Technical, economic and allocative efficiency and its determinants of Indian agricultural farmers using ARIS/REDS panel data

The main objective of this paper is to estimate the technical, economic and allocative efficiency of Indian agricultural farmers in both cross section and panel years of 1982, 1999 and 2007 using the production and cost frontier model.  This has been estimated for crops such as paddy, wheat, serials, pulses, oil seeds and other crops by appropriate seasons and for all across crops. The factors affecting the production efficiencies have been identified. These include household characteristics like age and education level of the households, land characteristics like land reforms, land size, land fragmentation and share of modern area to total village area, infrastructure variables like distance to pucca roads and wholesale markets, proportion of irrigated area covered by canals, tanks and wells, government agricultural prices to market prices, government agriculture extension services, rainfalls andgovernance variables like participation in gram sabha meetings, agricultural expenditure by local government and women reservations. These factors assist in further identifying the policy and investment priorities that will accelerate sustainable agricultural productivity and efficiencies.



Madhur Gautam, Hari K. Nagarajan, Kailash Chander Pradhan
Dec 2012

Agriculture