4.
Agriculture plays an important role in Indian
economy due to its contribution to income and
employment generation, forex earnings, industrial
growth and production of food.
Policy makers in India gave priority to agricultural
sector in all the time.
An urgent need of agricultural and food grain
production to provide food security to a raising
population brought reforms namely liberalization
in 1991
This study analyses the impact of various policies
like liberalization and NAP on total output and
factors of production.
5.
The study analyses two time spans to arrive at
conclusion. i.e., pre-liberalization period and
post-liberalization period.
In general pre-reform period is characterized by
green revolution, land reforms, investment in
irrigation, high yielding verities and new seed
fertilizers.
Post-reform period is characterized by
borderless movement of factors of production.
The study analyses the impact of NAP in export
and import of agricultural products.
6.
Shanmugam and Soundaranjan (2008):Analyzed the sources of output growth in Indian agriculture
during the post-reform. The study is based on the secondary
data gathered from Central Statistical Organization, Center for
Monitoring the Indian Economy and Census of India
(1991,2001). They have employed frontier production function
technique to measure the extent of Technical Efficient (TE) of
raising agricultural outputs in India using state level panel data
for the period, 1994-1995 to 2003-04.
They found that the Mean Technical Efficiency in the post
reform period is roughly 72%, indicating a scope for raising
output without additional resources. Technological progress
and Technical efficiency are two key sources of agricultural
growth, has been decline in recent period.
They suggested that instead of providing input subsidies, the
government should spend more effectively on
infrastructure, investment in research & development. It also
necessary to invest information dissemination tools, which can
be provided a new channel of agricultural growth for India.
7.
Shinoj and Mathur (2008):Analyzed India’s comparative advantage in exports of
major agricultural commodities with respect to Asia
and to compare it with that of other major Asian
exporters. The study is based on secondary data
collected from various issues of FAO trade year
book, published by the statistics division of food and
agriculture organization, Rom. They have used the
revealed symmetric comparative advantage to look
into the comparative advantage of the selected
commodities.
The study showed that exports of certain commodities
like cashew and oil meals, India has been also to
maintain its comparative advantage, but several other
commodities like tea, coffee, spices, marine products
etc, have been negatively affected. India has been found
losing out its comparative advantage in exports of some
of the agriculture commodities to other Asian
competitors during the period after economic reforms.
8.
To check whether there is any change in output
and factors of production due to liberalization.
To assess the changes in the agricultural export
and import in India, pre and post
implementation of NAP (National Agricultural
Policy) 2000-01
9. Model 1:Production function approach on full period
(1950-51 to 2010-11)
Dependent Variable:- Agricultural Output
Independent variables:Area of production
Consumption of fertilizer
use of pesticides
10.
Model 2:-
Production function approach on Preliberalization period (1971-72 to 1990-91):Dependent Variable:- Agricultural Output
Independent variables:- Area of
production, Consumption of fertilizer, use of
pesticides
11. Model 3:Production function approach on Postliberalization period (1991-92 to 2010-11):Dependent Variable:- Agricultural Output
Independent variables:- Area of
production, Consumption of fertilizer, use of
pesticides
12. The study based entirely on secondary data
available. The major sources of data are:
Handbook of statistics on Indian economy
(RBI)
Agricultural statistics at a Glance published by
the Ministry of Agriculture.
Time series data base of RBI
Central statistical organization
13.
The contribution of different factor inputs to
agricultural production during pre and post
liberalization period was identified with the
help of production function. For this purpose
we used regression analysis in SPSS. The
model used is
Pr=β1+βA+βP+β3F
Where, Pr= Agricultural Production, β1=
Constant, A= Area, P= Pesticides, F= Fertilizer,
14.
Only secondary data is used.
The sample size is small.
There is serial correlation among independent
variables.
15.
16.
17.
Area,fertilizer,pesticides shows positively
significant effect on agricultural production in
full period , which means one unit change in
these independent variables explains an
increase of 7%,84%,21% respectively in
agricultural production .
The R square value of this model is 0.927
,which means that about 92% of the variation in
agricultural output is explained by area
, fertilizer and pesticides .
There is a positive serial correlation among
variables due to uniqueness in factors .
18. The major predictors are;
Area (0.07)
Fertilizers (0.84)
Pesticides (0.21)
Regression equation
Y = a + βx1+βx2+….+ βxn
Agri output= (182.7)+ (0.07) Area+(0.84)
fertilizer +(0.21)pesticides
19.
20.
Area and fertilizer are having positively
significant effect on agriculture production in
pre-liberalization period .
one unit change in area and fertilizer explain
an increase of 23% and 74% respectively in
agricultural production.
R square is showing .867, which means 87% of
variation in agri-output is explained by area
and fertilizer.
Pesticides shows positive but insignificant
relationship ,its due to lack of availability of
innovative perticides.
There is a positive serial correlation among
variables due to its uniformity.
21. The major predictors are;
Area (0.235)
Fertilizers (0.742)
Regression equation
Y = a + βx1+βx2+….+ βxn
Agri output= (701.9)+ (0.235) Area+(0.742)
fertilizer
22.
23.
Fertilizer is having positively significant effect
on agricultural production in post reforms era .
It means one unit change in fertilizer explain
an increase of 60% in agricultural output.
Perticides is having negative significant effect
on agricultural production , it means one unit
change in perticides explain a 42 % decrease in
output.
Area is positively insignificant , because after
liberalization there was a decline of .80%
(p.a)in land use for agricultural purpose
, which was .20%(p.a) in pre era as per
statistics.
24.
The major predictors are;
Fertilizers (0.605)
Pesticides (-0.423)
Regression equation
Y = a + βx1+βx2+….+ βxn
Agricultural output= (483.8)+(0.605) fertilizer +(0.423)pesticides
26.
In pre-liberalization era area and fertilizers are
the major factors of production that
contributed to total production. The use of
pesticides was very less in this period so that it
is insignificant to output
in post liberalization period area shows
insignificant to total production since there is a
decline in total use of land (aproximately .80%
per annum)
Unlike in pre liberalization pesticides are
significant to total output in post reform due to
import of advanced pesticides from other
nations.
27. The policy developed various measures for
boosting up agricultural sectors including
target towards increasing agricultural exports
and decreasing imports.
This study analyses the impact of NAP in
export and import of agricultural products.
29. 30.00
%exp to total exp
%of imp to total imp
25.00
20.00
15.00
10.00
5.00
0.00
30.
In pre-NAP era there was an average of 18% of
agricultural exports to total exports but on the
contrary to the expectation of NAP. There
shown an average of around 11% only in post
NAP era.
Fortunately NAP could bring down the
imports of agricultural products at an average
of 5% from pre-NAP period to 4% in post-NAP
period
The agricultural imports have very volatile
than the total imports while agricultural
exports are less volatile than the total exports.
31.
During the full period 1950-2011all factors of
production (Area, fertilizer, pesticides) contributing to
agricultural production.
Before liberalization(1971-1991) Area and fertilizer are
having effect on agriculture production. Pesticides
were low quality and weak in the pre-reform era.
After liberalization (1991-2011) ,use of fertilizer helps
in increasing output whereas use of Pesticides
decreasing agricultural production.
During post-NAP era there shown a drastic decline in
agricultural exports
There is noted a decline in total production and use of
land in post liberalization
32.
Government concentrate more on
implementation of policies.
Take proper measures to protect agricultural
area.
Provide more incentives and supports to
increase export and reduce import.
33. The previous study in this area have shown Technical
Efficiency in production function and advantages
of export major agricultural commodities.
This study channelizes towards finding out the
important factors of production which will fetch
higher agricultural output. And we concluded that
fertilizer and area contributing much to increase
output. But area is not contributing at present.
Hence the policy makers should stick on to the
production factors on large to cope up with food
crisis.
Agricultural policies are not significantly resulting up
to what was expected by policy makers.
