Does Efficiency Matters in Explaining Total Factor Productivity Growth of Rice Production in India?

Abstract

The present paper estimates Total-Factor-Productivity-Growth (TFPG) of Indian agriculture for Rice over the period 1970-71 to 2013-14 considering the major producing states of these crops by using non-parametric method of Data-Envelopment-Analysis (DEA). After estimating the TFPG the major factors influencing TFPG is explained. The result reveals that although the green revolution policies may push the TFPG in a higher level but the effect of green revolution policy may fade out over time. The analysis also reveals that in order to encourage total factor productivity growth, any policy changes that will lead to increase in the government irrigation, availability of agricultural loan, rural-literacy, government expenditure on agricultural research and extension should be emphasized. Although there exists non-linear relationship (i) between TFPG and the growth of HYV uses, the marginal effect of HYV uses is positive implying that an increase in growth of HYV uses will push up TFPG and (ii) between TFPG and the inequality-in- operational-land-holding but the marginal effect of the inequality-in-operational-land- holding is positive suggesting that learge holding of land has positive effect on TFPG.