Impact Assessment of Seed Village Programme by Using Difference in Difference (DiD) Approach in Telangana, India

Abstract

Seed village programmes are becoming popular in developing countries due to their potential to supply of affordable seed to farmers in a timely manner. Under the programme, the profitability of seed growing farmers is important as it incentivizes them to grow more seed for distribution of seed to other farmers. This paper tried to analyze the impact of the seed village programme on profitability of seed growing farmers of paddy crop by using Difference-in-Difference approach. The study was conducted during the year 2020 in India. A significant increase in profitability of seed growing farmers compared to non-seed farmers was noticed due to the SVP scheme. It was observed that after the introduction of SVP, there was about 69.01% increase in profits of seed-farmers compared to only 5.63% among non-seed-farmers. Age, education, acreage under seed production and farming experience contributed 71.6% of the total variation in the higher profits through SVP in paddy crop, leaving the rest to extraneous factors. The difference-in-difference regression results showed that, with the introduction of the SVP in India, there was an increase in the profits of seed growing farmers by INR 13,032/acre (186 USD). These results show that most of the seed growing farmers are in favor of the growing seed under SVP and benefited from this programme.