Ecology, Environment and Conservation Paper

AN ANALYSIS OF TOTAL FACTOR PRODUCTIVITY OF COTTON IN TAMIL NADU

V. Kavitha, S. Usha Nandhini and V. David Chella Baskar

Abstract

Cotton, popularly called as “white gold” is a leading commercial crop grown world over for its valuable fibre. India has become the global leading grower and largest producer of cotton. However, the growth rate in area, production and yield in the current decade has registered a reduced growth rate. Hence it necessitates a study to analyse the factors responsible for such changes. The ‘Total Factor Productivity’ (TFP) approach is considered as suitable tool to examine the growth in agricultural productivity and to separate out the effect of inputs and other factors like technology, infrastructure etc., on productivity growth. The study utilizes Tornqvist – Theil index for calculation of total factor productivity. Time series data from various published sources were collected for the period 1970 to 2017-18. The results have shown a declining trend in growth of Total Input Index, Total Output Index and TFP. Declined growth of TFP indicated the negative impact of technological changes on cotton. The study has suggested for more research and policy measures to impede the declining trend in TFP of cotton in the state.