Farm profitability and efficiency in paddy production on small scale farming in Punjab

The present study undertaken in Punjab state, has estimated the cost and return structure and technical efficiency in paddy production. Technical efficiency of individual farm has been estimated using stochastic production function. A sample of 280 farmers consisting of 121 marginal and 159 small farmers was selected from the state. The per hectare cost of cultivation and gross returns were recorded to be Rs, 70444 and Rs. 1.13 lakh on marginal farms and Rs, 65144 and Rs, 1.10 lakh on small farms. The study revealed the mean technical efficiency of90.94 per cent in Punjab state as whole. The education was the most influential determinant positively influencing the technical efficiency and number of farm workers negatively influenced the efficiency of paddy in the state. To reduce inefficiency in the production of paddy measures like improving the literacy rate, strengthening extension services and providing alternate employment opportunities should be taken up in the study area.