Technical, Economic and Allocative Efficiencies of Wheat (Triticum aestivum) Growing Farmers in Intermediate Zones of J and K

Abstract

The study was carried out in two intermediate zones of Jammu and Kashmir to identify both farm specific and socio-economic factors that influence the technical efficiency (TE) and also to analyze the economic (EE)and allocative efficiency (AE) of wheat growing farmers to assess the level of possibilities to gain the desired level of productivity by improving all three types of efficiencies(TE, AE and EE)by estimating Cobb-Douglas Stochastic Production Function and Stochastic Profit Function. The study revealedthat how different cost components affect the profitability of production of wheat crop and also proposes that at how much level of efficiency, the farmer is producing the wheat crop and how much level of efficiency is yet to be obtained. The maximum likelihood estimates of the stochastic production function revealed that fertilizer and farmyard manure showed a negative and significant effect on wheat production. The coefficients of the frontier profit function revealed thatall input shows a negative and significant impact on wheat farmer profitability. Socio-economic factors show positive and significant relation with technical efficiency except cultivated area. The mean technical, economic and allocative efficiencyof farm households was found out to be 86 per cent, 71 per cent, and 83 per cent indicated that there is still scope for wheat growers to increase all the three efficiencies by operating at a full efficient level by proper utilization and allocation of existing resources and technology. This study provides crucial information for the farmers and also to the government about to formulate effective policy measures for attaining the sustainability of wheat crop in rainfed hilly areas of Jammu division.