Productivity and Resource Use Efficiency in Wheat: A Stochastic Production Frontier Approach

Abstract

Farm level technical efficiency and its determinants in wheat production in the state of Bihar has been studied using stochastic frontier production function model. The average productivity of wheat was reported 28.43 q/ha which was below the national average of 30.33 q/ha during 2016-17. The resource inputs were found inelastic and not being properly utilized. All the resource inputs were found positive and significant at 1 per cent and 5 per cent level of probability except machine labour used which was negatively significant, indicating overuse of machine labour or costly machine labour. The mean input efficiency in production of wheat in the state was estimated to be 94 per cent, emphasizing that efficiency may be enhanced by 6 per cent. The factors influencing efficiency were identified as education, family size and landholding size. The mean technical efficiency was found to be 0.94 indicted that optimal and sustainable use of resource inputs may further raise the input use efficiency in wheat production by 6 per cent and consequently boost up the income of the wheat cultivators in the state.