Authors : Dr. Gunjan B. Shah

Volume/Issue : Volume 11 - 2026, Issue 1 - January

Google Scholar : https://tinyurl.com/3w5k3mrx

Scribd : https://tinyurl.com/49as6p2w

DOI : https://doi.org/10.38124/ijisrt/26jan851

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Abstract : Sugarcane cultivation plays a pivotal role in the agrarian economy of South Gujarat, particularly in the South Gujarat region of Surat district. The present study develops an advanced econometric framework to examine the structural relationship between sugarcane output, cultivated area, and production expenditure. Using cross - sectional farm-level data collected from 90 sugarcane growers during the agricultural year 2018–19, log-linear regression models are estimated to capture elasticity - based responses of output to key inputs. Beyond conventional regression estimation, the study rigorously investigates classical linear regression assumptions through diagnostic tests for multicollinearity, heteroscedasticity, and autocorrelation. The findings reveal strong scale effects in sugarcane production, the presence of cost-output responsiveness, and structural econometric issues that limit the reliability of naïve Ordinary Least Squares estimates. The study emphasizes the need for model refinement and policy-oriented interpretation for sustainable sugarcane development in the region.

Keywords : Sugarcane Economics, Log-Linear Regression, Multicollinearity, Heteroscedasticity, ANOVA.

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