Determinants of total factor productivity growth for major agricultural crops in Punjab


Sanjay Kumar and Parminder Singh



Indian Journal of Economics and Development
Year : 2012, Volume : 8, Issue : 2
First page : ( 49) Last page : ( 62)
Print ISSN : 2277-5412.

Determinants of total factor productivity growth for major agricultural crops in Punjab

Kumar Sanjay, Agricultural Economist, Singh Parminder, Senior Research Investigator
Agro Economic Research Centre, Department of Economics and Sociology, PAU, Ludhiana-141004

Online published on 1 August, 2013.

The present study was undertaken to analyse the growth pattern of production, productivity and to trace the determinants of total factor productivity (TFP) growth of important crops in Punjab. The productivity of wheat rose from 1.1 to 1.6 tonne per hectare during 1960–61 to 2007–08 in Punjab. The corresponding figures for paddy were 1.6 and 6.0 tonne per hectare in above said years, respectively. But since nineties, Punjab agriculture is facing the problem of stagnation of productivity which was found to be more acute in wheat crop as compared to rice. For paddy, wheat and cotton, the TFP index showed high rate of increase in average annual growth inPeriod-II (1990–91 to 2004–05) as compared to Period-I (1981–82 to 1989–90). The results of decomposition of TFP confirm that market infrastructure, rainfall during June to August, the agricultural terms of trade and investment on research and development (R&D) were the most important factors of growth in TFP. The predominance of paddy-wheat monoculture in the state is posing a serious threat to soil health and disturbing underground water, along with ecological balances in the state and almost stagnant yields. To overcome these constraints, the study highlighted the need for evolution of high yielding variety of crops, integrated use of balanced chemical fertilizers in conjunction with organic manures (compost and green manure), to promote integrated pest management and to increase the investment on research and development.