The basic characteristics of our sample households are as follows. In regard to
the economic condition of households, it is observed that on an average 55 % of the
households are below poverty line (as per ration card classification) and 45 %
above poverty line, showing that the sample has a good mix of poor and not so poor
farmers. Sample also captures caste background of the respondent households; in
particular, we have 16 % of schedule caste (SC) population and about 80 % of
other backward caste (OBC) population in the sample while Muslims constitute
about 2 % of our sample farmers. Principal occupation of the respondents is
farming, though they have other supplementary occupations such as working as
agricultural labourers, small business ownership, etc. There are about 40 % marginal farmers, 25 % small farmers and 35 % medium farmers in our sample. Our
respondent households also earn supplementary income through other occupations
of the family members and these occupations include daily wage labourer both in
agricultural and non- agricultural (27 % households income) activities, animal
rearing (8 % of households), small business (30 % of households) and other such
occupations.
A structured questionnaire was personally canvassed by us to understand the
nature of indebtedness and the risk and mitigation strategies of the farmers.
A farmer in Karnataka faces risks arising out of vagaries of weather as well as input
and market risks, issues relating to which are discussed below.
5 Production Risk
5.1 Uncertain Weather
As is well known, Karnataka is largely a drought prone state with comparatively
low amount of rainfall and climate change can further enhance this risk. Two-thirds
of Karnataka’s geographical area is arid or semi-arid where out of 27 districts, 18
districts are drought prone with annual normal rainfall of less than 750 mm. The
normal annual rainfall in the state is 1139 mm received over 55 rainy days’ (see
Karnataka Crop Insurance Study, September 2003). Irrigation facilities in the state
are yet to develop adequately to address the problems of the farmers. Our survey
includes both irrigated and rain fed areas, and there is stark difference in farmers’
conditions between these two situations. It is worth noting that in the recent past,
the state had faced disaster due to flood as well. Though the state of Karnataka has
an early warning system to understand the climatic aberrations, it would be necessary to translate this into contingency plans for remedial action at the very first
signs of climatic distress. In order to do so effectively, it will be necessary to
provide institutional training to the farmers as well as enhance the capability of the
farmers to be receptive to early warnings.
There is also severe shortage of agriculture extension officers who are supposed
to impart technical knowledge to the farmers as many farmers reported during our
survey that they hardly ever see an extension officer in their village. These officers
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