Application of Stochastic Frontier Production Function in Sugarcane Industry-treated Wastewater Reuse in Agriculture: Case Study of a Coastal District in Tamil Nadu, India

Abstract

Sugarcane is an important cash crop that grows in different agro-climatic zones: tropical and subtropical regions in India. It is the second-largest growing non-food crop in Tamil Nadu. Sugarcane mills generate waste at different stages of processing, which are bagassee, pressmud and wastewater. Managing and hand gripping of these wastes have been challenging tasks for the sugarcane industry. Wastewater generated by the sugarcane industry is rich in organic material such as carbohydrates and proteins, which enhance crop productivity. The present study aims to understand the farmers’ perceptions about the usage of sugarcane industry wastewater and measure the technical efficiency of the usage while also identifying the key determinants of sugarcane farming households. The primary survey for this study was conducted with 99 sugarcane farmers of Cuddalore district during January and February 2017. A semi-structured questionnaire was designed and pre-tested before final administration in the field. Out of 10 blocks in the district, 2 were selected. Within these blocks, six villages were chosen based on the extent of wastewater use in agricultural fields. Results showed that the farmers were not aware of the wastewater quality, and they believed it increased the productivity of sugarcane in the selected study location. For the land size, fertilisers are positively impacting the farm output and the price of sugarcane, but labour is negatively impacted. Results yield that the age and class of the respondents also have a direct relationship with the technical efficiency. JEL: Q12, Q25, Q53