1Department of Agricultural Economics, University of Agricultural Sciences. Raichur-584 104, Karnataka, India
2School of Agribusiness Management, Professor Jayashankar Telangana State Agricultural University, Hyderabad-500 030, Telangana, India
3Department of Agricultural Economics, Professor Jayashankar Telangana State Agricultural University, Hyderabad-500 030, Telangana, India
Department of Agricultural Economics, University of Agricultural Sciences, Raichur-584 104, Karnataka, India
*Corresponding author's e-mail: smjainu@gmail.com
#This paper has been extracted from Ph. D thesis of entitled “Growth, Instability and Supply Response of Groundnut and Sunflower oilseed crops in Karnataka: An Econometric Analysis ”submitted by the first author to PJTSAU, Rajendranagar, Hyderabad in 2018
The study was conducted in Karnataka state with an objective to assess the decision making factors in land allocation sustainability of groundnut production. The results of the coefficients of area response of groundnut indicated that the total rainfall had exerted significant positive influence on current year's area of groundnut in Mysore division and Karnataka. The coefficients of production response of groundnut indicated that the lagged production had exerted significant negative influence on current year's production of groundnut in Bangalore, Gulbarga and Karnataka. The result showed that long run relationship existsed between dependent and independent variable in some divisions. The results indicated that the price inelasticity of supply in both short run as well as long run all the division except some. The study concluded that nonprice determinants were more significant for decision making and complementary to price for land allocation in sustainable production of groundnut in the state.
Co-integration approach, Decision making, Karnataka, Land allocation, VECM
