Decomposition of growth model to identify different factors contributing to increased vegetable output in India

Abstract

During 1990s, both area and production of vegetables registered highest growth rate of 4.28% and 5.46% respectively. There was a stagnant growth in productivity of vegetables, but area expansion took place due to shifting of farmers from growing traditional low value crops to high value crops like vegetables influencing the growth of production over the later years. The study used secondary data from 1991–92 to 2011–12 breaking it into two periods (period I from 1991–92 to 2000-01and period II from 2001–02 to 2011–12). The results showed that the effect of diversification was found to be the largest contributor to the growth in vegetable output. But the rate of contribution declined from 86.5% during Period I to 42.6% in Period II. During period II, the changes in area under vegetable cultivation and real prices of vegetables had a positive and increased extent of contribution on the growth.