Farm Specific Technical Efficiency and Potential Output of Banana Crops in South Gujarat

Abstract

The banana is an important fruit crop grown in Gujarat, especially in South Gujarat. The study aimed to estimate the technical efficiency of banana in South Gujarat by the maximum likelihood estimation (MLE) method using the stochastic frontier production function. The results revealed that the mean level of technical efficiency was 90, 93 and 90 per cent for small, medium and overall farmers, respectively. It indicated that on average, only 10, 6.67 and 8.33 per cent of the small, medium, and overall banana farmers fell short of the maximum possible frontier production technology, respectively. It also indicated the scope of improvement in the yield by managing significant and positive inputs by the respective categories of banana farmers. The potential output for small and medium farmers was 644 and 680.31 q per ha, which was 46 and 47.62 q per ha, more than the actual output. This loss in production was due to the inefficiency of managing input and other factors responsible for technical inefficiency. The factors affecting technical efficiencies suggested that the age of the farmers, household size, education and extension visit had a significant effect on the technical inefficiencies of the farmers.