Role of Agricultural Infrastructure and Climate Change on Agricultural Efficiency in Uttar Pradesh: A Panel Data Analysis

Sanjeev Kumar
Journal article Economic Affairs • December 2018

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(English, 12 pages)


The present research paper has examined the process of agricultural infrastructure, climate change and agricultural efficiency in Uttar Pradesh at district as well as regional level from 2004-05 to 2015-16. Agricultural Infrastructure Indices (AII) have been estimated through Principal Component Analysis (PCA) by taking eight variables related to agricultural infrastructure to identify the disparities within the district as well as regional level. Agricultural Efficiency Index (AEI) has also been estimated to identify the trends of agricultural efficiency and panel data regression analysis was employed to analyze the determinants of agricultural efficiency index at disaggregate level of Uttar Pradesh. The values of agricultural infrastructure index (AII) confirmed that rural infrastructure has been enhanced in all the districts and regions from 2004-05 to 2015-16 with some fluctuations. Moreover, the results of agricultural efficiency revealed that the pattern of efficiency at district and regional level has undergone a significant shift towards a higher level during the study period. However, this shift was not uniformly distributed across the districts/regions. The regional level result of UP indicated that WUP recorded highest AEI and AII followed by CUP, EUP and Bundelkhand respectively. The results of Random Effect Model confirmed that agriculture infrastructure index (AII); gross sown area per tractor, percentage of loan for agriculture and rainfall variability have been found the significant determinants of agriculture efficiency, while per hectare fertilizer, maximum temperature and minimum temperature have established insignificant relationship with agricultural efficiency. This paper suggests policy support in terms of enhanced agriculture infrastructure, mitigation of vulnerable climatic factors, appropriate use of agriculture inputs and suitable technology to achieve higher degree of agricultural efficiency and also generate higher income for farmers. Furthermore, the use of technological inventions by public--private participation in the cultivation methods of various crops needs to be encouraged for achieving agriculture efficiency at disaggregate level.





Economic Affairs

Economic Affairs, Quarterly Journal of Economics, is a Peer-Review publication based on multi-dis... see more