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Agricultural Economics Research Review
Year : 2022, Volume : 35, Issue : 1
First page : ( 71) Last page : ( 80)
Print ISSN : 0971-3441. Online ISSN : 0974-0279.
Article DOI : 10.5958/0974-0279.2022.00006.4

Decomposing productivity growth in the Indian sugar industry

Kumar Shiv, Abdulla*

ICAR-National Institute of Agriculture Economics and Policy Research, New Delhi110012, India

*Corresponding author: abdullahalig007@gmail.com

Online Published on 06 October, 2022.

Abstract

We measure the growth in the total factor productivity (TFP) of the Indian sugar industry from 2002–03 to 2017–18 using the stochastic frontier production approach. The TFP grew at −10% per annum on average during the study period. The growth was negative because the allocative change and scale effect declined. To arrest the negative growth, the technical change must be improved urgently, modern processing technology must be adopted on a large scale, and the pricing policy of inputs, especially production factors, must be rationalized.

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Keywords

Total factor productivity (TFP), Growth, Sugar, Manufacturing industry.

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