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Input-Specific Risk in HYV and Traditional Paddy Cultivation: An Analysis of Agricultural Practices in Assam

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  • Phanindra Goyari
  • Naresh Kumar Sharma

Abstract

: The literature on the adoption of modern agriculture technology reveals that several subjective and objective factors are responsible for the incomplete adoption of High Yielding Varieties (HYV) paddy seeds cultivation. Among many socioeconomic factors acting on the incomplete adoption of HYV, the farmers perception of higher risk associated with HYV paddy cultivation has been considered to be an important factor. This paper examines the relative riskiness of HYV and traditional paddy cultivation based on farm household level data in Assam. An econometric estimation approach is adopted for this purpose. A generalized stochastic production function approach and the three-stage estimation procedure suggested by Just and Pope (1979) are used on the sample data. The estimation is done to examine the marginal effect of essential and less essential inputs on the average yield and the variance of yield in traditional and HYV paddy cultivation. Seeds, labor, and capital are the essential inputs. Chemical fertilizers, plant protection chemicals and irrigation from borewells and pumpsets are treated as less essential inputs.

Suggested Citation

  • Phanindra Goyari & Naresh Kumar Sharma, 2008. "Input-Specific Risk in HYV and Traditional Paddy Cultivation: An Analysis of Agricultural Practices in Assam," The IUP Journal of Applied Economics, IUP Publications, vol. 0(6), pages 64-81, November.
  • Handle: RePEc:icf:icfjae:v:07:y:2008:i:6:p:64-81
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