Total factor productivity and returns to investment in onion research in Maharashtra
Nirpal RS, VG Pokharkar, CM Gulve and RA Shelke
The proportion of total output to the whole number of resources/factors is used to measure total-factor productivity (TFP), also known as multi-factor productivity. Growth in TFP explained the contribution of yield growth not explained by growth in normally measured employed manpower and investment in inputs in the production when specific assumptions about production technology are made. Total factor productivity is a count of economic efficiency that explains some of the discrepancies in per-capita income among countries. TFP measures the net growth of output per unit of total inputs. In this study, estimation of total factor productivity in onion crop and returns to investment in onion research in Maharashtra is attempted. For the study, the time series data on cost of cultivation of onion was collected (1990-91 to 2018-19) from official records of state cost of cultivation scheme to fulfil the objectives. The onion output index grew from 1.12 in 1992-93 to 1.85 in 2018-19. In 2011-12, output growth fell to 0.99 per cent, the lowest since 2002-03. (0.83). In 2007-08, the largest /highest output index was recorded. For the past twenty-nine years, the average output index has been 1.35. The average onion input index was 1.05 for twenty- nine years. The year with the highest TFP index was 2016-12. (2.29). The result indicates that total factor productivity index of paddy grew at 0.53 per cent per annum. Public research investment significantly contributed (0.14***) to TFP growth in onion. The additional investment of one rupee in paddy research generated additional income of 29.87 RS, indicating substantial rate of returns to investment with internal rate of return of 31.75 on research in paddy in Maharashtra. The total factor productivity in paddy crop registered a substantial growth with profitable returns in Maharashtra. Hence the Government should allocate substantial funds to public research in paddy for productivity improvement of paddy crop providing food security to masses.
How to cite this article:
Nirpal RS, VG Pokharkar, CM Gulve and RA Shelke. Total factor productivity and returns to investment in onion research in Maharashtra. The Pharma Innovation Journal. 2021; 10(12S): 1417-1422.