Growth and total factor productivity change of cumin in Gujarat

Abstract

This paper has analysed the growth in TFP of cumin crop and temporal change in economic aspect in Gujarat state from 1995-96 to 2015-16 [4]. The Tornqvist Theil Index has been used to calculate the total output index, total input index and TFP index. Two outputs and ten inputs have been used to construct output and input indices. The results revealed that during 1995-96 to 2015-16 the area, production and yield of cumin in Gujarat were increased at remarkable rate of 6.4, 10.24 and 3.58 per cent per annum. It has also registered moderate growth rates of output indices and TFP indices about 2.94 and 1.46 per cent per annum, respectively in last two decades. The growth in TFP remained low about 0.99 per cent per annum during 1995-96 to 2004-15, this improved considerably about 1.51 per cent per annum during 2004-15 to 2015-16. This was contributed by the release of high yielding varieties in Gujarat i.e. MC-43 in 1970, GC-1 in 1982, GC-2 in 1992 and GC-4 in 2003, evolved by the Gujarat Agricultural Universities, which are performing well in the state. Similar results was also reported by Gami and Dhandhalya (2013) that the output, input and TFP indices of cumin were increased at the rate of 2.31, 0.66 and 1.64 per cent per annum during 1990-91 to 2011-12. Net income of cumin crop was increased during second period i.e. 2005-06 to 2015-16 by 121 per cent and 7.66 per cent in case of without and with deflation, respectively. It essential that growth in TFP needs to be sustained and further improvement, through varietal improvements, irrigation developments and adopting proper agronomical practices.