A Study on Supply Response of Major Crops of Murshidabad District of West Bengal

Study of supply response is of particular importance to policy makers as useful guideline for framing agricultural price policy. Assessment of the extent of responsiveness will help policy makers to decide the level of price incentive required for achievement of desired results in terms of production. The present study aims examine the supply response of farmers of Murshidabad district of West Bengal to changes in various price and non-price factors. The study reveals that previous year area and price exert positive and significant influence on acreage response for all crops where as lagged price is the single most important factor responsible for yield response. The low magnitude of short run price elasticity of acreage and yield of all crops implies that price as an important tool for achieving increased production may have a limited role to play where as higher value of long run price elasticity of both acreage and yield suggest that price may exert significant influence on farmers regarding allocation of more area to the crops in long run.