65 AGRICULTURAL

65 AGRICULTURAL ECONOMICS
ECONOMICS

Unit 1:
Unit 1: Economic
Economic Theory
Theory

Nature, Scope and

Nature, Scope and methods
methods of of economics-Economic
economics-Economic systems-systems- Basic
Basic economics
economics concepts
concepts inin
economics- Theory
economics- Theory of of consumer
consumer behaviour –cardinal utility
behaviour —cardinal utility approach-ordinal
approach-ordinal utility
utility approach-
approach-
indifference curve
indifference curve analysis-income
analysis-income and and substitution
substitution effect-derivation
effect-derivation of demand —– applications
of demand applications ofof
indifference curve
indifference curve analysis-
analysis- revealed
revealed preference hypothesis- elasticity
preference hypothesis- elasticity of of demand
demand and and
determinants-consumer surplus-
determinants-consumer surplus- Neo-classical theory of
Neo-classical theory of Production-
Production- Production function —–
Production function
Isoquants —– Properties
Isoquants Properties —– homogenous
homogenous production functions and
production functions and Returns
Returns to to scale
scale -- Technical
Technical
progress— definition and
progress– definition and types.
types. -Profit
-Profit maximization –Neoclassical theory
maximization —Neoclassical theory of costs —– Derivation
of costs Derivation
of various
of various types
types ofof cost
cost curves-
curves- Cost
Cost minimization
minimization vs. profit maximization.
vs. profit maximization. Modern
Modern theory
theory of
of
costs-Derivation of
costs-Derivation of supply
supply andand lay
lay of supply-producer’s surplus.
of supply-producer’s surplus.

Market classification-pure
Market classification-pure and
and perfect competition. Characteristics
perfect competition. Characteristics and
and price determination under
price determination under
perfect and imperfect markets (monopoly, oligopoly and monopolistic competition)-- Theory of
perfect and imperfect markets (monopoly, oligopoly and monopolistic competition)-- Theory of
income distribution and factor shares- General Equilibrium theory- Pareto optimality- Social
income distribution and factor shares- General Equilibrium theory- Pareto optimality- Social
welfare function-
welfare function- National income-concepts and
National income-concepts and measurement
measurement methods-
methods- Theory
Theory ofof employment-
employment-
classical. Keynesian and post Keynesian theories of income determination. Consumption,
classical. Keynesian and post Keynesian theories of income determination. Consumption,
Investment and
Investment and saving
saving functions-Concept
functions-Concept ofof multipliers
multipliers and
and accelarators-
accelarators- general
general equilibrium
equilibrium of
of
product
product and and money
money markets-IS
markets-IS andand LM
LM framework-inflation-types
framework-inflation-types and and control
control measures,
measures,
Monetary and
Monetary and fiscal
fiscal policies-instruments
policies-instruments and
and effectiveness.
effectiveness.

Unit 2:
Unit 2: Economic
Economic and
and Agricultural
Agricultural Development
Development

Concept of
Concept of economic
economic development
development and and economic
economic growth-indicators
growth-indicators and and measurement-Criteria
measurement-Criteria
and characteristics
and characteristics ofof developing
developing nations-economic
nations-economic and and non-economic
non-economic factors
factors of
of economic
economic
growth-, stages
growth-, stages and
and theories
theories of
of economic
economic development-
development- economic
economic growth
growth models-classical
models-classical and
and
neo-classical growth
neo-classical growth models,
models, role
role of
of state,
state, markets
markets and
and civil
civil society
society in
in economic
economic development,
development,
institutions and
institutions and economic
economic development,
development, international
international development
development institutionsObjective
institutionsObjective and
and
processes for economic
processes for economic planning
planning inin India,
India, economic
economic and
and trade
trade reforms
reforms inin India.
India.

Role of
Role of agriculture
agriculture in
in economic
economic development,
development, theories
theories of
of agricultural
agricultural development,
development, agricultural
agricultural
policies (price, land, credit, R&D, trade, subsidy, etc.)-agricultural development issues-poverty,
policies (price, land, credit, R&D, trade, subsidy, etc.)-agricultural development issues-poverty,
inequality, unemployment
inequality, unemployment and and environmental
environmental degradation-agricultural
degradation-agricultural development
development programmes
programmes
in India, issues of water, energy, environment, food and nutrition security, agro-eco -regional
in India, issues of water, energy, environment, food and nutrition security, agro-eco -regional
planning, assessment of ecosystem services, farm-non-farm linkages.
planning, assessment of ecosystem services, farm-non-farm linkages.

Unit
Unit 3:
3: Public
Public Finance
Finance and
and International
International Economics
Economics

Public Finance:
Public Finance: Public
Public and
and private
private finance.
finance. General
General principles of public
principles of public finance.
finance. Principle
Principle ofof
maximum social
maximum social advantage.
advantage. Public
Public revenue.
revenue. Incidence
Incidence of
of tax
tax and
and financial
financial policies.
policies. Public
Public
expenditure and
expenditure and economic
economic development.
development. Balanced
Balanced and
and unbalanced
unbalanced budgets.
budgets. Limitations
Limitations of of fiscal
fiscal
policies. Fiscal policy
policies. Fiscal policy asas an
an instrument
instrument ofof development.
development. Structure
Structure ofof development
development taxation.
taxation.
Public debt
Public debt policy
policy andand economic
economic development,
development, international
international Economics:
Economics: Principle
Principle of of
comparative advantage.
comparative advantage. Factor
Factor endowment
endowment theory,
theory, Balance
Balance of of payments.
payments. .. Trade
Trade with
with many
many
goods and
goods and countries;
countries; Leontief
Leontief paradox; human skills;
paradox; human skills; technological
technological gaps;
gaps; the
the product cycleTrade
product cycleTrade
policy: Protection; tariff
policy: Protection; tariff andand non-tariff
non-tariff measures;
measures; trade trade and
and market
market structure;
structure; trade
trade
liberalisation; factor
liberalisation; factor mobility
mobility andand movements;
movements; rolerole ofof multinational
multinational enterprises.
enterprises. National
National
competitive advantage —– Porter’s
competitive advantage Porter’s diamondProblems
diamondProblems of of international
international monetary
monetary systems,
systems, Foreign
Foreign
trade and
trade and foreign
foreign capital.
capital. Export
Export promotion and input
promotion and input substitution.
substitution. Past
Past experiences
experiences andand future
future
strategies.
strategies.

Unit 4:
Unit 4: Farm
Farm Management
Management Economics
Economics

Definition of
Definition of farm
farm management
management and and itsits relationship
relationship to to technical
technical and and social
social sciences.
sciences.
Characteristics of
Characteristics of modern
modern farming.
farming. Role Role and and functions
functions of of farm
farm management
management under under Indian
Indian
condition. Measurement
condition. Measurement of of management.
management. MeasuresMeasures of of farm
farm efficiency.
efficiency. Cost
Cost concepts.
concepts. Evaluation
Evaluation
of farm
of farm assets
assets andand liabilities.
liabilities. Decision
Decision theory
theory andand decision
decision making
making models.
models. Decision
Decision making
making
under different knowledge
under different knowledge situations.
situations. Tools
Tools andand techniques
techniques in in farm
farm decision
decision making.
making. Farm
Farm
planning
planning andand budgeting-sources
budgeting-sources of of data
data and and illustration.
illustration. Linear
Linear programming.
programming. ProblemProblem
formulation in
formulation in farm
farm planning.
planning. FarmFarm records
records andand accounts.
accounts. Farm
Farm inventory
inventory with
with applications
applications toto
farming enterprises.
farming enterprises. Farm Farm costcost accounting
accounting for for managerial
managerial analysis.
analysis. Management
Management of of farm
farm
resources-land, labour,
resources-land, labour, capital
capital and
and machinery.
machinery. ReviewReview of of farm
farm management
management research,
research, education
education
and extension
and extension in in relation
relation toto changing
changing needs.
needs. Systems
Systems approach
approach in in agriculture.
agriculture. Farming
Farming systems,
systems,
identification of farming system inputs and outputs, sub-systems and the circuitry connecting
identification of farming system inputs and outputs, sub-systems and the circuitry connecting
these systems.
these systems. Systems
Systems analysis
analysis toto find
find out
out needed changes in
needed changes in policies
policies and
and programmes.
programmes.

Unit 5:
Unit 5: Agricultural
Agricultural Production
Production Economics
Economics

Nature
Nature andand scope
scope of
of agricultural
agricultural production economics vis-a-vis
production economics farm management.
vis-à-vis farm management. Relative
Relative
importance of farm production economics and farm management in developed and developing
importance of farm production economics and farm management in developed and developing
countries. Economics
countries. Economics of of farm
farm production- resource allocation
production- resource allocation and
and use
use under
under static
static and
and dynamic
dynamic
Resource —
conditions. Resource — product relationships in agriculture. Types of production functions,
conditions. product relationships in agriculture. Types of production functions,
frontiers technical
frontiers technical and
and allocative
allocative efficiency.
efficiency. General
General rules
rules ofof their
their economics
economics application.
application.
Technological change
Technological change and
and production
production function
function analysis.
analysis. Principles
Principles of of choice
choice and
and allocation
allocation of of
resources. Resource
resources. Resource combination
combination andand cost
cost minimization
minimization economies
economies of of scale
scale and
and economies
economies of of
size. Types
size. Types ofof risk
risk in
in agriculture,
agriculture, resource
resource allocation
allocation andand enterprise
enterprise combination
combination underunder risk
risk and
and
risk diffusion
risk diffusion mechanisms.
mechanisms. Nature of costs
Nature of costs and
and family
family farm
farm theory.
theory. Returns
Returns toto scale
scale and
and farm
farm
size. Dualities
size. Dualities between production, cost
between production, cost and
and profit
profit functions;
functions; Derivation
Derivation of of supply
supply andand factor
factor
demand functions
demand functions from
from production
production and
and profit
profit functions.
functions.

Unit 6:
Unit 6: Agricultural
Agricultural Finance
Finance and
and Co-operation
Co-operation

Role of
Role of credit
credit in in agriculture
agriculture and and rural
rural development.
development. Estimates
Estimates of of agricultural
agricultural credit
credit
requirements-investment, production,
requirements-investment, marketing and
production, marketing and consumption.
consumption. Role
Role ofof public and private
public and private
section banks
section banks and and cooperatives
cooperatives in in development
development financing.
financing. Classification
Classification of of agricultural
agricultural credit.
credit.
Rural credit
Rural credit structure.
structure. Principles
Principles ofof agricultural
agricultural finance
finance and
and financial
financial management.
management. Agricultural
Agricultural
finance as
finance as aa part
part of
of public
public finance.
finance. Nexus between commercial
Nexus between commercial banks
banks and
and cooperative
cooperative credit
credit
institutions. Recent
institutions. Recent innovations
innovations in in extension
extension ofof credit
credit to
to agriculture.
agriculture. Rural
Rural credit
credit supply
supply and
credit gap.
credit gap. Multiagency
Multiagency approach
approach and and coordination
coordination of of credit
credit structure
structure atat different
different levels.
levels.
Agriculture credit
Agriculture credit policy.
policy. Principles
Principles and and practices
practices ofof cooperation.
cooperation. Success
Success andand failure
failure of of
cooperative sector
cooperative sector in in India.
India. Credit
Credit andand non-credit
non-credit institutions.
institutions. National federations of
National federations of
cooperative organizations.
cooperative organizations. Review
Review of of reforms
reforms inin cooperative
cooperative structure.
structure. Single
Single window
window approach
approach
in agricultural
in agricultural input
input supply
supply andand output
output marketing.
marketing. Bureaucracy
Bureaucracy and and cooperatives.
cooperatives. Management
Management
of cooperative
of cooperative institutions.
institutions. Professionalization
Professionalization and and revitalization
revitalization of of cooperatives.
cooperatives. Role Role of of
cooperatives under
cooperatives under newnew economic
economic policy Risks in
policy Risks in financing
financing agriculture.
agriculture. Risk
Risk management
management
strategies and
strategies and coping
coping mechanism.
mechanism. Crop Crop Insurance programmes —– review
Insurance programmes review of of different
different crop
crop
insurance schemes —– yield
insurance schemes yield loss
loss and
and weather
weather based
based insurance
insurance andand their
their applications.
applications.

Unit 7:
Unit 7: Agricultural
Agricultural Marketing
Marketing

Nature
Nature andand scope
scope ofof marketing
marketing in in aa developing
developing economy.
economy. Classification
Classification of of markets.
markets. Problems
Problems of of
marketing agricultural
marketing agricultural produce.
produce. Functions
Functions of of marketing.
marketing. Marketable
Marketable surplus
surplus and
and marketed
marketed
surplus. Channels
surplus. Channels of of marketing
marketing agricultural
agricultural produce
produce andand price
price spread
spread Market
Market Sructure,
Sructure, Conduct
Conduct
and Performance
and Performance (SCP).
(SCP). Marketing
Marketing institutions,
institutions, their
their role
role and
and functions.
functions. Regulated
Regulated markets
markets and
and
other state
other state interventions
interventions in in agricultural
agricultural marketing.
marketing. Role
Role of of commission
commission on on agriculture
agriculture cost
cost and
and
prices and parastatal
prices and parastatal organizations
organizations in in agricultural
agricultural marketing.
marketing. Cooperative
Cooperative marketing.
marketing. Marketing
Marketing
practices
practices andand cost-marketing
cost-marketing of of grains,
grains, pulses,
pulses, commercial
commercial crops, crops, fruits,
fruits, vegetables,
vegetables, livestock
livestock
and livestock
and livestock products
products and and inputs.
inputs. Processing,
Processing, transportation,
transportation, storage
storage and
and warehousing,
warehousing, equity
equity
aspects of marketing. Marketing efficiency. Marketing finance-methods and practices. Forward
aspects of marketing. Marketing efficiency. Marketing finance-methods and practices. Forward
trading and
trading and speculation.
speculation. Future
Future markets.
markets. Market
Market management.
management. Agricultural
Agricultural price
price analysis.
analysis.
Seasonal and spatial variations in prices in agricultural price policy. Agricultural exports,
Seasonal and spatial variations in prices in agricultural price policy. Agricultural exports,
problems and prospects. Role of information technology and telecommunication in agricultural
problems and prospects. Role of information technology and telecommunication in agricultural
marketing.
marketing.

Unit 8:
Unit 8: Agricultural
Agricultural Project
Project Analysis
Analysis

Definition of
Definition of project
project in
in agriculture.
agriculture. Need
Need forfor project
project approach
approach for
for agricultural
agricultural development.
development.
Project cycle. Project identification and formulation. Project appraisal-ex-ante and
Project cycle. Project identification and formulation. Project appraisal-ex-ante and ex-post.
ex-post.
Projection worth
Projection worth measures-discounting
measures-discounting techniques,net
techniques,net_work –PERT and
techniques —PERT
work techniques and CPM.
CPM.
Project monitoring
Project monitoring andand mid-course
mid-course corrections.
corrections. Project
Project funding.
funding.

Unit 9:
Unit 9: Research
Research Methodology
Methodology and
and Econometrics
Econometrics

Agricultural economics
Agricultural economics research,
research, steps
steps and
and themes,
themes, collection
collection and
and analysis
analysis of
of data,
data, scientific
scientific
report writing.,
report writing., econometric
econometric and and statistical
statistical methods,
methods, sampling
sampling methods,
methods, probability
probability theory.
theory.
Multiple regression
Multiple regression analysis,
analysis, ordinary
ordinary andand generalized
generalized least
least squares
squares estimators,
estimators, BLUE,
BLUE,
multicollinearity, heteroscedasticity,
multicollinearity, heteroscedasticity, auto
auto correlation,
correlation, dummy
dummy variables.
variables. Simultaneous
Simultaneous equation
equation
methods