Disparities in Agricultural Productivity Growth in Andhra Pradesh

The paper examines agricultural productivity growth since formation of united Andhra Pradesh in 1956 at district level by using Malmquist productivity indices. Overall, TFP growth in agriculture and allied activities in Telangana is 1.3 % per annum, 1.1% per annum in Coastal, while in Rayalaseema TFP growth is stagnant. It indicates that, there is a convergence in TFP growth among districts of developed Coastal and less developed Telangana regions, but districts in Rayalaseema region are left out of this growth process, as this region is not able to catch up with other two regions in agricultural productivity. Irrespective of region most backward districts in agriculture, that is Srikakulam, Visakhapatnam, Anantapur, Kadapa, Adilabad, Nalgonda, Mahbubnagar and Nizamabad showed stagnation in TFP growth during last 50 years. With the existing resource endowment and technology, Telangana can increase its output by 28% from the existing level, while Rayalaseema region can enhance its output by 25%, Coastal region by only 14 % as revealed from efficiency estimates. Shadow input shares indicate that, still gross irrigated area, fertilizer use and availability of labour are limiting factors to increase production at district level. Inefficiency effects model (Bettese and Coelli 1995) reveals that, market infrastructure and credit availability are essential to increase efficiency. Study results emphasis the importance of resource endowment (physical and human) in base year for subsequent growth