greater than the demand for it. Such a situation is bound to depress the market prices. This phenomenon, unfortunately, is a common recurring situation every year, and the farmers are at a receiving end. 36

Marketing of pigeonpea has not received as much attention as it reserves. The Regulated Markets are generally controlled by the market functionaries. With the gradual displacement of subsistence farming by commercial farming, the marketing system has assumed paramount importance in recent years. The pattern of movement of pigeonpea produce from the farmers to the consumers plays a crucial role in determining the returns to the farmers. To increase the operational and pricing efficiency, to rationalize marketing margins and to reduce the marketing costs an understanding of the nature and extent of existing marketing margins, marketing costs, price spread, etc. is very essential. Once the existing marketing problems are identified, proper measures can be effected to solve the burning problems of agricultural marketing. With this end in view, an in-depth study of marketing of pigeonpea in the Regulated Market, Tandur of Rangareddy district of Andhra Pradesh and the Regulated Market of Akola of Akola district of Maharashtra was instituted. This study has been of great relevance and practical significance for establishing an orderly marketing system to enable farmers to get their due share in the consumer s rupee. Otherwise, increased production of pigeonpea would not serve any purpose and sustain it. 2. Specific Objectives of the Study: The following specific objectives were formulated for the study:- 37

(1) To identify the structure and composition of market functionaries operating in the pigeonpea markets in Tandur and Akola. (2) To evaluate the conduct and performance of various marketing functionaries. (3) To break down the marketing margins into different components, and estimate the share of producer in the consumer s rupee and (4) To suggest appropriate measures for improvement of the marketing system, among others 3. Hypotheses: The following hypotheses were formulated for testing:- (1) There are various channels of marketing pigeonpea; (2) There is a significant value addition to pigeonpea along the value chain; (3) There are several constraints on marketing of pigeonpea; (4) The consumers have preferred quality traits for pigeonpea; and (5) The consumers face several constraints on the consumption of pigeonpea. CHAPTER-II: METHODOLOGY 1. Sampling Plan: In order to achieve the objectives of the study, the market functionaries were first divided into four categories, namely, (1) commission agents, (2) 38