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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.
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EPWRF Database
Input Growth Output growth
Average Growth Rates for Wheat Crop in different States of India: 2011- 2020
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.