An Econometric Analysis of Inter Farm Efficiency in Rice and Sugarcane

This paper has measured the farm level technical efficiency which can be the dominant factor in explaining the difference between potential and observed yields of crops, rice and sugarcane given the technology and input levels. In particular deterministic frontier production function has been employed to measure technical efficiency. The study has suggested that rice productivity can be raised by 30 per cent and productivity of sugarcane can be raised by 12 per cent through optimal allocation of resources and adoption of technology of progressive farms. The results of determinants of economic efficiency have indicated that experience, education and timely input application significantly influence the economic efficiency of farmers.