Production Efficiency Analysis between Transplanting and Direct Seeded Rice Producers in Punjab, Pakistan

Rice is known as an Asian crop because 90% of global rice production and consumption takes place in Asia. It is the staple food for about 50% of the world population and 75% of the people living in developing countries. Pakistan is the 11th rice producer in the world and 5th largest exporter. Comparative economic efficiency of Transplanted (TRP) and Direct Seeded (DRS) rice production in Pakistan needs evaluation. This study analyzed the economic efficiency of TRP) and DRS producers in rice producing districts of Punjab. Primary data was collected from major rice producing areas of Punjab, Pakistan and Stochastic Frontier Analysis (SFA) was run in order to estimate the profit efficiency of rice producers. The results revealed that on average profit efficiency of TRP rice farmers and DRS farmers was 57% and 83%, respectively. Hence, there are opportunities to improve economic and technical efficiency as well as the rice production profitability through adopting improved farming practices, optimal use of inputs and production techniques. The results also demonstrated that socio-economic factors of rice producers also significantly influence the profit efficiency of rice producers. Therefore, the efficiency of rice producers can also be improved through education and enrichment of extension services in the rural areas.