1Department of Agricultural Economics, ASPEE College of Horticulture & Forestry, Navsari Agricultural University (NAU), Eru Char Rasta, Navsari-396 450, Gujarat, India
2ICAR-National Academy of Agricultural Research Management (NAARM), Rajendranagar, Hyderabad-500030, Telangana, India
3Department of Agricultural Economics, N.M. College of Agriculture, Navsari Agricultural University (NAU), Eru Char Rasta, Navsari-396 450, Gujarat, India
TFP growth in South Gujarat by crops has developed a strong perception that technological gains occurred in paddy, wheat, tur, cotton, sugarcane, and banana. Cotton has enjoyed the highest benefit of technological innovations during the past twenty-four years with its TFP growth more than 3per cent. The impact of research on different crops has indicated high payoffs to research in all crops. The results revealed that investment of rupee one in research stock has generated, on an average, an additional income of Rs 7, indicating high rates of returns to public investments. The marginal internal rates of return to agricultural research are estimated to be between 35 and 54 per cent showing that investment in agricultural research during the past 24 years has resulted in attractive returns. The study has clearly indicated that investment in agriculture is a highly paying proposition and presents strong case for allocation of additional resources to research for the development of agriculture in South Gujarat.
AgGDP, agriculture research, Divisia Tornqvist, IRR, MIRR, NARS, TFP
