In 2001, the Village Level Studies (VLS) were resumed in the six villages of Andhra Pradesh and Maharashtra. Surveys carried out in 1989, 1993 and 2000 added information on some aspects to the panel data on 240 households. During 2002, focus group meetings were conducted with different social groups in the six VLS villages to identify important concerns of the village communities on which the research questions can be focused. A fresh census of all households was taken and the sample was enlarged to make it representative and proportional to the number of households. New modules were added to the traditional modules figuring in the first generation VLS.

Methodology

446 sample households (up to 600 from 2005) were selected which is 15% of the total population using probability proportion to size method. Annual surveys during 2001–02 to 2003–04 and bi-annual surveys during 2004–05 were carried out and three-weekly rounds commenced since 2005–06.

In addition to the earlier modules on endowments, employment, transactions , cultivation, livestock and monthly price schedules, additional modules on investments for natural resources development, impact of government programs, migration, livestock economics, etc, were included in these surveys.

• Household characteristics

Over the last three decades, the families have become more nuclear than joint. The average size of family has fallen from 8.37 to 5.10. The literacy levels have improved substantially. This improvement has been more dramatic in case of females. The occupational structure has become more diversified. Agriculture was the predominant occupation for most of the cultivator households in 1975–78. But now less than 50% of the households in AP villages and two-thirds of the households in Maharashtra villages only consider it as their main occupation. The average size of ownership holding in the VLS sample has fallen from 5.17 ha in 1975–78 to 2.35 ha in 2001–02. Similarly, the average size of operational holding in the VLS sample has fallen from 5.90 ha in 1975–78 to 2.38 ha in 2001–02. But due to an increase in the irrigable area, the ownership holding in terms of standard dryland equivalent hectares declined only marginally. There was a reversal of the position of AP and Maharashtra villages with respect to irrigation. In 1975–78, irrigation figured more prominently in AP villages. But, in 2001–02, Maharashtra villages are a better access to irrigation than the AP villages due to the advent of surface irrigation facility in three out of four Maharashtra villages.

• Assets and liabilities

A sample household in VLS villages owned assets valued at Rs. 2,67,973. The asset value in Andhra Pradesh villages was only Rs. 163,488 as against the average asset value of Rs. 3,87,209 in Maharashtra villages. But the households were short of financial assets and were net borrowers. The number of cattle and buffaloes owned by an average household has decreased. But there is an increase in the number of small ruminants reared in some of the villages. Livestock numbers decreased due to tractorisation and due to substitute quantity with quality in case of dairy animals.

• Cropping patterns and market linkages
  
  The share of cash crops decreased in the cropping patterns over the years. Sorghum and other coarse grains lost areas significantly during the kharif season. But rabi sorghum still holds its front in the absence of better alternatives. The productivity levels of crops were generally lower in the VLS villages. Drought was regarded as the most important production constraint in Aurepalle, Shirapur and Kalman. Pests and diseases were regarded as the most important production constraint in Akola villages, while wild boars along with drought were the important production constraints in Dokur village. Farmers from the semi-arid tropics (SAT) villages were found to be selling a substantial proportion of their produce in the market, signaling a transition fromsubsistence to commercial agriculture.

• Economics of crop enterprises

Farmers were found to be recovering all the costs only in case of about 29% plots. In 37% plots, they were not recovering even the variable costs while in the other 34% plots, they were recovering the variable costs, but not the fixed costs. Annual net crop income was negative in case of Dokur, Aurepalle and Shirapur villages. In case of Kalman and Kinkheda, the annual net crop income was positive but smaller than that recorded in 1975–78 in real terms. The annual net crop income was substantial only in case of Kanzara village and it was good enough to match the base year (1975–76 to 1977–78) crop income after adjusting for inflation.

While the income shares of crops, livestock and agricultural labor income declined over the years, the shares of non-farm income, caste occupations, migration and other sources increased. The per capita incomes increased and doubled even after they were adjusted for inflation. Income sources have become more diversified now than three decades ago. Despite increases in per capita incomes, the average per capita income worked out to only $ 0.40 per day.

• Economics of livestock enterprises

Milk production also turned to be not much profitable after paying for the variable costs. With the exception of Shirapur, the returns from buffaloes exceeded those from cows in all the VLS villages. Returns from cows did not cover even the variable costs in Dokur and Kalman. Rearing of draft animals turned out to be economical in the VLS villages, except in case of Dokur where the bullocks found work only for a limited number of days. Rearing of small ruminants turned out to be profitable in the dry areas of Mahabubnagar and Solapur villages, but not in the Akola region, which was wetter. The net income from livestock per household was the highest in Shirapur, followed by Dokur and Kanzara. It was relatively lower in Aurepalle, Kalman and Kinkheda.

• Consumption expenditure and nutritional standards

The households incurred about one-fourth of their consumption expenditure on food grains and spent on another one-fourth on other food items. The remaining halfof the consumption expenditure wanon-food items of consumption. Considerable under nutrition was observed in the sample both with respect to calories and proteins. Calorie under nutrition was more pronounced in case of Maharashtravillages, while protein under nutrition was relatively more in Andhra Pradesh villages.

• Labor markets, wages and migration

The employment opportunities within the agricultural sector were higher in Kanzara,Kinkheda and Shirapur, which receive some support of surface irrigation in the postrainy ( rabi ) season. Migration of work force to distant places is becoming increasingly common in the two Mahabubnagar villages of Aurepalle and Dokur. The real wages of workers have shown an increase over the last three decades.

• Government programs

Sample households benefited to some extent from the developmental and welfare programs of the Government such as housing, land distribution, subsidized agricultural machinery and inputs and public distribution system. But the benefits received in a year worked out to only about 5% of the household income.

• Investments on natural resources

Farmers invested Rs.822 per hectare on soil conservation measures over a period of 15 years and spent Rs.104 per hectare per year on the maintenance of these structures. Farmers from Solapur villages invested more than those in Mahabubnagar and Akola villages on soil conservation works. Farmers invested seven times more on water exploration than what they invested on soil conservation. Relatively more investments were made on water exploration in the villages facing water scarcity than in the villages receiving some support of surface irrigation. But the rate of success in striking water has decreased over the years.

• Climate change and coping strategies

The sample households perceived that the climate change is associated with reduced rainfall, its uneven distribution and increased temperatures. These perceptions, which are held unanimously by a large majority of the sample, are not shared by India Meteorological Department (IMD), which holds that there is no decline in rainfall at the country level. The sample households resorted to many coping strategies in the face of droughts and income shortfalls. As the probability of the occurrence of a drought and income shortfall associated with that are higher in Andhra Pradesh villages, a larger percentage of the households resorted to coping strategies such as borrowing, shifting to non-farm work, migration, reduced consumption and disposal of asserts.

The increasingly non-viable nature of farming (both crops and livestock) in the villages of Indian SAT causes for concern to the researchers, policy makers ands administrators. Many bold initiatives are needed on the fronts of technology generation, market linkages and policy formulation to rescue of the rainfed farm households in the SAT villages.

Special purpose surveys

As part of the this project, the following special purpose surveys were conducted:

1. Social networks and development programs : A special survey on social networks and the impact of development programs was designed and conducted in 2005 along with regular VLS survey. In this survey, the social networks were identified and their functioning in the VLS villages was studied. Data were also collected on the processes followed in the identification of rural poor and on the implementation of the developmental programs.
2. Tracking survey: A massive effort was launched to track all the members of the original households in the six VLS villages. The sample was extended to 600 households to include all the split-offs from the original households residing in the village. Similarly, information is being collected from all the temporary and permanent migrants from the villages whenever they return to villages on festival or social occasions. We also attempted to track the migrants residing in the near by villages, districts and cities.We have seven schedules for this survey, three Individual level (and mutually exclusive) forms, and four household forms.
3. Four monthly health and shocks survey: This survey is mainly intended to know the household individuals health status, crop plot specific shocks, labor specific shocks and shocks concerning the off-farm work. In this survey information was also collected about the dietary patterns and child labor participation. Anthropometric measurements of all the family members of the sample households were also recorded at a frequency of four months.
4. Migration survey:After identifying the migrants (both permanent and temporary) in the six villages, the similar tracking information is being collected from them.