Estimation of Productivity and Efficiency of Rapeseed and Mustard Production in India

Abstract

This paper analyses the total factor productivity (TFP) growth and its components “technical change and technical efficiency change in production of rapeseed and mustard (R&M) in major states of India. The productivity growth has been estimated through data envelopment analysis (DEA) based Malmquist Productivity Index (MPI) for the period 1994–95 to 2011–12 for which recent data for selected states were available. Decomposition analysis of TFP change has revealed that output growth of R&M was driven by both technical change and technical efficiency change. This is further witnessed by the positive and significant growth of yield in increasing production of R&M. Regional pattern of productivity growth has revealed large interstate variations with states mean TFP change was 3.3%. Analysis of input use has shown lower growth during study period. Analysis has also shown that the share of current and capital inputs in total cost of cultivation has shrunk and input use efficiency has slowed down significantly (except Rajasthan). The study has concluded that the recent sloth in yield of R&M in study states could be due to inefficiency of input use rather than slowdown in technical change. The study calls for an increasing investments on research for development of high-yielding disease resistant and stress tolerant varieties and demonstration of location–specific good agricultural practices on farmers’ fields to encourage adoption of improved practices. A combination of research and extension will lead to increase input use efficiency at farmers’ fields and thereby sustaining growth in TFP.