P. SRINIVASA SASDHAR

Department of Economics, Vijayanagara Srikrishnadevaraya University, Ballari-583105.

ABSTRACT

Groundnut (Arachis hypogaea L.) is a major oilseed crop in Karnataka, largely cultivated under rainfed conditions. This study examines the impact of climatic variability on groundnut cost of cultivation using district-level panel data for 1990–2023. A dynamic Arellano–Bond Generalized Method of Moments (GMM) estimator was employed to address endogeneity. Results show that rainfall significantly reduces production costs, whereas temperature increases costs beyond a threshold level. Higher wet-day frequency and positive SPI values raise costs, while moderate cloud cover lowers them. The findings highlight the sensitivity of groundnut production costs to climate variability in semi-arid regions.

KEYWORDS: Climate change, groundnut, cost of cultivation, generalized method of moments (GMM).