ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by C H Hanumantha RaoSubscribe to C H Hanumantha Rao

Differential Rates of Interest - A Comment

September 9, 1972 Differential Rates of Interest A Comment C H Hanumantha Rao IN his article "On Differential Rates of Interest" (July 1, p 1279) A K Dasgnoti observes that although banks should charge differential rates of interest with a view to discriminating in favour of the weaker customers, they should operate on commercial lines and seek to maximise profits subject to some subsidy to the weaker sections. According to him, such an operation on commercial lines is possible because banks have a monopolistic position in the credit market and the system of differential interest rates amounts to monopoly price discrimination, if only re-lending by the weaker sections can be discouraged, as the elasticity of demand for credit of the poorer sections such as small farmers is higher than that of the richer sections.

Ceiling on Agricultural Land-holding-Its Economic Rationale

Review of Agriculture June 1972 would lead to an overall improvement in agricultural productivity. Thus on static grounds the case for a ceiling (tax) is very strong.

Farm Mechanisation in a Labour-Abundant Economy

Economy C H Hanumantha Rao In India, the cost of biological sources of energy seems to be increasing relative to that of mechanical sources even though unemployment and underemployment have been growing. It may be argued that this has happened because farm machinery has been made artificially cheap or because farmers tend to overinvest for lack of alternative opportunities. But available evidence does not support these arguments.

Farm Size and Credit Policy

C H Hanumantha Rao Land and labour are no longer the predominant factors of growth in agriculture, and capital and scientific knowledge have become a major source of growth with their significance increasing rapidly.

India s Surplus Cattle-Reply

Reply C H Hanumantha Rao IN his article "Sacred Cattle and More Sacred Production Functions''[1] V M Dandekar raises two important questions. First, he observes that for a test as to whether there exists surplus cattle in relation to the given resources, what is relevant are not output riasti- cities for an animal with respect to resource inputs as formulated by me[2] but marginal productivities of inputs. Secondly, he argues that the choice of the Cobb-Douglas production function is inappropriate for this purpose.

India s Surplus Cattle-Some Empirical Results

India's 'Surplus' Cattle Some Empirical Results C H Hanumantha Rao K N Raj, who has questioned the widespread assumption about the existence of a large surplus of livestock in India, raises the question whether given the amount of food available for maintaining cattle, a higher output is to be had by giving this food to a smaller number and raising their productivity or by distributing it over a larger number. He suggests that a firm answer to this question cannot be offered without much deeper investigation into the relative production functions.


Review of Agriculture June 1969 Reply C H Hanumantha Rao THE extension of my welfare analysis by T N Srinivasan and P K Bardhan is useful as it provides a method for identifying empirically the income groups in rural (urban) areas who may be better or worse off than their urban (rural) counterparts, given the assumption of identical preferences. One of the main points of my welfare analysis was that the large expenditure groups may not experience a real income advantage in rural areas as compared to their urban counterparts. The estimates of Srinivasan and Bardhan confirm this proposition as they conclude that "for a given price difference the higher expenditure groups spending a larger proportion on more expensive urban goods are worse off relative to their urban counterparts''. It is important to note this because many of the prevailing studies on tax burden assume that real incomes of the rural rich are higher than those of their urban counterparts.

Resource Prospects from the Rural Sector-The Case of Indirect Taxes

Review of Agriculture March 1969 new technology would increase income of non-adopters of one-acre farms from Rs 524 to Rs 834. Similarly, on a 4-acre farm, farm business income of Rs 2,075 would be earned instead of Rs 1,489 which is available now. The adoption of the new technology would, therefore* increase the earnings of small non-adopter farms by a substantial amount The adoption of the new technology would bring increase in the farm business income by 27 per cent, or more, depending upon the size of the farm. It is also clear that increase in incomes is larger when non-adopters go in for new technology at 'high' efficiency level.

Farm Size and Yeild Per Acre-A Comment

A Comment C H Hanumantha Rao IN his article "Farm Size and Yield 1968) Ashok Rudra claims that his findings, based on data pertaining to 20 villages collected by the Agro- Economic Research Centre, University of Delhi, "flatly contradict the earlier finding of the Farm Management Studies that yield per acre declines with the increase in farm size" Rudra suspects that the process of aggregation is responsible for what he calls the "spurious ' correlation" of the Farm Management Studies. He observes that "if they had only looked at the nature of the scatter of the disaggregated raw data they i could not have drawn the conclusions that were drawn on the basis of aggregated data representing size group averages for entire districts".

Fluctuations in Agricultural Growth-An Analysis of Unstable Increase in Productivity

The wide fluctuations in agricultural output experienced recently are generally attributed to the weather. This raises an important question regarding the character of the growth potential created, viz, whether it has built-in tendencies to counteract the adverse effects of weather or to accentuate them.


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