Agricultural Economics Research Review

UGC CARE (Group 1)
  • Year: 2019
  • Volume: 32
  • Issue: conf

Total factor productivity estimation of agro-food processing firms: a study of the northern states of India

  • Author:
  • Abid Sultan
  • Total Page Count: 1
  • DOI:
  • Page Number: 230 to 230

Sher-e-kashmir University of Agricultural Sciences and Technology-Jammu, Jammu, 180009, J&K, India

Online published on 13 December, 2019.

Abstract

Using Malmquist Productivity Index (MPI), the present study estimates total factor productivity (TFP) of agrofood processing units of northern states of India for the period 2008–09 to 2016–17. The study measures TFP using two input variable i.e. labor & capital and has used Gross Value Added (GVA) as an output variable. TFP has been measured both at the aggregate and disaggregate levels in the selected states. At disaggregate levels, four segments of the agro-food processing industry have been studied. The result of the present study reveals that all the studied agro-food processing firms operating in the north Indian states are under productivity regress during the entire period of the study. The main reason of this regress is technical inefficiency. Productivity regress has been also observed in each studied segment. The results of the study can be constructive in developing & implementing technical interventions for accelerating productivity growth as per the National Manufacturing Policy (NMP) of 2011. At the firm level, the study can help agro-food processing entrepreneurs in understanding the strategic significance of the technical efficiency and how it can change competition & growth landscape.