GROWTH AND INSTABILITY OF COTTON PRODUCTION IN KARNATAKA
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Date
2002
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University of Agricultural Sciences, Dharwad
Abstract
This study was taken up to (1) estimate growth rates in area, production and productivity of cotton in major cotton growing districts and the state as a whole (2) analyze the extent of instability in cotton production, (3) identify price and non-price variables responsible for instability in cotton acreage and (4) suggest appropriate measures to stabilize cotton production in the state. The data were collected from the Directorate of E)conomics and Statistics, Bangalore, for the period 1970-71 to 1998-99. Compound Growth Rate, Orthogonal Polynomial Regression Analysis, Sharma Output Decomposition, Coefficient of Variation, Hazel Decomposition Model, Factor Analysis and Nerlovian Price Ebcpectation-Cum-Area Adjustment Model were among the analytical techniques employed for analysis. Growth performance of cotton production in Kamataka was more pronounced (2.9% in period I, 4.55% in period II) during period II due to significant growth in both area and productivity, while in period I yield was the sole contributor. Production instability increased in the second period because of area variance (48.03%), yield variance (22.64%), interaction between changes in mean yield and area variance (21.2%) and change in mean yield (11.8%). Acreage response analysis indicated that cotton area was elastic with respect to lagged relative price, expected yield, lagged acreage and the time variables. This study suggested the need for area and yield stabilization policies to stabilize cotton production in the state. Assuring appropriate support prices could also minimize price risk in cotton cultivation.
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No . of references 88