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Total Factor Productivity and Returns to Investment in Sugarcane Research in Maharashtra

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Indian Journal of Economics and Development
Volume 15 No. 4, 2019, 609-613
DOI: 10.5958/2322-0430.2019.00079.9
Indexed in Clarivate Analytics (ESCI) of WoS

P.M. Adhale*, V.G. Pokharkar, and C.M. Gulave
Department of Agricultural Economics, Mahatma Phule Krishi Vidyapeeth, Rahuri-413722 (Maharashtra)
*Corresponding author’s email: adhalepradipkumar02@gmail.com

ABSTRACT
The total factor productivity indices of sugarcane estimated using Tornqvist index for study period 1986-87 to 2016-17. TFP index was not promising for the study period; it indicated that the inputs were not efficiently allocated in sugarcane cultivation. The total factor productivity index witnessed growth of 0.19 per cent per annum during the Period-II. The improvement in the total factor productivity was may be due to non-input factor such research investment and extension efforts. The research investment (0.29), maximum temperature (1.81), and minimum temperature (3.56) had significantly contributed to TFP growth in sugarcane. Additional investment of one rupee in sugarcane research generated additional income of `30.65, indicating substantial rate of returns to investment on research in sugarcane in Maharashtra.

Keywords
Return to investment, sugarcane, total factor productivity.

JEL Codes
Q10, Q19, Q16.

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