Effect of climatic factors on cash crop farming in India: an application of Cobb-Douglas production function model

Abstract

Research studies conducted hitherto have shown that climatic factors are changing at global level. Most of the studies have arrived at that climatic factors have a significant influence on cropped area, production and yield of crops in farming. In India, few studies have estimated the association of climatic and non-climatic factors with cropped area, production and yield during different stages of crop growth. Therefore, the present study assesses the influence of climatic factors on cropped area, production and yield of major cash crops in India. Moreover, it estimates the projected production, yield and cropped area of crops using marginal impact analysis technique. Cobb-Douglas production function model has been applied to state-wise panel data for the period 1971-2013. Empirical results of the study show that cropped area of groundnut and sesame crops have decreased by 13.87% and 23.50% respectively. Production of groundnut and cotton crops have also come down by 9.83% and 41.09% respectively; and yield of potato, groundnut, sesame and cotton crops have subsided by 3.71%, 10.31%, 4.51% and 7.20% respectively due to 1% increase in climatic variables. Consequently, climate change has resulted in reduction in farmer's income, job opportunities for rural labourers and raw materials for agro-based industries in India. It provides several policy suggestions to mitigate the adverse effect of climate change on crop farming.