Total Factor Productivity And Returns To Investment In Paddy Research in Western Maharashtra

International Journal of Agriculture & Environmental Science

© 2019 by SSRG - IJAES Journal

Volume 6 Issue 4

Year of Publication : 2019

Authors : Kulkarni, A. R., Sanap D. J. NirgudeR. R

10.14445/23942568/IJAES-V6I4P110

How to Cite?

Kulkarni, A. R., Sanap D. J. NirgudeR. R, "Total Factor Productivity And Returns To Investment In Paddy Research in Western Maharashtra," SSRG International Journal of Agriculture & Environmental Science, vol. 6,  no. 4, pp. 51-56, 2019. Crossref, https://doi.org/10.14445/23942568/IJAES-V6I4P110

Abstract:

Any growth in output that is not explained by some index of input growth is attributed to changes in technology or more broadly Total Factor Productivity. TFP measures the net growth of output per unit of total inputs. In this study, estimation of total factor productivity in paddy crop and returns to investment in paddy research in Western Maharashtra is attempted.For the study, the time series data on cost of cultivation of paddy was collected (1993-94 to 2014-15) from official records of state cost of cultivation scheme to fulfill the objectives. The output index of paddy increased from 0.88 in 1993-94 to 1.60 in 2013-14. The average output index for twenty one years was 1.48. The highest output index was observed in 2006 (2.15).The average input index of paddy was 0.80 for twenty one years.The highest TFP index was observed in 2006-07 (3.33). The result indicates that total factor productivity index of paddy grew at 5.98 per cent per annum. Public research significantly contributed (0.27***) to TFP growth in paddy. The additional investment of one rupee in paddy research generated additional income of `3.04, indicating substantial rate of returns to investment with internal rate of return of 19.10 on research in paddy in Maharashtra.The total factor productivity in paddy crop registered a substantial growth with profitable returns in Western Maharashtra. Hence the Government should allocate substantial funds to public research in paddy for productivity improvement of paddy crop providing food security to masses.

Keywords:

Total Factor Productivity, Paddy, Estimated Value of Marginal Product, Internal Rate of Return

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