IMPACT OF GLOBALISATION ON EMPLOYMENT AND WAGE LEVEL IN THE AGRICULTURAL SECTOR IN DINDIGUL DISTRICT

Thesis submitted to MADURAI KAMARAJ UNIVERSITY for the award of Degree of DOCTOR OF PHILOSOPHY IN ECONOMICS

by

M.Ravi Under the Guidance of Dr. S. V. HARIHARAN, M.A., M.Sc., A.M.A., Ph.D.,

SCHOOL OF ECONOMICS MADURAI KAMARAJ UNIVERSITY MADURAI

DECEMBER 2012

Dr. S. V. HARIHARAN, M.A., M.Sc., A.M.A., Ph.D., Senior Professor, Head and Chairperson, School of Economics, Madurai Kamaraj University, Madurai-625 021.

CERTIFICATE BY THE SUPERVISOR

This is to certify that the thesis on Impact of Globalisation on Employment and Wage Level in the Agricultural Sector in Dindigul District, submitted for the Ph.D. Degree by Mr. M. Ravi is a record of research work done by him under my guidance and supervision during the period from January 2007 to December 2012, in the School of Economics, Madurai Kamaraj University Madurai-625 021. The subject on which the thesis has been prepared is his original work and it has not previously formed the basis for the award of Degree, Diploma, Associateship, Fellowship or other similar title. The thesis entirely represents an independent work on the part of the candidate.

(S.V.HARIHARAN) Guide and Supervisor Station: Date:

M. Ravi I.P.S., R6/Ph. D/Regd./P.T./3730/2007, School of Economics, Madurai Kamaraj University, Madurai-625 021.

DECLARATION
I, M.Ravi hereby declare that the thesis entitled Impact of Globalisation on Employment and Wage Level in the Agricultural Sector in Dindigul District is a record of bonafide research work done by me in Economics during the course of my research and that it has not previously formed the basis for the award of any degree, Diploma, Associateship, Fellowship or other similar title or recognition of any University or Institution.

M.Ravi

Station: Date:

Acknowledgements I am greatly indebted to Dr.S.V.Hariharan, Chairperson, School of Economics, Madurai Kamaraj University, Madurai for his inspiring and scholarly guidance. It has been a pleasure and privilege to work under his supervision. In spite of his preoccupation with several academic responsibilities and assignments, he has been kind enough to spare his valuable time for giving me the necessary counsel and guidance. I have no words to express my gratitude to him. It is, indeed, his guidance and encouragement which have helped me to accomplish this work and I owe to him whatever merit it has. I express the heartfelt thanks to Mr. Pavan Raina I.A.S., Principal Secretary to Government, Chennai for granting permission to register my Ph.D Research in Economics in Madurai Kamaraj University, Madurai. I wish to record my deep sense of gratitude to Dr. S. Vijayalakshmi, Former Chairperson, School of Economics, Madurai Kamaraj University, Madurai for providing an opportunity to pursue my research work. I also express my thanks to each and every staff in School of Economics, Madurai Kamaraj University, Madurai for their support in my research work. I also record my thanks to Dr. M. Veluchamy, Associate Professor, Department of Economics, Arulmigu Palaniandavar College of Arts and Culture, Palani for his suggestions and advice at the final stage of my research work. I wish to acknowledge the co-operation and help received from the authorities of the following institutions who helped me by providing the data available with them.

1. 2. 3. 4. 5. 6. 7. .

Institute of Social and Economic Change, Bangalore. Centre for Development Studies, Trivandrum. Madras Institute of Development Studies, Chennai. Madurai Kamaraj University, Madurai. Bharathiar University, Coimbatore. Tamil Nadu Agricultural University, Coimbatore and Connemara Public Library, Chennai.

I will be failing in my duty, if I do not acknowledge the services

rendered by Village Administrative Officers in Attur, Devathur, Puliamaptti and Eriodu revenue villages and the Joint Director of Agriculture, Dindigul in Dindigul District. I owe my special thanks to the agricultural labourers and farmers in the sample area for their valuable co-operation and support extended to me in carrying out the survey as a part of my research work. I fondly remember the help and assistance extended by Mr.P.Ashok typing carefully and neatly and computer printing of this thesis. I record my sentiments of profound indebtedness to my parents, wife and daughters for their affection and incessant encouragement which always remain as a source of inspiration to all my activities.

M. Ravi

List of Tables List of Figures List of Maps

CONTENTS
Chapter Title Page No. 1-22

INTRODUCTION

II

METHODOLGY AND CONCEPTS

23-31

III

REVIEW OF LITERATURE

32-66

IV

PROFILE OF THE STUDY AREA

67-93

SOCIO-ECONOMIC CONDITIONS IMPACT OF GLOBALISATION ON INCOME AND CONSUMPTION EXPENDITURE IMPACT OF GLOBALISATION ON EMPLOYMENT AND WAGES SOURCES AND AWARENESS OF GLOBALISATION AND CHALLENGES FACED BY THE HOUSEHOLDS CONCLUSION

94-122

VI VII

123-170 171-204

VIII

205-233

IX

234-277

BIBLIOGRAPHY APPENDIX

LIST OF TABLES
Table No. 1.1 4.1 Title Growth of GDP and Major Sectors Details of Revenue Divisions, Taluks and Blocks in the Dindigul District Distribution of the Area and Population of their Dindigul District for the year 2009-10 classified according to the Difference Blocks as per the Census of 2001 Occupational Classification in the Dindigul District Distribution of Area under Important Crops in the Dindigul District during the Year 2009-10 Land Use Pattern in the Dindigul District during the year 2009-2010 Classification of Soils in the Dindigul District During 20092010 Rainfall in the Dindigul District during 2009-10 classified according to the Various Seasons Area, Production and Productivity of the important crops raised in the Dindigul District during the year 2009-10 Gross Irrigated Area and the classified according to Net Irrigated Area in the Dindigul District, the Various Sources of Irrigation during the year 2009-10 Details of Dams in the Dindigul District in 2009-10 Page No. 12 70

4.2

73

4.3 4.4 4.5 4.6 4.7

75 76 78 79 81

4.8

83

4.9

84

4.10

86

4.11

Distribution of the Sources of Irrigation in the Dindigul District during the 87 year 2009-2010 classified according to the Different Blocks in the District

Table No. 4.12

Title Cropping Intensity and Irrigation Intensity in the Dindigul District During the year 2009-10 classified according to the Different Blocks in the district Area Irrigated in the Dindigul District during the year 20092010 classified according to the Principal Groups raised in the District Distribution of Respondents according to their Age Group Distribution of Respondents according to their Community Distribution of Respondents according to their Educational Status Distribution of Sample Population according to their Sex Distribution of Sample Population according to the Ratio of Earner to Dependent Distribution of Respondents according to the Nature of Families Total Land Holding Particulars of Respondents Average Land Holding Particulars of Respondents Distribution of Respondents by Categories and Area Operation Average Values of Asset of the Households Distribution of Respondents according their Value of the Assets Cumulative percentage of Assets, Cumulative percentage of Households and Gini-Ratios in the Study Area

Page No. 89

4.13

91

5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12

94 95 98 100 101 102 104 105 106 108 110 112

Table No. 5.13 5.14 5.15 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11

Title Average Amount Savings of the Households Distribution of Households According to Indebtedness Average Indebtedness of the Households Average Income of Agricultural Labourer Average Income of Marginal Farmers Average Income of Small Farmers Average Income of Medium Farmers Average Income of Large Farmers Average Income of the households in Sample Area Before and After Globalisation Percapita Income of the Sample Households After Globalisation Monthly Average Consumption Expenditure in Attur Revenue Village After Globalisation Monthly Average Consumption Expenditure in Devathur Revenue Village after Globalisation Monthly Average Consumption Expenditure in Puliampatti Revenue Village after Globalisation Monthly Average Consumption Expenditure in Eriodu Revenue Village after Globalisation

Page No. 116 119 121 124 126 128 130 132 135 138 141 144 147 151

Table No. 6.12 6.13

Title Monthly Average Consumption Expenditure in Sample Area Before and after Globalisation Monthly Percapita Consumption Expenditure of the Sample Households after Globalisation Perception about the Impact of globalization on increasing the availability of necessary goods, induce more competition, opportunity for profit maximization, attain food security and ensure quality of hybrid seeds to respondents in sample area Perception about the Impact of globalization on increasing the efficient use of resources, increasing output, contribute to non-agriculture, creating less benefit to small farmers and more benefit to large farmers Perception about the Impact of globalization on changing the cropping pattern, increasing food crop cultivation, increasing cash crop cultivation, increasing the productivity and decreasing the subsidy in the sample area Nature of Work and Duration of Employment of Agricultural Labourers and Marginal Farmers before and after Globalisation Computed Values of Nature of Work of Agricultural Labourers and Marginal Farmers before and after Globalisation Computed Values of Duration of Employment of Agricultural Labourers and Marginal Farmers before and after Globalisation Distance of work Spot and Days of Employment in a Year of Agricultural Labourers and Marginal Farmers before and after Globalisation Hours of Work per Day and Secondary Work per Day of Agricultura Labourers and Marginal Farmers before and after Globalisation Skill Required for Alternative Job, Willingness to Continue this Job and Job Satisfaction of Agricultural Labourers and Marginal Farmers before and after Globalisation Working Condition of Agricultural Labourers and Marginal Farmers before and after Globalisation Computed Values in Working Condition of Agricultural Labourers and Marginal Farmers before and after Globalisation

Page No. 154 158

6.14

161

6.15

165

6.16

168

7.1

173

7.2

174

7.3

176

7.4

178

7.5

181

7.6

185

7.7

187

7.8

187

Table No. 7.9

Title Mean Value of Number of Days of Employment Opportunities Agricultural Labourers and Marginal Farmers in a Year before and after Globalisation Impact of Globalisation on Employment Opportunities in Attur Village Impact of Globalisation on Employment Opportunities in Devathur Village Impact of Globalisation on Employment Opportunities in Puliampatti Village Impact of Globalisation on Employment Opportunities in Eriodu Village Mean wage per day of Agricultural Labourers and Marginal Farmers before and after Globalisation Impact of Globalisation on the Wage level in Attur Village Impact of Globalisation on the Wage level in Devathur Village Impact of Globalisation on the Wage level in Puliampatti Village Impact of Globalisation on the Wage level in Eriodu Village Sources of Information about Globalisation to the Households Awareness of Respondents Regarding GATT, WTO, AOA and TRIPs due to Globalisation Impact of Globalisation on the Quantity of Inputs used and Marketing the Agricultural Produces of Respondents Impact of Globalisation on Increased Disparities, Urban Contacts, Dependency on Labourer, Social Conflicts and Dependency on the use of Farm Machinery of the Respondents in the Sample Area

Page No. 189

7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 8.1 8.2 8.3

190 192 193 195 198 199 200 201 202 206 209 212

8.4

216

Table No. 8.5

Title Challenges Faced by the Respondents due to Globalisation related to Demand for better Quality of Products, Increased Input Cost and Increased Cost of Agricultural Technology Challenges Faced by the Respondents due to Globalisation related to less use of Fertilizers and Pesticides and more use of Bio-fertilizer and Bio-pesticides Challenges Faced by the Respondents due to Globalization Related to Need Cheap Import, Need Lowered Production Cost, Face Increased Market Competition, Need Market Knowledge on Demand and Need Market Knowledge on Price Challenges Faced by the Respondents due to Globalisation related to Import and Procedures Knowledge, Easy Import of Seeds and Fertilizers and Easy Export of Agricultural Products

Page No. 221

8.6

225

8.7

228

8.8

231

LIST OF FIGURES
Figure No. 1.1 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 6.1 6.2 6.3 Figures GDP Trend Growth in Agriculture Respondents according to their Community Respondents according to their Educational Status Respondents according to the Nature of Families Average Assets of the Households Lorenz curve for Households and Assets in Sample Area Gini-Ratios in the Sample villages Average Amount Savings of the Households Households according to Indebtedness Average Indebtedness of the Households Average Income of Agricultural Labourer Average Income of Marginal Farmers Average Income of Small Farmers Page No. 14 96 99 103 109 113 114 117 120 122 125 127 129

Figure No. 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13

Figures Average Income of Medium Farmers Average Income of Large Farmers Average Income of the households in Sample Area before and after Globalisation Percapita Income of the Sample Households after Globalisation Monthly Average Consumption Expenditure in Attur Revenue Village after Globalisation Monthly Average Consumption Expenditure in Devathur Revenue Village after Globalisation Monthly Average Consumption Expenditure in Puliampatti Revenue Village after Globalisation Monthly Average Consumption Expenditure in Eriodu Revenue Villag after Globalisation Monthly Average Consumption Expenditure in Sample Area before and after Globalisation Monthly Percapita Consumption Expenditure of the Sample Households after Globalisation Perception about the Impact of globalization on increasing the availability of necessary goods, induce more competition, opportunity for profit maximization, attain food security and ensure quality of hybrid seeds to respondents in sample area Perception about the Impact of globalization on increasing the efficient use of resources, increasing output, contribute to non-agriculture, creating less benefit to small farmers and more benefit to large farmers Perception about the Impact of globalization on changing the cropping pattern, increasing food crop cultivation, increasing cash crop cultivation, increasing the productivity and decreasing the subsidy in the sample area

Page No. 131 133 137 139 143 146 149 153 157 159

6.14

163

6.15

166

6.16

170

Figure No. 7.1 7.2 7.3 7.4

Figures Nature of Work of Agricultural Labourers and Marginal Farmers before and after Globalisation Duration of Employment of Agricultural Labourers and Marginal Farmers before and after Globalisation Distance of work Spot of Agricultural Labourers and Marginal Farmers before and after Globalisation Hours of Work per Day of Agricultural Labourers and Marginal Farmers before and after Globalisation Hours of Secondary Work per Day of Agricultural Labourers and Marginal Farmers before and after Globalisation Working Condition of Agricultural Labourers and Marginal Farmers before and after Globalisation Computed t Values of Increasing the Employment Opportunities of Agricultural Labourers and Marginal Farmers in Attur, Devathur, Puliampatti and Eriodu Villages Computed t Values of Increasing the Wage Level of Agricultural Labourers and Marginal Farmers in Attur, Devathur, Puliampatti and Eriodu Villages Sources of Information about Globalisation to the Respondents in Sample Area Awareness of Respondents Regarding GATT, WTO, AOA and TRIPs due to Globalisation Impact of Globalisation on Marketing the Agricultural Produces of Respondents in the Sample Area Impact of Globalisation on Increased Dependency on Labourer of the Respondents in the Sample Area Impact of Globalisation on Increased Dependency on the use of Farm Machinery of the Respondents in the Sample Area

Page No. 177 177 180 183

7.5

183

7.6

188

7.7

196

7.8

204

8.1 8.2 8.3 8.4

207 210 215 219

8.5

219

Figure No.

Figures Challenges Faced by the Respondents due to Globalisation related to Demand for better Quality of Products, Increased Input Cost and Cost of Agricultural Technology Challenges Faced by the Respondents due to Globalisation related to less use of Fertilizers and Pesticides Challenges Faced by the Respondents due to Globalisation related to more use of Bio-fertilizer and Bio-pesticides Challenges Faced by the Respondents due to Globalization Related to Need Cheap Import, Need Lowered Production Cost, Face Increased Market Competition, Need Market Knowledge on Demand and Need Market Knowledge in Price Challenges Faced by the Respondents due to Globalisation related to Import and Procedures Knowledge, Easy Import of Seeds and Fertilizers and Easy Export of Agricultural Products

Page No.

8.6

223

8.7

226

8.8

226

8.9

230

8.10

233

LIST OF MAPS
Map No. 4.1 Map of Dindigul District Title Page No. 71