Abstract:
The study aims to estimate the technical efficiency of paddy farming and identify the factors
which determine the efficiency scores of paddy production in Mullaitivu district of Sri Lanka.
The empirical analysis was based on the data collected from 120 paddy farmers selected
randomly from five villages in Mullaitivu district during the year of 2018/2019. The collected
data was analysed using Translog production frontier model and the results of variance
parameter is statistically significant implying that variation in paddy output is due to the
inefficiency effects rather than random variability. The findings indicated that the mean
technical efficiency of paddy farmers in the district was nearly 84%implies that farmers still
have the room to improve their efficiency by 16% with the given inputs and technology. The
estimated Translog frontier model showed that labour, capital, land seeds, fertilizer and
pesticides have significantly influencing the paddy production in the study area. Further, all
possible interactions between the inputs have statistically significant impact on paddy yield
with negative and positive signs reflect that there is substitution and complementary effects
exist among the pair of inputs in the model. Results of technical inefficient effects indicated
that, efficiency of paddy farming mostly influenced by age, experience, extension, household
size, education, land ownership and availability of credit in the study area. The study concludes
that, emphasis should be given for less efficient farmers to improve the efficiency by adopting
the new management practices which help them to operate at the frontier in future.
