Climate Change Effects on the Crop Yield and Its Variability in Telangana, India

Abstract

This study has examined the effects of climatic factors on mean yields and yield variability of four primary crops (rice, cotton, jowar and groundnut) in Telangana state by applying the Just and Pope production function over a period of 1956–2015. Using the three-stage feasible generalised least squares estimation procedure, we have estimated the production function of four crops. The empirical results have revealed that the effects of changes in climatic factors vary among crops under study. Maximum temperature has a significant adverse effect on rice, cotton and groundnut yields. Minimum temperature has a substantial positive effect on rice, cotton and groundnut. Further, rainfall is adversely related to cotton and groundnut yields. Maximum temperature has appeared as a risk-reducing factor for all study crops while minimum temperature as a risk-enhancing factor for rice, cotton and jowar. Lastly, rainfall has been found as a risk-enhancing factor for rice and groundnut whereas it is a risk-reducing factor for jowar and cotton. Results from the study have important implications on how Telangana’s farming sector will adapt to climate variability and change for sustainable agricultural development. JEL Codes: C23, Q18, Q51, Q54