IDEAS home Printed from
   My bibliography  Save this paper

Impacts of organic farming in a developing country: evidence from Tamil Nadu, India, from 1993 to 2003


  • Kajisa, Kei
  • Palanichamy, N. Venkatesa


Attention to organic fertilizer has been increasing but opinions are mixed as to its impacts. This paper explores the potential and limitations of the use of farmyard manure (FYM) for paddy and upland cereals under different soil conditions in Tamil Nadu, India, using farming households’ three-year rotating panel data from 1993 to 2003. Estimated yield functions reveal that a direct impact of FYM application exists only for upland cereals but not for paddy. Meanwhile, an indirect impact through an increase in the marginal product of chemical fertilizer is observed for both paddy and upland cereals, especially under low inherent soil fertility status. Reflecting the existence of the benefit of FYM application, our factor demand estimation shows that farmers react to FYM price change actively. This means that, through the transaction in the FYM market, the reduction in FYM price contributes to the productivity improvement of two kinds of poverty-prone areas: the upland cereal production area and the area of inherently poor soil conditions. However, our analyses on price transmission and determinants of FYM price reveal that although the reduction in FYM price is achieved by dairy sector development, due to high transportation costs and a non-tradable attribute of FYM, the reduction is spatially constrained within a village where dairy sector development has taken place. Hence, the impact of dairy sector development on productivity improvement is locally limited, which is a limitation of the FYM-based development strategy.

Suggested Citation

  • Kajisa, Kei & Palanichamy, N. Venkatesa, 2009. "Impacts of organic farming in a developing country: evidence from Tamil Nadu, India, from 1993 to 2003," 2009 Conference, August 16-22, 2009, Beijing, China 51291, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae09:51291

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Emek Basker, 2007. "When Good Instruments Go Bad," Working Papers 0706, Department of Economics, University of Missouri.
    2. Emek Basker, 2005. "Job Creation or Destruction? Labor Market Effects of Wal-Mart Expansion," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 174-183, February.
    3. Khanna, Naveen & Tice, Sheri, 2000. "Strategic Responses of Incumbents to New Entry: The Effect of Ownership Structure, Capital Structure, and Focus," Review of Financial Studies, Society for Financial Studies, vol. 13(3), pages 749-779.
    4. Neumark, David & Zhang, Junfu & Ciccarella, Stephen, 2008. "The effects of Wal-Mart on local labor markets," Journal of Urban Economics, Elsevier, vol. 63(2), pages 405-430, March.
    5. Paul W. Bauer & Yoonsoo Lee, 2006. "Estimating GSP and labor productivity by state," Policy Discussion Papers, Federal Reserve Bank of Cleveland, issue Mar.
    6. Jerry Hausman & Ephraim Leibtag, 2007. "Consumer benefits from increased competition in shopping outlets: Measuring the effect of Wal-Mart," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1157-1177.
    7. Emek Basker & Michael Noel, 2009. "The Evolving Food Chain: Competitive Effects of Wal-Mart's Entry into the Supermarket Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(4), pages 977-1009, December.
    8. Quandt, Richard E & Rosen, Harvey S, 1989. "Endogenous Output in an Aggregate Model of the Labor Market," The Review of Economics and Statistics, MIT Press, pages 394-400.
    9. Dube, Arindrajit & Lester, T. William & Eidlin, Barry, 2007. "Firm Entry and Wages: Impact of Wal-Mart Growth on Earnings Throughout the Retail Sector," Institute for Research on Labor and Employment, Working Paper Series qt22s5k4pv, Institute of Industrial Relations, UC Berkeley.
    10. Baker, Jonathan B. & Bresnahan, Timothy F., 1988. "Estimating the residual demand curve facing a single firm," International Journal of Industrial Organization, Elsevier, vol. 6(3), pages 283-300.
    11. Maarten Goos & Alan Manning, 2007. "Lousy and Lovely Jobs: The Rising Polarization of Work in Britain," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 118-133, February.
    Full references (including those not matched with items on IDEAS)


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae09:51291. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.