Change in Total Factor Productivity of Groundnut (Arachis hypogaea L.) in Gujarat: The Technological Gains

This paper has analyzed the growth in TFP of groundnut crop and its sources in the state of Gujarat from 1990–91 to 2011–12. The Tornqvist Theil Index has been used to calculate the total output index, total input index and total factor productivity index. The compound growth rates have been worked out using semi-log trend equation. The annual compound growth rates of total input indices, total output indices and TFP indices have been found 0.27 per cent, 2.32 per cent and 2.04 per cent, respectively during this period. A remarkable increase in TFP of groundnut in Gujarat has been observed during 1990s due to release of several groundnut varieties. The farmers adopted these varieties due to their superiority in yield and quality. The analysis of determinants of TFP has indicated that the expenditure for creating irrigation facilities, government expenditure on research, extension and education, rainfall, and balanced use of fertilizers are the important drivers of groundnut crop productivity in Gujarat. To sustain the productivity of agricultural sector and to achieve the projected rise in total production, policy attention will have to be paid to strengthen the sources which have positive impact on TFP growth by more public and private investments, particularly in the under-developed regions of the state to strengthen agricultural research and irrigation infrastructure.