Original Article

Year: 2014 | Month: July | Volume 59 | Special Issue

Are the Terms of Trade in Cotton Production Favourable to the Indian Farmers?

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This study analyses the changes in Terms of Trade (TOT) in cotton production in major cotton growing states of India during the period 1996-97 to 2010-11. The results revealed that during the initial years of analysis TOT was in favour of the cotton producers, but during the later period it turned against them due to unfavourable price terms. Though the quantity terms were favourable, they showed declining trend during last three years. TOT should be made favourable through improving price received by the cotton farmers and controlling the input prices. Similarly cotton productivity should be improved through proper technological as well as policy interventions to make the terms favourable to the cotton producers.

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