@article{Selvaraj:199078,
      recid = {199078},
      author = {Selvaraj, K.N.},
      title = {Risk Management Strategies for Drought-Prone Rice  Cultivation: A Case Study of Tamil Nadu, India},
      journal = {Asian Journal of Agriculture and Development},
      address = {2009-12-30},
      number = {1362-2016-107664},
      pages = {29},
      month = {Dec},
      year = {2009},
      abstract = {This study aimed to understand the issues associated with  rainfed rice production in dry and semidry areas in Tamil  Nadu, India. Farmers face risks such as input, output,  market-price, and income, as these areas are prone to  rainfall shortage. Secondary data about Tamil Nadu and  various water limited
rice environments were studied. A  farm survey of 230 farm households in selected districts  was conducted in 2001-02 and 2003-04. Fertilizer use in  rainfed areas was reduced due to rainfall shortage. In  drought period, crop response to fertilizer declined,  causing a decrease in rice yields. Yield variability was  higher (44 percent to 60 percent) in drought-prone areas.  In rainfed areas, a 10-percent increase in drought risk  resulted in a 5.4 percent decline in the yield of modern  varieties. In contrast, the effect on landraces was  minimal. Farmers in the rainfed areas are operating at  sub-optimal level of Production. About 90 percent  were
inefficient since crop yields were lower than the  optimal yield. Farmers incurred an additional cost of INR  899 to increase yield by 228 kg/ha. An increase in rice  productivity by one ton per hectare would
replace rice area  by 189,208 hectares in Tamil Nadu. Area expansion under  rice was noticed in the selected rainfed areas, revealing  that infusing high productivity traits in drought-tolerant  rice varieties
enable farmers to allocate part of their  land to other crops. Traits (genetic and marketability) of  widely adopted modern varieties and landraces should be  considered in breeding varieties for water-limited  environments to earn profits. The results confirm that  drought intensity is higher during the maximum-tillering  stage, therefore, continued research on development of  drought-tolerant rice varieties to withstand early drought  is crucial.
Finally, rice income variability in rainfed  areas was explained more by variability in yields rather  than prices both during normal and risk periods. In other  areas, income variability was due to price variability.  Yield stabilization would be more effective in keeping  revenues stable in rainfed areas,
while price  stabilization, is an appropriate strategy for reducing  revenue risk in irrigated areas.},
      url = {http://ageconsearch.umn.edu/record/199078},
      doi = {https://doi.org/10.22004/ag.econ.199078},
}