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K. Palanisami
Director, IWMI-Tata Water Policy Research Programme
IWMI South Asia Regional Office, Hyderabad
&
C. R. Ranga...
Data sources
 Farmer Participatory Action Research Program
(FPARP), Ministry of Water Resources
 Location: Thanjavur dis...
Approach
• Econometric model: Stochastic frontier function
• Technical efficiency is the ability to produce
maximum output...
Methodology
Stochastic Frontier
The following equation denotes the production frontier in
the matrix form:
Yi = f (X ; β) ...
Technical Efficiency
Farm-specific estimates of technical efficiency are defined by:
Where is the cumulative function of t...
Allocative Efficiency
The stochastic cost frontier is given by
Where:
ci = the observed cost of production for the ith
far...
Sample mean of resources used (per ha)
Variables SRI Conventional
%
Difference
Seed rate (kg) 7.5 81.16 -90.8
Fertilizer (...
0
200
400
600
800
1000
1200
1400
Seed rate(Kgs) Fertilizer (NPK in
Kgs)
Human labour
(man days)
Wateruse (mm) Yield (tonne...
Particulars SRI Conventional % difference
Seeds & nursery 592 1,515 - 60.9
Human labour 12,242 9,983 +22.6
Machine power 3...
Economics of rice production
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
Seeds&Nursery
Humanlabour
MachinePower...
Distribution of technical, allocative & economic efficiencies
Efficiency
(%)
SRI Conventional
Technical
efficiency
Allocat...
0 0 0 0 0 0
1
23
1 1
0
2
1
3
12
5 5
6
0
5
10
15
20
25
10 25 35 45 55 65 75 85 95
Technical Efficiency (per cent)
Numberoff...
0 0 0 0 0
3
23
4
00
8
17
4
1
0 0 0 00
5
10
15
20
25
10 25 35 45 55 65 75 85 95
Allocative Efficiency
NumberofFarmers
SRI C...
0 0 0 0
2
9
18
1
0
7
15
8
0 0 0 0 0 00
2
4
6
8
10
12
14
16
18
20
10 25 35 45 55 65 75 85 95
Economic efficiency
NumberofFa...
Conclusion
 SRI farms are comparatively more
efficient
 Cost reductions are not significant
 Increased yield primarily ...
0861 Differential Efficiencies under the System of Rice Intensification: Preliminary Results from Researcher-Managed and W...
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0861 Differential Efficiencies under the System of Rice Intensification: Preliminary Results from Researcher-Managed and Water-and-Labor-Adequate Situations in Tanjore District, Tamil Nadu State, India

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Presenter: K. Palanisami

Audience: 3rd National SRI Symposium,
TNAU, Coimbatore, India

Subject Country: Tamil Nadu, India

Published in: Technology, Spiritual, Business
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0861 Differential Efficiencies under the System of Rice Intensification: Preliminary Results from Researcher-Managed and Water-and-Labor-Adequate Situations in Tanjore District, Tamil Nadu State, India

  1. 1. K. Palanisami Director, IWMI-Tata Water Policy Research Programme IWMI South Asia Regional Office, Hyderabad & C. R. Ranganathan Senthilnathan Tamil Nadu Agricultural University, Coimbatore
  2. 2. Data sources  Farmer Participatory Action Research Program (FPARP), Ministry of Water Resources  Location: Thanjavur district of Tamil Nadu  Primary data from 2007 Rabi season  60 farmers randomly selected:  30 SRI, and  30 Non-SRI
  3. 3. Approach • Econometric model: Stochastic frontier function • Technical efficiency is the ability to produce maximum output with a given quantity of inputs. It is the ratio of actual output to maximum possible output. • Allocative efficiency refers to the ability of choosing optimal input levels for current output at given factor prices. • Economic efficiency is the product of technical and allocative efficiency.
  4. 4. Methodology Stochastic Frontier The following equation denotes the production frontier in the matrix form: Yi = f (X ; β) exp (v i - u i ) ; i = 1, 2, ……….,n Where: Yi = the output of the ith farm Xi = inputs for the ith farm β = the vector of parameters to be estimated vi = the symmetric component of the error term ui = the non-negative random variable which is under the control of the farm
  5. 5. Technical Efficiency Farm-specific estimates of technical efficiency are defined by: Where is the cumulative function of the standard normal variable is an estimated parameter of the conditional distribution ( ){ } [ ] [ ]       + Φ− +Φ− =−= 2 * * ** 2 1 exp /1 /1 /exp i i ii ui ui uiu iii uETE σγε σγε σγεσ ε Φ 2* )1( εσγγσ −=iu iiu ε/
  6. 6. Allocative Efficiency The stochastic cost frontier is given by Where: ci = the observed cost of production for the ith farm, C = the deterministic kernel (such as Cobb-Douglas form), wi = a vector of prices of input variables, β = a vector of unknown parameters to be estimated, vi = a two-sided error term representing statistical noise, and ui = a non-negative cost-inefficiency effect. ( ) iiiii uvwyCc ++= β;,ln
  7. 7. Sample mean of resources used (per ha) Variables SRI Conventional % Difference Seed rate (kg) 7.5 81.16 -90.8 Fertilizer (NPK in kg) 339.96 367.85 -7.6 Human labour (man-days) 184.88 166.38 +10.8 Water use* (mm) 845 1,240 -32.8 Yield (tons) 6.61 5.43 +21.7 Results and Discussion * excluding effective rainfall
  8. 8. 0 200 400 600 800 1000 1200 1400 Seed rate(Kgs) Fertilizer (NPK in Kgs) Human labour (man days) Wateruse (mm) Yield (tonnes) 7.5 339.96 184.88 845 6.61 81.16 367.85 166.38 1240 5.43 SRI Conventional Sample mean of resources used (per ha basis)
  9. 9. Particulars SRI Conventional % difference Seeds & nursery 592 1,515 - 60.9 Human labour 12,242 9,983 +22.6 Machine power 3,495 4,136 - 15.5 Agro chemicals 927 1,698 - 45.0 Fertilizers 3,060 3,311 - 7.6 Manures 1,325 2,466 - 46.3 Total cost 21,640 23,107 - 6.4 Total income 42,965 35,295 +21.7 Net income 21,325 12,188 +75.0 Economics of rice production ( Rs. per ha )
  10. 10. Economics of rice production 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 Seeds&Nursery Humanlabour MachinePower AgroChemicals Fertilizers Manures Totalcost Totalincome Netincome 591.98 12241.601 3495.45 926.58 3059.64 1325 21640.25 42965 21324.76 1514.5 9982.8 4135.55 1698.16 3310.65 2465.5 23107.16 35295 12187.84 Rs/ha SRI
  11. 11. Distribution of technical, allocative & economic efficiencies Efficiency (%) SRI Conventional Technical efficiency Allocative efficiency Economic efficiency Technical efficiency Allocative efficiency Economic efficiency 0 to 19 - - - 1 (3) - 7 (23) 20-29 - - - 1 (3) 8 (27) 15 (50) 30-39 - - - 0 (0) 17 (57) 8 (27) 40-49 - - - 2 (7) 4 (13) - 50-59 - - 2 (7) 1 (3) 1 (3) - 60-69 3 (10) 9 (30) 3 (10) - - 70-79 1 (3) 23 (77) 18 (60) 12 (40) - - 80-90 6 (20) 4 (13) 1 (3) 5 (17) - - 90-95 20 (67) - - 2 (7) - - >95 3 (10) - - 3 (10) 0 - Total 30 (100) 30 (100) 30 (100) 30 (100) 30 (100) 30 (100) Mean (%) 92 76 70 73 35 25 Minimum (%) 73 67 56 10 26 5 Maximum (%) 98 85 82 99 51 37 Figures in parenthesis denote the percentage to the total number of farmers
  12. 12. 0 0 0 0 0 0 1 23 1 1 0 2 1 3 12 5 5 6 0 5 10 15 20 25 10 25 35 45 55 65 75 85 95 Technical Efficiency (per cent) Numberoffarmers SRI Conventional Distribution of Technical Efficiency
  13. 13. 0 0 0 0 0 3 23 4 00 8 17 4 1 0 0 0 00 5 10 15 20 25 10 25 35 45 55 65 75 85 95 Allocative Efficiency NumberofFarmers SRI Conventional Distribution of Allocative Efficiency
  14. 14. 0 0 0 0 2 9 18 1 0 7 15 8 0 0 0 0 0 00 2 4 6 8 10 12 14 16 18 20 10 25 35 45 55 65 75 85 95 Economic efficiency NumberofFarmers SRI Conventional Distribution of Economic Efficiency
  15. 15. Conclusion  SRI farms are comparatively more efficient  Cost reductions are not significant  Increased yield primarily makes SRI attractive  Sustained yield & prices will decide the future of SRI  More studies are needed on: • Cost reductions aspects • Sustainability aspects

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