Assessing the Competitiveness of Indian Cotton Production: A Policy Analysis Matrix Approach

Samarendu Mohanty, Cheng Fang and Jagadanand Chaudhary

No 53142, Cotton Economics Research Institute CER Series from Texas Tech University, Department of Agricultural and Applied Economics

Abstract: This paper uses a modified policy analysis matrix (PAM) approach to assess the efficiency of cotton production in five major producing states in India. The results indicate that cotton is not efficiently produced in the second largest cotton producing state in the country. Without government interventions, it is likely that acreage will move away from cotton to more profitable crops such as sugarcane and groundnut in this state. In addition, it is also concluded that cotton is not the most efficiently produced crop in the other four states; however, there is at least one crop in each state which is less efficiently produced than cotton. These findings suggest that Indian policies directed at maintaining the availability of cheap cotton for the handloom and textile sectors have induced major inefficiencies in the cotton sector.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Pages: 21
Date: 2003
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ttucer:53142

DOI: 10.22004/ag.econ.53142

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