Sources of growth to Indian groundnut: A state-wise decomposition analysis

Abstract

The sources of growth has direct connotation with agricultural development policies. Growth from area expansion and price is unsustainable,where as if it comes from yield enhancement is sustainable over a long run. This paper has analysed the patterns and sources of growth to groundnut production in India from 1985-86 to 2014-15. Increase in value of groundnut produce was measured during 1985-86 and 94-95 as result of technology mission on oilseeds launched during mid-80s. Decrease in VOP during 1995-96 and 2004-05 may be because of adverse effect of trade liberalisation in this period. Restoration took place in last ten years from 2005-06 to 2014-15,where groundnut VOP increased in the country and all the major states except Maharashtra. The largest source of the growth to Indian groundnut in study period was yield followed by price (7.53%) and area effect (0.97%). Yield contributed fifteen per cent of total growth in the country and to the maximum of 55 per cent in Tamil Nadu. Diversification effect was measured negative at the country as well as at major states in post-WTO periods indicated the drifting away of groundnut acreage to the other crops, is needed to be taken care by appropriate policy measures at central and state levels.