Economic and Technical Efficiency of Maize Production in the Eastern District of Bhutan: Stochastic Frontier Approach

Abstract

This research paper seeks to deal with the problem of economic and technical efficiency of maize farmers located in the eastern region of Bhutan. For the objective of this paper, the stochastic frontier parametric approach was employed. The socio-economic and production data were collected from 120 maize growing farmers using simple random sampling technique for the production year 2020-2021. Results show that maize producing farmers are 81.47 % technically efficient and 78.19 % economically efficient in producing maize. Farm size, household size, and training positively influences the maize efficiency. The paper presents supporting evidence for more government policy in terms of provision of subsidies on agrochemicals and providing training for better management skills to the farmers.