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Technical Efficiency and Economic Analysis of Rice Crop in Khyber Pakhtunkhwa: A Stochastic Frontier Approach

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  • Salman Khan

    (Department of Agricultural & Applied Economics, The University of Agriculture, Peshawar 25120, Pakistan)

  • Syed Attaullah Shah

    (Department of Agricultural & Applied Economics, The University of Agriculture, Peshawar 25120, Pakistan)

  • Shahid Ali

    (Department of Agricultural & Applied Economics, The University of Agriculture, Peshawar 25120, Pakistan)

  • Amjad Ali

    (Department of Agricultural & Applied Economics, The University of Agriculture, Peshawar 25120, Pakistan)

  • Lal K. Almas

    (Paul Engler College of Agriculture & Natural Sciences, West Texas A&M University, Canyon, TX 79015, USA)

  • Sania Shaheen

    (Paul Engler College of Agriculture & Natural Sciences, West Texas A&M University, Canyon, TX 79015, USA
    International Institute of Islamic Economics (IIIE), International Islamic University, Islamabad 44000, Pakistan)

Abstract

Pakistan is one of the world’s leading producers, exporters, and consumers of rice. This study analyzes the technical efficiency of rice growing farmers in the Swat district of the Khyber Pakhtunkhwa province of Pakistan. A three-stage sampling procedure was used to interview 204 rice growers through a well-structured and pretested interview schedule. The maximum likelihood function results showed that chemicals, urea, diammonium phosphate (DAP), labor, and farmyard manure (FYM-dummy) were positive and had a statistically significant effect on rice yield; this implies that a 1% increase in chemicals, urea, DAP, labor, and FYM leads to an increase in rice production by 0.22%, 0.25%, 0.02%, 0.03%, and 0.01%, respectively. The estimated results of model 2 reported that respondents’ age had a positive significant effect on inefficiency, showing that with a rise in farmers’ age, the farmers’ inefficiency significantly increased. The education and experience of farmers were negative and significant, implying that these variables significantly decreased the farmers’ inefficiency. Furthermore, the results showed the mean technical efficiency as 87%, with a minimum of 66% and a maximum of 99%. The study recommends that the extension department needs to arrange training programs for the rice growers in this specific area to boost rice yield, enhance agronomic skills, and facilitate these farmers with the technical knowledge for efficient production.

Suggested Citation

  • Salman Khan & Syed Attaullah Shah & Shahid Ali & Amjad Ali & Lal K. Almas & Sania Shaheen, 2022. "Technical Efficiency and Economic Analysis of Rice Crop in Khyber Pakhtunkhwa: A Stochastic Frontier Approach," Agriculture, MDPI, vol. 12(4), pages 1-15, April.
    • Handle: RePEc:gam:jagris:v:12:y:2022:i:4:p:503-:d:786046
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    References listed on IDEAS

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    2. repec:aer:wpaper:163 is not listed on IDEAS
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    Cited by:

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    2. Rodríguez, Orlando & Vrachioli, Maria & Sauer, Johannes, 2022. "Payments for environmental services and coffee production in Colombia: Technical efficiency across the world heritage status borders," Ecological Economics, Elsevier, vol. 200(C).
    3. Meidiana Purnamasari & Wen-Chi Huang & Bambang Priyanto, 2023. "The Impact of Government Food Policy on Farm Efficiency of Beneficiary Small-Scale Farmers in Indonesia," Agriculture, MDPI, vol. 13(6), pages 1-14, June.
    4. Vivi Silvia & Sartiyah & Muhammad Raihan Fitra & Cut Nadira, 2023. "Determinant of Patchouli Production in Aceh Jaya Regency Aceh Province," Advances in Decision Sciences, Asia University, Taiwan, vol. 27(2), pages 99-121, June.

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