Agricultural Economics Research Review

UGC CARE (Group 1)
  • Year: 2010
  • Volume: 23
  • Issue: 1

Factor Demand, Output Supply Elasticities and Supply Projections for Major Crops of India

  • Author:
  • Praduman Kumara,, P. Shinoja, S.S. Rajua, Anjani Kumara, Karl M. Richb, Siwa Msangic
  • Total Page Count: 14
  • DOI:
  • Page Number: 1 to 14

aNational Centre for Agricultural Economics and Policy Research (NCAP), New Delhi.

bNorwegian Institute of International Affairs, Oslo, Norway.

cInternational Food Policy Research Institute, Washington DC, USA.

*Author for correspondence, Email: pkumariari@rediffmail.com.

§This paper is drawn from the research work undertaken as a part of the studies entitled ‘Biofuels and the Poor’ funded by International Food Policy Research Institute (IFPRI), Washington, DC, USA and ‘Developing a Decision Support System for Agricultural Commodity Market Outlook’ (NAIP-subproject at NCAP).

Abstract

Policy planners face the challenge of formulating suitable agricultural policy by which the required growth in domestic production can be achieved. To attain effective food security policy, one needs reliable empirical knowledge about the degree of responsiveness of factor demand and output supply for commodities. This paper is an attempt in this direction and estimates the factor demand and output supply elasticity for major crops grown in India. These elasticities are used to project the domestic supply of major commodities, viz. rice, wheat, pulse grains, nine major edible oilseeds, and sugarcane under various scenarios with and without acreage expansion and TFP growth. The results of supply projections are compared with the food demand and policy prescription to attain food security is suggested.