Growth of cashew research in Konkan region of Maharashtra

This paper has assessed developments in cashew productivity in the Konkan region of Maharashtra. The total factor productivity indices were estimated using Tornqvist index for the period 1998-99 to 2017-18. TFP increased at 3.13% per annum. During the same period, output index grew by 2.18% per annum and input index declined at the rate of 0.92% per annum. The improvement in the total factor productivity was may be due to non-input factor such research investment and extension efforts. The results indicate that research investment (0.23), rainfall (0.84), road density (0.56) and rural literacy (1.62) have significantly contributed to TFP growth. Investment of one rupee in cashew research generated additional income of Rs 25.31. The inverse of TFP elasticity to research gives flexibility to research investment. The estimated value was 4.35 which mean that to achieve one% growth in TFP, the investments in research need to be increased by 4.35%. The investment made in cashew research is generating rate of returns of 42.77% annually. Here the IRR is greater than the borrowing rate, hence the investment made in cashew cultivation was economically viable.