Decomposition of Changes in Break-even Output and Scenario Building for Major Crops of Madhya Pradesh
Price: ₹ 500
Author: Ankita Rajput, Gourav Kumar Vani, and Poonam Chaturvedi
Author Address: Department of Agricultural Economics, JNKVV, Jabalpur-482004
Keywords: Elasticity, production, profitability, sensitivity analysis.
JEL Codes: N55, D24, D25, Q15, Q18.
Abstract
The study attempted to evaluate break-even output coupled with sensitivity analysis for major crops of Madhya Pradesh. The data were obtained from DES, India, from 2000-01 to 2020-21. The crops selected were maize, cotton, red gram, gram, black gram, rapeseed and mustard, lentil, paddy, wheat, and soybean. The results revealed that the break-even output of all crops was elastic with respect to output price. Wheat, gram, red gram, and mustard were insensitive to changes in average variable costs. The output price for soybean was lower than the average variable cost, resulting in negative breakeven output in 2020-21. Important policy suggestion included that break-even elasticities must be calculated on a regular basis.
Description
Indian Journal of Economics and Development
Volume 19 No. 2, 2023, 440-446
DOI: https://doi.org/10.35716/IJED-22238
NAAS Score: 5.15 (2023)
Indexed in SCOPUS and ESCI (Clarivate Analytics)
Journal Citation Indicator: 0.04 (WoS)
UGC Approved