Total Factor Productivity Growth of Soybean in Madhya Pradesh

Abstract

The study was analyzed Total Factor Productivity growth using log of aggregated values of each year was taken to construct output index by Tornqvist-Theil (T-T) approximation to the Divisia Index of soybean and growth in the area, production and productivity of wheat crop in Madhya Pradesh. Time series secondary have been collected for the study. These data have been classified into three periods, viz. Period-I (1986 to 1995), Period-II (1996 to 2005) and Period-III (2006 to 2015) along with overall period (1986 to 2015). The annual overall compound growth rate in the area was positive and significant (5.20percent), while the production (11.98percent) and productivity (1.49percent) of soybean were observed negative and non-significant. Atanoverall level growth rate of TFP in Madhya Pradesh was found to be positive and non-significant, output index was highest during 1986 to 1995 (4.99). The overall growth of TFP and output index wasapositive while, the growth of input index shown negative response during the study period of 2006 to 2015. The overall analysis shows that input as a source of growth for soybean crop was found declined in case of manure, human labour, and animal labour revealing that the ratio of output to input decline over the period of time but still fertilizer and seed are the principal sources of growth for the soybean crop in Madhya Pradesh.