Usage of FYM and its Impact on Rice Productivity: Empirical Evidence from Tamil Nadu

This paper explores the usage of farmyard manure (FYM) and its impact on paddy yield under different soil conditions in Tamil Nadu, using farming households' three-year rotating panel data from 1993 to 2003. Estimated yield functions reveal that, direct impact of FYM application did not exists in paddy cultivation. Meanwhile, an indirect impact through an increase in the marginal product of chemical fertilizer is observed especially under low inherent soil fertility status. Reflecting the existence of the benefit of FYM application, our factor demand estimation showed that farmers react to FYM price change actively. This means that, reduction in FYM price contributed to the productivity improvement.