The IUP Journal of Operations Management
Productivity Measurement of Agro-Food Processing Firms of India: An Inter-State Analysis

Article Details
Pub. Date :Feb, 2019
Product Name : The IUP Journal of Bank Management
Product Type : Article
Product Code : IJIT31902
Author Name : Abid Sultan and Saurabh Srivastava
Availability : YES
Subject/Domain : Management
Download Format : PDF Format
No. of Pages : 20



There is a gap in the literature regarding measurement of Total Factor Productivity (TFP) in Indian agro-food processing industry at the national level and state level. The present study measures TFP growth in Indian agro-food processing industry across the selected 18 states of India for the period from 2008-09 to 2014-15. The study uses Malmquist Productivity Index (MPI) for estimating TFP growth. The results indicate productivity regress in Indian agro-food processing firms both at aggregate and disaggregate levels during the period of study. The primary reason for this regress has been identified as technical inefficiency.


Agro-food processing industry is growing rapidly in both developing and developed economies. This growth is an outcome of various factors like enhanced per capita income of consumers, increasing women employment, changing customer taste and preferences, increased availability of raw material due to efficiency gains in agriculture and horticulture, etc. As an agriculture and horticulture-based nation, India has witnessed a robust and dynamic growth in food processing industry in the last few decades, especially in agro-food processing industry. With the growth in the manufacturing sector of India, it is becoming imperative to focus on the regional competitiveness in agro-food processing industry with special attention towards improving the value chain of agro-food processing industry.


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