Determinants of Agricultural Productivity in Rice-wheat Crop Rotation and Its Impact on Agricultural Cohesion: Lessons Learned from Pakistan

Abstract

This research work estimated technical efficiency (TE), allocative efficiency (AE) and economic efficiency (EE) of cereal crops and identified the determinants of technical inefficiency of rice-wheat farming system. Primary data was collected from 120 farmers in Sheikhupura district, Pakistan randomly. For this purpose, a non-parametric Data Envelopment Analysis (DEA) technique was applied. Tobit regression model was estimated to investigate determinants of technical inefficiency of the system. The results revealed that TE, AE, and EE of rice farmers were 0.81, 0.61, and 0.50, respectively. The results revealed that TE, AE, and EE of wheat farmers were 0.87, 0.80, and 0.70, respectively. The investigation shows that if wheat farmers operated at a full efficiency level, they could reduce their input use by 13% and reduce cost by 20% without reduction in output and with existing technology (modified agricultural and information and communication technology).