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Green revolution, white revolution, and a bright future: lessons from Tamil Nadu, India

Green revolution, white revolution, and a bright future: lessons from Tamil Nadu, India. Kei Kajisa (IRRI & FASID) Venkatesa Palanichamy (TNAU). fodder. Crop. Livestock. Farmyard manure (FYM). Background (1). Positive interactions between crop and livestock sectors.

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Green revolution, white revolution, and a bright future: lessons from Tamil Nadu, India

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  1. Green revolution, white revolution, and a bright future: lessons from Tamil Nadu, India Kei Kajisa (IRRI & FASID) Venkatesa Palanichamy (TNAU)

  2. fodder Crop Livestock Farmyard manure (FYM) Background (1) • Positive interactions between crop and livestock sectors. • Differential impacts of FYM (Rasmussen et. al, 1998; Dawe, et. al., 2003; Edmeades, 2003; Hati et al., 2007)

  3. Background (2) • Retail price of chemical fertilizer is very high. • Examples: price (US$) of 50 kg of chemical fertilizer in 2006 • Kenya: 24.6 • Mozambique: 27.5 • Botswana: 39.5 • Ghana: 19.5 • Egypt: 6.7 • Int’l mkt: 17.9 (urea in 2007) • Role of locally produced FYM as substitute for chemical fertilizer • Upland cereals are the staple crops for many African countries

  4. Research Issue • It is important to consider how to incorporate livestock sector into ag development strategy for Africa • Paucity of empirical research that explore the impact of crop sector development and livestock sector development together. • TN has experienced GR (1970s~) and WR (1980s~). • Using TN data, we investigate • How has the farming system changed over time? • What are the impacts? (by crop, by soil type) • How have they contributed to the poverty alleviation?

  5. Data Cost of Cultivation of Principal Crops (CCPC) scheme in Tamil Nadu

  6. Findings from recent CCPC data (1993-2003) • A direct impact of FYM application exists only for upland cereals but not for paddy. • An indirect impact through an increase in the marginal product of chemical fertilizer is observed for both paddy and upland cereals, particularly when soil quality is inherently poor. • The impacts are spatially constrained within a village where dairy sector development has taken place because FYM markets are not integrated beyond the villages due to its non-tradable attribute.

  7. Key Hypotheses • The development of dairy sector increases the supply of FYM. • Productivity and profitability of crop farming increase faster (or does not decline faster) over time in the areas with the dairy sector development than in the areas without it. • The above feature is more clearly observed for upland cereals than for lowland paddy, as well as for poor soil type areas than for rich soil type areas. • Dairy development contributes to poverty alleviation in poverty prone area (cultivating upland cereal under poor soil condition).

  8. Descriptive stat (1)

  9. Descriptive stat (2)

  10. Descriptive stat (3) • Change of per capita HH income from 93-95 to 2001-03. Income: Rs. in 1973 value

  11. Econometric Approach • yijt=f(Xijt, Djt; aij aj) • yijt: yield (paddy/cc), profit (paddy/cc), HH income of HH i in village j in year t • Xijt: determinants of HH • Dj: village-level indicator of dairy sector development • a: fixed effects • Can we safely assume Dj is exogenous to each individual?  IV method?

  12. Thank you very much

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