Estimation of technical efficiency and determinants of technical inefficiency of dairy farmers in Maharashtra

The present study was undertaken in the Maharashtra state. The estimated mean technical efficiency of the farmers was 80.17 per cent. At the state level, feed cost and capital cost were found to be positively significant to the milk production, whereas, labour cost was found to be negatively significant. It was found that about 19.4 per cent of milk producers were less efficient, 25.7 per cent were moderately efficient, 26.3 per cent were medium efficient and 28.6 per cent were highly efficient realizing more than 90 per cent of technical efficiency. The analysis of determinants of technical inefficiency estimates revealed that education, marketed surplus and distance from milk sale place had negative association with technical inefficiency.