ESTIMATION OF DETERMINANTS OF TOTAL FACTOR PRODUCTIVITY OF RICE IN TELANGANA STATE : APPLICATION OF PARAMETRIC APPROACH

Abstract

The present study was conducted in the state of Telangana for the period 2000-01 to 2012-13. Tornqvist Total Factor Productivity (TFP) indices of rice and its determinants were calculated. The data on the quantity and price of the output and various inputs were collected from the published documents of the “Cost of Cultivation of Principal Crops†scheme of Government of India. The data on the variables like government expenditure on agricultural research, extension and education was collected from the Office of the Accountant General of the Government of Telangana, Hyderabad. Other required data were collected from
various published documents of the Directorate of Economics and Statistics, Hyderabad. The study revealed that over the study period the TFP of rice increased by 36 per cent in Telangana state. The lowest value of the TFP index in Telangana was recorded in the year 2002-03 largely because of the drought conditions in the state. The most the low values of TFP of rice recorded in the
years when the state experienced drought conditions. Release of the variety BPT-5204 (Sambamahsuri) significantly helped in productivity gain of rice. The study revealed that the productivity growth of rice in Telangana state was mainly driven by the government investment in agricultural research, education and extension, average rainfall in the state, irrigated area under the
crop and rural literacy rate with regression coefficients 0.076, 0.792, 0.005 and 0.026 respectively.