Agricultural Economics Research Review
Year : 2021, Volume : 34, Issue : conf
First page : ( 201) Last page : ( 201)
Print ISSN : 0971-3441. Online ISSN : 0974-0279.

Heuristics as a way to understand the micro-level decision-making process: A case of sugarcane farmers

Lavanya B T^1,*, Manjunatha A V¹

¹Christ University (Deemed to be University), Bengaluru-560 029

²Karnataka Evaluation Authority, Government of Karnataka, Bengaluru-560 001

*Corresponding author: lavanyagowdabt@gmail.com

Online Published on 16 March, 2022.

Abstract

The sugar sector in India is highly regulated and farmers are badly affected by state policies and highly distressed being trapped in the nexus between capitalists and politicians. The objective of this study was to identify the determinants of micro-level decisions of sugarcane farmers. Primary data was collected from sugarcane farmers using a structured questionnaire. The influential scores and heuristics are used to analyse the data. The major determinants were identified as the interest rate on credit, amount of land available for cultivation with the farmers, accessibility to formal credit sources and market, water availability with the farmer for crop cultivation, sugarcane price, expected yield from different varieties and expected profit from sugarcane. The heuristics analysis reveals that choice of crop, choice of variety, frequency of irrigation, choice of market and choice of credit source were categorised under representative heuristics. While the choice of the planting season, methods of irrigation and fertiliser application were under available heuristics. Allocation of area and harvesting pattern of sugarcane farmers will follow the anchoring heuristics method of the decision-making process. The findings of the study provide useful insights for the policymakers to know about the determinants of the decision-making process through heuristics for policy-making and extension workers to help sugarcane farmers and the industry.

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