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AN ECONOMIC ANALYSIS OF PRICE BEHAVIOUR OF RICE IN GUNTUR DISTRICT OF ANDHRA PRADESH

KrishiKosh

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Title AN ECONOMIC ANALYSIS OF PRICE BEHAVIOUR OF RICE IN GUNTUR DISTRICT OF ANDHRA PRADESH
 
Creator GOVARDHANA RAO, G
 
Contributor PAUL, K. S.R
 
Subject marketing, rice, costs, markets, productivity, exports, biological development, seasons, economics, tillage equipment
 
Description The present study entitled “An Economic Analysis of Price Behaviour of
Rice in Guntur District of Andhra Pradesh” was conducted with the specific
objectives (1) to study the trends and relationship in the behavior of minimum
support price, farm harvest prices and cost of cultivation of rice in Andhra
Pradesh, (2) to study trends, seasonal and cyclical variations in market prices of
rice in Guntur district and Andhra Pradesh and forecast the same, (3) to study the
domestic and export competitiveness of rice (4) to study the farmers and millers
perception on remunerative price for rice.
The primary data was collected from the total sample of 90 rice growing
farmers and 30 rice millers to know the perception regarding the remunerative
prices for rice in Guntur district. The present study relates to the agricultural year
2010-11.
The secondary data regarding the MSP, FHP and cost of cultivation of rice
were obtained from various issues of Agricultural Statistics at a Glance, CACP,
Department of Agriculture and Cooperation, Government of India and
www.indiastat.com.
The data on monthly wholesale prices of rice in Andhra Pradesh and
Guntur market were collected from various statistical bulletins published by the
Directorate of Economics and Statistics, Hyderabad and monthly reports of
Guntur Agricultural Market Committee.
The data pertaining to rice exports was collected from Agriculture
Statistics at a Glance of various years, DGCI&S, Kolkata, Centre for Monitoring
Indian Economy (CMIE) reports and FAO, database.
Analytical tool employed in the study were: exponential function to
estimate growth trends, Multiplicative model has been used to estimate the trend
and seasonal variations in market prices and 12 months moving average method
was used to construct the seasonal indices. Box-Jenkins model was used to
forecast the future prices. Nominal Protection Coefficient (NPC) was used
estimate the export competitiveness of rice. Garrett’s ranking technique was used
to analyze the problems encountered in the unviable prices for the produce of rice.
The salient findings are presented below.
The overall per cent of MSP, FHP, cost of production, cost of cultivation of
rice had increased by 387.8, 368.6, 331.3 and 428.4 per cent respectively. The
overall per cent change in MSP was higher than the per cent change in FHP, cost
of production, cost of cultivation of rice in Andhra Pradesh. The overall growth
rate of cost of cultivation was marginally lower than the MSP but higher than the
cost of production and FHP. The growth in farm harvest prices was greater than
the cost of production (C2) per quintal and thus profit has significantly positive in
growth when compared to MSP margin allowed over cost of production of rice in
Andhra Pradesh.
The annual increase in wholesale prices of rice in Andhra Pradesh was Rs.
44.53 per quintal where as in Guntur market it was Rs. 49.38 per quintal. The
month wise seasonal index was lowest on the month of April, May and highest in
the month of September, October in Andhra Pradesh and Guntur district
respectively. Thus, the farmers could receive the better price by postponing the
sale of produce during the month of January to June to later months of the year.
The forecasts of rice wholesale prices were found to be fairly accurate and
showed increased trends in both Andhra Pradesh and Guntur district.
The growth rate of rice exports during the overall period registered positive
growth rate for volume, value and unit value. The export competitiveness of rice
showed moderately export competitiveness.
The rice growing farmers expressed higher input cost was the prime reason
for unviable price followed by low minimum support price, inadequate storage
facilities, inadequate marketing facilities and lack of market information, lack of
timely procurement by Govt. agencies etc.
 
Date 2016-06-21T12:15:13Z
2016-06-21T12:15:13Z
2012
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/67577
 
Language en
 
Relation D9377;
 
Format application/pdf
 
Publisher ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY