Remarkable achievement in arhar productivity in Gujarat: The contribution of research investment as reflected by TFP and RRI

The present study has analyzed the growth in TFP of arhar crop and its sources in Gujarat state from 1990-91 to 2011-12. The Tornqvist Theil Index has been used to calculate the total output index, total input index and TFP index. Two outputs and ten inputs have been used to construct output and input indices. The analysis shows that the arhar crop which registered negative TFP growth in 1990s, vitally revived during 2000s with significantly positive growth of total input, total output and TFP indices at the rate of 2.16, 5.06 and 2.84 per cent per annum, respectively, with a contribution of 67 per cent to output growth. During 2001-02 to 2011-12 though, the acreage has declined by 2.43 per cent, the production and productivity increased significantly at remarkable rate of 2.19 and 4.73 per cent per annum, respectively. This was contributed by the release of arhar varieties viz., BDN-2 in 1984, GT-100 in 1992, GT-101 in 2003 and GT-Hy-1 in 2004, in the state and farmers preferred it, due to its superiority in yield, earliness and require less number of irrigations. Further, the analysis of sources of growth in TFP indicates that the government expenditure on research, extension education, development of canal irrigation, rural infrastructure in the state and kharif rainfall is the important drivers of arhar crop productivity in Gujarat. Returns to investment on arhar crop research have been found to be a highly paying proposition generating 55.50 per cent Internal Rate of Return. The arhar productivity in state increased from 851 kg/ha in 1990-91 to about 1185 kg/ha in 2012-13, though it is frequently constrained by moisture stress due to poor and uneven monsoon. To sustain the productivity of agricultural sector and to achieve projected rise in total production, policy attention will have to be paid to strengthen the sources which have positive impact on TFP growth by more public and private investments in under developed regions of the state to strengthen agricultural research, irrigation potential and rural infrastructure.