Factors influencing efficiency of organic rice production in Sikkim, India

The objective of this study is to estimate factors influencing technical efficiency in rice production. A stochastic frontier production function model is used in primary survey data collected from four districts of Sikkim. This studyfinds that there is significant inefficiency among farmers in four districts. The quantity of manure used for East Sikkim and South Sikkim districts were insignificant but for West and North districts it is positive and highly significant. It implied that when the quantity of manure for the production of rice increases by 1 percent it could lead to the increase in the agricultural production by 0.06 and 0.03 percent for West and North districts respectively. The elasticity for seeds quantity used was significant for all districts. besides this, number of labour employed were highly significant and positive for East and West districts. The LR value of rice in East, West, North and South districts is 10.01, 12.19, 15.17 and 16.56 that is more than critical Chi-square value at one percent (4.61). Factors affecting technical efficiency that are included in the study are age, gender, distance of the village from the market, access to loan or credit and training, on farm management, proximity to markets, and access to credit etc.