Prices acreage response of American cotton in Haryana

Abstract

The paper seeks to examine the growth behaviour of area, yield and production of American cotton and their association with its most influential factor price. The correlation of area, yield and production with price has been examined in this paper as well as impact of lagged year's price has also been observed. The contribution of area, yield, price and their interaction has also been discussed. The results indicated that during first and second period, the American cotton production has risen due to its area increment. The role of the yield has not found as major as expected. However, there has been drastic change in the situation regarding yield during this period. The new technology especially high-yielding varieties of seeds provided to farmers remained enough to motivate farmers of Haryana to replace the Desi cotton with American cotton but at the same time the correlation between price and other variables has not found very high during third period whether it has observed negative during all sub-study period regarding to yield. However, the lagged price of American cotton has succeeded to influence the current year's area, yield and production. As far as contribution of price to the incremental output in value term is related, price has remained the major factor during all the periods except for the third period during which its position has been overtaken by the American cotton.