Technical and efficiency changes in oilseed sector in India: Implications for policy

The present study has analysed the trend in the total factor productivity (TFP) of major edible oilseeds in India during 1985-2010, and has decomposed the changes in TFP into its constituent components viz. technical change and efficiency change using Malmquist TFP approach. The study revealed that the productivity growth of groundnut, rapeseed/mustard and soybean has decelerated during period II (1996-2010) compared to period I (1985-1995). During the overall period TFP change was positive for groundnut and rapeseed/mustard, but negative for soybean. Period II has recorded increased TFP changes in two out of three states for groundnut and rapeseed/ mustard. For soybean, TFP change was positive in one out of three major state only. The entire change in TFP in case of all the crops was on account of technical change, with no contribution from changes in efficiency. The depressed productivity growth in many states despite positive TFP growth could be due to slowdown in input intensification. This situation warrants policy focus