Int. J. Economics and Business Research, Vol. 10, No. 2, 2015 179 Copyright © 2015 Inderscience Enterprises Ltd. Climatic effects on sugarcane productivity in India: a stochastic production function application Ajay Kumar* Department of Humanities and Social Sciences, National Institute of Technology (NIT) Sikkim, Ravangla Campus, Burfang Block South Sikkim, 737139, India Email: a.k.seeku@gmail.com Email: kumar.ajay_3@yahoo.com *Corresponding author Pritee Sharma and Sunil Kumar Ambrammal School of Humanities and Social Sciences, Indian Institute of Technology Indore, M-Block, IET, DAVV Campus, Khandwa Road, Indore, Madhya Pradesh – 452017, India Email: psharma@iiti.ac.in Email: pritee.sharma@gmail.com Email: aksunil@iiti.ac.in Email: sunilkumarkoonamkunnath@gmail.com Abstract: The present study estimates the influence of climatic and non-climatic factors on mean yield and yield variability of sugarcane crop in different weather seasons (e.g., rainy, winter and summer) in India. Sugarcane mean-yield for fourteen major sugarcane growing states from different agro-ecological zones are delimitated in panel data during 1971–2009. Regression coefficient for mean yield and yield variability production function (i.e. risk increasing or decreasing inputs) has been estimated through log-linear regression model with the help of Just and Pope (stochastic) production function specification. Empirical results based on feasible generalise least square (FGLS) estimations shows a significant effect of rainfall, maximum and minimum temperatures on sugarcane mean yield and yield variability. Whereas, average maximum temperature in summer and average minimum temperature in rainy season have a negative and statistically significant impact on sugarcane mean yield. Sugarcane mean yield positively gets affected with average maximum temperature during rainy and winter season. Keywords: sugarcane mean yield; yield variability; stochastic production function approach; C-D model; state-wise panel data; India. Reference to this paper should be made as follows: Kumar, A., Sharma, P. and Ambrammal, S.K. (2015) ‘Climatic effects on sugarcane productivity in India: a stochastic production function application’, Int. J. Economics and Business Research, Vol. 10, No. 2, pp.179–203. Biographical notes: Ajay Kumar received his MPhil (Economics) from Devi Ahilya University Indore (India) and PhD (Economics) from Indian Institute of Technology (IIT) Indore (India). He is working with National Institute of