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Indian Journal of Economics and Development
Year : 2017, Volume : 13, Issue : 2a
First page : ( 357) Last page : ( 362)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2017.00096.8

Farm-size efficiency relationship in Punjab agriculture: Evidences from cost of cultivation survey

Singh Jaspal1, Srivastava S.K.2, Kaur Amrit Pal2,*, Jain Rajni2, Immaneulraj Kingsly2, Raju S.S.3, Kaur Parminder4

1NITI Aayog, Government of India

2ICAR-National Institute of Agricultural Economic and Policy Research

3ICAR-Central Marine Fisheries Research Institute (CMFRI), Visakhapatnam

4Punjab Agricultural University, Ludhiana

*Corresponding author's email: amritwalia85@gmail.com

JELCodes: C81, O13, Q13, Q18

Online published on 26 April, 2017.

Abstract

The study analyzes the resource use efficiency and indentifies the determinants of technical efficiency of paddy, wheat and cotton crops in Punjab state using plot-level cost of cultivation survey data. The study established positive association between farm-size and efficiency in crop production. To improve the efficiency or to reduce the stress on farmers, present study is providing a strong evidence that if farmers would reallocate their input use, save a reasonable amount of money without reducing their output. The results identify that farm size and number of schooling years of head had a positive and significant relationship with efficiency; whereas number of fragments, age of family head, diversification index and bio-abiotic stress negatively influenced technical efficiency. The average potential for improvement in technical efficiency i.e. the yield gap in production is estimated as 26.95, 24.02 and 7.26 per cent in case of cotton, paddy and wheat respectively without increasing the input use.

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Keywords

Allocative efficiency, economic efficiency, farm size, productivity, Punjab, technical efficiency.

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