An analysis of acerage response of chickpea (gram) in India: Based on the Nerlovian approach

This study delves into the acreage response of chickpea (gram) by examining price and non-price factors from 1997-98 to 2022-23. Employing the Nerlovian expectation and adjustment approach along with the system GMM (generalized method of moments) estimator, the study unveils that lagged area, relative price, and yield compared to wheat significantly impact land allocation for the subsequent year. Conversely, lagged gross irrigation, technological advancements, and government policies negatively influence chickpea (gram) acreage expansion over wheat. The study highlights the importance of enhancing sustainable agricultural practices and carefully balancing government programs with market solutions to bolster the agricultural supply responsiveness of Indian farmers.