Comparative Economic Analysis of Aggregate Crop Revenue in Jabalpur and Katni Districts of Madhya Pradesh

This paper tries to analyze the dynamics of aggregate crop revenue and the changes in the composition of various constituent factors of changes in aggregate revenue of two districts of Kymore Plateau and Satpura hills agro-climatic region of Madhya Pradesh, i.e., Jabalpur and Katni, by using one of the Index decomposition analysis (IDA) methods, i.e., Logarithmic Mean Divisia Index (LMDI), for a period from 2007-08 to 2016-17. The aggregate crop revenue was decomposed into the area, yield, price, and cropping pattern effect. The analysis indicated that a significant portion of the cropped area of the districts was covered by wheat, paddy, and gram. In Katni district, a shift of cropping pattern was more inclined towards oilseeds & pulses, while in Jabalpur, it was more towards food grains. The predominant factor contributing to the overall revenue in Katni districts was the yield effect, while in Jabalpur, it was the price effect. However, the contribution of the cropping pattern effect was relatively negligible compared to other effects in both districts. The highest share in aggregate crop revenue from wheat and paddy crops, predominantly contributed by yield effect and price effect. The study suggests further improving and stabilizing the yield of the crops and implementation of policies focused on improving the cropping pattern in the districts.

Yield effect emerged as the predominant factor in contributing to aggregate crop revenue in Katni while for Jabalpur district price effect was the major factor.