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Profit Efficiency Among Basmati Rice Producers in Pakistan Punjab

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  • Mubarik Ali
  • John C. Flinn

Abstract

Farm-specific profit inefficiency among Basmati rice producers was estimated from a variable-coefficient profit frontier. The mean level of inefficiency at farm resources and price levels was 28%, with a wide range (5%–87%). Average loss of profit was Rs 1,222 per hectare. Socioeconomic factors related to profit loss were the farm household's education, nonagricultural employment, and a credit constraint. Institutional determinants of profit loss were a water constraint and the late application of fertilizer. Punjab-wide benefits of increasing farmer's profit efficiency are large; a 25% reduction in profit loss among Basmati rice producers may generate over Rs 240 million in extra profits each rice season.

Suggested Citation

  • Mubarik Ali & John C. Flinn, 1989. "Profit Efficiency Among Basmati Rice Producers in Pakistan Punjab," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(2), pages 303-310.
    • Handle: RePEc:oup:ajagec:v:71:y:1989:i:2:p:303-310.
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    File URL: http://hdl.handle.net/10.2307/1241587
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