Growth rates and decomposition analysis of onion production in Rajasthan state of India

This paper investigates the trends in area, production and yield of onion in Rajasthan state of India by using component analysis model. The study data period has been divided into three periods: period one, 1984–95, 1996–2005 and 2006–2015. The comparison of area, production and yield growth rates in all periods revealed that cotton show better performance in state as well as national level. The decomposition analysis of growth suggests that for onion yield effect is the major source of growth in period 1984–95 and 1996–2005 except for period 2006–2015 for which area effect was the major source in Rajasthan. At national level, source of output growth for onion was the yield effect. The sources of output for the overall study period revealed that in case of onion crops, the main output source was the yield effect for respective crop. The results of decomposition analysis have important policy implications because each growth component alone has a limited scope to expand overtime. For example, land's growth potential (the acreage effect) is limited due to the scarce supply of water resources in Rajasthan As such, efforts have to be directed toward further increasing the productivity of crops. The future government policy should focus on developing new high-yielding with drought resistant varieties in Rajasthan.