ABSTRACT

An economic analysis of secondary agriculture in Karnataka: Current status, problems and prospects was carried out during 2023-24. Primary data were collected from 160 respondents comprising of 120 farmers (Type B) and 40 small scale units (Type A) spread across two districts of Karnataka. For analysis of data, tabular analysis, Simpson Index of Diversification and Garretts’ ranking technique were employed. The analysis revealed annual growth rate of 25.98 per cent in number of units and 25.48 per cent in employment for decade (2012-13 to 2021-22) in Karnataka. The results showed higher Simpson Index of Diversification of 0.39 for large farmers with high average annual income of 20,17,789, surpassing that of small and medium farmers. The study also revealed low income variability (8.03%) among completely diversified farmers compared to those with no diversification (59.10%). Thus, farm diversification (Type B) enhances income stability and reduces variability, especially for completely diversified farmers. Small-scale units (Type A) had average annual turnovers of 3,84,200 from jaggery making units, 18,72,450 from milk pooling and chilling units and 44,711 from cottage-scale pickle making units. These units generated 831.6, 615.5 and 331 man-days of employment per annum, respectively. In the study area, availability of raw materials (63.63, 73), storage facilities (55.55, 59.93), high income (54.11, 63), availability of labour (49.80, 58.86)and low transportation costs (56.84, 63) were the major accelerating factors indicated by Garrett mean score, influenced the respondents (Type B, Type A) to take up secondary agriculture activities. Lack of year round supply of raw material (49.52, 63), high initial establishment and infrastructure cost (63.75, 63.66), lack of technical skill to the labour (53.64, 56.33) and high cost of packaging (63.63, 63.50) were the major impeding factors faced by the sample respondents in the study area.