An Estimation of Technical Efficiency of Turmeric Production in Sri Lanka

Abstract

While acknowledging that Sri Lanka's agriculture industry substantially contributes to the country's total agricultural output, experts have found that spices are not produced at total capacity. Turmeric, for example, is still not wholly exploiting the country's abundant resources among agricultural export items. Due to challenges affecting input-related issues, this sector continues to have several inadequacies in production. This study employed data envelopment Analysis (DEA) to investigate the levels of technical efficiency scores for a sample of 200 Turmeric farmers in the six districts namely, Kurunegala, Gampaha, Matale, Kandy, Kaluthara, and Ampara under the assumptions of both constant returns to scale and variable returns to scale. The data relating to inputs and output under turmeric production and farmer characteristics were identified through a structured questionnaire. The outcome indicated that the mean input-oriented data envelopment analysis technical efficiency scores estimated for constant return to scale and variable return to scale were 0.782 and 0.887, respectively. According to the results, the utilization variable returns to scale, and the optimal resources available with prevailing technology increased technical efficiency by 12%.