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Assessing the Competitiveness of Indian Cotton Production: A Policy Analysis Matrix Approach

Author

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  • Mohanty, Samarendu
  • Fang, Cheng
  • Chaudhary, Jagadanand

Abstract

This paper uses a modified policy analysis matrix (PAM) approach to assess the efficiency of cotton production in five major producing states in India. The results indicate that cotton is not efficiently produced in the second largest cotton producing state in the country. Without government interventions, it is likely that acreage will move away from cotton to more profitable crops such as sugarcane and groundnut in this state. In addition, it is also concluded that cotton is not the most efficiently produced crop in the other four states; however, there is at least one crop in each state which is less efficiently produced than cotton. These findings suggest that Indian policies directed at maintaining the availability of cheap cotton for the handloom and textile sectors have induced major inefficiencies in the cotton sector.

Suggested Citation

  • Mohanty, Samarendu & Fang, Cheng & Chaudhary, Jagadanand, 2003. "Assessing the Competitiveness of Indian Cotton Production: A Policy Analysis Matrix Approach," Cotton Economics Research Institute CER Series 53142, Texas Tech University, Department of Agricultural and Applied Economics.
    • Handle: RePEc:ags:ttucer:53142
    DOI: 10.22004/ag.econ.53142
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    Cited by:

    1. Tayyaba Hina & Muhammad Asad ur Rehman Naseer, 2019. "Impact of Better Management Practices on Sustainable Cotton Production: Evidence from South Punjab," Journal of Economic Impact, Science Impact Publishers, vol. 1(3), pages 92-97.
    2. Basavaraj, G. & Rao, Parthasarathy P. & Achoth, Lalith & Reddy, Ravinder Ch., 2013. "Assessing Competitiveness of Sweet Sorghum for Ethanol Production: A Policy Analysis Matrix Approach," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 26(1), June.
    3. Gillson, I & Poulton, Colin & Balcombe, Kelvin & Page, S, 2004. "Understanding the impact of Cotton Subsidies on developing countries," MPRA Paper 15373, University Library of Munich, Germany.
    4. Oloukoi, L. & Adegbola, Patrice Ygue, 2008. "Compétitivité de la filière anacarde au Bénin: une analyse des effets aux prix de référence," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 51998, African Association of Agricultural Economists (AAAE).
    5. Fatah, Fazleen Abdul & Cramon-Taubadel, Stephan Von, 2017. "Profitability and Competitiveness of Rice Farming in Malaysia: A Policy Analysis Matrix," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 14(2), December.
    6. Charles Peter Mgeni & Stefan Sieber & T. S. Amjath-Babu & Khamaldin Daud Mutabazi, 2018. "Can protectionism improve food security? Evidence from an imposed tariff on imported edible oil in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(4), pages 799-806, August.
    7. Irfan Ahmed Baig & Sami Ullah & Shoaib Nasir, 2023. "Policy Impacts on Comparative Advantage and Production Protection to Cotton and Its Competing Crops in Pakistan (Article)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 62(4), pages 539-551.

    More about this item

    Keywords

    Agricultural and Food Policy;

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