The Management Gap

ECONOMIC AMD POLITICAL WEEKLY Thus, Maharashtra and Gujarat appear to have the highest rank in respect of comparative advantage in growing cane when the third criterion is employed, Next come UP and Mysore (and not Mysore and Andhra Pradesh, as the Commission has erroneously translated its own tabular data) RESERVATIONS Let me now spell out my reservations about the comparative advantage among States as assessed in the preceding para. First, in view of the discrepancy found in the Commission's Report, the conclusions emerging from the third criterion, viz, ratio of per acre value of cane output and per acre value of output of two competing crops, tend to shake our confidence in them. Second, the Commission makes no appropriate adjustment in its calculations for the irrigation factor. If the two crops, which are considered for comparison with cane in assessing the comparative advantage among States, do not happen to be irrigated to the same extent as cane in a given State, inter-State comparison is vitiated by the irrigation factor, unless in each State the difference arising on account of irrigation is of the same magnitude.