GROWTH OF TOTAL FACTOR PRODUCTIVITY OF SPICE CROPS IN GUJARAT 2542
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Date
2018-06
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JAU,JUNAGADH
Abstract
India has always been known as land of spices. The term spices refer to such natural plants or vegetable products or mixtures in whole or ground form and are used for imparting flavor, aroma and piquancy to and for seasoning of foods. The productivity growth in Indian agriculture sector is highly essential, if agricultural output is to grow at a rapid and sustainable rate to meet the growing demands for food and raw materials, because the scope of increasing net cultivated area in the country is meagre. The productivity as a source of growth has been an important theme of analytical enquiry in economics all along. It gained a quantitative edge in recent years. The term productivity is used with reference to efficiency in production of land, labour and capital separately or together. The improvement in productivity can lessen the overall burden on the poor. Thus, productivity is a necessary element in growth.The 'Total Factor Productivity' (TFP) approach is considered as an appropriate tool to examine and understand the growth in agricultural productivity and to separate out the effect of inputs and other factors like technology, infrastructure and farmers knowledge on productivity growth.With this views, the present study is carried out to examine temporal changes in area, production and productivity of the selected spice crops, total factor productivity and temporal changes in economic aspects.
The study covers Gujarat state which ranks second in spice crop production. District-wise time series data on area, production and yield of major spice crops in Gujarat were collected from the Directorate of Agriculture / Horticulture, Gujarat State, Gandhinagarfor the period from 1995-96 to 2015-16. These data were compiled for the Gujarat and the triennium averages for different periods were worked out for the selected crops viz. cumin, fennel, garlic, isbgul and coriander.
Commensurate with the objectives, total output, total input and total factor productivity (TFP) indices is worked out by using TornquistTheil Index. Compound growth rates of area, production, productivity, total inputs, total output and total factor productivity indices was worked out by using semi-log trend equation and temporal changes in economic aspects of spice crops with and without deflation were worked out.
In case of cumin, fennel, coriander and total spice crops in Gujarat state recorded positive and statistically significant growth rate in area, production and productivity. While in case of garlic and isabgul crop area and production recorded decreasing trend during all three periods, which needs special attention.
Total factor productivity of fennel and coriander crop were increased at the rate of 3.01 and 3.25 per cent per annum, respectively. Which indicated good positive growth(>3%) in TFP indicating the positive impact of technological change in these crops. Besides, the growth in TFP of cumin and garlic crop was found moderate (1-2%) in Gujarat state, which is a healthy augury for the state. Low technological change was found in case of isabgul crop (<1%).
Positive growth in TFP of those crops indicated the faster rate of technological change in these crops. Declined in growth of TFP was noticed in isabgul crop is a matter of great concern for the policy planners of the state. More research efforts and systematic policy measures are highly needed to stop the declining trend in TFP in this crop. More Policy attention is needed to straighten the sources which have positive impact on total factor productivity.Concentrated efforts for research and technology has helped in reducing the real cost of production to a certain extent, in the past two decades in the state. This has helped both to the producers and consumers through a decline in the real cost of production in spice crop sector.
All the income measures reflected higher value of income in case of deflation as compared to without deflation in all the selected spice crops. But net change in income in case of with deflation is less than without deflation for all the spice crops.
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AGRICULTURAL ECONOMICS