Total factor productivity growth and returns to investment in pearl millet (Bajra) crop research in Western Maharashtra

Abstract

The attempt has been made to study the total factor productivity and returns to investment in pearl millet crop in Western Maharashtra. For the study, the time series data on cost of cultivation of pearl millet was collected from official records of state cost of cultivation scheme to fulfill the objectives. The output growth was highest (2.18) in second period in year 2004. The average output index for twenty one years was 1.53. In case of input index, there were heavy fluctuations, decreasing from 1.02 in 1993-94 to 0.59 in 2013-14. The average input index of pearl millet for twenty one years was 0.76.The Total Factor Productivity index of pearl millet grew at 3.88 per cent per annum. Research investment (0.27***), rainfall (0.04**), rural literacy (1.50**), N to P ratio (0.49*) and net irrigated area (0.69*) has significantly contributed to TFP growth in pearl millet. The additional investment of one rupee in pearl millet research generated additional income of ₹ 16.03, indicating substantial rate of returns to investment with internal rate of return of 34.76 on research in pearl millet in western Maharashtra. The empirical findings showed that the total factor productivity in pearl millet crop registered a substantial growth with profitable returns in Western Maharashtra. Hence the Government should allocate substantial funds to public research in pearl millet for productivity improvement and food security to masses.