Total factor productivity growth of pigeon pea crop in Maharashtra

Abstract

Measurement of productivity growth is very essential to take appropriate policy decisions for the development of the agriculture sector. Present study measures total factor Productivity growth of pigeon pea crop in sub-sector of Maharashtra State. The Tornqvist Theil chained Divisia index approach was applied for the measurement of total factor productivity using output and input data of pigeon pea crop. Farm-level data on yield, level of inputs use and their prices for the period 1989-90 to 2008-09 were taken from the state funded cost of cultivation scheme. The multi-variable model was utilized to know the determinants of total factor productivity growth taking total factor productivity as dependent variable. Beside double sown area, other explanatory variables included total amount of loan, net cropped area, area under irrigation, area under high yielding variety, annual rainfall, villages electrified, number of tractors, number of pump sets, road density. The results indicated that total factor productivity growth was positive in pigeon pea crop in sub sector of Maharashtra State. Area under irrigation, area under high yielding varieties, rainfall, and road density has positive and significant impact on total factor productivity of pigeon pea crop in sub- sector.