Returns to Agricultural Research: A Case Study of KRH-4 Paddy and Productivity Dynamics in the Southern Dry Zone of Karnataka: 25287
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https://doi.org/10.35716/IJED-25287
Author: Sagar and G. M. Gaddi
Author Address: D.Sc. College, Hebbal-560024 (Karnataka)
Abstract
The
economic impact of the KRH-4 paddy hybrid, developed by the University of
Agricultural Sciences, Bangalore, was evaluated in the Southern Dry Zone of Karnataka.
The Economic Surplus Model and Total Factor Productivity were employed to
assess productivity and economic returns. The KRH-4 paddy generated a total
economic surplus of ?65.45 crores during 2012–2020. A significant share (90.7
per cent) of the surplus accrued to consumers, while producers received only
9.3 per cent, indicating a marked disparity due to non-remunerative market
prices for paddy. The Net Present Value of research benefits, discounted at 7
per cent, was estimated at ?25.97 crores, with an Internal Rate of Return (IRR)
of 59 per cent, reflecting robust returns on research investment. The number of
processing mills and the nitrogen-to-phosphorus ratio had a significant
positive impact on productivity. These findings underscored the importance of
policy measures to improve productivity.
Keywords
Economic
surplus, KRH-4, net present value, total factor productivity.
JEL Codes
O33, Q16, Q12, Q18.