| Abstract |
The research entitled “Economic impact of climate change and adaptation<br/>strategies in black pepper (Piper nigrum L.) cultivation in Kerala” was conducted in<br/>Wayanad and Idukki districts. The objective of the study was to quantify the impact<br/>of climate change on black pepper, to understand the adaptation practices followed by<br/>farmers to overcome climate change and to study the extent of governments’<br/>compensation to farmers due to weather extremes. Secondary data regarding area<br/>production, productivity and climatic variables were collected for Idukki and<br/>Wayanad districts for the period 1987-2016.<br/>Secondary data on compensation<br/>provided by government due to weather extremes were collected only for Wayanad<br/>district for the period 2005-2016 and primary data were confined to Wayanad district<br/>for the agricultural year 2015-2016.<br/>Panel data analysis was done to identify the climatic variables that are<br/>influencing the production, binary logit regression was fitted to understand the<br/>socioeconomic variables influencing adoption of adaptation practices, ABC cost<br/>concepts were used to calculate the annual maintenance cost of pepper farmers, Cobb<br/>Douglas production function was fitted to calculate the allocative efficiency of the<br/>resources, Garrett ranking technique to determine the constraints faced by pepper<br/>farmers and compound annual growth rate was calculated for the compensation given<br/>by the government during weather extremes to know the growth trend.<br/>From the panel data analysis, it was found that average temperature during Q3<br/>(July – September) and Q4 (October – December) had a negative and significant<br/>impact on the production of pepper.<br/>A one percent increase in the average<br/>temperature during Q3 will decrease the production by 3.41 per cent and a one<br/>percent increase in the temperature during Q4 will decrease the production by 2.69<br/>per cent. Rainfall during Q2 (April – June), which coincides with flowering of<br/>pepper, was found to have positive effect on production but was statistically<br/>insignificant.<br/>Binary logit regression analysis was done to identify the socioeconomic<br/>variables influencing adaptation practices followed by adopters. Number of year of<br/>experience in pepper farming was found to be statistically significant which had<br/>positive influence. From, the estimated partial elasticity, 1 per cent increase in year<br/>of farming experience in pepper will increase the probability of adopting adaptation<br/>practices by 0.99 per cent. Odds ratio obtained was 5.68 for year of experience in<br/>pepper farming. It indicated that farmers with more number of years of experience<br/>are likely to adopt adaptation practices five times higher than the farmers who have<br/>less experience.<br/>Cost A1 for the adopter farmers was `1,68,959.65 ha-1. Out of this, hired labour<br/>accounted for 39.30 per cent, followed by manures, fertilizers and soil ameliorants<br/>which was 21.13 per cent. Cost A2, Cost B and Cost C were `2,04,584.65 ha-1,<br/>`2,51,241.35 ha-1, and `2,79,533.43 ha-1respectively. In non adopter farmers Cost A1<br/>was `1,56,149.14 ha-1.<br/>Out of this, hired labour accounted for 41.87 per cent,<br/>followed by manures, fertilizer and soil ameliorants 22.14 per cent. Cost A2, Cost B<br/>and Cost C were `1,93,649.14 ha-1, `2,42,160.42 ha-1, and `2,65,117.63 ha-<br/>1<br/>respectively. At Cost C, adopter farmers had 5.43 per cent more cost of cultivation<br/>per hectare than non adopter farmers. Gross returns of adopters and non adopters was<br/>`4,50,363.87 ha-1 and `3,10,953.04 ha-1 respectively.<br/>B-C ratio at Cost C for<br/>adopters was 1.61 and for non adopters it was 1.17.<br/>The allocative efficiency, in adopter and non adopter farmers, family labour<br/>was used sub optimally. Plant protection chemicals were underutilized and manures<br/>and fertilizers were over utilized by adopters, whereas both plant protection<br/>chemicals and manures and fertilizers were over utilized by non adopters.<br/>Garrett ranking technique was used to rank the major constraints faced by the<br/>farmers. Increase in high incidence of pest and disease and high labour cost were the<br/>major production constraints faced by adopters and non adopters respectively.<br/>Fluctuation in market prices was the major marketing constraint for both categories of<br/>farmers. High cost of adaptation practices and lack of knowledge about adaptation<br/>practices were major constraints for adaptation faced by adopters and non adopters<br/>respectively.<br/>Compensation to pepper farmers in Wayanad from government during drought<br/>was an average `48,64,984 per annum and is growing at the rate of 1.04 per cent per<br/>annum. Compensation for flooding due to heavy rainfall & high speed wind was an<br/>average `1,32,81,192 per annum and is also growing at the rate of 1.04 per cent per<br/>annum.<br/>Q3 and Q4 temperature had negative impact on pepper production. Increase in<br/>number of years of experience in farming increases the probability of adopting<br/>adaptation practices. Net returns of adopters were more than that of non adopters.<br/>Increase in labour cost, fluctuation in market prices and high cost of adaptation<br/>practices were major constraints faced by both farmers.<br/>Compensation by<br/>government due to drought and heavy rainfall & high speed wind showed a positive<br/>growth trend. A negative trend of rainfall was observed for both the districts. Hence<br/>adaptation measures to conserve water such as rain water harvesting system,<br/>mulching, spraying<br/>1 per cent lime solution, moisture conservation tillage and<br/>growing drought tolerant varieties (Paniyur-5, Paniyur-6 and Paniyur-7) helps to<br/>reduce the risk of drought.<br/> |
