Factor Productivity and Marketed Surplus of Major Crops in India

Abstract

Over the last three decades there has been stagnation in agriculture in Orissa. During the period 1996 to 2003 the growth rate is negative in area, production and yield in major crops. The study estimated TFP growth of major crops in Orissa from 1971 to 2003 at state level. The study also estimated district level production efficiency by using frontier production function for the period 1971 to 2005 by using district level data on inputs and outputs. The marketed surplus of major crops has been estimated by using primary survey data for the period 2007 by using modified Raj Krishna model. Study indicates the TFP growth of all crops, except paddy, groundnut and jute has been declined with negative growth. Concentration of cropped area is increased towards paddy cultivation. There is a significant increase in real cost of production and relative decline in price of output for all major crops, with consequent adverse effects on gross cropped area. There is an urgent need to increase TFP growth in all crops especially in pulses and oilseeds to make their cultivation profitable and to increase crop diversification and optimal utilization of land and water resources. For achieving the desired level of food production keeping in mind the dietary requirement, we need to raise GCA and cropping intensity, which, in turn, depends on increase in crop diversification towards pulses and oilseeds, irrigation facilities and infrastructure. The results also pointed out significant monetary benefits to farmers through crop diversification to pulses and oilseeds from the existing cropping pattern, in addition to gains in food security at macro-level To sustain the agricultural production, we need enhanced supply of inputs like seed, fertilizer and pesticides and irrigated area. Seed replacement ratio is less than 20% for most of the crops, which needs to be increased by supply of certified seed. Total seed supplied for all crops in 2005-06 is 62, 000 tonnes, projected demand for seed is 72, 568 tonnes for 2011-12. Likewise fertilizer consumption per ha. of GCA was 70 kg for year 2005-06, projected to increase further to 134 kg for the year 2011-12. Infrastructure items such as farm energy and power and, agricultural credit need to be developed concurrently to sustain agricultural growth at desired level.