An Analysis of the Factors that Influence on Sugarcane Acreage in Maharashtra

Sugarcane is the main cash crop of India. Maharashtra is leading state in average sugarcane production and its recovery. The climatic condition of Maharashtra is suitable for sugarcane production. Over a period of time, area, production and productivity of sugarcane fluctuated considerably from year to year. The different types of factors influence the crops to be grown in the state. The economic factors viz. , prices of the various crops, previous acreage as well as climatic factors influences to a great extent in case of sugarcane cultivation consequently the growth in acreage has however not been uniform or steady. Besides, the acreage fluctuations lead to instability in the income of the farmers and also in the production of sugar. These factors differ considerably from region to region. Therefore, acreage response is also expected to vary among regions. The data obtained from secondary sources were analyzed to examine the factors which affect on the sugarcane acreage in Maharashtra state for three different time period i. e. pre- liberalization (19670-71 to 1990-91) post- liberalization (1991-92 to 2010-11) and entire period (1970-71 to 2010-11) by using linear multiple regression based on Nerlovian Partial Adjustment Model. The short run and long run price elasticities of acreages were also estimated. The results of the study revealed that, the price exerted a significant influence on the sugarcane acreage.