BazEkon - The Main Library of the Cracow University of Economics

BazEkon home page

Main menu

Mathur Rajani Neeraj (Sies College of Arts, Science and Commerce, India), Raju Ramnath Swati (Mumbai University, India)
Efficiency in Food Grains Production in India Using DEA and SFA
Central European Review of Economics and Management, 2018, vol. 2, nr 1, s. 79-101, bibliogr. 35 poz.
Issue title
Applications of Data Envelopment Analysis in Developing Countries
Bezpieczeństwo żywnościowe, Produkcja żywności, Efektywność rolnictwa, Metoda DEA (analiza obwiedni danych), Metoda SFA (stochastyczna analiza graniczna)
Food security, Food production, Efficiency in agriculture, Data Envelopment Analysis (DEA), Stochastic Frontier Analysis (SFA)
JEL Classification: C6, Q18
Aim: Food security is a multi-dimensional issue and is concerned with aspects such as availability, access and utilisation. It would require major interventions that will transform the current patterns and practices of food production, distribution and consumption. Food security can be attained by increasing the level of agricultural productivity and efficiency and improvements in agricultural efficiency are at the core of the quest for food security. This paper seeks to examine the efficiency in food grains production in India for the period 1960-61 to 2013-14. Design / Research methods: The key idea is to employ the non-parametric Data Envelopment Analysis and the parametric Stochastic Frontier Analysis to measure the efficiency of food grains production in India. We have estimated an input oriented single output, multi - input DEA models (CRS - DEA and VRS- DEA) of agricultural production to measure the efficiency in food grains production for two time periods 1960-61 to 1989-90 and 1991-92 to 2013-14. The analysis of super efficiency was conducted for both these time periods helped identify the years in which food grains production was most efficient. Conclusions / findings: We find high average efficiency in farming operations for both the frontier methods. However, the range of efficiency obtained varies considerably for the different frontier methods. The period after 1990 has witnessed improved agricultural performance as can be inferred from the frequency distribution of the efficiency scores which indicates that during this period the overall efficiency scores have been higher and there was not a single year in which the efficiency levels have been less than 0.9. The analysis of super efficiency also vindicates the improved performance of the agricultural sector in the post 1990 periods as greater number of years recorded an efficiency score greater than 1 as compared to the previous period. However, the super efficiency scores recorded in the period 1961-1990 were higher than those in the post 1990 years suggesting thereby that there could be a tapering of the positive impact of the Green Revolution. Efficiency estimates obtained by the SFA model are marginally lower than that of the DEA model and the results of the SFA model indicate net sown area, net irrigated area and pesticides to be statistically significant inputs. Originality / value of the article: This study contributes significantly to the literature on efficiency measurement of agricultural production in India by focussing on efficiency measurement of food grains. Most studies focus on farm level data and /or on individual crops. Implications of the research: This results of this study have implications for the issue of food security in India. Its results indicate that a need to expand irrigation facilities and net sown area to improve efficiency in food grain production which is vital for the issue of food security.
Full text
  1. Ahluwalia M.S. (1978), Rural poverty and agricultural performance in India, "The Journal of Development Studies", vol. 14 no. 3, pp. 298-323.
  2. Aigner D., Lovell C.A.K., Schmidt P. (1977), Formulation and estimation of stochastic frontier production function models, "Journal of Econometrics", vol. 6 no. 1, pp. 21-37.
  3. Andersen P., Petersen N.C. (1993), A procedure for ranking efficient units in data envelopment analysis, "Management Science", vol. 39 no. 10, pp. 1261-1264.
  4. Asenso-Okyere W.K., Benneh G., Tims W. (1997), Sustainable food security in West Africa, Kluwer Academic Publishers, Boston.
  5. Banker R.D., Charnes A., Cooper W.W. (1984), Some models for estimating technical and scale inefficiencies in data envelopment analysis, "Management Science", vol. 30 no. 9, pp. 1078-1092.
  6. Banker R.D., Charnes A., Cooper W.W., Swarts J., Thomas D.A. (1989), An introduction to data envelopment analysis with some of its models and their uses, "Research in Governmental and Nonprofit Accounting", vol. 5, pp.125-163.
  7. Banker R.D., Gifford J.L. (1988), A relative efficiency model for the evaluation of public health nurse productivity, Carnegie Mellon University, Pittsburgh.
  8. Barros C.P., Mascarenhas M.J. (2005), Technical and allocative efficiency in a chain of small hotels, "International Journal of Hospitality Management", vol. 24 no. 3, pp. 415-436.
  9. Battese G.E., Coelli T.J. (1988), Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data, "Journal of Econometrics", vol. 38 no. 3, pp. 387-399.
  10. Battese G.E., Corra G.S. (1977), Estimation of a production frontier model. With application to the pastoral zone of Eastern Australia, "Australian Journal of Agricultural and Resource Economics", vol. 21 no. 3, pp.169-179.
  11. Bhatia S.S. (1967), Spatial variations, changes and trends in agricultural efficiency in Uttar Pradesh, 1953-1963, "Indian Journal of Agricultural Economics", vol. 22 no. 1, pp. 66-80, Efficiency in Uttar Pradesh.pdf [03.03.2018].
  12. Charnes A., Cooper W.W., Rhodes E. (1978), Measuring the efficiency of decision making units, "European Journal of Operational Research", vol. 2 no. 6, pp. 429-444.
  13. Coelli T.J. et al. (2005), An introduction to efficiency and productivity analysis, Springer, New York.
  14. Coelli T.J., Battese G.E. (1996), Identification of factors which influence the technical inefficiency of Indian farmers, "Australian Journal of Agricultural Economics", vol. 40 no. 2, pp. 103-128.
  15. Coelli T.J., Rahman S., Thirtle C. (2002), Technical, allocative, cost and scale efficiencies in Bangladesh rice cultivation. A non-parametric approach, "Journal of Agricultural Economics", vol. 53 no. 3, pp. 607-626.
  16. Cooper W.W., Park K.S., Yu G. (1999), IDEA and AR-IDEA. Models for dealing with imprecise data in DEA, "Management Science", vol. 45 no. 4, pp. 597-607.
  17. Debreu G. (1951), The coefficient of resource utilization, "Econometrica. Journal of the Econometric Society", vol. 19 no. 3, pp. 273-292.
  18. Dhungana B.R., Nuthall P.L., Nartea G.V. (2004), Measuring the economic inefficiency of Nepalese rice farms using data envelopment analysis, "Australian Journal of Agricultural and Resource Economics", vol. 48 no. 2, pp. 347-369.
  19. FAO (2009), How to feed the world in 2050. Insights from an expert meeting at FAO, [02.03.2018].
  20. FAO/WHO (2007), The state of food and agriculture. Paying farmers for environmental services, [02.03.2018].
  21. FAO (2015), Status of the World's Soil Resources (SWSR) - Main Report. Food and Agriculture Organization of the United Nations and Intergovernmental Technical Panel on Soils, [02.03.2018].
  22. Farrell M.J. (1957), The measurement of productive efficiency, "Journal of the Royal Statistical Society. Series A (General)", vol. 120 no. 3, pp. 253-290.
  23. Green R.H., Doyle J.R., Cook W.D. (1996), Preference voting and project ranking using DEA and cross-evaluation, "European Journal of Operational Research", vol. 90 no. 3, pp. 461-472.
  24. Jha R., Chitkara P., Gupta S. (2000), Productivity, technical and allocative efficiency and farm size in wheat farming in India. A DEA approach, "Applied Economics Letters", vol. 7 no. 1, pp. 1-5.
  25. Koopmans T.C. (1951), Efficient allocation of resources, "Econometrica. Journal of the Econometric Society", vol. 19 no. 4, pp.455-465.
  26. Murthy Sreenivasa D., Sudha M., Hedge M.R., Dakshinamoorthy V. (2009), Technical efficiency and its determinants in tomato production in Karnataka, India. Data envelopment analysis (DEA) approach, "Agricultural Economics Research Review", vol. 22 no. 2, pp. 215-224.
  27. Pilz M., Wilmshofer S. (2015), Formal, nonformal, and informal learning in rural India. The case of fishing families on the Chilika Lagoon, "Prospects", vol. 45 no. 2, pp. 231-243.
  28. POSTnote (2006), Food security in developing countries, "The Parliamentary Office of Science and Technology", no. 274, pp. 1-4, [02.03.2018].
  29. Poudel K.L., Yamamoto N., Johnson T.G. (2011), Comparing technical efficiency of organic and conventional coffee farms in Nepal using data envelopment analysis (DEA) approach, in: 85rd Annual Conference of the Agricultural Economics Society, [02.03.2018].
  30. Pujari A.K. (2005), Efficiency and productivity in Indian agriculture. A stochastic frontier approach, [02.03.2018].
  31. Ray S.C., Ghose A. (2014), Production efficiency in Indian agriculture. An assessment of the post green revolution years, "Omega", vol. 44, pp. 58-69.
  32. Rosegrant M.W., Agcaoili-Sombilla M.C., Perez N.D. (1995), Global food projections to 2020: Implications for investment, International Food Policy Research Institute, [02.03.2018].
  33. Rosegrant M.W., Ringler C., Gerpacio R.V. (1997), Water and land resources and global food supply, International Association of Agricultural Economists Conference, August 10-16, 1997, Sacramento, California.
  34. Thiam A., Bravo-Ureta B.E., Rivas T.E. (2001), Technical efficiency in developing country agriculture. A meta-analysis, "Agricultural Economics", vol. 25 no. 2-3, pp. 235-243, [02.03.2018].
  35. Zhu J. (2000), Multi-factor performance measure model with an application to Fortune 500 companies, "European Journal of Operational Research", vol. 123 no. 1, pp. 105-124.
Cited by
Share on Facebook Share on Twitter Share on Google+ Share on Pinterest Share on LinkedIn Wyślij znajomemu