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Allocation Efficiency in Irrigated Boro Rice Production: the Case of Mymensingh Farms

M.M.R. Sarker
Department of Agricultural Statistics Bangladesh Agricultural University, Mymensingh-2202 Bangladesh

M. Shahe Alam 1
Department of Agricultural Statistics Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

K.M.E. Chowdhury2
Department of Agricultural Statistics Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

Abstract/ Executive Summary:

The focus of this paper is explicitly on the estimation of allocative efficiency, using cross section data derived from modern high yielding varieties rice growers. The efficiency of modern varieties boro rice farmers were examined adopting Cobb-Douglas production function approach. The variables considered in the model for the allocation efficiency effects include land preparation, transplanting, fertilizer cost, weeding cost and irrigation expenses. Empirical results showed that most of the rice farmers in the study area are predominantly inefficient in allocating their resources. Further efficient use of chemical fertilizer, land preparation and weeding for irrigated MV boro rice would enable farmers to achieve higher economic returns.

Keywords: Allocation efficiency, Irrigated boro, Production, Resources, Profit

Location:

Start Date:

End Date:

Program Area: Crop-Soil-Water Management

Commodity: Rice

Objectives:

1.To investigate into the structure of input use level and productivity;

2.To examine the resource productivity and efficiency and

3.To derive policy implications on the basis of the findings of the present study of MV boro in different farm size groups.

Methodology:

Production efficiency has received considerable attention in economic literature in the recent years. The failure of producers to utilize the profit maximizing level of production inputs is defined as allocative or price inefficiency. The allocative inefficiency is the result of producers' mistakes in allocating the meager resources in the production process. It is always associated with some behavioral objective like profit maximization or cost minimization, because mis-allocation of resources and production of suboptimal level of output essentially increase cost and decrease profit. Mathematically, allocative efficiency is expressed as the ratio of the technically maximum possible output at the farmer's level of resources to the output obtainable at the optimum level of resources

Source of Information: Bangladesh J. Agril. Sci. 30(1): 91-99, January, 2003

Article Link (Online Journal):

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Total Budget (Tk.) :

Achievement/Findings:

Empirical results showed that most of the rice farmers in the study area are predominantly inefficient in allocating their resources. Further efficient use of chemical fertilizer, land preparation and weeding for irrigated MV boro rice would enable farmers to achieve higher economic returns.

Knowledge Management: Journal