Yield and Acreage Response in Agriculture of Odisha - Some Policy Implications

Abstract

In this paper the yield and acreage response of farmers in agriculture of Odisha has been analyzed. A weather index, instead of rainfall has been included to get a better representation of sensitivity of weather in the response analysis. The empirical evidence suggests that there is price inelasticity of supply in the case of rice but reverse in the case of maize. However, the elasticity of weather and irrigation are found to be significant. Therefore, the paper concludes that importance of irrigation needs to be prioritized in agricultural policies of government. The declining trend of public investment in agriculture should be made reversed and the irrigation potential through public investment needs to be emphasized so as to bring more cultivable, and under assured irrigation.