Data source and study area
The study is based on the secondary panel data compiled from various published sources covering the period from 1990-91 to 2016-17. The selection of the study period was constrained by non availability of reliable and consistent data. The cross section of the study includes 17 Indian states
[3] which area listed as irrigated and rainfed states of Indian agriculture. The evidence of flood occurence in the state for more than one third of period under consideration (
i.e. more than nine years) was the basis for selection of the states based on the data on the state wise cropped area affected by flood as collected from the Flood Damage Statistics, 2018 published by Central Water Commission, Government of India (GoI). Regional level annual rainfall data was obtained from the Indian Meteorological Department, which was rearranged for selected states of the study falling in particular region. The data on area and production of cereal crops
[4], usage of fertilizer and net irrigated area were obtained from the Ministry of Agriculture and Farmers Welfare (MAFW), GoI.
From the results of summary statistics it is obvious that Bihar, Assam, West Bengal, Uttar Pradesh and Odisha can be listed as highly flood affected states of India during 1990-2016 (Table 1). Despite having largest area affected by flood in Uttar Pradesh, the state has been subject of water level crossing red alert in some years while dry spell in some years. The lower standard deviation with mean value of area affected by flood being high in Assam and Bihar signifies that flood threat has been consistently devastating in these two states during the reference period, while the dispersion in the occurrence of flood has been found to be higher in states like Karnataka, Odisha, Andhra Pradesh, Jammu and Kashmir, Madhya Pradesh, Punjab and Tamil Nadu. The states like Karnataka and Andhra Pradesh having unanticipated result of high flooding for the reference period possibly due to the existence of outliers in the data, which may be treated as data limitation of the study. Incapability of watercourses to drain away water during an unusually
heavy rainfall being traced as the important factor resulting in flood
(Asaduzzaman, 1994).
The Fig 1 shows that in the states like Kerala, Arunachal Pradesh, Assam and West Bengal recorded high level of average annual rainfall for the period of study. States like Arunachal Pradesh, Assam, Karnataka, Kerala, Manipur, Odisha, Tripura and West Bengal reported to have annual rainfall above the 1000 mm during the reference period. Rajasthan, Haryana and Punjab had received minimal level of annual rainfall during the same period.
With the aim of the study being joint determination of the association of flood affected area with output of cereal crops and relationship of annual average rainfall, irrigation infrastructure with spread of flood across the states being selected. The functional form of model formulated for investigating such joint association was;
Q = f (Ar, Aa, Fr) (i)
Aa = f (Rf, Ia) (ii)
Since single equation method of estimation don’t account for the restrictions on other equations of the system in a set of simultaneous equation, hence for the above set of simultaneous equations, three stage least squares (3SLS) estimation technique being applied for finding the association of flood affected area and output of cereal crops across the sampled states.
Zellner and Theil (1962) introduced 3SLS as a system method which takes into account all equation of the system at the same time. Asymptotic efficiency of 3SLS over 2SLS was the reason for selection of the estimation technique with prior confirmation of status of identification
[5]. Works of
Theil (1964);
Turkington (1985);
Rothenberg and Leenders (1964) outlined superiority of 3SLS over 2SLS and SURE methods. In the field of agriculture several scholars used 3SLS method (
e.g.
Swinnen et al., 2001; Niles et al., 2013) in their empirical illustration. The econometrics specification of the model fitted in equation (i) and (ii) in log linearised form being specified as follows;
lnQijt = λ1 + λ2 lnArijt + λ3ln Aaijt +λ4 lnFrijt + Uijt (iii)
lnAaijt = λ5 + λ6 lnRfijt +λ7 lnIaijt + Vijt (iv)
Where,
i = 1, 2, 3, 4,5,6,7,8, 9 crops of the study under consideration viz. paddy, wheat, jowar, bajra, maize, ragi, barley, other cereals and millets, total cereals; j = 1, 2, …, 17 being the number of states considered for the study; t = 1990, 1991, 1992,…..., 2016 being the 27 years period of study; λ1, λ2, λ3, λ4, λ5, λ6, λ7 are the parameters to be estimated; Q is crop output (in ’000 hectare); Ar is area under farming (in ’000 hectare), Aa is area affected by flood (in ’000 hectare), Ia is irrigated area (in ’000 hectares), Fr is fertiliser consumed (kg/’000 hectare) and Rf is rainfall (in millimeter). Though the variables selected were used in several studies but there is absence of studies to find out the simultaneous impact of flood threat on crop output. Rainfall and irrigation are considered as exogenous enabling input factors and fertilizer can be termed as a plant nutrient. The non availability of consistent and reliable data on high yielding verities of seeds and pesticides for the study period covering the states under consideration was the reason for excluding them from the study. The study was carried as a part of research work in Sikkim University.