A Marginal Value of Resource Efficiency Approach on Analysis of Total Factor Productivity of Coffee in India


  • Malathi. M
  • Lakshmi Priya.K
  • Kavitha.V
  • Annie Priyadarshini. S


Coffee popularly called brown gold is the second largest trading commodity in the world next to petroleum products. Coffee is one of the important plantation crops grown optimally between the Tropic of Cancer and the Tropic of Capricorn known as the Coffee belt, at an altitude between 800 and 2000 meters above sea level. The Coffee takes three to five years to bear fruit after sowing. Good yield starts from the fifth year onwards and continues up to fifty years of the life of the plant. Coffee requires heavy initial capital investment and high-level technology for its growth, processing, and harvesting. Hence economic viability of Coffee cultivation is based on the productivity level. Though India’s cultivation practices are on par with the rest of the countries producing Coffee, Vietnam, Ethiopia, Brazil, and Colombia have the advantage of higher productivity than India’s Coffee productivity level. Hence the study is undertaken with the objectives of analyzing the change in area, production, and productivity over the period 2011 to 2021. The study analyses the resource use efficiency and Cobb-Douglas production function to test the relationship between the yield of Coffee and the independent factors of production variables and to identify the reasons for the low productivity by Garrett Ranking technique.