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Volume 1, Number 2, July, 2013

ISSN 2321-1423

International Journal of Management and Development Studies (A Double-blind Peer Reviewed Quarterly Journal) Satvinder Kaur

Trends in Production and Productivity of Pulses in Punjab

N. Savitha A. Sangamithra

Enrolment of Health Insurance Schemes for Industrial Workers in Coimbatore – An Awareness Profile

S. Amutha

Awareness of Medicinal Plants in Tamil Nadu Among the Post Graduate Teachers of Biology in Tiruchirappalli District

M.V.K. Srinivasa Rao B. Omnamasivayya

The Key Success Factors and Profitability: A Case Study on Micro Small and Medium Enterprises

V. Darling Selvi

Environmental Concern of Indian Paper Industry

Srinivasulu Bayineni S. Mahaboobu Basha

Development of Micro, Small and Medium Enterprises (MSMEs): The Engine of Economic Growth

K. Rajaselvi P. Chellasamy

The Level of Satisfaction of the Policyholders on the Service Offered By Public and Private Life Insurers in Nilgiris District

Mushtaq Ahmad Bhat Aaijaz Ahmad Bhat

Relationship Marketing in Indian Banks: An Empirical Assessment

Tadele Mamo Tewodros Tefera

Factors Affecting Milk Market Outlet Choices of Urban and Periurban Dairy Producers in Welmera Woreda, West Shewa zone of Oromia Regional State, Ethiopia

S. Ramanathan M. Jaya

Perception analysis on Job Satisfaction and Motivation of Employees in Indian I.T. Industry

R.Nirmala Devi D.Vijayalakshmi

The Determinants of Corporate Leverage A Study on Indian Chemical Sector

H.S.Praveen kumar G.Ravi

Finances and Fund Flow in Chitradurga Karnataka state

Sanchit Kishan Sri Sathyanarayanan G Anand Narayanamoorthy Badri Toppur

Business Process Optimization in Fuel Stations

Zilla

Panchayat in

International Journal of Management and Development Studies (A Double-blind Peer Reviewed Quarterly Journal) Editor Balu. A

Associate Editors A. Udhayakumar, Government Arts College, Tiruvannamalai, India R. Sangeetha, Loyola College, Chennai, Tamil Nadu, India

Editorial Advisory Board R. Dayanandan, Hawasa University, Ethiopia R. Shashi Kumar, Bangalore University, Bangalore R. Azhagaiah, Kanchi Mamunivar Centre for Post-Graduate Studies, Pondicherry P. Mariappan, Bishop Heber College, Tiruchirappalli, Tamil Nadu S. Amutha, Bharathidasan University, Tiruchirappalli, Tamil Nadu A. Pandu, Pondicherry University Community College, Pondicherry C. Subburaman, Annamalai University, Tamil Nadu M. Jaya, Asan Memorial College of Arts and Science, Chennai, Tamil Nadu.

Manager-Production and Circulation A. Anthony Muthu Copyright Copyright of material published in the journal rests with the authors concerned. The views expressed here are of the authors and not of the publisher. @IJMDS All rights reserved. No part of this publication may be reproduced in any form or by any means, without written permission by the publisher.

International Journal of Management and Development Studies A Double-blind Peer Reviewed Quarterly Journal

Volume 1 Articles

Number 2

July 2013

Contents

Trends in Production and Productivity of Pulses in Punjab

Satvinder Kaur

1

Enrolment of Health Insurance Schemes for Industrial Workers in Coimbatore – An Awareness Profile

N. Savitha & A. Sangamithra

9

Awareness of Medicinal Plants in Tamil Nadu Among the Post Graduate Teachers of Biology in Tiruchirappalli District

S. Amutha

19

The Key Success Factors and Profitability: A Case Study on Micro Small and Medium Enterprises

M.V.K. Srinivasa Rao & B. Omnamasivayya

27

V. Darling Selvi

38

Srinivasulu Bayineni & S. Mahaboobu Basha

49

K. Rajaselvi & P. Chellasamy

59

Relationship Marketing in Indian Banks: An Empirical Assessment

Mushtaq Ahmad Bhat & Mr.Aaijaz Ahmad Bhat

71

Factors Affecting Milk Market Outlet Choices of Urban and Peri-urban Dairy Producers in Welmera Woreda, West Shewa zone of Oromia Regional State, Ethiopia

Tadele Mamo & Tewodros Tefera

85

Perception analysis on Job Satisfaction and Motivation of Employees in Indian I.T. Industry

S. Ramanathan & M. Jaya

99

The Determinants of Corporate Leverage A Study on Indian Chemical Sector

R. Nirmala Devi & D.Vijayalakshmi

104

Finances and Fund Flow in Chitradurga Zilla Panchayat in Karnataka state

H.S.Praveen kumar & G.Ravi

114

Sanchit Kishan, Sri Sathyanarayanan G, Anand Narayanamoorthy & Badri Toppur

120

Environmental Concern of Indian Paper Industry Development of Micro, Small and Medium Enterprises (MSMEs): The Engine of Economic Growth The Level of Satisfaction of the Policyholders on the Service Offered By Public and Private Life Insurers in Nilgiris District

Business Process Optimization in Fuel Stations

Trends in Production and Productivity of Pulses in Punjab Satvinder Kaur Abstract: This study aims to examine the trends in area, production and yield of pulses related to the period from 1970-71 to 2010-11 for India in general and Punjab in particular. Despite being the cheapest as well as richest source of protein, enriching the soil fertility, increasing the soil organic matter and improving the soil structure and having a significant positive impact on green house gas emissions, the area under pulses and production and yield of pulses continuously decreasing since 1970’s. Both the Agriculture Development Model (Green Revolution) of mid-sixties which transform the country's image from a food grain deficit nation to a self-sufficient and stable economy and New Economic Policy of early 1990’s have not been proved beneficial for the pulse crop. The results show that at the all India level, the production of pulses grew at a dismal rate of 0.6 per cent per annum whereas pulse production revealed a negative growth of 7.75 per cent per annum in Punjab during the study period. The main attributed factor of declining tendency of pulses is found to be significant fall in area under the crop with poor and marginal increase in the yield rates. The results concluded that the prereform period (1970-71 to 1990-91) was far better than the post-reform period (1991-92 to 2010-11) as far as growth of area and production of pulses in Punjab is concerned. The study suggests for diversify the cropping pattern through development of agro-industrial pulse products and pulse processing industries in the state and encouragement to the farmers to increase allocation of area under the crop. More so, assignment of quota for pulse crop to each Punjab’s farmer under assured procurement and minimum support price programme will ensure a gradual and painless reduction in area under wheat and paddy.

Introduction Pulses are the cheapest as well as richest source of protein for the mass of the people in India. The importance of pulses as food, fodder and manure, is immense. Most pulses contain a higher percentage of protein as compared to even superior cereals like wheat and rice which have only 11.8 per cent and 8.5 per cent of protein content, pulses like gram, urad and masur con tain 17.1, 24.0 and 25.1 per cent respectively. They are not only rich in protein but also in carbohydrate, fibre, vitamin B and low in fat which is mostly of the unsaturated kind. Apart from the nutritional aspect of the pulses, they occupy an important place in the crop sequence, intercropping and as a crop mixture in different regions of the country. Pulses enrich the soil fertility by fixing atmospheric nitrogen in the root nodules and improve soil structure. The tap root system opens the soil into deeper strata and heavy leaf protein increases the soil organic matter and improves the soil structure. The inclusion of pulse crops in rotation with cereal and oilseed crops is considered to have a significant positive impact on green house gas emissions, gi ven the absence of fertilizer 'N' in pulse crop production. India is the world's largest pulse producer accounting for 27-28 per cent of global pulse production and harvests between 12-15 million tones of pulses each year. There were 23282 (000’ hectares) of area under pulses in 2009-10 as against 22543 (000’ hectares) in 1991-92 and 1970-71 and the production was 14661, (000’ metric tonnes), 12015 (000’ metric tonnes) and 11818 (000’metric tonnes) respectively for these years, whereas the yield rates are 629 (kg/hectare), 532 (kg/hectares) and International Journal of Management and Development Studies, Vol.1, No. 2, July 2013

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Satvinder Kaur 524 (kg/hectares) for the same years. The principal growing states are Karnataka, Tamil Nadu, Madhya Pradesh, Andhra Pradesh, Maharashtra, Gujarat, Uttar Pradesh, Bihar and Rajasthan. In general, pulses are grown in two seasons, one in the warm, rainy period (May-October) and other in the cool, dry season (November-April). They are largely cultivated in dry-lands during the winter seasons. Despite being the largest producer of the largest varieties of pulses, the demand for consumption of pulses is growing. The causes behind increase in demand of pulses are continuous and sharp increase in population and its characteristics of cheapest source of diet and protein. On the supply side, its yield is static, growth is slow and a number of marketing problems are there. Due to this demand supply imbalance, the country is importing a large amount of pulses to meet the growing domestic needs. During 2007, India imported 2.79 million tonnes of various pulses, especially from the countries like China, Canada, Australia and Myanmar. This has led to a spurt in the prices of pulses (Honalli, 2009). Punjab has played a vital role in transforming the country's image from a foodgrain deficit nation to a self-sufficient and stable economy due to use of modern technology (Economic Survey of Punjab, 2009-10). Agriculture sector continues to be an important driver in the state economy. The progress made by the agriculture sector in the state of Punjab since adoption of Agriculture Development Model of 1966-67 commonly known as green revolution, is so well known that one need not cite any statistics to prove this point. The total food grain production in Punjab has significantly increased over the last few decades, especially in the post green revolution period. The notable achievement is reflected in the five -fold increase in the index of production of cereals during the period 1960-61 to 1982-83 (Grewal and Rangi, 1983). The state with only 1.54 per cent of geographical area produced 12.36 per cent of food grains, about 18.77 per cent of wheat and 12.61 per cent rice in the country (Statistical Abstract of Punjab, 2010 -11). But the future may not held the production possibilities realised earlier since these ac hievements are indeed creditable but there is no reason for complacency. Pulses which are an important part of farming household consumption lost its ground since the introduction of new technology. The new technology shifted the cropping pattern from mixed crops towards the mono-culture (wheatpaddy cycle) crops. The government policies like of the announcement of procurement prices and minimum support price played a positive part for such increase. The proper marketing facilities also played an important role for wheat and rice revolution in Punjab. The diverse cropping pattern existing in the early Sixties is now restricted to a few specialized crop enterprises. The cereal crops in particular have come to claim a large percentage of the total cropped area whereas the area under pulses has declined. The area under cereals increased from 45.65 per cent in 196061 to 73.80 per cent in 1991-92 and 82.26 per cent in 2010-11 of the total cropped area. On the other hand, the area under pulses declined from 19.08 per cent to 1.20 per cent and 0.25 per cent during the same period respectively. Among cereals, rice during Kharif and wheat during Rabi occupy a place of prominence in the cropping pattern of the state. This shift in the cropping pattern took place as a consequence of relative profitability determined by various economic forces especially relative yield, price and their stability (Chatha and Singh, 1985). 2

International Journal of Management and Development Studies, Vol.1, No. 2, July 2013

Trends in Production and Productivity of Pulses in Punjab The production of pulses is not only stagnant but even decreasing in the state. Total production of pulses recorded was only 23 thousand metric tonnes in 2007-08 whereas the total production of foodgrains constitutes 26.81 metric tonnes in the state which was the second highest after Uttar Pradesh. From the total area of 23.63 million hectares under pulses in the country, area under pulses in Punjab was 28.6 thousand hectares for the same year, which is quite low. There is a sharp fall in the area and production of pulses in Punjab since 1970-71. There were 414 (000’ hectares) of area under pulses in 1970-71 as against 90 (000’ hectares) in 1991-92 and 20 (000’ hectares) in 2010-11 respectively in Punjab. The production constitute 308 (000’ metric tonnes), 75 (000’ metric tonnes) and 17 (000’metric tonnes) in 1970-71, 1991-92 and 2010-11 respectively. As far as yield rates are concerned it was 743 (kg/hectares), 833 (kg/hectares) and 850 (kg/hectares) for the same years. The increase in productivity has been confined to cereals, but there has been declining trends in pulses productivity in the state. Though some efforts to promote high yielding varieties of pulses have been made since the early seventies, they do not seem to have succeeded much. The average yield of pulses in India is 629 kg/hectare whereas in Punjab state it is 888 kg/hectare, which is higher as compared to national average but quite low as compared to rice and wheat yields in the state (Statistical Abstract of Punjab, 2010-11). The yield rates of pulses are higher in Punjab as compare to India mainly because of adoption of New Agricultural Practices in the state. Moreover, though the yield rates are higher there is decline in production of pulses in the state whereas even with low yield rates compare to Punjab, increase in the production of pulses is observed at all India level. This is due to the fact that area allocation is the major factor observed for increase in the production of a crop. In case of pulses decline in area is much higher than increase in its yield rates in Punjab. In this backdrop, an endeavour has been made in this paper to examine the trends in area, production and yield of pulses in Punjab and to ascertain the factors associated with the observed trends. Objectives The most important objective of this paper is to attempt a detail analysis of pulse production in India in general and Punjab in particular. More specifically the study is concentrated on the following objectives: 1. To analyse the trends in area, production and yield of pulses in India. 2. To study the trends in area, production and yield of pulses in Punjab. 3. To find the factors responsible or constraints hindering the growth of pulses in Punjab. Data Base and Methodology For the purpose of analysis, the study is restricted to the period 1970-71 (the year after immediate effects/results of green revolution in Punjab) to 2010-11 for which the latest data is available. The total study period is divided into three parts. Period I, i.e., 1970-71 to 1990-91- a pre-reform period, Period II refers to 1991-92 to 2010-11- the post reform period and Period III from 1970-71 to 2010-11- the total period of study. In order to achieve the objectives of the study the secondary data has been used which is obtained from Statistical Abstracts of India and Statistical Abstracts of Punjab for various years. In order to calculate the average annual growth rate of area, production and yield of pulses log-lin model has been used which is found to fit best has been separately fitted for each of time periods for India and Punjab. The equation for log-lin model is as under: International Journal of Management and Development Studies, Vol.1, No. 2, July 2013

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Satvinder Kaur Yt = y0 (1+ r) t Where r is the compound rate of growth of Y. in order to make the equation linear we take natural logarithm on both sides of equation no. (ix) ln yt = ln yo+ t ln(1+ r) Now letting β1=ln yo and β2 = ln (1 + r) lnYt = β1 +β2t + ui Where ln yt = logarithm of regress and or dependent variable β1 = the intercept. β2 = Coefficient of time. ui = Disturbance term. After getting value of β2 , ACGR has been calculated by the use of equation ------------(1) =( β2 − 1) ∗ 100. -------------------------- (1) Results and Discussion

The information about the average annual growth rates of area, production and yield of pulses in India and Punjab during Period I- the pre reform period, Period II- the post reform period and Period IIIthe entire study period in India and Punjab is given in Table 1. The annual average growth rate of area under pulses registered static from 1970-71 to 2010-11 in India which is a matter of serious concern of pulse availability, soil fertility and agricultural diversification. The emp irical results of the study also revealed that the area under pulses recorded a poor exponential growth rate of only 0.03 per cent and remains stagnant between 1960 to 2000 (Selvaraj and Ramasamy, 2002). However, both yield and production grew at a dismal rate of only 0.60 per cent per annum. It is clearly revealed that increase in production of pulses is only attributed to increase in yield of th e crop rather than any significant role of area in the country. Table 1: Compound Growth Rates of Area, Production and Yield of Pulses in India and Punjab from 1970-71 to 2010-11 Period

Year

India

Punjab

Area Yield Production Area Yield Production 1970-71 to 0.20** 0.90* 1.10* -5.82* -0.69** -6.68* 1990-91 (1.51) (2.75) (2.78) (-9.71) (1.07) (-7.90) 1991-92 to -0.23** 0.40* 0.60** -9.22* 0.20** -9.01* Period II 2010-11 (-1.76) (2.11) (1.70) (-19.32) (0.72) (-19.11) 0.00** 0.60* 0.60* -7.96* 0.20** -7.75* Period III 1970-71 to 2010-11 (-0.82) (8.03) (5.72) (-32.63) (0.80) (-30.23) Source: The values are computed on the basis of the year wise data on area, production and yield of pulses in India and Punjab collected from Statistical Abstract of India and Statistical Abstract of Punjab, Various issues. Note: Figures in parentheses indicates t-values, *significant at 5 per cent level, **insignificant at 5 per cent level Period I

4

International Journal of Management and Development Studies, Vol.1, No. 2, July 2013

Trends in Production and Productivity of Pulses in Punjab The table further indicates that in Punjab, the values of growth rate are registered to be negatively high and significant for area i.e., 7.96 per cent per annum over the entire period of study. The values of growth rate of yield shows a positive but insignificant growth rate of 0.20 per cent per annum. However, the growth rate for production of pulses is found to be negative and significant i.e., 7.75 per cent per annum. The results clearly indicate that the decline in area with marginal increase in yield rates leads to decrease in production of pulses in the state. The poor performance of pulses since 1970-71 in Punjab is mainly attributed to increase in the area under wheat and rice after adoption of Agricultural Development Model in Punjab. The high profitability and yield rates of wheat and rice in comparison to pulses encourage farmers to grow these crops in fertile land with use of all yield raising inputs and improved cultural practices. The government policies like of the announcement of procurement prices and minimum support price played a positive part for such increase. The proper marketing facilities also played an important role for wheat and rice revolution in Punjab. At the same time the continuous decline in the production of pulses must be taken to be an indicator of the basic weakness in the production techniques of pulses at the farm level. The primitive farm management practices of the average pulse grower have made pulse crops into low-value or inferior crops. As pulses are generally grown as mixed crops, for fuel and fodder or as the second crop, the farmer gives secondary importance to the pulse crop, i.e., from the point of view of cultural practices and devote poor attention to the pulses cultivation. More so, they are vulnerable to a number of diseases and pests which further make their cultivation uneconomic on comparative grounds with other crops and caused to decrease in area under pulses. Several fungal bacterial and viral diseases cause heavy damages to pulse crops. Pests like borer, jassids, thrups, bugs and others mostly feed on these crops and reduce their productivity (Bhushan and Sobti, 1992). Furthermore, there is no assured procurement and announcement of minimum support prices of pulse crop by the government. The present system of marketing of pulses is also full of number of malpractices. It is dominated by large number of middlemen who exploit both consumers and producers. The commission agents are the buyers themselves who sell the produce to the retailers, as there is no assured procurement by government agencies. The producers share in consumer's rupee stands very low. There is no effective mechanism for facilitating the transfer of latest research findings and technologie s developed by Research bodies/institutions and fields. In order to encourage farmers to increase area under pulses, awareness can be amplified by government, research bodies and agricultural universities by providing importance of pulses in nutritional diet and to improve soil fertility and soil structure. Moreover, the values of average annual growth rate of area shows a dismal increase of 0.20 per cent per annum during period I. Whereas it exhibited insignificant negative growth rate of 0.23 per cent per annum during period II. The results clearly depicts that the introduction of New Economic Reforms in the country negatively affected the allocation of area under pulses in India. The table also portraits that for Punjab, declining tendency in area with highly significant growth rate of 5.82 per cent per annum is observed during period I and 9.22 per cent per annum during period II. So it may conclude that pulse acreage during 1970-71 to 2010-11 has declined International Journal of Management and Development Studies, Vol.1, No. 2, July 2013

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Satvinder Kaur with significant rate in Punjab whereas the maximum decline is observed during post-reform period. The decline in area under pulses in Punjab is mainly attributed to shift in croppin g pattern in the state. There was 3514 (thousand hectares) area under cereals in 1970-71 which sharply rose to 5548 (thousand hectares) in 1991-92 and further increase to 6484 (thousand hectares) in 2010-11. Moreover, among the category of cereals, the area under wheat was 2299 (thousand hectares) in 1970-71 increase to 3237 (thousand hectares) in 1991-92 and 3510 (thousand hectares) in 2010-11. Whereas significant increase in area under rice from 390 (thousand hectares) to 2069 (thousand hectares) and 2826 (thousand hectares) is observed during the same periods respectively. However, the area under pulses sharply decline from 414 (thousand hectares) in 1970-71 to 90 (thousand hectares) in 1991-92 and only 20 (thousand hectares) in 2010-11 (Statistical Abstract of Punjab, Various issues). Thus, the statistical results clearly depicts that decrease in area under pulses is confined to shift in cropping pattern, i.e., increase in area under cereals mainly rice and wheat crops in Punjab. Grewal and Bhullar (1982) in their article "Impact of Green Revolution on the Cultivation of Pulses in Punjab" have examined that the area from Rabi pulses shifted to wheat and Kharif pulses to paddy under the stimulus of expanding irrigation facilities, high-yielding varieties of seeds, support price policy and public procurement system of wheat and paddy in the state. The study suggested that there is a strong need to diversify the cropping pattern by shift some area out of cereals, more specifically wheat and paddy to pulses. In order to encourage farmers to shift cropping pattern there is need to develop agro-industrial pulse products and pulse processing industries in the state. It is worth mentioning that practically, a massive reduction in area under wheat and paddy is neither desirable by farmers, nor approved by centre and state governments. Therefore, assignment of quota for pulse crop to each Punjab’s farmer under assured procurement and minimum support price programme will ensure a gradual and painless reduction in area under wheat and paddy. Moreover, as already discussed, the farmers are not willing to shift their area under pulses because of lack of assured procurement policy and remunerative price by the government as it is in case of wheat and rice. In order to increase area allocation and production of pulses in the state, there is need to remove malpractices in the marketing of pulses so that farmers can be benefited from remunerative prices and assured procurement of pulses in the state. At all India level, the average growth rate in yield during all periods is found to be positive and significant indicating increasing trend is prominent. On the whole, there is positive but slow growth in yield of pulses in the country. This growth was comparatively high during period I (0.90 per cent) than period II (0.40 per cent) and Period III (0.60 per cent). As far as yield of pulses in Punjab is concerned the growth rate is negative during Period I (0.69 per cent), however, observed to be insignificant. Whereas a poor and dismal increase of 0.20 per cent per annum is observed during Period II and Period III. In order to increase yield rates of pulses in Punjab, high yielding varieties and short duration varieties of pulses should be developed and provided by government to the farmers at subsidized rate.

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Trends in Production and Productivity of Pulses in Punjab After analysis and examining the growth rates of area and yield for India and Punjab f or different time periods, it is felt necessary to analyses the same for production. For India as a whole, the growth rate of production for period I and period III is found to be positive and significant i.e., 1.10 per cent and 0.60 per cent per annum. Moreover, the growth rate is observed to insignificant during period II. The above analysis demonstrate that, in general, the all India pulse production grew at a dismal rate of 0.60 per cent per annum between 1970-71 to 2010-11, the growth of pulse production decreased by 0.5 per cent per year during period II- the post reform period compare to period I- pre reform period. A study by Tuteja (2006) also examine that the pre-reform period (1980-90) was far better than the post reform period (1990-2000) as far as growth in area, production and yield of pulses in India is concerned. Studies by Nadkarni (1986), Acharya (1989) and Bhatia (1991) related to the period from 1970-71 to 1990-91 examined that the major constraints affecting the growth in production of pulses in India are technological, viz, their lower yield and lower responsiveness to irrigation and fertilizers and low level technology with poor management under high risk situation. It is further examine that for Punjab, the growth rate is found to be negative and significant during all the periods under study which indicate that total production of pulses over years has decreased. It is also found that the decline in production of pulses is observed to be highest (9.01 per cent) during Period II followed by Period III (7.75 per cent) and Period I (6.68 per cent). So it may be concluded that the production of pulses from 1970-71 to 2010-11 has declined whereas maximum decline is observed during Period II, i.e., the post-reform period. Conclusion The compound growth rates of pulses worked out for the study period at all India level shows that the growth in area under pulses is almost stagnant for the period 1970 -71 to 2010-11 whereas growth in yield is less than one percent per annum. So far the production is concerned it grew at a dismal rate of 0.6 per cent per annum during the entire study period. In case of Punjab, the computed results depict a sharp falling tendency in area as well as production of pulses since 1970-71. During the period 1970-71 to 2010-11 the production revealed a negative growth rate of 7.75 per cent per annum. The major contributing factor of this negative growth rate is observed to be area under pulses which decline at the rate of 7.96 per cent per annum, whereas the yield revealed a positive though marginal increase of 0.20 per cent per annum. The study indicates that the dismal increase in yield rates with poor acreage, i.e., decline in area under pulses attributed to falling tendency of production of pulses in the state. References Acharaya, S.S. (1988), Agricultural Production, Marketing and Price Policy in India (A Study of Pulses), Delhi: Mittal Publications. Bhatia, M.S. (1991), ‘Economic Constraints in Increasing Pulses Production’, Agricultural Situation in India, vol. XLVI, no.5, pp. 279-284. International Journal of Management and Development Studies, Vol.1, No. 2, July 2013

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Satvinder Kaur Chatha, I.S. and Singh, J. (1985), ‘Causes of Stagnation in Production of Pulses and Oilseeds in Punjab’, Agricultural Situation in India, no.1, pp.931-934. Central Statistical Organisation (CSO), Ministry of Statistics and Programme Implementation (MSPI), (1970-2010) Statistical Abstract of India, New Delhi: MSPI Publications. Economic and Statistical Organisation (ESO), Government of Punjab, (2008-09) Economic Survey of Punjab, Chandigarh: ESO Publications. Economic and Statistical Organisation (ESO), Government of Punjab, (1970-2010) Statistical Abstract of Punjab, Chandigarh: ESO Publications. Grewal, P.S. and Bhullar, B.S. (1982), ‘Impact of Green Revolution in the Cultivation of Pulses in Punjab’, Indian Journal of Agricultural Economics, Vol. 37, no. 1-4, pp. 406. Grewal, S.S and Rangi, P.S. (1983), ‘An Analytical Study of Growth of Punjab Agriculture’, Department of Economics and Sociology, Punjab Agricultural University, Ludhiana. Honnalli, S. (2009), A Study of Problems and Prospects of Redgram (Tur) Crop With Reference to Cultivation, Processing and Marketing in Gulbaraga District, PhD theses, Shivaji University, Kolhapur. Nadkarni, M.V. (1986), ‘Backward Crops in Indian Agriculture: Economy of Coarse Cereals and Pulses’, Economic and Political Weekly, vol. XXI, no. 38-39, pp. A113-A118. Selvaraj, K.N. and Ramasamy, C. (2002), ‘Pulses, Oilseeds and Course Cereals: Why They Are Slow Growth Crops’, Indian Journal of Agricultural Economics, vol. 57, no.3, pp. 289-313. Tuteja, U. (2006), ‘Growth Performance and Acreage Response of Pulse Crops : A State Level Analysis’, Indian Journal of Agricultural Economics, vol. 61, no.2, pp. 218-237.

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International Journal of Management and Development Studies, Vol.1, No. 2, July 2013

Enrolment of Health Insurance Schemes for Industrial Workers in Coimbatore – An Awareness Profile N. Savitha and A. Sangamithra Abstract: One of the major insecurities for workers in the unorganized sector is the frequent incidences of illness and need for medical care and hospitalization of such workers and their family members. Health insurance is one way of providing protection to poor households against the risk of health spending leading to poverty. However, most efforts to provide health insurance in the past have faced difficulties in both design and implementation. The poor are unable or unwilling to take up health insurance because of its cost, or lack of perceived benefits. The primary data was collected through interview schedule. The convenient sampling method was adopted to take 1500 samples from both engineering and textile industries in Coimbatore district. The findings of the study clearly establish the fact that, educational status of the respondents plays a vital role in enrolling the health insurance schemes in Coimbatore city, India. Greater awareness about the importance of health insurance and the demand for the health insurance would be higher among educated respondents, especially among those who go beyond secondary school and above and thereby, large number of such persons enrolls themselves for health insurance. Next to educational status, current age of the respondents appear to be the major deciding factor whether the respondents got enrolling themselves for health insurance or not. It is also conspicuous to note that respondents whose family monthly income is better have higher likelihood of enrolling themselves for health insurance as compared to those who belong to families in which monthly income is low. Enrolling for health insurance are found to be higher and significant at a moderate level among the females as compared to their male counterparts. Most of the workers reported that they are not covered by any health insurance plans or medical claim packages. To develop a viable health insurance scheme, it is important to understand people’s perceptions and develop a package that is accessible, available, affordable and acceptable to all sections of the society. Government should come out with a clear cut policy, where the public can be made to contribute compulsorily to a health insurance scheme to ensure unnecessary out-of pocket expenditures and also better utilization of their health care facilities. Key Words: Industrial Workers, Health Insurance, Awareness, Enrollment, Coimbatore. 1.1 Introduction In India, the unorganised sector has employed almost 93% of the total labour force of the economy. For the betterment of the people the government has implemented a number of social security measures in general and few measures in particular for occupational groups, but the failures of these schemes were witnessed by practical implementation problems and as a consequence majority of targeted people were still not covered by these social security measures. One of the major problems faced by the unorganised workforce is the frequent incidence of illness and prerequisite medical care and hospitalisation to the victims. Despite the enormous development in the health care facilities, aliments remain one the significant determinant of human deprivation in India. To overcome these problems economists, policymakers and econometricians of many developed and developing economies have identified investment on health/health insurance is one way of providing securities to the uncovered beneficiaries of International Journal of Management and Development Studies, Vol.1, No. 2, July 2013 9

N. Savitha and A. Sangamithra household against the uncertain health expenses which leads not only the victim but also the whole society into the vicious circle of poverty. On the other hand, almost every effort of government and private sector to provide health insurance coverage to the needed have faced many discrepancies both in design, targeted group and implementation. This specific social issue has attracted many researchers to make enquire this field and make it as a specialization and found that many poor are still unwilling to participate in the health insurance schemes due to lack of awareness, high cost and lack of perceived benefits. 1.2 Statement of the Problem and Need for the Study It is by now well established that most Indians pay large amounts out-of-pocket for covering their health costs: three quarters of health spending in India comes from households’ out-of-pocket disbursements (Berman 1998, Ellis et al., 2000). If one takes only primary curative care, household spending forms the majority of this expenditure in India. In addition to just expenditure, the elaborate government health care system believes the fact that the private health care sector has grown at a phenomenal rate and today form an equally significant part of the health system in India. It has been observed that with the growth in income, high purchasing power and the expansion of the middle class urban India has witnessed a tremendous growth in the private health care system (Sundar 1992, World Bank 1993). The health status of urban population is peculiar in character as majority of them are floating population and the awareness of urban industrial workers about various health problems like curative, maternal and child health differ widely due to differences in their socio-economic set up. The vulnerable sections in the urban areas are suffering from morbidity problems especially diseases of poverty and are not having enough access to health care services. Due to the low income, they provide first priority to food and later only for treatment. Access to health care systems is deeply conditioned by one’s possession and income (World Bank, 1998). Financial barrier is still a dominant problem for access to necessary healthcare for majority of the Indians. To ensure universal and comprehensive healthcare to its citizens, alternative healthcare financing strategies like health insurance are being widely accepted. However, despite health insurance being an equitable and efficient solution, the health insurance coverage still remains at an infant stage in our country. It has to be recalled that India does not have a history of a high level of health insurance coverage at once upon a time and the coverage falling to the present level so that we have enough lessons to list out why the health insurance coverage is at very low level. In fact, so far there have been no significant studies that have addressed this particular issue. From a demand side perspective, several studies indicate that people are willing to pay for health insurance (Dror et al., 2007; Gumber and Kulkarni 2000; Mathiyazhagan 1998; Sodani 2001). Moreover, the existence of a partially subsidized public healthcare system, absence of proper awareness on risk pooling forms of health insurance, poor trust in insurance companies and the inability of the people in the informal sector to deal with insurance companies are some of the other plausible reasons for the low level of health insurance intake in India (Vellakkal, 2008). Industrialization is necessary for prosperity and at times for the survival of a nation. The production is the real wealth of a Nation. Only industrialization is not enough, real benefit is brought by continuous top performance of the worker which is only possible by their good health. Industrial workers constitute only a segment of general population and the factors that influence the health of the population also apply 10

International Journal of Management and Development Studies, Vol.1, No. 2, July 2013

Enrolment of Health Insurance Schemes for Industrial Workers in Coimbatore equally to industrial workers. Health care financing of industrial workers is undoubtedly an issue that calls for more research by experts and activists. Now the healthcare market is witnessing several players offering health insurance schemes to mitigate the expenditure that may arise due to unforeseen disturbance in the health of individuals. Varieties of policies exist in the market that suits the differing needs of persons seeking to insure their health. But are the workers really aware of such kinds of policies that are in force? How do they come to know about such policies? Is it true that those who have become aware of such insurance programmes have taken up policies to ensure that they incur less when they become sick? If no, what has forbidden them? Has price of insurance remained a prohibitive factor? If yes, are the workers prepared to come under an insurance cover the cost of which is the least? In order to seek solutions to these questions, the present study has focused on the Enrolment of Health Insurance Schemes for the Industrial Workers in Coimbatore city. 1.3. Objective of the study Based on the enormous survey of earlier empirical studies related to Health Insurance the following objective was framed; To study the Enrolment of Health Insurance Schemes for the Industrial Workers. 1.4. Research Methodology To test the objective, the following methodology was adopted. 1.5. The Study Area Coimbatore is one of the most industrially developed cities in Tamil Nadu and has the pride of being called the “Manchester of South India”. Coimbatore is the third largest city in Tamil Nadu state in India; it has more than 40,000 small, medium and large-scale industries, which serve the engineering needs of the major parts of the country. The city is known for its dynamic people and excellent infrastructure. The entrepreneurial spirit of the business community here is renowned across the country. The city is the second largest software producer in Tamil Nadu, next to Chennai. The decision to select foundry and textile industries is due to the fact that the industrial activity in Coimbatore region depends more on these units and the workers of these units are prone to health hazards due to pollution. It is essential for them to know the existing health insurance facilities. The present study relates to the health insurance enrolment among industrial workers in urban Coimbatore. 2. Sampling Design To collect the necessary information, 1500 employees (henceforth ‘respondents’) were approached with predefined questionnaire in both foundry and textile industries for the equal representation. However, while collecting the data, 53 respondents did not respond at the time of survey. Thus a total of 1447 respondents were selected for the final study. Due to the nature of selected issue and outcomes a “convenient sampling method” was adopted. Questions relating to personal profile of the respondents and the benefits availed from health insurance schemes and problems faced by the respondents were also included in the schedule. After deriving the total sample size (i.e.1447), gathered information were coded in SPSS package for further process. The study has employed percentage method to elicit the nature of International Journal of Management and Development Studies, Vol.1, No. 2, July 2013

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N. Savitha and A. Sangamithra the respondents and their awareness regarding health insurance schemes. To test the pre-defined null hypothesis, the study has also adopted a logistic regression model to determine the factors determining the probability of enrolment in health insurance schemes among the selected industrial workers. 3. Collection of Data For collecting the data, the respondents were interviewed personally and given a brief description about the nature and purpose of the study. Data required for the study were collected through interview schedule which was administered among the workers of foundry (engineering) and textiles industries in Coimbatore. Apart from this, secondary data relating to textile industries were collected from South Indian Mills Owners Association (SIMA), South Indian Textile Research Association (SITRA) and Small Spinners Association (SSA). Foundry industries data are collected from Coimbatore District Small Scale Industries Association (CODISSIA), The South Indian Engineering Manufacturing Association (SIEMA), Coimbatore and District Industrial Center (DIC), Coimbatore. At the first stage, the name and the addresses of the Industrial units were identified. In the next stage number of workers employed in textile and foundry units were identified based on the number of units, and the total workers were chosen randomly depending on the number of employees on the roll at the time of the study. 4. Theoretical background of the Logistic Regression Model (LRM) P      Gen   C _ age   Nativity   Family   Education   Industry   MFI  u Yi   i  0 1 i 2 i 3 i 4 i 5 i 6 i 7 i i  1  Pi 

Where,  0 to  7 - Parameters of estimates 1 - Gender - '0' for Male and '1' for Female  2 - C_age - Current age 3  Nativity - '0' for Rural and '1' for Urban  4 - Type of Family - '0' for Joint family and '1' for Nuclear family 5 - Educational Status  6 - Type of Industry - '0' Textile industry and '1' for Foundry industry  7 - Monthly Family Income u i - Error term

5. Earlier Studies Related to Health Insurance The literature review is an important step in any research process. Review of earlier studies discloses the works and studies done by individual researchers and institutions and help to establish the need for further study. An attempt has been made in the study to review the earlier studies relating to the enrollment of health insurance among industrial workers. Among the contributors, the most prominent studies and findings were given by Gruber (1994), Laurence Levin (1995), Sheiner (1997), Liu and Christianson (1998), Sapelli and Torche (2001), Janet Currie and Jonathan Gruber (2001), Robert Kaestner and Kosali Ilayperuma Simon (2002), Kate Bundorf (2002), Dong et al. (2003), Johannes P.Jutting (2003), Abay Asfaw et. al.(2004), Matthew and Christopher (2005), Finn and Harman (2006), Dror et. al.(2006), Pedro 12

International Journal of Management and Development Studies, Vol.1, No. 2, July 2013

Enrolment of Health Insurance Schemes for Industrial Workers in Coimbatore Pita Barros et. al. (2008), Inke Mathauer and et. al.(2008), Kevin T Stroup et. al. (2009) and Rebecca L.Thornton et. al.,(2010). With this strong conviction in the field of Health Insurance the present study has been embarked. 6. Awareness about Health Insurance Schemes The health insurance is a vital method of financing the spiraling costs of medical care. The high cost of hospital services coupled with the unpredictability of health needs and the inadequacy of personal savings is the primary reason for the growing importance of insurance as a means of financing health services. Inspite of the growing importance of health insurance schemes the number of people covered by health insurance is very less in India. It has been found that one of the major reasons for low health insurance coverage in India is the lack of awareness of the health schemes by the people. Currently in India, only 2 million people (0.2 per cent of the total population of 1 billion) are covered under Mediclaim, the most popular health insurance scheme in India, whereas in developed nations like U.S., about 75 per cent of the total population are covered under one or the other insurance scheme. In this background, an attempt has been made to know whether the industrial workers are aware of health insurance schemes or not. (Ramanujam, 2009). Table 1 shows that out of 1447 sample workers, 489 workers (33.8 per cent) were aware of health insurance schemes while 958 workers (66.2 per cent) were unaware. It can be concluded that most of them are not aware of the insurance policies covering health aspect and some are not aware of any insurance schemes because of rural or semi-urban background, less education and less exposure to the modern developments. Moreover, lack of publicity of various health insurance schemes happens to be an important factor for this situation. Table 1: Awareness of Health Insurance Schemes Awareness about Health Frequency Insurance Schemes Yes 489 No 958 Total 1447

Percentage 33.8 66.2 100.0

7. Enrolment of the Health Insurance Schemes The escalating cost of medical treatment today is beyond the reach of a common man. In case of a medical emergency, cost of hospital room rent, the doctor's fees, medicines and related health services can work out to be a huge sum. In such times, health insurance provides the much needed financial relief. An investment in health insurance scheme would be a judicious decision. The health insurance scheme could either be a personal scheme or a group scheme sponsored by an employer. Some of the existing health insurance schemes currently available are individual, family, group insurance schemes, and senior citizens insurance schemes, long-term health care and insurance cover for specific diseases. Table 2 explains that out of 1447 sample respondents, a majority of 1034 workers (71.5 per cent) are not enrolled in the health insurance schemes and only 413 workers (28.5 per cent) have enrolled in those schemes. The reason behind that is due to low level of literacy they are unaware of the health insurance scheme and the wage level also determined not to take the health insurance schemes. International Journal of Management and Development Studies, Vol.1, No. 2, July 2013 13

N. Savitha and A. Sangamithra Table 2: Enrolment of the Health Insurance Schemes Enrolment of Health Insurance Scheme Yes No Total

Frequency

Percentage

413 1034 1447

28.5 71.5 100.0

8. Types of Health Insurance Schemes Unpredictability of health needs and inadequacy of personal savings together create the need for health insurance. The insurance companies in India, mainly GIC and LIC provide various health insurance schemes to the people. GIC provides the most popular health insurance scheme namely, Mediclaim and also the Jan Arogya Bhima Policy. The Central Government provides a contributory health scheme to its employees called the Central Government Health Scheme (CGHS) from 1954 and an insurance scheme called Employees State Insurance Scheme (ESIS) from 1948, both schemes meant for the employees working in the public sector enterprises in the country. Thus, the government role in organizing and financing health insurance is limited to these two major schemes. In this context, an attempt was made to know from the workers about the type of insurance coverage they are having. Table 3 reveals that out of 413 sample respondents 150 workers have taken the private health insurance schemes, 115workers taken the Government Schemes, 113 workers taken the Government Insurance Schemes and 35 workers taken the Employees State Insurance Scheme which constituted around 36.3 per cent, 27.8 per cent, 27.4 per cent and 8.5 per cent respectively. Table 3: Types of Health Insurance Schemes The Insurance Schemes Government Schemes Employees State Insurance Scheme Government Insurance Scheme Private Health Insurance Total

Frequency 115 35 113 150 413

Percentage 27.8 8.5 27.4 36.3 100.0

9. Motivation for Joining the Health Insurance Schemes The motivation for the health insurance schemes can be classified into seven categories such as Nobody, Self, Media, Newspaper, Friends/Relatives, Insurance agent, Insurance Beneficiary and Employer. Table 4 reveals that out of 413 sample workers, 95 workers (23 per cent) reported that their employer is taking the health insurance for them, 84 workers were (20.3 per cent) motivated by insurance agents, 80 workers (19.4 per cent) by media advertisement, 69 workers (16.7 per cent)by their friends and relatives, 36 workers (8.7 per cent) reported they are taken insurance policy out of their own interest 34 workers (8.2 per cent) reported they are taken insurance policy through news paper advertisement, and 15 workers (3.6 per cent) reported that they have gathered the information from the insurance beneficiaries. It can be observed that majority (23.2 per cent) of the workers were advised by their employers because 14 International Journal of Management and Development Studies, Vol.1, No. 2, July 2013

Enrolment of Health Insurance Schemes for Industrial Workers in Coimbatore the employer is collaborating with the private insurance company and pay the premium amount from their wages. For this reason both the insurance company and the employee are getting the benefits. Table 4: Motivation for Joining the Health Insurance Schemes Health Insurance Scheme Nobody, Self Media Newspaper Friends/Relatives Insurance agent Insurance Beneficiary Employer Total

Frequency 36 80 34 69 84 15 95 413

Percentage 08.7 19.4 08.2 16.7 20.3 03.6 23.0 100.0

10. Determinants of Enrolling for Health Insurance Logistic regression measures the relationship between a categorical dependent variable and one or more independent variables, which are usually continuous, by using probability scores as the predicted values of the dependent variable. An attempt is made to find out the principle factors that are likely to affect the respondents’ enrolment of health insurance. For this purpose, the respondents’ enrolment for health insurance has been considered as dependent variable as dichotomous viz., whether the respondent enrolls himself / herself for health insurance (by assigning a score of ‘1’) or not (score of ‘0’) and all the independent variables as categories. In such a condition, adopting the logistic regression analysis is more apt and therefore, such an analysis is carried out (Table 5). Next to educational status, current age of the respondents appear to be the major deciding factor whether the respondents got enrolling themselves for health insurance or not. For instance, compared to those younger at age (15-29 years), respondents who ever at their most prime working ages (30-44 years) have shown greater tendency to take a health insurance policy. This result is also turn out as highly significant (p