ECONOMIC ANALYSIS OF MAJOR FERTILIZERS AND PESTICIDES CONSUMPTION IN ANDHRA PRADESH YY.. LLAATTIIKKAA DDEEVVII M.Sc. (Ag.) DOCTOR OF PHILOSOPHY IN AGRICULTURE (AGRICULTURAL ECONOMICS) 2015 ECONOMIC ANALYSIS OF MAJOR FERTILIZERS AND PESTICIDES CONSUMPTION IN ANDHRA PRADESH BY Y. LATIKA DEVI M.Sc. (Ag.) THESIS SUBMITTED TO PROFESSOR JAYASHANKAR TELANGANA STATE AGRICULTURAL UNIVERSITY IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF DOCTOR OF PHILOSOPHY IN AGRICULTURE ( ) AGRICULTURAL ECONOMICS CHAIRPERSON: Dr. K.SUHASINI DEPARTMENT OF AGRICULTURAL ECONOMICS COLLEGE OF AGRICULTURE RAJENDRANAGAR HYDERABAD-500 030 PROFESSOR JAYASHANKAR TELANGANA STATE AGRICULTURAL UNIVERSITY (FORMERLY ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY) 2015 DECLARATION I, Y. LATIKA DEVI hereby declare that the report entitled “ECONOMIC ANALYSIS OF MAJOR FERTILIZERS AND PESTICIDES CONSUMPTION IN ANDHRA PRADESH” submitted to the “Professor Jayashankar Telangana State Agricultural University” for the degree of Doctor of Philosophy in Agriculture is the result of the original project work done by me. I also declare that no material contained in the thesis has been published earlier in any manner. Place: Hyderabad (Y LATIKA DEVI) ID. No. RAD/11-15 Date: ii CERTIFICATE Ms. Y. LATIKA DEVI has satisfactorily prosecuted the course of project and that the report entitled “ECONOMIC ANALYSIS OF MAJOR FERTILIZERS AND PESTICIDES CONSUMPTION IN ANDHRA PRADESH” submitted is the result of original project work and is of sufficiently high standard to warrant its presentation to the examination. I also certify that neither the thesis nor its part thereof has been previously submitted by him for a degree of any University. Date: (Dr. K.SUHASINI) Chairperson iii CERTIFICATE This is to certify that the thesis entitled “ECONOMIC ANALYSIS OF MAJOR FERTILIZERS AND PESTICIDES CONSUMPTION IN ANDHRA PRADESH” submitted in partial fulfilment of the requirements for the degree of “DOCTOR OF PHILOSOPHY IN AGRICULTURE” of the Professor Jayashankar Telangana State Agricultural University, Hyderabad, is a record of the bonafide research work carried out by Ms. Y LATIKA DEVI under our guidance and supervision. The subject of the thesis has been approved by the Student's Advisory Committee. No part of the report has been submitted by the student for any other degree or diploma. The published part and all assistance received during the course of investigations have been duly acknowledged by the author of the thesis. (Dr. K.Suhasini) Chairperson of the Advisory Committee Thesis approved by the Student Advisory Committee Chairperson (Dr. K.SUHASINI ) Professor Department of Agricultural Economics College of Agriculture Rajendranagar, Hyderabad-500 030. Member ( Dr. N. VASUDEV) Professor and Dean Basic Sciences and Humanities Rajendranagar, Hyderabad-500 030 Member (Dr. D.V. SUBBA RAO) Professor and Head Department of Agricultural Economics College of Agriculture Rajendranagar, Hyderabad-500 030 Member (Shri M.H.V. BHAVE) Assistant Professor and Head Department of Agricultural Statistics College of Agriculture Rajendranagar, Hyderabad-500 030. External (Dr. B.M. RAMACHANDRA REDDY) Examiner Professor Department of Agricultural Marketing Cooperation & Business Management UAS, GKVK, Bengaluru- 560065 Date of final viva-voce: iv ACKNOWLEDGEMENTS It is by the unfathomable grace and blessing of the Almighty God that I have been able to complete my studies successfully and bring out this humble piece of work which I am externally indebted. I gracefully record my profound sense of gratitude and regards to the chairman and major advisor, DR. K.SUHASINI, Professor in the Department of Agricultural Economics, College of Agriculture, Rajendranagar, Professor Jayashankar Telangana State Agricultural University, for her invaluable suggestions and meticulous and continuous guidance throughout the period of my research work. I deem it a proud privilege to express my highest veneration and respectful gratitude to Members of my Advisory Committee, DR. N. VASUDEV, Professor and Dean, Basic Sciences and Humanities, Dr.D.V SUBBA RAO, Professor and Head Department of Agricultural Economics and SHRI M.H.V. BHAVE, Associate Professor in the Department of Statistics and Mathematics, College of Agriculture, Rajendranagar, Professor Jayashankar Telangana State Agricultural University for the unbounded affection, cheerful assistance and encouragement during my course of study. And my sincere thanks to Dr. D. Sridevi, Associate Professor in the Department of Entomology for her valuable suggestions of my research work. Sincere thanks are due to all staff members of the Department of Agricultural Economics and staff members of Cost of Cultivation Scheme for their help, cooperation and valuable guidance during the period of my studies. Diction is not enough without expressing my unboundful gratitude to my parents, my sister and brother and all relatives, for their affection, persistent encouragement and moral support throughout my education career. They have been a fountain of inspiration throughout my life without whose inexhaustible inspiration, everlasting love and moral support I would not have been what I am today. With boundless love and affection, I offer my warm thanks to my classmates Bala and Suman, my senior Shakuntala and my junior Archana and Deep for their delightful companionship during my studies. Date: (Y. LATIKA DEVI) Place: Hyderabad v CONTENTS Chapter No. Title Page No. I INTRODUCTION 1-7 II REVIEW OF LITERATURE 8-40 III MATERIAL AND METHODS 41-55 IV RESULTS AND DISCUSSION 56-153 V SUMMARY AND CONCLUSIONS 154-167 LITERATURE CITED 168-177 vi LIST OF TABLES Table Page Title of the table No. no. Trends in consumption of fertilizer nutrients (N, P and K) in Andhra 4.1 59 Pradesh: 1981-82 to 2010-11 (000' tonnes) Trends in per hectare consumption of fertilizer nutrients (N, P and K) 4.2 in Andhra Pradesh: 1981-82 to 2010-11. (kg ha-1) 62 4.3 District wise consumption of NPK in Andhra Pradesh (000' tonnes) 66 District wise TE average consumption of Nitrogen in Andhra Pradesh 4.4 (000'tonnes) 69 District wise TE average consumption of Phosphorus fertilizer in 4.5 Andhra Pradesh (000'tonnes) 71 District wise TE average consumption of Potash fertilizer in Andhra 4.6 Pradesh. (000'tonnes) 73 4.7 District wise per hectare consumption of NPK in Andhra Pradesh 75 4.8 District wise per hectare consumption of Nitrogen in Andhra Pradesh. 77 District wise per hectare consumption of Phosphorous in Andhra 4.9 Pradesh 79 4.10 District wise per hectare consumption of Potash in Andhra Pradesh 80 Variation in fertilizer consumption per hectare of gross cultivated area 4.11 among districts –year wise. 82 Growth in per hectare consumption of Nitrogen fertilizer in Andhra 4.12 Pradesh. 84 Growth in per hectare consumption of Phosphorous fertilizer in Andhra 4.13 Pradesh. 86 Growth in per hectare consumption of Potash fertilizer in Andhra 4.14 Pradesh. 88 Growth in per hectare consumption of NPK fertilizer in Andhra 4.15 Pradesh 90 4.16 Growth in absolute consumption of NPK fertilizer in Andhra Pradesh 92 4.17 District wise consumption of NPK during kharif season. (000'tonnes) 94 4.18 District wise consumption of NPK during Rabi season. (000'tonnes) 95 4.19 Season wise average consumption of NPK fertilizer in Andhra Pradesh 97 4.2 Relative share of N,P and K in total consumption of N+P+K 97 Average consumption of different fertilizers in Andhra Pradesh ('000 4.21 tonnes) 99 Trends in consumption of pesticide in Andhra Pradesh: 1989-90 to 4.22 2009-10. 101 District wise consumption of pesticide in Andhra Pradesh. (MT in 4.23 technical grades). 104 District wise per hectare consumption of pesticide in Andhra 4.24 Pradesh.(a.i kg ha-1) 107 vii Variation in pesticide consumption per hectare of gross cultivated area 108 4.25 across different districts –year wise. 4.26 District wise growth in consumption of pesticide in Andhra Pradesh 111 4.27 General characteristics of the sample farmer. 112 Cropping pattern of sample farmer, Andhra Pradesh, 2010-11 (in 113 4.28 percentages to gross cropped area). 4.29 Crop wise fertilizer consumption pattern of sample farmers. (kg ha-1) 116 4.30 Fertilizer use and its deviation from recommended doses (kg ha-1) 119 4.31 Pesticide rate use by sample farmer. (ai kg ha-1) 124 4.32 Share of cost of fertilizer and pesticide in total cost. 125 Impact of NPK and pesticide on paddy (Cobb- Douglas production 4.33 function) 128 Impact of fertilizer and pesticide on productivity of maize (multiple 4.34 linear regression) 128 Impact of fertilizer and pesticide on productivity of groundnut. (Cobb- 4.35 Douglas) 132 4.36 Impact of NPK and pesticide on cotton (linear). 132 4.37 Factor affecting fertilizer consumption in category I sample farmer 136 4.38 Factor affecting fertilizer consumption in category II sample farmer 136 4.39 Factor affecting fertilizer consumption in category III sample farmer. 138 4.4 Factor affecting fertilizer consumption in category IV sample farmer 138 4.41 Factor affecting fertilizer consumption in category V sample farmer 143 4.42 Factor affecting N,P,K and NPK consumption 143 4.43 Factor affecting expenditure on pesticide on paddy (log- linear) 145 4.44 Factor affecting expenditure on pesticide on cotton (linear) 145 4.45 Factor affecting expenditure on pesticide on maize (linear) 145 4.46 Projected demand for N, P & K in Andhra Pradesh (000'tonnes) 148 Projected demand for NPK in Andhra Pradesh- district wise -next five 4.47 years (tonnes) 148 4.48 Projection of pesticide (Tonnes) technical grade. 153 LIST OF FIGURES viii Fig. No. Title of the figure Page No. 3.1 42 Map of Andhra Pradesh Trends in consumption of plant nutrients (N, P and K) in 4.1 60 Andhra Pradesh :1981 82 to 2010-11 Trends in per hectare consumption of plant nutrients (N, P and 4.2 60 K) per hectare 4.3 NPK share among the districts in TE (1981-84) 67 4.4 NPK share among the districts in TE (2008-11) 67 Trends in consumption of pesticide in Andhra Pradesh :1989- 4.5 102 90 to 2009-10 Trends in consumption of pesticide per hectare in Andhra 4.6 102 Pradesh :1989-90 to 2009-10. Crop wise fertilizer consumption pattern of sample farmers. 4.7 (kg ha-1) 117 Share of different type of pesticide use by sample farmer in 4.8 123 different crops. 4.9 126 Share of cost of fertilizer in total cost 4.10 Share of cost of pesticide in total cost. 126 4.11 Share of cost of fertilizer and pesticide in total cost. 126 4.12 Nitrogen demand projection 149 4.13 Phosphorous demand projection 149 4.14 Potash demand projection 150 4.15 NPK demand projection 150 4.16 Pesticides demand projection 152 SYMBOLS AND ABBREVIATIONS ix