Agricultural Growth and Decomposition of Crop Output in Gujarat: Recent Trends

The growth story of Gujarat’s agriculture has received significant recognition (with around 10 percent growth rate in recent years) and is often being hailed as a role model for other states to follow. In this context, it is important to examine the major factors contributing to this high growth performance of the state. This paper tries to address the issue in the light of decomposition analysis where price has been included as an important factor besides area, cropping pattern and yield as has been the usual practice. The decomposition analysis suggests that the individual effect of price alone has increased over time with the reduction in the yield effect. The price-area interaction effect which was negative during the 1990s turned out to be positive in the recent years. Similarly, the interaction of yield and price has become positive in the recent years. This implies that most of the crops for which there was substantial price increase, had shown favorable changes in yield and area