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Acreage response of sugarcane to price and non-price factors in Punjab

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Abujam Anuradha Devi and S.S. Chahal

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Indian Journal of Economics and Development
Year : 2015, Volume : 11, Issue : 3
First page : ( 623) Last page : ( 630)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2015.00070.0

Acreage response of sugarcane to price and non-price factors in Punjab

Devi Abujam Anuradha*, Chahal S.S.**
*Research Scholar, Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141004 (Punjab). Email: draadevi@gmail.com

**Director, Technology Marketing and IPR Cell, Punjab Agricultural University, Ludhiana-141004 (Punjab)

JEL Classification: C30, C81, C83, O13, Q12, Q18

Online published on 6 August, 2015.

Abstract
The area under sugarcane has been squeezed over time and larger area was shift to paddy and wheat cultivation in Punjab. An allocation of area to sugarcane cultivation was influenced by price and non-price factors. Considering the factors, the acreage response of sugarcane was analyzed by employing the Nerlovian Model in Punjab. The study revealed the positive response of the farmers to changes in sugarcane price in deciding the allocation of area under sugarcane and its relative income also affects sugarcane acreage. The non-price factors such as lagged sugarcane area and yield of sugarcane affects the acreage under sugarcane in the state. The elasticity of area under sugarcane with respect to both price and nonprice factors was higher in short-run than the long-run. It was further revealed that adjustment of sugarcane acreage was higher in the long-run than in short-run.

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