Indians Demanding More Plant-Based Protein, but Farmers’ Profits Drop: Empirical Evidence to Understand the Dilemma

Abstract

This study estimates changes in productivity and profitability and their respective components for two major Indian sse crops, pigeon peas and chickpeas. Results show that average profitability declined during the period under consideration (2009–2014) for both pulse crops. Lower profits are driven by increases in input prices and decreases in total factor productivity, output growth, and output (constant) prices. The reduction in total factor productivity is primarily due to a slow increase in output. Finally, the technical efficiency estimates are lower than for cereal crops like rice and wheat: 72% for chickpeas and 71% for pigeon peas