Effects of Climatic Factors on Productivity of Cash Cropsin India: Evidence from State-wise Panel Data

Abstract

The present study increases the attention of Indian policy maker for cash crops farm policies in presence of climate change. Thus this paper tries to provide an understanding about mean yield, yield variance of major cash and climate change. The study examines the climatic and non climatic effect on various cash crops in India. We analyses the effect on five major cash crops like cotton, potato, groundnut, linseed and sesamum through their mean yield and yield variation. We consider data from thirteen major agricultural intensive states during 1980-2009 for the analysis. To estimate the mean yield and yield variance production function we employed stochastic production function based on Just and Pope (1979). Our result shows that climatic factors significantly affected both mean yield and yield variance. The study thus focuses on the attention of Indian policy makers for cash crops farm policies in the wake of climate change.