Economics of Growth Performance, Instability and Decomposition Analysis of Tobacco in India

Abstract

This paper studied the state wise growth and instability in area, production, productivity and decomposition analysis of major tobacco producing states in India. The nature of data used for the study is entirely based on secondary from 1987-88 to 2016-17. India’s share in world production of tobacco was doubled from 468 th tonnes during TE 1989-90 to 822 th tonnes during TE 2016-17. It was found that Gujarat and Andhra Pradesh ranked first in area and production while, Uttar Pradesh has found high productivity among major tobacco producing states of India. Uttar Pradesh found to be high instability for area and production during period I and overall period respectively. Gujrat, Uttar Pradesh and Tamil Nadu found to be high instability for area, production and productivity of tobacco, respectively. For growth rate performance, Gujarat found highly positive and significant growth rate in area and production with 9.31 per cent and 7.99 per cent per annum during period II while, Uttar Pradesh found highly positive growth rate with 6.30 per cent per annum, all together with 10 per cent level of significance. The percentage contribution of relative period wise and state wise effect in production of tobacco in area, productivity and their interaction were found highest and in similar way for Karnataka, Tamil Nadu and Uttar Pradesh during period I, period II and overall period respectively. But the contribution of area, productivity and their interaction were found highest during period II i.e., 126.26 per cent 1998.80 per cent and 30.61 per cent, respectively.