State-wise Efficiency of Agricultural Production in Inda: Data Envelopment Efficiency Approach

Abstract

Agricultural sector in India remains of vital importance to the Indian economy contributing to the overall economic growth through supplies of food and raw materials and providing livelihood support to a substantial share of the population of the country. Indian agriculture is currently facing numerous issues like low productivity, ensuring food security and farmer’s income. Efficiency of agriculture in India is very much connected with these issues and has been a topic of extensive research and analysis. The present study attempts to measure the efficiency of agricultural production of the selected twenty major states of India. The efficiency in agricultural production of the states have been evaluated using the non-parametric technique of data envelopment analysis (DEA). The study reveals that there is a wide variation in efficiency scores of agricultural production across the states with an average efficiency score being 0.6. The Tobit regression analysis reveals that the states with higher literacy, higher cropping intensity have higher efficiency levels. The study outcomes from this research will be useful for policymakers to adopt right policy in the direction of sustainable agricultural development.