Trends and Determinants of Total Factor Productivity in Potato: Evidence from India

This study examines the total factor productivity in potato production in India from TE1999-2000 to TE2020-21, divided into sub-periods viz. TE1999-2000 to TE2008-09 (Period I) and TE2009-10 to TE2020-21 (Period II). The study dissects the total factor productivity (TFP) growth into its constituent components: change in technical advancement and technical efficiency using the Malmquist Productivity Index approach. TFP has changed at a pace of 8.9 percent each year over the entire period, with considerable inter-state differences. The positive TFP increase has been linked to 8.9 percent mean technological development, with no change in technical efficiency. Bihar has shown strong TFP growth during the overall period. In contrast, Uttar Pradesh and West Bengal have shown weak TFP growth. The favourable technological change was primarily responsible for the resurrection of the mean TFP to a level of 110.9 percent per year during Period II. During both Period I and II, all states experienced a positive TFP as a result of technological change. Bihar showed more progressive development in TFP change during Period II, owing to a high rate of technical improvement. However, Uttar Pradesh reported lower progressive development in TFP change during Period II. There has been a decrease in the percentage of input costs in total cultivation costs throughout Period II and input intensification has slowed as output has increased. This decrease in input costs reflects in technological development. Thus, the study highlights a strategy aimed at improving research funding and helping to boost extension systems and networks to improve management practices in the farmer’s field, resulting in positive efficiency change and furthering TFP growth and steps for sustainable input intensification.