​​Estimation of Total Factor Productivity Growth of Major Pulse Crops in Rajasthan, India

Abstract

Background: Pulses, supplemented with cereals, provide a perfect mix of vegetarian protein of high biological value. The productivity of pulses in India is less than half of the productivity levels in the USA and Canada. Present investigation was aimed to Total Factor Productivity (TFP) growth in three pulse crops in the state of Rajasthan from 2000-01 to 2017-18. Methods: In the current study, the Tornqvist Theil Index was used to compute the total output index, total input index and total factor productivity index. The Tornqvist Index is exact for the homogenous translog production function that can deliver a second order approximation to an arbitrary twice differentiable homogenous production function. The translog function does not require perfect substitutes for inputs. If the relative price of input increases, the producer decreases its use (substituting other inputs) until all marginal productivities are proportional to the new prices. Result: The results of this study has indicates low TFP in Gram (0.98%) despite a 59.23 per cent share in the total pulse output of the state. The annual compound growth rate of TFP of black gram increased at the rate of 1.11 per cent per annum (moderate growth) and the contribution of TFP to output growth was low; at about 41.63. Whereas, the compound growth rate of TFP of annual green gram crop increased at the 2.38 per cent per annum (high growth) while its TFP to output growth was about 66.43 per cent. The real cost of production of gram, black gram and green gram crop increased by 0.77, 1.49 and 1.57 per cent per annum, respectively.