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Photo:DavidMolden/IWMI
A water-secure world
www.iwmi.org
Technical Efficiency of
Paddy Cultivation in
Anicut Schemes in th...
www.iwmi.org
A water-secure world
Background
Photos: Mohamed Aheeyar / IWMI
www.iwmi.org
A water-secure world
Statistics
Sri Lanka
• Total anicuts- 12,950
• Command area- 98,416 ha
• Famer families-...
www.iwmi.org
A water-secure world
Walawe Basin
• No. of Anicuts- 750
• Command area-
6550 ha
• Famer families-
20,000
www.iwmi.org
A water-secure world
Distribution of Anicuts by command area and number of
farmers
141
36
21
7 7 8
4 2
168
14...
www.iwmi.org
A water-secure world
• Rice cultivation- principal agricultural
activity
• Major problem – low yield and high...
www.iwmi.org
A water-secure world
Technical Efficiency
• Farm’s ability to achieve the maximum
output for a given set of i...
www.iwmi.org
A water-secure world
Objectives
• Measure technical efficiency in rice
farming and identify its determinants
...
www.iwmi.org
A water-secure world
Methodology
• Stochastic production function and inefficiency
effect model
• Data-primar...
www.iwmi.org
A water-secure world
Model
• The basic model for S F Function;
• Yi = f (Xi; β) + Vi - Ui
• Where,
– Yi is ou...
www.iwmi.org
A water-secure world
Estimation procedure
• lnYi = β0 + β1lnx1 + β2lnx2 + β3lnx3 + β4lnx4+
β5lnx5+ β6lnx6+ β7...
www.iwmi.org
A water-secure world
Results
• Efficiency Estimates
Parameters Ratnapura Badulla
Coefficient SE t-ratio Coeff...
www.iwmi.org
A water-secure world
Frequency Distribution of Technical Efficiency
Technical efficiency level % of Farmers
B...
www.iwmi.org
A water-secure world
Factors affecting the technical efficiency
Badulla
• Seed rate and family labour – negat...
www.iwmi.org
A water-secure world
Ratnapura
• Machinery services and organic fertilizers
have negatively significant relat...
www.iwmi.org
A water-secure world
Causes of Inefficiency
Badulla
• Type of agricultural employment (-), land
size (+) and ...
www.iwmi.org
A water-secure world
Concluding Remarks
• Rice farmers in the Anicut irrigation schemes
exhibiting technical ...
www.iwmi.org
A water-secure world
• Existing low level of technical efficiency is
due to institutional gaps
• Education, t...
Thank you very much
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Technical Efficiency of Paddy Cultivation in Anicut Schemes in the Walawe Basin

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Presented by IWMI's Mohamed Aheeyar at the INWEFP (The International Network for Water and Environment in the Paddy Field) 2015 Symposium held on November 3, 2015, in Negombo, Sri Lanka.

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Technical Efficiency of Paddy Cultivation in Anicut Schemes in the Walawe Basin

  1. 1. Photo:DavidMolden/IWMI A water-secure world www.iwmi.org Technical Efficiency of Paddy Cultivation in Anicut Schemes in the Walawe Basin Mohamed Aheeyar Thilani Padmajani
  2. 2. www.iwmi.org A water-secure world Background Photos: Mohamed Aheeyar / IWMI
  3. 3. www.iwmi.org A water-secure world Statistics Sri Lanka • Total anicuts- 12,950 • Command area- 98,416 ha • Famer families- 333,400 • Average land holding- 0.3 ha
  4. 4. www.iwmi.org A water-secure world Walawe Basin • No. of Anicuts- 750 • Command area- 6550 ha • Famer families- 20,000
  5. 5. www.iwmi.org A water-secure world Distribution of Anicuts by command area and number of farmers 141 36 21 7 7 8 4 2 168 143 67 42 16 24 20 25 0 20 40 60 80 100 120 140 160 180 1-5 6-10 11-15 16-20 21-25 26-35 36-50 >50 NO.OFANICUTS COMMAND AREA (AC) Badulla Ratnapura 131 45 16 10 9 5 5 3 2 0 0 87 112 91 52 27 24 34 17 20 12 22 0 20 40 60 80 100 120 140 <5 6-10 11-15 16-20 21-25 26-30 31-40 41-50 51-75 76-100 100< No.ofAnicuts No. of farmers Badulla Ratnapura
  6. 6. www.iwmi.org A water-secure world • Rice cultivation- principal agricultural activity • Major problem – low yield and high yield variation – One metric tonne lower than the yield of major irrigation – Average yield varies- 890-1575kg/ac in Walawe basin • Anicut systems are most vulnerable to the adverse impacts of climate change- depend on local rainfall and no storage structures
  7. 7. www.iwmi.org A water-secure world Technical Efficiency • Farm’s ability to achieve the maximum output for a given set of inputs and technology • If available technologies are inefficiently used in the cultivation process, the use of prevailing technologies is more cost effective than investing in new technologies • Efficiency lead to substantial resource saving
  8. 8. www.iwmi.org A water-secure world Objectives • Measure technical efficiency in rice farming and identify its determinants • Assess the causes of inefficiency • propose recommendations to improve the resource use efficiency and productivity
  9. 9. www.iwmi.org A water-secure world Methodology • Stochastic production function and inefficiency effect model • Data-primary source from following schemes District ADC Name of the Scheme Population Sample Badulla Nikapotha Nikapotha Maha 40 23 Haldumulla Kurundugas Ara 41 30 Udahawela Amuna 50 31 Pambahinna Pambahinna Maha 92 30 Ratnapura Godakawela Bogoda ella Amuna 60 24 Kolonna Hatharaliyadda 84 24
  10. 10. www.iwmi.org A water-secure world Model • The basic model for S F Function; • Yi = f (Xi; β) + Vi - Ui • Where, – Yi is output or production of the ith farm – Xi is vector of input quantities used by the ith farm – Vi is a symmetric error – Ui is a non- negative random variable representing inefficiency
  11. 11. www.iwmi.org A water-secure world Estimation procedure • lnYi = β0 + β1lnx1 + β2lnx2 + β3lnx3 + β4lnx4+ β5lnx5+ β6lnx6+ β7lnx7+ β8lnx8+ (Vi - Ui) • The function was applied with eight independent input variables in this study Y =yieldineachfarm(kg/ac) x1 = seedrate(kg/ac) x2 =inorganicfertilizer(kg/ac) x3 =organicfertilizer(kg/ac) x4 =familylabour(mandays) x5 =hiredlabour(mandays) x6 =machineryservices(Rs) x7 =landextent(acres) x8 =agrochemicals(Rs)
  12. 12. www.iwmi.org A water-secure world Results • Efficiency Estimates Parameters Ratnapura Badulla Coefficient SE t-ratio Coefficient SE t-ratio 222 vu   0.154 0.029 5.320* 0.207 0.047 4.365* γ = 2 u / 2  0.99 0.000 1.892E+5* 0.99 0.000 1.482E+7* Log likelihood 22.645 3.521 LR test 39.559 25.489 Mean Technical Efficiency 74.73% 65.9% Maximum efficiency 99.99% 99.93% Minimum efficiency 26.5% 25.9%
  13. 13. www.iwmi.org A water-secure world Frequency Distribution of Technical Efficiency Technical efficiency level % of Farmers Badulla Ratnapura <30 6 1 30-50 22 5 50-70 34 33 70-90 22 38 >90 16 23
  14. 14. www.iwmi.org A water-secure world Factors affecting the technical efficiency Badulla • Seed rate and family labour – negatively significant • Use of poor quality seed paddy • Possibility of reducing family labor without affecting production levels
  15. 15. www.iwmi.org A water-secure world Ratnapura • Machinery services and organic fertilizers have negatively significant relation • Land size, pesticide cost, family labour have positively significant relationship
  16. 16. www.iwmi.org A water-secure world Causes of Inefficiency Badulla • Type of agricultural employment (-), land size (+) and selection behavior of short duration variety (-) Ratnapura • Selection behavior of short duration variety (-), farmer age (-), and location of farm plot along the channel (-)
  17. 17. www.iwmi.org A water-secure world Concluding Remarks • Rice farmers in the Anicut irrigation schemes exhibiting technical inefficiency in using the productive resources • The average TE of paddy farming in Badulla and Ratnapura Districts - 65.9% and 74.73%, • or causing potential production losses of 34.1% and 25.27%. • Or average farm level output can further increase by 34.1% and 25.7% in the respective districts without changing the existing input level and technology
  18. 18. www.iwmi.org A water-secure world • Existing low level of technical efficiency is due to institutional gaps • Education, training and building capacity of the farmers with new innovations • Provision of quality seed paddy of short duration varieties to enhance the TE and productivity.
  19. 19. Thank you very much

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