IDEAS home Printed from https://ideas.repec.org/a/ags/aerrae/58468.html
   My bibliography  Save this article

Efficiency in Indian Edible Oilseed Sector: Analysis and Implications

Author

Listed:
  • Mruthyunjaya
  • Kumar, Sant
  • Rajashekharappa, M.T.
  • Pandey, L.M.
  • Ramanarao, S.V.
  • Narayan, Prem

Abstract

Reversing the declining trend in productivity of oilseeds and improving the efficiency of oilseed processing is a major challenge to the policymakers and researchers. The present study has analyzed technical inefficiencies and factors responsible for inefficiencies in production and processing of four major edible oilseeds, viz. groundnut, rapeseed and mustard, soybean and sunflower. Both primary and secondary data have been used to estimate the inefficiencies. Analysis has revealed the presence of 1/4 to 1/3 technical inefficiencies in oilseed production at the average level and even more at the farm/ processing unit level along with allocative and scale inefficiencies. The combined technical inefficiencies in the oilseed sector have been found to be 1/2 to 2/3, which are enormous. If prevented/ minimized, the oil production in the country could nearly be doubled. Soil quality, seed replacement and education have been found as determinants of technical efficiency in oilseed production, whereas availability of adequate raw material and higher oil recovery determine the technical efficiency in oil production. Lack of assured market for oilseeds and lack of timely and assured supply of quality seeds and raw materials for processing are some of the important factors for the poor performance of the oilseeds industry. Study has reported that the marginal return to water is one of the highest in oilseeds. Therefore, cultivation of oilseeds in irrigated land if they really compete with other crops for profitability, needs to be given due consideration.

Suggested Citation

  • Mruthyunjaya & Kumar, Sant & Rajashekharappa, M.T. & Pandey, L.M. & Ramanarao, S.V. & Narayan, Prem, 2005. "Efficiency in Indian Edible Oilseed Sector: Analysis and Implications," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 18(2), July.
    • Handle: RePEc:ags:aerrae:58468
    DOI: 10.22004/ag.econ.58468
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/58468/files/art-1.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.58468?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kumbhakar, Subal C., 1987. "The specification of technical and allocative inefficiency in stochastic production and profit frontiers," Journal of Econometrics, Elsevier, vol. 34(3), pages 335-348, March.
    2. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pandit, Arun & Pandey, N.K. & Rana, Rajesh K. & Lal, Barsati, 2009. "An Empirical Study of Gains from Potato Contract Farming," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 64(3), pages 1-12.
    2. Prajneshu, 2008. "Fitting of Cobb-Douglas Production Functions: Revisited," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 21(2).
    3. Bathla, Seema & Srinivasulu, R., 2011. "Price Transmission and Asymmetry: An Empirical Analysis of Indian Groundnut Seed and Oil Markets," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 66(4), pages 1-16.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bravo-Ureta, Boris E. & Pinheiro, Antonio E., 1993. "Efficiency Analysis Of Developing Country Agriculture: A Review Of The Frontier Function Literature," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 22(1), pages 1-14, April.
    2. Rahman, Sanzidur, 2003. "Profit efficiency among Bangladeshi rice farmers," Food Policy, Elsevier, vol. 28(5-6), pages 487-503.
    3. Laure Latruffe & Boris E. Bravo-Ureta & Alain Carpentier & Yann Desjeux & Víctor H. Moreira, 2017. "Subsidies and Technical Efficiency in Agriculture: Evidence from European Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(3), pages 783-799.
    4. Asfaw, Solomon & Cattaneo, Andrea & Pallante, Giacomo & Palma, Alessandro, 2017. "Improving the efficiency targeting of Malawi's farm input subsidy programme: Big pain, small gain?," Food Policy, Elsevier, vol. 73(C), pages 104-118.
    5. Laure Latruffe & Boris E. Bravo-Ureta & Alain Carpentier & Yann Desjeux & Víctor H. Moreira, 2017. "Subsidies and Technical Efficiency in Agriculture: Evidence from European Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(3), pages 783-799.
    6. Heshmati, Almas & Kumbhakar, Subal C. & Hjalmarsson, Lennart, 1995. "Efficiency of the Swedish pork industry: A farm level study using rotating panel data 1976-1988," European Journal of Operational Research, Elsevier, vol. 80(3), pages 519-533, February.
    7. Ali M. Oumer & Amin Mugera & Michael Burton & Atakelty Hailu, 2022. "Technical efficiency and firm heterogeneity in stochastic frontier models: application to smallholder maize farms in Ethiopia," Journal of Productivity Analysis, Springer, vol. 57(2), pages 213-241, April.
    8. Guangming Rao & Bin Su & Jinlian Li & Yong Wang & Yanhua Zhou & Zhaolin Wang, 2019. "Carbon Sequestration Total Factor Productivity Growth and Decomposition: A Case of the Yangtze River Economic Belt of China," Sustainability, MDPI, vol. 11(23), pages 1-28, November.
    9. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-27, December.
    10. Fernando Antonio Slaibe Postali & Fabiana Fontes Rocha, 2011. "Resource windfalls,fiscal effort and public spending: evidence from Brazilianmunicipalities," Anais do XXXVII Encontro Nacional de Economia [Proceedings of the 37th Brazilian Economics Meeting] 64, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    11. Wu, Yanrui, 1995. "The productive efficiency of Chinese iron and steel firms A stochastic frontier analysis," Resources Policy, Elsevier, vol. 21(3), pages 215-222, September.
    12. Mochebelele, Motsamai T. & Winter-Nelson, Alex, 2000. "Migrant Labor and Farm Technical Efficiency in Lesotho," World Development, Elsevier, vol. 28(1), pages 143-153, January.
    13. Dhehibi, Boubaker & Lachaal, Lassaad & Elloumi, Mohamed & Messaoud, Emna B., 2007. "Measurement and Sources of Technical Inefficiency in the Tunisian Citrus Growing Sector," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9391, European Association of Agricultural Economists.
    14. Anthony Rezitis & Kostas Tsiboukas & Stauros Tsoukalas, 2002. "Measuring technical efficiency in the Greek agricultural sector," Applied Economics, Taylor & Francis Journals, vol. 34(11), pages 1345-1357.
    15. Banfi, Silvia & Filippini, Massimo, 2010. "Resource rent taxation and benchmarking--A new perspective for the Swiss hydropower sector," Energy Policy, Elsevier, vol. 38(5), pages 2302-2308, May.
    16. Guy Nkamleu, 2004. "Productivity Growth, Technical Progress and Efficiency Change in African Agriculture," African Development Review, African Development Bank, vol. 16(1), pages 203-222.
    17. Massimo Filippini & Jörg Wild & Michael Kuenzle, 2001. "Scale and cost efficiency in the Swiss electricity distribution industry: evidence from a frontier cost approach," CEPE Working paper series 01-08, CEPE Center for Energy Policy and Economics, ETH Zurich.
    18. Roberto Colombi & Subal Kumbhakar & Gianmaria Martini & Giorgio Vittadini, 2014. "Closed-skew normality in stochastic frontiers with individual effects and long/short-run efficiency," Journal of Productivity Analysis, Springer, vol. 42(2), pages 123-136, October.
    19. Coelli, Tim J. & Battese, George E., 1996. "Identification Of Factors Which Influence The Technical Inefficiency Of Indian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(2), pages 1-26, August.
    20. Puig-Junoy, Jaume & Argiles, Josep M., 2004. "The influence of management accounting use on farm inefficiency," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 5(2), pages 1-20, August.

    More about this item

    Keywords

    Agricultural and Food Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aerrae:58468. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeraiea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.