district of Tamil Nadu.

To cover this research gap in the rural area, the researcher

has chosen this relevant topic for her research study.

CHAPTER III

METHODOLOGY AND PROFILE OF THE STUDY AREA

This chapter discusses the methodology adopted for the study and an

attempt has been made to describe the profile of the study area namely Madurai

district.

3.1 METHODOLOGY

Designing a suitable methodology and selection of analytical tools are

important for a meaningful analysis of any research problem. In this section, an

attempt is made to prepare a methodology of the present study. It includes

sample design, period of study, collection of data, method of analysis and tools of

analysis.
Sample Design

Madurai district comprises seven taluks and 13 blocks. For the purpose of

collecting primary data, block-wise lists of SHG members were obtained from the

Project Officer, District Rural Development Agency, Programme Officer, Tamil

Nadu Corporation for Development of Women Ltd., (TNCDW) and Non-

Government Organizations (NGOs) functioning in Madurai District. More than 80

per cent of the rural women members were concentrated in blocks, namely

Vadipatti, T. Kallupatti, Chellampatti and Kottampatti. 300 sample

women members from rural areas under SHG scheme from these four blocks

were randomly selected by giving equal weightage to all four blocks. The selected

blocks and sample women members in each block are given in Table 3.1.

TABLE 3.1

NAME OF THE SELECTED BLOCKS AND SAMPLE

WOMEN SHG MEMBERS

Sl. Name of the Selected Block Total Number of Sample Women

No. Members Members
1. Vadipatti 10468 75

2. T. Kallupatti 10263 75

3. Chellampatti 10114 75

4. Kottampatti 10108 75

Total 40953 300

Period of Study

The field survey was conducted from September 2010 to March 2011 for the collection of
primary data. The reference period of the survey was 2010-11.

Collection of Data

Both primary and secondary data have been used for the present study. A

reconnaissance survey was made of the selected respondents to get acquainted

with the loan amount received, utilized, repayment and the like. On the basis of

the information gathered, a well designed pre-tested interview schedule was

drafted and used in the field survey to collect primary data. Before undertaking

the main survey, a tentative interview schedule was prepared and administered

to 25 members in order to test the validity of the interview schedule. It facilitated

the removal of the 'no-response' and unwarranted questions and the modified

final schedule was prepared on this basis.

The selected rural women members were contacted in person and the

objectives of the study were clearly explained to them and their co-operation was

ensured. The details regarding the general characteristics of the sample members,

their families, income, savings and the like relating to the overall objectives of the

study were collected from the sample members through the direct personal

interview method.

Tools of Analysis

In order to examine the relationship, chi-square76 test was used by

adopting the following formula.

(O – E)2

76
C.R.Kothari, Quantitative Techniques, Vikas Publishing House Pvt.Ltd., New Delhi,
1978, p.166.
 Chi-square = å with (r-1) (c-1)

where,

O = observed frequency

E = Expected frequency

Row total x Column total

E =

Grand total

c = Number of columns in a contingency table

r = Number of rows in a contingency table

To examine the variation in monthly income between the two categories of

members, one way analysis of variance (ANOVA) test was carried out.
 In order to assess the contribution of members to family income multiple

log linear regression model of the following form was fitted.

Log Y = b0 + b1 log x1 + b2 log x2 + u

where

Y = Total family income (in Rupees)

x1 = Members earnings (in Rupees)

x2 = Earning of their parents/spouses (in number)

u = Error term

The above model was estimated by the method of least squares.

In order to find out the difference in mean values of two groups, t-value

was employed.
 In order to identify the factors which influence the repayment, the

following form of multiple log linear regression model was estimated.

Log Y = β0 + β1 log X1 + β2 log X2 + β3 log X3 + β4 log X4 + u

where,

Y - annual repaid amount in rupees

X1 - loan amount received in rupees

X2 - annual net income received from the venture in rupees

 X3 - annual family income including other source in rupees

X4 - number of instalments

U - disturbance term and

β0, β1 …… β4 are the parameters to be estimated.

The above model was estimated by method of least squares.

3.2 PROFILE OF THE STUDY

 The usefulness of any research study can be fully appreciated only when

the results are studied with the demographic features such as location, soil

conditions and cropping pattern. Hence, an attempt is being made to present a

brief profile of the study area and analyse the general profile of SHGs in the study

area.

Location

Madurai District is one of the most important districts of Tamil Nadu where

there has been a significant progress in agricultural development since the year

196077. This district is located between 9o 30’ and 10o 30’ on the Northern

latitude and 77o 00’ and 78o 30’ on the Eastern longitude78. The capital of this

district is Madurai, a city which enjoys a historical and literary reputation. Named

after the goddess of the city, it is also referred to as Meenakshipattinam. The four

sky-high Gopurams (temple towers) have lent it the name of Nanmadakoodal.

77
Tamil Nadu – An Economic Appraisal, Finance Department of Tamil
Nadu, Madras 1980, pp.15-18.
78
Unpublished Records of the Office of the Assistant Director of Statistics,
Madurai, March 2000.
Geographical Features

The Geographical area of the Madurai district is 3741.73 sq.km. accounting

for nearly 2.9 per cent of the geographical area of the Tamil nadu

state. There are two revenue divisions and seven taluks and there are 596 villages

in this district. The Dindigul district, the Sivagangai district, the Virudhunagar

district and the Theni district serve as the Northern, Eastern, Southern and

Western boundaries respectively of the Madurai district. Madurai district is

classified into six sub-zones (Southern Plateau and hill region) under zone X

among the 13 agro-climatic zones in the country. Normally sub-tropical climate

prevails over the district without any sharp variation79.

Climate and Rainfall

Generally, Madurai district has a hot, dry and variable climate. The summer

season here extends from March to July and in April – May the summer reaches

its zenith. There are two observatories in Madurai district (one in Madurai South

79
Ibid., pp.17-19.
and the other at Madurai Air Port). In May 1999, the highest temperature

recorded during the hot weather season was 43.5o C and the lowest temperature

recorded was 21.2o C in June 2003. The highest temperature recorded in the cold

weather season in February 2003 was 38.4o C and the lowest temperature

recorded in the same season was 20.3o C in January 2003. The South-West and

North – East monsoons bring rainfall to this district from June to September and

from October to December respectively. It has a normal rainfall of 706.9 mm. In

2004-2005 the actual rainfall was 535.7 mm.

 MAP

MADURAI DISTRICT – BLOCKS

Source: www.tn.gov.in

Population of the District

 According to the 2001 census, the total population of the district was about

25.78 lakhs comprising 13.03 lakhs of males and 12.74 lakhs of females and with a

density of 689 persons per sq.km. The density of Madurai district is higher than

the density of the state and that of the nation (Which have a density of

480/sq.km. and 221 sq/km. respectively). The proportion of women to men is 964

to 1000 in the Madurai district compared to the ratio of 978 to 1000 for the state.

The literacy rate is 78.65 per cent. The literates and illiterates were 17.95 lakhs

and 7.67 lakhs respectively in 2001. The population is spread over the entire

district with 11.27 lakhs and 14.35 lakhs living in the rural and urban areas

respectively. The birth rate is 20.6 per 1000 and the mortality rate is 8.4 per 1000,

thus resulting in a natural growth rate of 12.2 per 100080.

Workforce

The distribution of the labour force in the Madurai district during 2009-

2010 is presented in Table 3.2.

80
Census of India, 2001, Tamil nadu – An Economic Appraisal, 1991.
 TABLE 3.2

CLASSIFICATION OF POPULATION INTO DIFFERENT CATEGORIES OF WORKERS IN

MADURAI DISTRICT

(2009-2010)

Sl. Category Number of Percentage

No. Persons

1. Total Main Workers 10,89,292 95.66

i) Cultivators 1,86,380 16.37

ii) Agricultural Labourers 4,01,867 35.29
iii) Household Industry, Manufacturing 1,37,685 12.09
iv) Other workers 3,63,361 31.91

2. Marginal workers 49,444 4.34

Total Workers 11,38,737 100.00

Non-workers 12,61,602

Total Population 24,00,339

Source: "G" Return, Office of the Assistant Director of Statistics, Madurai, 2010.

Table 3.2 shows that of the total working population in the district

agricultural labourers accounted for nearly 35.29 per cent, cultivators for 16.37

per cent and other workers for nearly 31.91 per cent of the total number of
workers. The household industry, manufacturing and the like accounted for 12.09

per cent of the total number of workers; while the marginal workers constituted

the remaining 4.34 per cent of the working population.

Land Use Pattern

The working population of Madurai District is predominantly engaged in

agriculture and other allied activities. The district has a total geographical area of

3,74,173 hectares. The distribution of land use pattern in the Madurai district for

the years 2008-09 and 2009-10 is shown in Table 3.3.

TABLE 3.3

THE DISTRIBUTION OF LAND USE PATTERN IN MADURAI DISTRICT FOR THE YEAR
2008-09 AND 2009-10

2008-09 2009-10
Sl.
Particulars Area in Area in
No. Percentage Percentage
Hectares Hectares
1. Forest 50,452 13.48 50,452 13.48
Barren and
2. 15,779 4.22 15,799 4.22
uncultivable waste
To utilise non-
3. 64,831 17.33 65,606 17.53
agricultural uses
 4. Cultivable waste 5,387 1.44 5,332 1.43
Permanent pastures
5. and other grazing 230 0.06 230 0.06
lands
Land under
6. miscellaneous tree, 1,219 0.33 1,255 0.34
crops and groves
7. Current fallow land 55,079 14.72 49,547 13.24
8. Other fallow land 28,384 7.59 37,905 10.13
9. Net area sown 1,52,792 40.83 1,48,047 39.57
Total geographical
10. 3,74,173 100.00 3,74,173 100.00
area
Source: “G” Return, Office of the Assistant Director of Statistics, Madurai, 2010.

Table 3.2 shows that Madurai district is primarily an agriculture based

district with a net sown area contributing to nearly 39.57 per cent of the total

geographical area in 2008-2009. Forest and current fallows accounted for 13.48

and 13.24 per cent of total geographical area respectively. Utilization of land to

non-agricultural uses constituted 17.53 per cent of the total geographical area.

Size of Land Holdings

The size of the land holdings was classified into ten categories starting from

the 0 – 0.5 hectares category and ending with the classification of the size of the
holdings which were above 20 hectares. The total number of holdings in 2008-09

were 3,14,921. The area under these holdings worked out to 2,06,773.99 hectares

for the year 2009-10. The distribution of the number of holdings and the total

area under these holdings classified according to the size of the holdings are

presented in Table 3.4.

TABLE 3.4

DISTRIBUTION OF LAND HOLDINGS IN MADURAI DISTRICT

2008-2009 2009-2010
Size of
Holdings Total Number Percentage of Total Area of Percentage of
(in hectares) of Holdings Total Number Holdings Total Area of
(in hectares) of Holdings (in hectares) Holdings
0 – 0.5 1,93,294 61.38 43,906.88 21.23

0.5 – 1.0 64,888 20.60 44.798.10 21.67

1.0 – 2.0 37,442 11.89 51,941.44 25.12

2.0 – 3.0 11,105 3.53 26,173.32 12.66

3.0 – 4.0 4,063 1.29 13,943.42 6.74

4.0 – 5.0 1,889 0.60 8,402.68 4.06

5.0 – 7.5 1,493 0.47 8,895.61 4.30

7.5 – 10 420 0.13 3,559.46 1.72

10 – 20 299 0.09 3,565.66 1.72

20 and above 48 0.02 1,587.42 0.78

Total 3,14,921 100.00 2,06,773.99 100.00

Source: “G” Return, Office of the Assistant Director of Statistics, Madurai, 2010.

Table 3.4 shows that nearly 81.98 per cent of holdings were below the size

of one hectare and they accounted for nearly 42.90 per cent of the total

cultivation area of the holdings. Holdings less than two hectares accounted for

93.87 per cent of the total number of holdings. About 23.46 per cent of the total

area was accounted for by nearly 5.42 per cent of the total number of holdings

and these holdings were between 2 and 5 hectares. Holdings above the size of
five hectares accounted for nearly 8.52 per cent of the total number of holdings.

The small farmers of the Madurai district cultivated generally an area which was

less than one hectare. These farmers were usually defined as marginal farmers for

administrative purposes of the government.

Irrigation Structure

The Periyar and Vaigai Dams cater to the irrigational facilities of Madurai

district. These two dams irrigated more than one and half lakh hectares of the

fertile lands in the district which contribute to the agricultural prosperity of the

district. Besides these two dams, canals, tube wells, big farm wells and tanks

serve as useful resources for the purposes of irrigation. The various sources of

irrigation in Madurai district are shown in Table 3.5.

 TABLE 3.5

SOURCES OF IRRIGATION AND NET AREA IRRIGATED

IN MADURAI DISTRICT

2008-09 2009-10
Sl.
Particulars Net Area Net Area
No. Percentage Percentage
Irrigated Irrigated (in
(in Hectares) Hectares)

1. Government Canals 30,433 35.75 28,089 36.38

2. Tanks 21,145 24.84 14,963 19.38

3. Tube Wells 542 0.66 763 0.99

4. Others 5 -- -- --

5. Open Wells 32,981 38.75 33,391 43.25

6. Net area irrigated 85,106 100.00 77,206 100.00

Area irrigated more

7. 14,723 -- 14,723 --
than once

8. Gross area irrigated 1,19,829 -- 85,490 --

Source: “G” Return, Office of the Assistant Director of Statistics, Madurai, 2010.

Table 3.5 shows that the gross irrigated area of 85,490 hectares was

covered by various irrigational sources, and the net irrigated area accounted for
77,206 hectares. Out of this 28,089 hectares accounted for 36.38 per cent, 33,391

hectares accounted for 43.25 per cent and 14,963 hectares accounted for 19.38

per cent respectively of the total irrigational facilities which were provided

through government canals, open wells and tanks respectively during the year

2009-10.

Livestock

Madurai district is possessed of a rich livestock population consisting of

cattle, buffaloes, sheep, goats, horses and ponies, pigs, donkeys and domestic

dogs. Table 3.6 shows the livestock population classified according to the various

types of animals as per 2010 cattle census.

TABLE 3.6

LIVESTOCK POPULATION OF MADURAI DISTRICT

(AS IN THE YEAR 2010)

Sl.
Classification Number
No.
1. Cattle 2,26,507
2. Buffaloes 12,380
3. Sheep 2,16,416
4. Goats 2,38,588
5. Horses and Ponies 110
6. Pigs 5,736
7. Donkeys 942
8. Domestic dogs 34,265
Total 7,34,944
Source: Livestock Census, 2010, Office of the Assistant Director of Statistics,

Madurai.

Cropping Pattern

The area under the various principal crops and the percentage of the area

under these principal crops to the total area sown in the Madurai district for the

period 2008-09 and 2009-10 area presented in Table 3.7.

TABLE 3.7

CROPPING PATTERN IN MADURAI DISTRICT

2008-09 2009-10
Particulars
Net Area Percentage Net Area Percentage
Irrigated (in Irrigated (in
 Hectares) Hectares)

Paddy 82,325 49.83 76,905 47.23

Cholam 8,584 5.19 13,043 8.01

Cumbu 1,808 1.09 1,943 1.19

Ragi 148 0.08 197 0.12

Food crops 1,06,232 64.30 1,07,541 66.05

Sugar Cane 8,071 4.88 6,741 4.14

Cotton 10,087 6.10 10,087 6.19

Groundnut 8,485 5.13 7,451 4.58

Gingelley 1,728 1.04 1,886 1.16

Non-Food Crops 36,381 22.02 34,953 21.47

Net Area Sown

1,52,792 92.48 1,48,047 90.93
(All Crops)

Total Area sown

1,65,211 100.00 1,62,819 100.00
(All Crops)
Source: “G” Return, Office of the Assistant Director of Statistics, Madurai, 2010.

From Table 3.7 it can be easily seen that the net area sown and the total

area sown got reduced from 2008-09 to 2009-10 due to the low rainfall in

Madurai district during 2009-10. Food crops account for two-thirds of the total

sown area. Paddy is the main crop sown in 76,905 hectares of land which

accounted for 47.23 per cent of the total sown area in the year 2009-10 in

Madurai district. Next to paddy, cotton and groundnut were cultivated in 10,087
hectares and 7,451 hectares respectively accounting for 6.19 and 4.58 per cent of

the total sown area. Surgarcane cultivation covered an area of 6,741 hectares

which worked out to 4.14 per cent of the total sown area. Food crops and non-

food crops represented 66.05 per cent and 21.47 per cent respectively of the

total area sown in 2009-10.

Area, Production and the Yield of Major Crops

Madurai district has a good irrigational system and the farming operations

have successfully increased the total agricultural production in the district to a

considerable extent. The introduction of high yielding varieties has increased the

yield and production of all the corps in the state of Tamil nadu and this has

happened in Madurai District also. The area, production and the yield of the

major crops in the Madurai district are presented in Table 3.8.

TABLE 3.8

AREA, PRODUCTION AND YIELD OF MAJOR CROPS IN MADURAI DISTRICT (2009-

10)

Sl. Name of the Crop Area in Production Average

 No. Hectares in tones yield in
kg/hectares

1. Paddy 76,905 3,65,050 4,746

2. Cholam 13,043 8,030 615

3. Cumbu 1,943 2,540 1,307

4. Ragi 197 340 1,725

5. Redgram 1,472 980 667

6. Blackgram 1,331 520 389

7. Greengram 5,443 1,620 297

8. Sugarcane 6,741 1,06,150 15,746

9. Cotton 10,087 8,990 891

10. Groundnut 7,451 14,180 193

11. Gingelley 1,886 640 339

12. Sun Flower 458 280 619

Source: “G” Return, Office of the Assistant Director of Statistics, Madurai, 2010.

Table 3.8 shows that, paddy, the most popular crop, was cultivated in

Madurai district in an area of 76,905 hectares and the total production was

3,65,050 tonnes for the year 2009-10. Sugarcane cultivation was undertaken in an

area of 6,741 hectares and the production of sugarcane was 1,06,150 tonnes in
the same year. The average yield of paddy and sugarcane was of the order of

4,746 kg. per hectare and 15,746 kg. per hectare respectively for the year 2009-

10.

Banking

Madurai district has a good net work of banks and bank branches. At the

time of the study, there were 37 main banks and 371 bank branches in addition to

the 47 co-operative bank branches catering to the banking needs of the people in

the district. The average population serviced by each bank branch worked out to

10,770 which was much higher than that of all India average. The Apex Co-

operative Long Term Financing Bank known as the Land Development Bank has

been financing long term loans through its net work of 16 Primary Land

Development Banks located in different regions throughout the district81.

Infrastructure

81
Grand Central, Canara Bank, Madurai.