MM5.1: Total factor productivity of cotton in India

Total factor productivity (TFP) is a measure of change in out put due to change in all inputs simultaneously. It can be interpreted as a measure of change in the cost of producing a unit of product holding all the factor prices constant. TEP growth provides a measure of the increase in total output that is not accounted by increase in the quality of inputs. TFP indices over a long period of time reflect the sustainability of the system. Growth in productivity is the result of advances in technology such as new ways of combining inputs, invention/introduction of new production/practices etc. In another way TFP growth represents the technological advancement. Cotton being one of the most important commercial crops playing key role in Indian economy needs such study. The main objectives of this study are to measure total factor productivity in cotton production and its sustainability, to study the impact of investment on research and extension in cotton and to suggest policies and strategies to sustain productivity growth. This study reveals the role of technological changes in increasing cotton productivity, whether this is sufficient in long term or not. This study will also identify the districts/region/sub-region where cotton productivity is stagnant or declining and suggests measures to sustain growth.

OBJECTIVES

• To examine the trends in area, production and productivity of cotton in major cotton growing States of India and issues related to overall performance of the cotton crop;
• To construct the district-wise total factor productivity indices under different agro climatic zones of cotton growing States in India ;
• To examine the changes in TFP of cotton and to identify the factors influencing such changes and
• To suggest policies and strategies to sustain the growth in TFP by district and region wise with reference to cotton economy.

Name of the Lead Center : CICR (RS), Coimbatore

Co-operating Centers: CICR, Nagpur; TNAU, Coimbatore; PAU, Ludhiana