A REGION-WISE ANALYSIS OF SUPPLY RESPONSE OF COTTON CROPS IN PUNJAB

The study estimates the supply response of cotton crops at regional level in Punjab. To analyse the supply response, three acreage response models were developed separately on the basis of Nerlovian lagged adjustment model. A fast increase in area under cotton American in South- western region took place mainly due to the forces of substantial increase in the price, yield and in turn value productivity per hectare of this crop as compared to its competing crops. Cotton American occupied very small percentage of gross cropped area of the central region and therefore does not occupy an important place in the cropping pattern of the region. Due to this fact the farmers in central region have not responded significantly to various price and yield factors.