Growth Performance of Groundnut in India-An Instability and Decomposition Analysis

Abstract

Measuring the trends of growth and variability in agricultural production is important to understand how outputs change over time. The present study analyzed the growth and instability index of groundnuts. The study depends on secondary data, which was collected from the Ministry of Agriculture and Farmers Welfare [1] for the period 1950-2022. The entire study period is divided into three sub-periods: 1950-51 to 1969-1970, 1971-1972 to 1999-2000 and 2000-2001 to 2021-2022. The compound annual growth rate, instability Index and decomposition analysis were used for the analysis. The compound annual growth rates for production, area, and yield are -0.14 percent, 1.05 percent, and 1.2 percent, respectively, groundnut production and yield are increasing and the area in India has changed throughout time. The decomposition of groundnut production in area, yield, and interaction effect showed that the yield effect was responsible for increasing the production of groundnut in India followed by the interaction effect and area effect. The results revealed that the level of instability was high in yield while it was lowest in area. The findings showed that the annual growth rate of productivity of groundnuts also shows an increasing trend during the recent period due to the availability of high-yielding cultivars and the deployment of innovative cultivation technologies. From the result, it is concluded that including the non-traditional areas increases the area under cultivation to sustain and improve groundnut production.