The study highlights the productivity and its variations over the time for major cereal and noncereal crops of all the states in India. The total factor productivity (TFP) concept, which measures output per unit of total factor inputs, captures the shifts in output, holding all input constant. The nominal cost per unit of output is showing an upward trend, inspite of rapid growth in yield. The real cost of production has shown a decline in nearly all the cereal crops in all the states. The cost per unit of output has declined steadily at an annual rate of 2.2 per cent for Wheat and 1.7 per cent for Rice. Many of the benefits of higher efficiency in the use of input and lower unit costs of production that technological change has generated were shared by both farmers and consumers.