Efficiency and Productivity Analysis of the Indian Agriculture Sector Based on the Malmquist-DEA Technique

Abstract

This article evaluated the agricultural performance of 31 states and union territories (UTs) in India from 2012 to 2017. The best agricultural productivity states and UTs in India were obtained using Malmquist based DEA technique and the efficiency score for each year was found using CCR model. The input parameter is taken as annual rainfall, total population, GDP, Workers, and net cultivated area, and the output parameter is taken as production of rice, wheat, coarse cereals, pulses, oil seeds, and sugarcane. The productivity of the states and UTs are compared, as well as the increase or decrease in productivity is calculated. Total productivity change was calculated using cumulative Malmquist index (CMI). As a result, Punjab, Rajasthan, Sikkim, and Uttar Pradesh are the most efficient states throughout the year, while Kerala and Goa are the least efficient. Maximum states and UTs advanced 61.25% in 2015-16, whereas maximum states and UTs declined 62.52% in 2012-13. The overall productivity change in Madhya Pradesh increases perfectly while Nagaland's is almost decreasing. Other factors that may have an influence on state and UTs agriculture productivity include capital investment and fertiliser use. Additional social and environmental performance criteria, such as contribution to local community development and harmful emission measurement, can be integrated as output criteria for sustainability performance analysis.