Total Factor Productivity Growth of Wheat in Major Wheat-Producing States of India: A Tornqvist–Theil Index Analysis (2000–01 to 2016–17)

Abstract

Wheat is one of the major staple food crops in India and plays an important role in national food security and farm income. The present study examined total factor productivity growth in wheat production across five major wheat-producing states of India, namely Haryana, Madhya Pradesh, Punjab, Rajasthan and Uttar Pradesh, during 2000–01 to 2016–17. The analysis was based on secondary data on cost of cultivation and related input and output variables obtained from official government sources. The total input index, total output index and total factor productivity index were estimated using the Tornqvist–Theil chain-linked index approach. Relative change and growth rate were also computed to assess changes between the base year and the current year. The results showed that the total factor productivity index increased from the base-year level of 1.00 in all selected states. The highest current-year TFP was observed in Madhya Pradesh at 1.23, followed by Uttar Pradesh at 1.22, Haryana at 1.14, Rajasthan at 1.10 and Punjab at 1.06. Relative change in TFP was also highest in Madhya Pradesh at 22.52 per cent, followed by Uttar Pradesh at 21.76 per cent. However, Rajasthan recorded a negative growth rate in TFP during the study period, mainly because of a declining trend in the output index. The findings indicate that wheat productivity performance varied across states, with improvements in output relative to aggregate input use in most cases. The study highlights the importance of productivity-oriented interventions for sustaining wheat production growth in major wheat-growing regions.