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Rice and Wheat Productivity in India: Factors and Analysis, Cheat Sheet of Agricultural policy

This research paper examines the total factor productivity (tfp) of rice and wheat crops in india, analyzing its growth trends and key determinants. The study utilizes data from various sources, including the reserve bank of india and the ministry of agriculture, to construct a divisia tornqvist index for tfp estimation. The paper highlights significant variations in tfp growth across different states and between rice and wheat, attributing these variations to factors such as input costs, monsoon patterns, irrigation, mechanization, and global market trends. The study concludes with policy recommendations aimed at boosting agricultural investment in research and development, irrigation infrastructure, and technology adoption to enhance productivity and address challenges in the indian agricultural sector.

Typology: Cheat Sheet

2023/2024

Uploaded on 01/28/2025

samchatterjee
samchatterjee 🇮🇳

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Total Factor Productivity of Rice and
Wheat Crop and its Determinants
Mahesh N. Narwade
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Total Factor Productivity of Rice and

Wheat Crop and its Determinants

Mahesh N. Narwade

Overview

Introduction
Data &
Methodology
Results &
Discussions
Conclusion &
Policy
Implications

Literature Reviews

Authors Period of Analysis Methodology Key Findings
Rajni Jain, Ramesh
Chand, & Amarjeet Singh
1980-81 to 2011-12 Divisia Tornqvist
Index
TFP having 88% dominant role
Output Growth at economic prices,
emphasizing the sustainability of
recent productivity gains.
Ramesh Chand, Praduman
Kumar, and Sant Kumar
1975 to 2005 Divisia Tornqvist
Index
Investments in agricultural research
yielded high returns, estimated at
Deep Narayan Mukherjee,
N. Vasudev
2000-01 to 2012-13 Divisia Tornqvist
Index
36% increase in rice TFP over the
study period & also productivity
growth was primarily driven by
government in agricultural
research, education, and average
rainfall, irrigated crop area and
rural literacy rate

Data & Methodology

Data Sources:
Reserve Bank of India
Commission on Agricultural Costs & Prices
Ministry of Agriculture, Government of India
Directorate of Economics & Statistics

EPWRF Database

Results & Discussion

10 Rice states: 75% of
India’s production
7 Wheat states: 95% of
India’s production
TFP Growth: based on
input-output (2011-
TFP growth varies with
technology, investment and
regional factors.

Bihar Andhra Pradesh Punjab Assam Orissa Tamil Nadu West Bengal Haryana Karnataka Uttar Pradesh

Input Growth Output growth

Average Growth Rates for Wheat Crop in different States of India: 2011- 2020

Input Growth Output Growth
  • -20.
  • -10. - 0.
                    • 1. - -0. - -3.46 -4. - -9. - -13. - 0. - 2.32 2.48 2. - 11. - 38. - 1. - 4. - -0. - 2. - Average Growth Rates for Rice Crop in different States of India: 2011- - -20. Uttar Pradesh Tamil Nadu Haryana Karnataka West Bengal Bihar Orissa Assam Punjab Andhra Pradesh - -10. - 0. - 10. - 20. - 30. - 40. - 50. - Average Growth Rates for Rice Crop in different States of India: 2011- - -15. Madhya Pradesh Rajasthan Gujarat Punjab Haryana Bihar Uttar Pradesh - -10. - -5. - 0. - 5. - 10. - 15. - 20. - 15. - 11. - 2. - 0.83 -1. - -3. - -8. - 11. - 3. - 5. - 0. - -0. - 4. - 3. - -15. Uttar Pradesh Gujarat Bihar Punjab Haryana Madhya Pradesh Rajasthan - -10. - -5. - 0. - 5. - 10. - 15. - 20. - Average Growth Rates for Wheat Crop in different States of India: 2011-

Conclusion & Policy Implications

Trends in TFP: Significant variations in TFP growth across states & between rice & wheat. States like Uttar Pradesh showed higher TFP growth for both crops due to efficient resource use, while others lagged due to stagnant practices or lack of technological adoption. Key Determinants of agricultural growth: Input costs, Monsoon and water scarcity, temperature variations and irrigation issues, mechanization, seed varieties, soil health and, global market trends (fertiliser, import, and fuel costs), subsidy reductions and distribution costs. Policy Recommendations: boost agricultural investment in R&D, Irrigation and infrastructure (roads, bridges), encourage adoption of advanced technologies, credit and K support for the agriculture sector.

Acknowledgement I would like to express my heartfelt gratitude to my mentor, Mrs. D. Suganthi (Manager, MPD, Reserve Bank of India), who has been an inspiring role model throughout this project. I also extend my sincere appreciation to Dr. Harendra K Behera, Mrs. Subhadhra Sankaran, and the entire RBI family for their invaluable advice and guidance, which enabled me to perform to the best of my abilities. Lastly, I am deeply thankful to everyone who has supported me and stood by my side throughout this journey.