An Analysis of Growth in Input Use Level and Total Factor Productivity of Major Crops in Telangana State, India

Abstract

Agriculture remains a vital sector in Telangana, contributing significantly to rural livelihoods and food security. Following the formation of the state in 2014, substantial investments were made in irrigation infrastructure, farmer support programmes, and agricultural development initiatives. Evaluating whether these interventions translated into productivity gains requires an assessment of changes in input use and total factor productivity (TFP) of major crops. This study examines changes in input use, costs, and total factor productivity (TFP) for rice, cotton, and maize in Telangana across two periods: 2010–11 to 2013–14 and 2014–15 to 2017–18, using the Divisia–Tornqvist index. It is noted that, TFP levels for rice, cotton, and maize were 1.30, 0.99, and 1.09, respectively, in the first period, and 1.02, 1.15, and 1.05, respectively, in the second period. These results indicate limited technological impact for rice and maize following state formation, in contrast to cotton, which shows appreciable TFP gains after 2014. A Cobb–Douglas production function further found that farm size, the share of area under irrigation, and seed cost as key determinants of farm income. Overall, the agricultural sector performed at a comparatively higher rate after 2014, particularly in irrigation and crop production. The results suggest that policy efforts should focus on expanding irrigation coverage, promoting productivity-enhancing technologies, improving input-use efficiency, and reducing production costs to achieve sustainable agricultural growth and enhance farmers income in Telangana.