Indian Journal of Economics and Development
  • Year: 2021
  • Volume: 17
  • Issue: 4

Cost structure and production efficiency of small scale wheat farms in Punjab

  • Author:
  • Isha Sharma*, M.K. Sekhon, Pardeep Singh
  • Total Page Count: 8
  • Page Number: 847 to 854

Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141 004 (Punjab)

*Corresponding author's email: eeshasharma.ishu@gmail.com

Online Published on 06 January, 2022.

Abstract

The present investigation estimated the cost and return structure and technical efficiency in wheat production in Punjab. A sample of 280 farmers consisting of 121 marginal and 159 small farmers was selected, and the per hectare cost of cultivation and gross returns were recorded to be ₹65503.64 and 87590.86 on marginal farms and ₹62117.95 and 85036.13 on small farms. The study revealed the mean technical efficiency of 82.04 percent in Punjab state. Only 8.93 percent of the farmers operated with more than 90 percent technical efficiency. Operational area and education were the most influential determinants of technical efficiency.

Keywords

Cost of cultivation, Production function, Small scale producers, Stochastic frontier, Technical efficiency