Analysis of technical efficiency of pepper growers in Kandy district
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Date
2015
Journal Title
Journal ISSN
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Publisher
Uva Wellassa University of Sri Lanka
Abstract
Pepper is the second most important perennial spice crop, next to Cinnamon, in Sri Lankan economy, and the most important perennial spice for domestic consumption. The pepper growers have faced severe problems during the last decades. Some of these problems are prolonged fall in the production and productivity of pepper. Agricultural productivity refers to the output produced by a given level of input(s) in the agricultural sector of a given economy (Fulginiti and Perrin 1998). Technical efficiency reflects the ability of producers to maximize output for a given set of resource inputs (Chirwa 2003).The Department of Export Agriculture in Sri Lanka with the mandate of perennial spices launched several programmes to develop this sector, including subsidy schemes for new planting, replanting and infilling, fertilizer subsidy schemes and extension services. Despite such efforts, the performances of spice based agro-forestry systems are not satisfactory. The average yield of pepper is 350-500 kg per hectare, but target yield is 1000 kg per hectare (Department of Export Agriculture in Sri Lanka 2002). Farmers have less information on efficiency. In order to realize increased production and efficiency, farmers in Sri Lanka need to efficiently utilize the limited resources accessed for farm income generation. This research determined efficiency levels of pepper farmers and identified socio economic factors affecting efficiency levels.
Methodology
The study was conducted in Kandy District in 2014. Kandy district comprises with 6,982.8 ha of cultivated land of pepper. The total sample size was hundred (100) respondents from six selected extension office ranges. Multi Stage sampling technique was used. Primary sample data was collected from farmers using a survey method involving a structured questionnaire which was administered to the selected pepper producing farmers in Kandy District. The analysis of Cobb-Douglas frontier production function was tested by ordinary least square (OLS) and maximum likelihood estimation (MLE). STATA version 11 was used for the summary statistics and estimate coefficient of stochastic frontier and measure technical efficiencies.
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Keywords
Agriculture, Export Agriculture, Crop Production, Spices, Pepper