Total Factor Productivity Growth and Changing Cost Structure of Sugarcane in Gujarat, India

Abstract

Aims: • To estimate the growth of input, output indices and total factor productivity of sugarcane in Gujarat • To estimate the changing cost structure of sugarcane Place and Duration of Study: Department of Agricultural Economics, Junagadh Agricultural University (between June 2018 and July 2020). Methodology: This paper has estimated the growth in total factor productivity of sugarcane crop using Tornqvist Theil index and growth trends in cost structure of sugarcane crop in Gujarat. Results: The results showed that the growth rate of TFP indices of sugarcane planted crop and ratoon crop were negative about -0.86 and -0.31 per cent per annum, respectively. Negative TFP growth resulted due to a relatively faster rate of total input growth than total output growth. in the total cost of cultivation of sugarcane, the cost share of human labour, irrigation and miscellaneous in Gujarat has shown an increasing trend. while, rental value of land showing declining trend. Conclusion: Study suggested that technological gains have not been experienced in this crop needs concentrated efforts to bridge extension gap and further research to evolve concrete strains, resistant to pest and diseases which reduce the real cost of production.