Competitiveness and technical efficiency: Determinants in the groundnut oil sector of India
India imports about half of its domestic consumption needs of edible oils. Groundnuts are a major source of edible oils in India. One of the central problems of groundnut production and processing is huge inefficiencies due to an uncertain production environment owing to rainfed cultivation, the low resource base of smallholder farmers and processors, and the low adoption rates of improved technology. This paper addresses critical issues that impair the groundnut sector’s international competitiveness and efficiency. The paper uses primary data collected from Indian farmers and processors of groundnuts to measure efficiency, and it suggests policies for reducing yield gaps and increasing efficiency. Specific policies suggested from the study are (a) the harnessing of improved varieties with attributes like drought tolerance, high oil content, high productivity for large-scale seed multiplication and distribution by public and private agencies; (b) viable village seed banks and seed networks through cycles of post-rainy season seed multiplication to meet the seed requirements in the rainy season and vice versa; (c) adoption of low-cost technologies to increase profitability and reduce risk; (d) oilseed clusters to facilitate scale and scope economies in processing units; and (e) capital subsidies to accelerate technological upgrading to shed inefficiency in the processing sector. The expected gains in efficiency in the production and processing of oilseeds are expected to result in producer and consumer gains which would justify the proposed incentives for seeds and for technological upgrading in the processing sector.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ashok Gulati, 2002. "Indian Agriculture in a Globalizing World," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 754-761.
- Ruttan, Vernon W., 2002.
"Productivity Growth In World Agriculture: Sources And Constraints,"
14176, University of Minnesota, Department of Applied Economics.
- Vernon W. Ruttan, 2002. "Productivity Growth in World Agriculture: Sources and Constraints," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 161-184, Fall.
- Catherine J. Morrison, 1997. "Structural Change, Capital Investment and Productivity in the Food Processing Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 110-125.
- Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- Rahman, Sanzidur, 2003.
"Profit efficiency among Bangladeshi rice farmers,"
Elsevier, vol. 28(5-6), pages 487-503.
- Rahman, Sanzidur, 2003. "Profit Efficiency Among Bangladeshi Rice Farmers," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25898, International Association of Agricultural Economists.
- S Rahman, 2002. "Profit Efficiency Among Bangladeshi Rice Farmers," The School of Economics Discussion Paper Series 0203, Economics, The University of Manchester.
- Wilson, Paul & Hadley, David & Asby, Carol, 2001.
"The influence of management characteristics on the technical efficiency of wheat farmers in eastern England,"
Blackwell, vol. 24(3), pages 329-338, March.
- Wilson, Paul & Hadley, David & Asby, Carol, 2001. "The influence of management characteristics on the technical efficiency of wheat farmers in eastern England," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 24(3), March.
- Tauer, Loren W. & Mishra, Ashok K., 2006.
"Can the small dairy farm remain competitive in US agriculture?,"
Elsevier, vol. 31(5), pages 458-468, October.
- Tauer, Loren W. & Mishra, Ashok K., 2003. "Can the Small Dairy Farm Remain Competitive in U.S. Agriculture?," Working Papers 127239, Cornell University, Department of Applied Economics and Management.
- Jin, Songqing & Huang, Jikun & Hu, Ruifa & Rozelle, Scott, 2001.
"The Creation And Spread Of Technology And Total Factor Productivity In China'S Agriculture,"
11981, University of California, Davis, Department of Agricultural and Resource Economics.
- Songqing Jin & Jikun Huang & Ruifa Hu & Scott Rozelle, 2002. "The Creation and Spread of Technology and Total Factor Productivity in China's Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 916-930.
- Snapp, S. S. & Blackie, M. J. & Donovan, C., 2003. "Realigning research and extension to focus on farmers' constraints and opportunities," Food Policy, Elsevier, vol. 28(4), pages 349-363, August.
- Wang, Jirong & Cramer, Gail L. & Wailes, Eric J., 1996.
"Production efficiency of Chinese agriculture: evidence from rural household survey data,"
Blackwell, vol. 15(1), pages 17-28, September.
- Wang, Jirong & Cramer, Gail L. & Wailes, Eric J., 1996. "Production efficiency of Chinese agriculture: evidence from rural household survey data," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 15(1), September.
- Majumdar, Sumit K, 1998. "Assessing Comparative Efficiency of the State-Owned Mixed and Private Sectors in Indian Industry," Public Choice, Springer, vol. 96(1-2), pages 1-24, July.
- H. Frederick Gale, 1998. "Rural Manufacturing on the Crest of the Wave: A Count Data Analysis of Technology Use," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 347-359.
- Dios-Palomares, Rafaela & Martínez-Paz, José M., 2011. "Technical, quality and environmental efficiency of the olive oil industry," Food Policy, Elsevier, vol. 36(4), pages 526-534, August.
- Brennan, John P. & Bantilan, M. C. S., 2003. "Price and yield effects of spill-overs in international agricultural research: evidence from ICRISAT and Australia," Agricultural Economics, Blackwell, vol. 28(2), pages 87-97, March.
- Binam, Joachim Nyemeck & Tonye, Jean & wandji, Njankoua & Nyambi, Gwendoline & Akoa, Mireille, 2004. "Factors affecting the technical efficiency among smallholder farmers in the slash and burn agriculture zone of Cameroon," Food Policy, Elsevier, vol. 29(5), pages 531-545, October.
When requesting a correction, please mention this item's handle: RePEc:eee:jfpoli:v:37:y:2012:i:3:p:255-263. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.