Effects of Climatic Factors on Agricultural Productivity in India: A State-wise Panel Data Analysis

Abstract

This study estimates effects of various climatic, non-climatic and geographical factors on agricultural productivity in India. The study used a state-wise panel data during, 1980-2009. Value of production for each crop is estimated by farm harvest price (at constant level, 1993-94 prices). The study applied Cobb-Douglas production function model estimating outputs (in monetary term) on per hectare land for Rabi and Kharif crops as dependent variables and regressed with different socio-economic and climatic factors. Empirical results based on Prais Winsten models with panels corrected standard errors (PCSEs) estimations, indicate that actual average maximum temperature appears positive and statistically significant impact on agriculture productivity of Rabi crops; and negative impact on Kharif crops. While actual minimum temperature has negative impact on Rabi crops and positive impact on Kharif crops. Geographical location i.e. latitude situation of a particular state also has a positive and statistical significant association with agriculture productivity of Rabi and Kharif crops. This study provides the empirical evidence that climatic and geographical factors have a significant impact on agriculture productivity. The study integrates more realistic representation of Indian agriculture by studying the climate change impacts empirically estimating differentiated impacts on Kharif and Rabi crop productivity.