Volume: 10, Number: 5, Year: 2019
Growth and productivity in sugarcane farming in India for the period 2004-05 to 2015-16
In an agriculturally dominant country like India the importance of sugarcane farming emerges from the fact that it provides sustenance to about five million farmers and large number of agricultural labourers that constitutes about 7.5 percent of total rural population of the country (GOI, 2014). Apart from the above, another half a million is involved in Sugar, Gur and Khandsari manufacturing as a skilled, unskilled and semi-skilled workers. Sugarcane farming has transformed the rural areas by rural industrialisation in many parts of the countries. Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Haryana, Punjab, Gujarat, Bihar and Uttarakhand are major sugarcane producing States in India. Over past few years sugar sector is grappling with a number of problems like the increasing cost of input, low price for sugar in national and international markets, climatic fluctuation, deficiency in rainfall etc that has adversely impacted the productivity of this sector. The study attempts to estimate TFP growth of sugarcane farming in selected States in India by using farm level data published by the Commission for Agricultural Cost and Prices. The study finds that the TFP in sugarcane farming on an average has declined at the rate of 2.7 percent per annum. This decline is largely contributed by 2.9 percent decline in technical change and very marginal gain in the technical efficiency change and pure technical efficiency gain of 0.1 percent per annum. Among the States only two States, namely, Karnataka and Andhra Pradesh show technical progress whereas in the rest all other states technical regress is observed. The implication of the findings is that the government should stimulate technical or technological change in the Indian sugarcane sector by investment in R & D and expanding extension services.
Paper ID: 15193