Estimation of Demand for Labour for Major Crops of Maharashtra

The input demand functions for four crops (cotton, paddy, soybean and sorghum) of Vidarbha region in the Maharashtra state have been estimated using crops sectional cum time series data for ten year (1999-00 to 2008-09). The study has revealed that the output price for soybean has increased maximum (at 8.17% per annum), followed by sorghum, paddy and cotton. The analysis of factor demand equations has shown that the demand elasticities with respect to own prices have the expected negative signs indicating that the results are in accordance with theory of demand. One per cent increase in own price, holding other prices constant, will reduce human labour employment by 1.30 per cent, 1.8 per cent, 1.34 per cent, 1.26 per cent and bullock labour demand by 1.34 per cent, 0.69 per cent, 1.24 per cent and 1.13 per cent, respectively in cotton, paddy, soyabean and sorghum crops. The absolute value of own price elasticity of human labour and bullock labour have been found greater than unity, indicating an elastic response of input utilization to their own price.