Agricultural Growth in West Bengal from 1970-71 to 2003-04: A Decomposition Analysis

Using Minhas’ three factors decomposition scheme, this paper examines the contributions of different components such as increase in yield, extension of area and changes in cropping pattern to explain the growth performance of agriculture in the State of West Bengal. The study reveals that the agricultural growth in West Bengal declined significantly in the mid-1990s from an impressive growth rate of the 1980s. The decomposition of output growth across the districts, as well as on the whole, shows that yield growth plays the most important role in output growth. The contribution of extension of area was next. Since the 1980s the changes in cropping pattern have never been an important source of growth in the state. A sharp fall in yield growth during the 1990s was mainly responsible for the slowdown in output growth. Analyzing the sources of agricultural growth and the causes of recent decelerating trend in agriculture in this state, the paper finally recommends appropriate extension programs suitably adjusted with the dynamics of crop diversification to exploit the advantages of globalization and to achieve a higher growth path in agriculture in the state.