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Effect of Income And Prices on Production and Marketing of Redgram – Ardl Model

B Sowjanya

Research Associate
Cost of Cultivation Scheme
Professor Jayashankar Telangana State Agricultural University
Hyderabad

D V Subba Rao

Professor
Department of Agricultural Economics
Acharya N.G.Ranga Agricultural University
Bapatla

R Vijaya Kumari

Associate Professor
Department of Agricultural Economics
Professor Jayashankar Telangana State Agricultural University
Hyderabad

Abstract

Present study was undertaken in Rangareddy district of Telangana to study the determinant of net income of farmers and effect of lagged prices on arrivals and current prices and constraints faced by farmers at the time of marketing. Samples of 15 farmers were selected for collecting primary data. Secondary data includes prices and arrivals collected from Tandur Agricultural Market Committee. Multiple linear regression analysis and autoregressive distributed lag models were used to analyze the data. In multiple linear regression analysis the coefficient of multiple determination was 83. Area and expenses on marketing services were found significantly influencing the income of the farmers by Rs. 3697.74 and Rs.1.520 respectively. Autoregressive distributed lag models for factors effecting arrivals, the coefficient of multiple determination showed that 72 percent of variation was explained by the variables in the model. Prices were found significantly influencing the arrivals of paddy by 0.471 quintal. Similarly, Autoregressive distributed lag models for factors effecting current arrivals, the coefficient of multiple determination showed that 65 percent of variation was explained by the variables in the model. Lagged prices Pt-1 (one month lag) were found significantly influencing the current price of the paddy. Low price for the produce at the time of harvest, lack of transportation, lack of adequate storage facilities are the important problems faced by redgram farmers.

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