GROWTH TRENDS AND IMPACT OF MINIMUM SUPPORT PRICES ON CULTIVATION AREA OF MAJOR FOOD GRAINS IN INDIA


Dr. Anil Kumar, Dr. Ajay Sood
1.Chief Executive Officer HARP, Shimla- 3 and Ex. Research Investigator of AERC and PRC of HPU, Summer Hill, Shimla- 05. 2.Assistant Professor, Department of Economics, ICDEOL, Himachal Pradesh University, Summer Hill, Shimla- 05, Himachal Pradesh
Abstract
In this paper an attempt has been made to examine the growth trends and impact of minimum support prices on the cultivation area of major food grains in India, on the basis of secondary data by using an exponential growth function and a log linear regression model. The results show that, during the study period, the compound growth rate (CGR) in minimum support price was observed highest among the maize foodgrain (5.83%), followed by paddy common (5.50%), paddy grade-A (5.22%), barley (5.35), and wheat food grain (5.10%), respectively. Further, the regression analysis reveals that the lagged minimum support prices have a significant positive impact on the cultivation area of rice and maize, with coefficients of 0.2312 and 0.3769, respectively. However, the impact on wheat and barley is not statistically significant, with coefficients of 0.0116 and -0.4707. Overall, the findings suggest that minimum support prices have a varying impact on different crops, with maize experiencing the highest growth rate and the strongest positive correlation with lagged minimum support prices. These findings are valuable for policymakers and farmers in understanding the dynamics of minimum support prices and their impact on crop cultivation and production in India.
Keywords: Growth trends, minimum support price, cultivation area, major foodgrains, India
Journal Name :
International Journal of Southern Economic Light (JSEL)

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Published on : 2025-09-11

Vol : 13
Issue : 8
Month : September
Year : 2025
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