Restructuring State Intervention Strategies towards Chickpea Production Development in India—Application of Structural Equation Modeling (SEM)

Structural equation modeling (SEM) was employed to analyze the influence of exogenous variables (research and extension (RE), marketing aspects (MA), and infrastructure development (ID)) on the endogenous variable chickpea production development (CPD) to restructure policy interventions in India. Results of the measurement model revealed that all the latent variables have construct validity (both convergent validity and discriminant validity) and composite reliability. Confirmatory factor analysis revealed that all indicators of both exogenous and endogenous variables are significant. Yield-increasing production technologies (PT), minimum support prices (MSP), and storage structures (SS) and the three exogenous variables (research and extension, marketing, and infrastructure development) are the strongest indicators. For the endogenous variable CPD, remunerative prices (RP) is the strongest indicator and also serves as a driving force for other indicators. The results of the structural model revealed that RE is the most effective construct followed by ID and MA, and they cumulatively explained 89 percent of the total variation in CPD. Among these three constructs, MSP is the key indicator of MA with the highest loading factor (0.799), and hence it should be given the highest priority for promoting CPD in India.