Risk Behavior of Farmers Cultivating Traditional Rice Varieties in Erode District, Tamil Nadu

Abstract

This study investigates the risk behavior of traditional rice variety growers in Erode District of Tamil Nadu state, using Moscardi and De Janvry approach and Discriminant analysis technique. A well structured questioner was prepared and purposive random sampling was done in three blocks which covers highest cultivable area under paddy namely Gobichettipalayam, Modakurichi and Bhavani in Erode district. Each traditional rice varieties have some unique characteristics i.e some are pest and disease resistant, drought resistant, resistant to waterlogged condition and have medicinal values. The present study was done to identify the major risks, to quantify the risk attitude and to identify the factors influencing risk attitude of the traditional variety growers in Erode District. In the research it was found that the varieties preferred by farmers were Thuyamalli, Kichadi samba, Karuppukavuni, Mapillai samba,Arcaud Kichadi Samba, Poongar, Thanga Samba, Sivan Samba and few other varieties they were cultivating in small areas using organic farming method.The major risk found in cultivating traditional rice varieties were market risk followed by human labour risk, processing risk, input risk, technology risk, institutional risk, natural risk and other risks include transport risk and storage risk. The farmers were grouped into three categories i.e., risk preferrers (63.33 per cent), risk neutral (28.33 per cent) and risk averse (8.33 per cent) based on risk attitude. Once again the farmers in each group was categorized into low, medium, high risk based on nine factors namely, farmers age, major occupation, years of schooling, family size, membership in any of the farmers association, proportion of paddy area to total farm area, proportion of paddy income to total farm income, experience and adequacy of market which were influencing the risk attitude of farmers. In order to conserve the traditional rice varieties from extinction, to restore the soil health, to ensure nutritional security the farmers were willing to take risk.