IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i4p2267-d751212.html
   My bibliography  Save this article

Farm-Level Technical Efficiency and Its Determinants of Rice Production in Indo-Gangetic Plains: A Stochastic Frontier Model Approach

Author

Listed:
  • Raj bahadur Singh Chandel

    (College of Economics and Management, Northwest A&F University, Xianyang 712100, China)

  • Aftab Khan

    (College of Economics and Management, Northwest A&F University, Xianyang 712100, China)

  • Xiaojing Li

    (School of Economics and Management, Yantai University, Yantai 264005, China)

  • Xianli Xia

    (College of Economics and Management, Northwest A&F University, Xianyang 712100, China)

Abstract

This research was conducted to explore the factors affecting the technical efficiency (TE) of rice producers and its determinants at the farm level. We used a multi-stage sampling procedure to collect cross-sectional data from 800 rice growers in the Uttar Pradesh state of India, and a stochastic frontier model (SFA) was applied. The results showed that the mean technical efficiency was 72%, suggesting scope for a substantial increment in rice productivity exists while using the current level of inputs and technologies. Furthermore, the MLE results revealed that labor, irrigation, and hybrid seeds had a constructive impact on technical efficiency, while experience and tenure status showed a negative impact on technical efficiency. As unraveled by the results of the study, it can be concluded that the technical efficiency of rice farmers can be improved through timely access to credit and agricultural information delivered to them via extension services. The study, therefore, recommends that the government provide subsidized agrochemicals and focus on developing a robust network of extension services throughout the local districts for proper dissemination of inputs. About 12% of India’s rice is produced in the Uttar Pradesh state. So, this study could be an essential tool for the agriculture sector, which could help to solve rice productivity problems for future generations.

Suggested Citation

  • Raj bahadur Singh Chandel & Aftab Khan & Xiaojing Li & Xianli Xia, 2022. "Farm-Level Technical Efficiency and Its Determinants of Rice Production in Indo-Gangetic Plains: A Stochastic Frontier Model Approach," Sustainability, MDPI, vol. 14(4), pages 1-16, February.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:4:p:2267-:d:751212
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/4/2267/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/4/2267/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hung‐Hao Chang & Fang‐I Wen, 2011. "Off‐farm work, technical efficiency, and rice production risk in Taiwan," Agricultural Economics, International Association of Agricultural Economists, vol. 42(2), pages 269-278, March.
    2. Koirala, Krishna H. & Mishra, Ashok K. & Mohanty, Samarendu, 2014. "Determinants of Rice Productivity and Technical Efficiency in the Philippines," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162501, Southern Agricultural Economics Association.
    3. Jun Ho Seok & Hanpil Moon & GwanSeon Kim & Michael R. Reed, 2018. "Is Aging the Important Factor for Sustainable Agricultural Development in Korea? Evidence from the Relationship between Aging and Farm Technical Efficiency," Sustainability, MDPI, vol. 10(7), pages 1-15, June.
    4. Boris E. Bravo-Ureta & Laszlo Rieger, 1991. "Dairy Farm Efficiency Measurement Using Stochastic Frontiers and Neoclassical Duality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 421-428.
    5. Zieschang, Kimberly D., 1983. "A note on the decomposition of cost efficiency into technical and allocative components," Journal of Econometrics, Elsevier, vol. 23(3), pages 401-405, December.
    6. Narala, Anuradha & Zala, Y.C., 2010. "Technical Efficiency of Rice Farms under Irrigated Conditions in Central Gujarat," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 23(2), July.
    7. Munir Ahmad & Ghulam Mustafa Chaudhry & Mohammad Iqbal, 2002. "Wheat Productivity, Efficiency, and Sustainability: A Stochastic Production Frontier Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(4), pages 643-663.
    8. Mazumder, Ritwik & Gupta, Manik, 2013. "Technical Efficiency And Its Determinants In Backward Agriculture: The Case Of Paddy Farmers Of Hailakandi District Of Assam," Journal of Regional Development and Planning, Rajarshi Majumder, vol. 2(1), pages 35-53.
    9. Aditi Bhattacharyya & Raju Mandal, 2016. "A generalized stochastic production frontier analysis of technical efficiency of rice farming," Indian Growth and Development Review, Emerald Group Publishing Limited, vol. 9(2), pages 114-128, November.
    10. Aditi Bhattacharyya & Raju Mandal, 2016. "A Generalized Stochastic Production Frontier Analysis of Technical Efficiency of Rice Farming: A Case Study from Assam, India," Working Papers 1603, Sam Houston State University, Department of Economics and International Business.
    11. Schmidt, Peter & Knox Lovell, C. A., 1979. "Estimating technical and allocative inefficiency relative to stochastic production and cost frontiers," Journal of Econometrics, Elsevier, vol. 9(3), pages 343-366, February.
    12. Olorunfemi O. Ogundele. & Victor O. Okoruwa, 2006. "Technical efficiency differentials in rice production technologies in Nigeria," Working Papers 154, African Economic Research Consortium, Research Department.
    13. Sekhon, M.K. & Mahal, Amrit Kaur & Kaur, Manjeet & Sidhu, M.S., 2010. "Technical Efficiency in Crop Production: A Region-wise Analysis," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 23(2), July.
    14. Reddy, A.R. & Sen, C., 2004. "Technical Inefficiency in Rice Production and Its Relationship with Farm-Specific Socio-Economic Characteristics," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 59(2), pages 1-9.
    15. 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.
    16. Tiep, Nguyen Cong & Wang, Mengqi & Mohsin, Muhammad & Kamran, Hafiz Waqas & Yazdi, Farzaneh Ahmadian, 2021. "An assessment of power sector reforms and utility performance to strengthen consumer self-confidence towards private investment," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 676-689.
    17. Bishwa Bhaskar Choudhary & Smita Sirohi, 2022. "Understanding vulnerability of agricultural production system to climatic stressors in North Indian Plains: a meso-analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(12), pages 13522-13541, December.
    18. Kumbhakar,Subal C. & Lovell,C. A. Knox, 2003. "Stochastic Frontier Analysis," Cambridge Books, Cambridge University Press, number 9780521666633.
    19. Kopp, Raymond J. & Diewert, W. Erwin, 1982. "The decomposition of frontier cost function deviations into measures of technical and allocative efficiency," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 319-331, August.
    20. George E. Batiese, 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, International Association of Agricultural Economists, vol. 7(3-4), pages 185-208, October.
    Full references (including those not matched with items on IDEAS)

    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. Phu Nguyen-Van & Nguyen To-The, 2016. "Technical efficiency and agricultural policy: evidence from the teaproduction in Vietnam," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 97(3), pages 173-184.
    2. Karagiannis, Giannis & Tzouvelekas, Vangelis, 2001. "Self-Dual Stochastic Production Frontiers and Decomposition of Output Growth: The Case of Olive-Growing Farms in Greece," Agricultural and Resource Economics Review, Cambridge University Press, vol. 30(2), pages 168-178, October.
    3. Feijoo, Maria L. & Franco, Juan F. & Hernandez, Jose M., 2002. "Global warming and the energy efficiency of Spanish industry," Energy Economics, Elsevier, vol. 24(4), pages 405-423, July.
    4. Phu Nguyen-Van & Nguyen To-The, 2014. "Agricultural extension and technical efficiency of tea production in northeastern Vietnam," Working Papers of BETA 2014-11, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    5. Richards, Timothy J. & Jeffrey, Scott R., 2000. "Efficiency And Economic Performance: An Application Of The Mimic Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(1), pages 1-20, July.
    6. Tim J. Coelli, 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 219-245, December.
    7. Grafton, R Quentin & Squires, Dale & Fox, Kevin J, 2000. "Private Property and Economic Efficiency: A Study of a Common-Pool Resource," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 679-713, October.
    8. 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.
    9. Fatima, Hina & Almas, Lal K & Yasmin, Bushra, 2017. "Production Efficiency Analysis of Capsicum (Bell Pepper) Cropping System under the Tunnels in Punjab, Pakistan," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252736, Southern Agricultural Economics Association.
    10. Osborne, Stefan & Trueblood, Michael A., 2001. "An Examination Of Economic Efficiency Of Russian Crop Output In The Reform Period," 2001 Annual meeting, August 5-8, Chicago, IL 20548, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Syed Sajidin Hussain, 1995. "Analysis of Allocative Efficiency in Northern Pakistan: Estimation, Causes, and Policy Implications," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 34(4), pages 1167-1180.
    12. Toba Stephen Olasehinde & Fangbin Qiao & Shiping Mao, 2022. "Performance of Nigerian Rice Farms from 2010 to 2019: A Stochastic Metafrontier Approach," Agriculture, MDPI, vol. 12(7), pages 1-13, July.
    13. Rungsuriyawiboon, Supawat & Zhang, Yanjie, 2018. "Examining the economic performance of Chinese farms: A dynamic efficiency and adjustment cost approach," Economic Analysis and Policy, Elsevier, vol. 57(C), pages 74-87.
    14. repec:ipg:wpaper:2014-464 is not listed on IDEAS
    15. Esteban, L. & Feijoó, M. & Hernández,J.M., 2003. "Eficiencia energética y regulación de la industria española ante el cambio climático," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 21, pages 259-282, Agosto.
    16. Kumbhakar, Subal C., 1997. "Modeling allocative inefficiency in a translog cost function and cost share equations: An exact relationship," Journal of Econometrics, Elsevier, vol. 76(1-2), pages 351-356.
    17. Tung Liu, 2020. "Measuring Technical, Allocative inefficiency, and Cost Inefficiency by Applying Duality Theory," Working Papers 202001, Ball State University, Department of Economics, revised Jun 2020.
    18. Hai-Dang Nguyen & Thanh Ngo & Tu DQ Le & Huong Ho & Hai T.H. Nguyen, 2019. "The Role of Knowledge in Sustainable Agriculture: Evidence from Rice Farms’ Technical Efficiency in Hanoi, Vietnam," Sustainability, MDPI, vol. 11(9), pages 1-10, April.
    19. Resti, Andrea, 1997. "Evaluating the cost-efficiency of the Italian Banking System: What can be learned from the joint application of parametric and non-parametric techniques," Journal of Banking & Finance, Elsevier, vol. 21(2), pages 221-250, February.
    20. Dhehibi, Boubaker & Telleria, Roberto & Aw-Hassan, Aden & Hatem Mohamed, Saad & Ziadat, Feras & Wu, Weicheng, 2015. "Impacts of Soil Salinity on the Productivity of Al-Musayyeb Small Farms in Iraq: An Examination of Technical, Economic, and Allocative, Efficiency," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 16(2), pages 1-14.
    21. Juan Aparicio & José L. Zofío, 2017. "Revisiting the decomposition of cost efficiency for non-homothetic technologies: a directional distance function approach," Journal of Productivity Analysis, Springer, vol. 48(2), pages 133-146, December.

    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:gam:jsusta:v:14:y:2022:i:4:p:2267-:d:751212. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.