ABSTRACT: The study examined the efficiency of sorghum production in Maharashtra State, India. The technical, allocative and economic efficiencies of farmers producing sorghum were analysed from 100 randomly selected sorghum farmers. The maximum likelihood estimates of the stochastic frontier production function was used for the analysis, and the result revealed that farm size, labour, fertilizer and chemicals were significantly and positively related to sorghum output. The technical efficiency (TE) scores ranged from 0.28-0.94 with a mean TE of 0.67, implying that there is a scope for increasing technical efficiency in sorghum production by 33% in the short-run. The allocative efficiency index ranged from 0.11-0.90 with a mean of 0.54, implying that the average farm has the scope of increasing allocative efficiency by 46% in the short-run. The economic efficiency index ranged from 0.09-0.75 with a mean of 0.37, indicating wide efficiency differential between average farmers and the economically efficient farmers. The result of the stochastic frontier production function analysis showed that the variance parameters that is the sigma squared (ɗ2) and the gamma (ϒ) were statistically significant at 1% level of sorghum production
Highlights
- Farm size, labour, fertilizer and chemical are the important factors in sorghum production in Maharashtra state
- More than 63 percent farms are operating below the frontier level which indicates the scope for efficiency improvement.
- Overuse of seed was found on sorghum farms
Key words: Technical, Allocative and Economic efficiency, sorghum, Maharashtra,
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