Measuring Technical Efficiency in Rice Productivity Using Data Envelopment Analysis

Abstract

The study has made an attempt to measure technical efficiency (TE) in rice productivity in Odisha during the period of 2011–13. An input-oriented data envelopment analysis (DEA) has estimated the average TE score at 79.10 per cent, indicating overuse of critical input resources to the tune of 20.90 per cent. The model found seed and fertilizers use can be reduced to the extent of 4.14 kg/ha and 26.58 kg/ha, respectively, without affecting the current productivity. Malmquist Index analysis for panel data on TE change indicates regress in efficiency for 14 districts, progress for 13 districts and no change for 3 districts. Nevertheless, the mean value of TE change over the study period was found to be 1, pointing neither progress nor regress in input resource utilization. The observed technical inefficiencies in resource use may be attributed to four important factors: (a) very small-sized operational land holding; (b) better off-farm income-generating activities and fluctuations of agricultural product prices; (c) traditional mindset of older farmers; and (d) low degree of involvement of farmers with the cooperative bodies. The DEA results suggest need for adoption of more efficient resource management practices in the state’s rice cultivation scenario.