Determinants of Cost Efficiencies of Rice Production: A Stochastic Frontier Approach

This paper has estimated cost inefficiencies of rice production for 12 major rice-producing states of India using firm level data at two points of time namely 2000 and 2013 using stochastic frontier cost function. Attempts have also been made to identify the determinants of cost inefficiencies. The main objective was to examine whether there existed any relationship between cost inefficiencies and farm size. The study will help us to know the factors affecting cost inefficiencies at state level so that states can take proper measures to increase efficiency in rice production.