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

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.