Production Inefficiency Research Articles

Is industrial energy inefficiency transient or persistent? Evidence from Swedish manufacturing

Energy inefficiency in production implies that the same level of goods and services could be produced using less energy. The potential energy inefficiency of a firm may be linked to long-term structural rigidities in the production process and/or systematic shortcomings in management (persistent inefficiency), or associated with temporary issues like misallocation of resources (transient inefficiency). Eliminating or mitigating different inefficiencies may require different policy measures. Studies measuring industrial energy inefficiency have mostly focused on overall inefficiencies and have paid little attention to distinctions between the types. The aim of this study was to assess whether energy inefficiency is transient and/or persistent in the Swedish manufacturing industry. I used a firm-level panel dataset covering fourteen industrial sectors from 1997 to 2008 and estimated a stochastic energy demand frontier model. The model included a four-component error term separating persistent and transient inefficiency from unobserved heterogeneity and random noise. I found that both transient and persistent energy inefficiencies exist in most sectors of the Swedish manufacturing industry. Overall, persistent energy inefficiency was larger than transient, but varied considerably in different manufacturing sectors. The results suggest that, generally, energy inefficiencies in the Swedish manufacturing industry were related to structural rigidities connected to technology and/or management practices.

Technical efficiency of improved and local variety seed maize farms in Ghana: A meta-frontier analysis

The meta-frontier model technique is employed to compare the technical efficiency levels of improved and local maize seed variety farms in Ghana using a cross-sectional data from 214 farmers. The study shows that inefficiencies in maize production relate to exogenous variables considered even though some of the variables are not statistically significant. All input variables considered contribute positively to maize output in both improved and local seed varieties as well as in the pooled data. Maize farms generally exhibit increasing returns to scale (IRS) in the study area. The mean technical efficiency relative to the meta-frontier is estimated to be 72%, 44% and 50% for the improved, local maize seed variety farms and the pooled data respectively. Based on the estimated TGR of 90% and 72% for the improved and local seed variety maize farms, respectively, the study concludes that maize farmers who cultivated improved maize seed varieties are more technically efficient compared to their counterparts who do otherwise. It is recommended that stakeholder efforts should focus on labour source, education, extension contacts, ready market availability and credit that contribute positively to farmers’ efficiency to further increase maize output in Ghana. Furthermore, farmers should be encouraged and educated more on the benefits of newly developed varieties of maize so that they will be convinced enough to adopt in order to increase their output in the near future.

Value Chain Analysis of Kocho: The Case of Cheha and Mirab Azernet Districts

Enset based farming system is an important staple crop for million people living in the densely populated regions of South and Southwestern Ethiopia. However, only restricted intervention has been done to upgrade the crop even the consumption demand increases from time to time in different part of the country. This research attempted to analyze value chain of enset product in Cheha and Mirab Azernet districts, SNNPR of Ethiopia focusing on kocho product. Since, kocho plays a significant role in increasing food security and income for the poor farmers in the study districts. Data for the study were collected from both primary and secondary data sources. The data were collected from 154 farmers, 35 traders and 28 consumers. The study result revealed that the production of kocho from enset crop were used more for consumption while the rest was marketed. In addition, interview and observation results also showed that the production of kocho declined because of enset disease that destroyed the crop, absences of institutional and technological enhancements were accredited to existing inefficiencies in enset production and utilization. kocho value chain actors identified in the study include input suppliers, producers, local collectors, retailers, wholesalers, individual processors and consumers. Five market channels were identified for kocho. The highest total gross marketing margin was 33.53% in channel III. The highest gross marketing margin of smallholder farmers in kocho was 80% in channel II. The result of two stage double hurdle model revealed that, out of total 12 explanatory variables included in the model. kocho market participation decision was significantly affected by quantity of kocho produced, enset production experience, market information, credit access. Quantity of kocho produced, distance to nearest market center, marketing experience and average kocho market price significantly affected the volume of kocho supplied to the market. Policy suggestions drawn from the study results include the need to improve the input access system, improving farmers’ knowledge and experience on enset production, solidification extension services for enset production and marketing, strengthening the linkage among enset products value chain actors, improve enset diseases controlling mechanisms, needs attention on enset harvesting and processing technologies and strengthening supportive institutions. Keywords: Enset; Kocho; Value chain; Double-hurdle model; Cheha, Mirab Azernet. DOI: 10.7176/IKM/12-1-03 Publication date: January 31 st 2022

CASE STUDY OF A BAKER COMPANY: WHEAT STOCK MANAGEMENT EVALUATION

The goal problem of this work is to propose improvement of wheat inventory management of a bakery, applying the inventory management method “P” and opportunity cost analysis. The study makes historical analysis of the company and proposes the adequacy of the model in order to reduce waste and production inefficiency. The adopted methodology is the case study, because the author does not have direct action during the elaboration of the work. The study shows through the basic calculations of the management model literature “P”, in order to propose the adequacy. The improvement proposal involves new quantities and periodicities of purchase, showing the feasibility of the opportunity cost study, seeking to insert the company's management model to the proposed one.

Impact of trade liberalization on technical efficiency of mining sector: A case of selected SADC countries

Productive inefficiency and lagging technology progress are major reasons behind the Southern Africa Development Community’s (SADC) continued exportation of unprocessed minerals to the world markets. The study seeks to uncover the impact of trade openness on the technical efficiency of the mining sector in selected SADC countries (Botswana, DRC, Namibia, South Africa, Zambia, and Zimbabwe). Technical efficiency is the ability of any production process to produce maximum output from minimum quantities of inputs. A Cobb Douglas Stochastic Frontier Approach in a single-stage maximum likelihood estimation of Green’s true fixed effects was used to compute technical efficiency (scores) and the technological progress in the mining sector of SADC. Results indicate that there is no technical efficiency gains from trade liberalization during the period under study together with positive and significant technological progress. A coefficient of 0.72 suggests that a 1% increase in trade openness increases technical inefficiency in the mining sector by 0.72%. The parameter coefficient from the truncated normal distribution of the true fixed effects model indicated that technological progress from one year to the next year would lead to a 2.6% increase in the output index of the mining. Technological progress in the mining sector should target upstream mineral value chains instead of only upgrading technology in one dimension of extraction. In addition, countries should collectively and gradually put across laws that force new investments in the extraction of minerals to erect processing plants in mining value addition of host countries to re-direct economies into a growth path. AcknowledgmentsThe authors are grateful to the North West University (RSA) for financing this study.  

Provincial production and pollution treatment performance in China based on a two-stage eco-inefficiency approach with undesirable intermediate outputs

In general, production systems always contain a two-stage process of product production and pollution treatment, where undesirable byproducts generated in the former stage will be treated as inputs in the latter stage. How to evaluate the performance of such production systems is very important both from academic research and practical application. In this paper, we will propose a new data envelopment analysis (DEA) approach for measuring the eco-inefficiency of two-stage structures with undesirable intermediate measures, and then apply the approach to 30 Chinese provincial regions with production and pollution treatment activities. The results show that: (1) China does well in overall performance, with an average inefficiency score of 0.3214. (2) Hunan, Hainan, Chongqing, Ningxia and Hebei are the top five least inefficient regions, while Xinjiang, Yunnan, Guizhou, Liaoning and Heilongjiang are the top five most inefficient regions. (3) Most regions have a higher pollution treatment inefficiency than the production inefficiency. (4) The eastern area has a better overall performance than central and western areas, and coastal economic developed regions perform better than inland remote regions. Further, (5) the eastern area is consistently better than the western area in both production and pollution treatment, while the central area is similar to the western area in production and is superior to the eastern area in pollution treatment. In addition, we provide some insights on policy suggestions for improving Chinese provincial industrial production and pollution treatment performance.

Cost and environmental impact assessment of stainless steel microscale chemical reactor components using conventional and additive manufacturing processes

Modular chemical process intensification improves chemical processes by reducing capital investment, operating costs, and inefficiencies of chemical production. Process intensification is achieved using microscale operations and devices with high surface-to-volume ratios. Microscale chemical device components can be produced using additive manufacturing and conventional powder metallurgy processes. The technical and environmental advantages and disadvantages of these processes have been investigated individually. However, their relative sustainability performance requires further research. The objective of this research is to characterize the economic and environmental performance of metal additive manufacturing and powder metallurgy processes for producing a 316 l stainless steel microscale chemical reactor used in dimethyl ether production. Laser powder bed fusion (LPBF) and binder jet (BJ) additive technology, and metal injection molding (MIM) were studied for producing two reactor plates for a range of market sizes. To quantify cost and environmental impacts, manufacturing process design and life cycle assessment (LCA) methods were applied, respectively. Cost analysis showed MIM has significantly lower unit costs than BJ (by 11–30 %) and LPBF (by 62–82 %) for the range of production volumes studied. However, at low production volumes, LCA results indicated MIM has greater environmental impacts than BJ and LPBF, due to consumables. As production volume increases, environmental impacts per part reduce significantly (up to 85 %) for MIM due to amortization of impacts across more products. Raw materials and utilities have little sensitivity to production volume and are the main environmental impact drivers for BJ and LPBF. Process step yield directly impacts tool count, resulting in the highest sensitivity to unit cost for the three processes. This work reports on model development and a single use case, motivating future investigation to understand process suitability for a range of part sizes and geometries, as well as alternative production routes.

Opportunities and challenges for upscaled global bivalve seafood production.

Slow growth in the bivalve mariculture sector results from production inefficiencies, food safety concerns, limited availability of convenience products and low consumer demand. Here we assess whether bivalves could meet mass-market seafood demand across the bivalve value chain. We explore how bivalve production could become more efficient, strategies for increasing edible meat yield and how food safety could be improved through food processing technologies and new depuration innovations. Finally, we examine barriers to consumer uptake, such as food allergen prevalence and bivalve preparation challenges, highlighting that appealing and convenient bivalve food products could provide consumers with nutritious and sustainable seafood options-and contribute positively to global food systems.

Cassava Production Efficiency in Southern Ethiopia: The Parametric Model Analysis

Due to capital constraints and land scarcity in developing countries, introducing new technology to boost productivity is difficult. As a result, working to improve cassava production efficiency is the best option available. Cassava is increasingly being used as a food source as well as an industrial raw material in the production of economic goods. This study estimates cassava production efficiency and investigates the causes of inefficiency in southern Ethiopia. Cross-sectional data from 158 households were collected using a systematic questionnaire. The Cobb-Douglas (CDs) stochastic frontier production model was used to calculate production efficiency levels. The computed mean result showed technical efficiency (TE), allocative efficiency (AE), and economic efficiency (EE) levels of 74, 90, and 66%, respectively. This demonstrated that existing farm resources could increase average production efficiency by 26, 10, and 34%, respectively. The study found that land size, urea fertilizer application, and cassava planting cut all had a positive and significant effect on cassava production. It was discovered that TE was more important than AE as a source of benefit for EE. Inefficiency effects modeled using the two-limit Tobit model revealed that household head age, level of education, cassava variety, extension contact, rural credit, off-farm activities involvement to generate income, and farm size were the most important factors for improving TE, AE, and EE efficiencies. As a result, policymakers in government should consider these factors when addressing inefficiencies in cassava production. It is especially important to provide appropriate agricultural knowledge through short-term training, to provide farmers with access to formal education, to access improved cassava varieties, and to support agricultural extension services.

Развитие бизнес-моделей управления нефтесервисными процессами в крупных нефтегазовых компаниях

The article considers the features of the business model for managing oilfield service processes in big oil and gas companies using the example of PJSC Oil Company «Rosneft». The purpose of the article is to study current business models in oil and gas industry, identify their advantages and disadvantages, and develop recommendations for improving sourcing procedures in accordance with the dynamics and changes in the external environment of companies' functioning. The research applies a variety of scientific methods which include analysis, synthesis and systematization of conceptual and practical aspects of sourcing in the context of the Russian oil and gas industry. The authors provide a critical analysis of theoretical aspects related to the concepts of sourcing, outsourcing and insourcing, which have been in the focus of Russian economic science since the mid-2000s. Special attention is paid to the insourcing model, which is available and used by large companies in capital-intensive industries with long-term investment and production cycles, such as oil and gas. The signs of production and management inefficiency of insourcing are formalized. In terms of transaction costs, a comparison is made between the efficiency and effectiveness of outsourcing and vertical integration. Taking into account the peculiarities and distinctive features of modern business environment, its uncertainty and new challenges for oil and gas producing companies, the authors conclude that strategic outsourcing is most in demand. The results obtained in the study can be used in practice of oil and gas companies, as well as by government bodies in the process of developing a regulatory policy in the relevant area.

Scale and scope economies in small household rice farming in Vietnam

The Vietnamese agricultural sector has experienced a dramatic structural change based on increased specialization in rice cultivation. However, small-scale rice-farmers have continued to grow multiple crops, especially in less developed provinces. While the literature advocates crop diversification for reasons of both economic and ecological sustainability, there lacks empirical evidence as to whether crop diversification brings efficiency and productivity gains to small farms. The present study is the first applications of the input-oriented stochastic distance function approach in estimating scale and scope economies using data of multi-crop farming households in Vietnam. We find strong evidence of product-specific economies of scale. Scope economies are also present for rice, vegetable, and other annual crop production. This suggests that crop diversification enhances efficiency and productivity. However, there still exists significant technical inefficiency in crop production, indicating opportunities to expand farm output at the existing level of inputs and technologies. More specifically, our empirical results indicate that it is desirable to expand vegetable and other annual crop production in mountainous areas while rice cultivation can be further expanded in delta and coastal regions.

ANALYSIS OF THE TECHNICAL EFFICIENCY OF EUROPEAN SEA BASS FARMS IN TURKEY: A STOCHASTIC FRONTIER PRODUCTION FUNCTION APPROACH

This study’s main objective was to estimate sea bass farms’ technical efficiency and determine the factors affecting production inefficiency using the stochastic frontier approach. The data were collected using questionnaires from 71 farms in 2017. The total sea bass production cost was calculated 5.35 $ kg-1, income 5.65 $ kg-1, gross profit 0.30 $ kg-1. The proportion of variable costs (84.25%) in total costs was higher than the fixed costs (15.75%). The feed cost (57.56%) was the influential primary variable on the total costs, and the benefit-cost ratio was 1.06. The results indicated that seabass farms’ technical efficiency varied between 0.67 to 1.00, and the average was 0.82. The efficiency scores meant the farms could achieve the same production amount by reducing inputs by 18%. One per cent increase in resale value, feed amount, and fingerling amount, increase sea bass production by 0.4%, 0.4%, and 0.2%, respectively. Fish loss rates and subsidies were influential on inefficiency. It would be beneficial to minimize risk factors such as fish loss rates and carry out political and educational activities to improve farms’ infrastructure in breeding and marketing. As a result, policymakers should also include the effective use of production factors in the design of aquaculture subsidy policies.

Commercial Energy Demand Forecasting in Bangladesh

Although both aggregate and per capita energy consumption in Bangladesh is increasing rapidly, its per capita consumption is still one of the lowest in the world. Bangladesh gradually shifted from petroleum-based energy to domestically sourced natural-gas-based energy sources, which are predicted to run out within next two decades. The present study first identified the determinants of aggregate commercial energy and its three major components of oil, natural gas, and coal demand for Bangladesh using a simultaneous equations framework on an annual database covering a period of 47 years (1972–2018). Next, the study forecast future demand for aggregate commercial energy and its three major components for the period of 2019–2038 under the business-as-usual and ongoing COVID-19 pandemic scenarios with some assumptions. As part of a sensitivity analysis, based on past trends, we also hypothesized four alternative GDP and population growth scenarios and forecast corresponding changes in total energy demand forecast. The results revealed that while GDP and lagged energy demand are the major drivers of energy demand in the country, we did not see strong effects of own- and cross-price elasticities of energy sources, which we attributed to three reasons: subsidized low energy prices, time and cost required to switch between different energy-mix technologies, and suppressed energy demand. The aggregate energy demand is expected to increase by 400% by the end of the forecasting period in 2038 from its existing level in 2018 under the business-as-usual scenario, whereas the effect of COVID-19 could suppress it down to 300%. Under the business-as-usual scenario, the highest increase will occur for coal (3.94-fold), followed by gas (2.64-fold) and oil (2.37-fold). The COVID-19 pandemic will suppress the future demand of all energy sources at variable rates. The ex ante forecasting errors were small, varying within the range of 3.6–3.7% of forecast values. Sensitivity analysis of changes in GDP and population growth rates showed that forecast total energy demand will increase gradually from 3.58% in 2019 to 8.79% by 2038 from original forecast values. Policy recommendations include capacity building of commercial energy sources while ensuring the safety and sustainability of newly proposed coal and nuclear power installations, removing inefficiency of production and distribution of energy and its services, shifting towards renewable and green energy sources (e.g., solar power), and redesigning subsidy policies with market-based approaches.

Responding to rapidly changing product demand through a coordinated additive manufacturing production system: a COVID-19 case study

COVID-19’s lockdown policies saw Modern Manufacturing Practice (MMP) – batch/mass/just-in-time supply chains – severed and societal demands rapidly change from products such as vehicles and clothing to Personal Protection Equipment (PPE), ventilators and equipment for remote working. The critical and, in many cases, life preserving, need for responsive manufacturing resulted in government and frontline services turning to society’s Additive Manufacturing (AM) capability in homes, schools, universities, and industry to provide essential products and product replacements. While AM managed to respond and support some government and frontline services, the highly distributed and diverse nature of the nation’s AM resources resulted in potentially avoidable production inefficiencies and delays. This paper develops and evaluates a series of strategies for coordinating AM for rapidly changing product demand to further enhance the responsiveness and productivity of AM. The strategies presented in the paper employ a host-client agent-based architecture that enable local governance of production thereby enabling distributed AM resource to come together to tackle society’s production needs without the need for centralised coordination. To enable and support local governance, it is necessary to understand how the combination of production logics impact the overall performance of the production system. Correspondingly, the contribution of this paper lies in the characterisation and quantification of the impacts of production logic through the metrics of Time in System, Lateness and Jobs in Queue and the consequences for responsive AM production systems.

Integrating maintenance strategies in autonomous production control using a cost-based model

<p class="Abstract">Autonomous production control (APC) is able to deal with challenges, inter alia, high delivery accuracy, shorter planning horizons, increasing product and process complexity, and frequent changes. However, several state-of-the-art approaches do not consider maintenance factors contributing to operational and tactical decisions in production planning and control. The incomprehensiveness of the decision models and related decision support tools cause inefficiency in production planning and thus lead to a low acceptance in the manufacturing enterprises. To overcome this challenge, this paper presents a conceptual cost-based model for integrating different maintenance strategies in autonomous production control. The model provides relevant decision aspects and a cost function for different maintenance strategies using on a market-based approach. The present work thus makes a positive contribution to cope with the high demands on flexibility and response times in planning while at the same time ensuring high plant productivity.</p>

Technological Innovation, Production Efficiency, and Sustainable Development: A Case Study from Shenzhen in China

Shenzhen is a national sustainable development innovation demonstration zone, with the theme of innovation leading the sustainable development of megacities. This manuscript studies technological innovation, production efficiency, and sustainable development and explores the impact of their relationship on Shenzhen. The benchmark test shows a significant negative correlation between the inefficiency of production, labor levels, investment levels, technical levels, and socioeconomic status. From 2001 to 2019, the production efficiencies of 21 prefecture-level cities in Guangdong Province were used as the research object. The Cobb–Douglas production function conducted panel stochastic frontier analysis and TOBIT regression, and the conclusion was robust. The mechanism test found that the economic growth of Guangdong Province, including Shenzhen, is still dominated by labor and investment. Its production efficiency has been dramatically impacted after 2008, and the increase in production inefficiency may be affected by the crowding-out effect of a four-trillion investment. Finally, based on the Tobit regression, we found that the rise in the labor force, capital input, technological level, and socioeconomic development level could reduce Shenzhen’s production inefficiencies by 3.6%, 20.2%, 2.5%, and 4%, respectively. There is still a long way to achieve sustainable development; however, Shenzhen’s technological innovation and mega-city reform process will provide valuable insights for other regions.

Lengthening single-stem rotation improves biomass yield and water use efficiency in black poplar genotype multi-stem rotation coppice plantations

Poplar short rotation coppice (SRC) plantations have great potential for supplying environmentally friendly bio-based industries. However, little research has focussed on the linkages between SRC management regimes and the consumption of water for biomass production in the Mediterranean environment. Therefore, we compared six hybrid clones and four native black poplar genotypes with an aim to examine how two different lengthening periods (3 vs. 5 years) of single-stem rotation affected growth performance in the following three years of multi-stem rotation coppice. To achieve this goal, we assessed the aboveground dry biomass production and variation in water use efficiency (WUE) of the genotypes annually. A longer single-stem rotation increased biomass productivity and WUE in the multi-stem rotation of the native black poplar, rather than that of the hybrid genotypes. In contrast, biomass and WUE performances did not diverge between the native and hybrid genotypes under the shorter single-stem phase. These findings underline the importance of lengthening the rotation of single-stem SRC plantations in hot and dry Mediterranean climates. Native black poplar genotypes managed in SRC should be strongly considered as environmentally compatible genetic resources both in protected areas and in areas where water supply constrains biomass production.

Technical-and-allocative inefficiency index of Indian sugarcane farms- A primal system approach

Cost of Cultivation of Principal Crops (CCPC) data from 2014–15 to 2016–17 was collected and converted as a panel data to estimate the technical and allocative inefficiency indexes and its impact on input demand and cost of sugarcane production. The present study adopted the primal system approach, with the Cobb-Douglas production function and the first-order conditions of cost minimization. Returns to scale value confirmed that there is a vast scope to increase India's sugarcane yield. Results also revealed that fertilizer is the most under-utilized whereas setts and irrigation are the most over-utilized resources in Indian sugarcane production. Machinery usage was under-utilized in Karnataka, Tamil Nadu, and Uttar Pradesh. The technical inefficiency in sugarcane production reduces the input demand of labour, setts, fertilizer, irrigation, and machinery by 2.70 percent, 4.90 percent, 3.30 percent, 3.50 percent, and 7.60 percent respectively. Technical-and-allocative inefficiency collectively increases the cost of sugarcane production by 46.80 percent in Andhra Pradesh, followed by 44.30 percent in Maharashtra, 35.90 percent in Tamil Nadu, 27.10 percent in Uttar Pradesh, 24.70 percent in Karnataka, and 23 percent in Uttarakhand. It confirms that existing sugarcane yield of India can be attained with 33.60 percent lesser than the existing production cost. These results suggest establishing rural-based agricultural machinery custom hiring centres, proper irrigation structures, and single bud chips as a planting material would increase the sugarcane production as well as reduce the cost of cultivation. • Technical and Allocative inefficiency index were calculated for major sugarcane growing states of India. • Due to technical inefficiency farms produce less than (23% to 28%) it's potential output. • Returns to scale value indicates that there is a vast scope to increase India's sugarcane yield. • India's sugarcane yield can be attained with 33.60 percent lesser than the existing production cost.

Profit efficiency and influencing factors for the inefficiency of maize production in Bangladesh

This study examines the profit efficiency and the responsible factors for inefficiency in 350 hybrid maize growers in selected areas of Bangladesh by using the profit frontier function and inefficiency effects model. A multistage stratified random sampling procedure was used for data collection. This study proves that maize production is profitable. The average net return is 32392 BDT/acre and the benefit-cost ratio was more than 2. Farmers use more organic manure, but less chemical fertilizer than recommended doses. The outcomes also disclosed a profit efficiency score of 0.71, which indicates a 29% profit inefficiency. The average net benefit was 32392.40 BDT/acre and profit-loss 16975.99 BDT/acre. This implies that the enhancement of allocative, technical, and scale efficiencies can reach a potential profit of 49368.39 BDT/acre. This study found that age, educational level, extension experience, and non-farm income were the main factors for profit inefficiency. This study suggests that farming efficiency can be increased remarkably by enhancing the educational status and proper extension services. Furthermore, the necessary steps for promoting an effective system of soil management with good irrigation facilities and increasing agricultural training will improve efficiency. • The Bangladesh maize production need attention. . • The Battese and Coelli model was used. • Maize is an excellent crop for food, feed and industrial utilization. • The market potentiality of maize is enormous. • Socio-economic factors play important role in maize production.

Input Use Efficiency Management for Paddy Production Systems in India: A Machine Learning Approach

This research illustrates the technical efficiency of the pan-India paddy cultivation status obtained through a stochastic frontier approach. The results suggest that the mean technical efficiency varies from 0.64 in Gujarat to 0.95 in Odisha. Inputs like human labor, mechanical labor, fertilizer, irrigation and insecticide were found to determine the yield in paddy cultivation across India (except for Chhattisgarh). Inefficiency in the paddy production in Punjab, Bihar, West Bengal, Andhra Pradesh, Tamil Nadu, Kerala, Assam, Gujarat and Odisha in 2016–2017 was caused by technical inefficiency due to poor input management, as suggested by the significant σ2U and σ2v values of the stochastic frontier model. In addition, most of the farm groups in the study operated in the high-efficiency group (80–90% technical efficiency). No specific pattern of input use can be visualized through descriptive measures to give any specific policy implication. Thus, machine learning algorithms based on the input parameters were tested on the data in order to predict the farmers’ efficiency class for individual states. The highest mean accuracy of 0.80 for the models of all of the states was achieved in random forest models. Among the various states of India, the best random forest prediction model based on accuracy was fitted to the input data of Bihar (0.91), followed by Uttar Pradesh (0.89), Andhra Pradesh (0.88), Assam (0.88) and West Bengal (0.86). Thus, the study provides a technique for the classification and prediction of a farmer’s efficiency group from the levels of input use in paddy cultivation for each state in the study. The study uses the DES input dataset to classify and predict the efficiency group of the farmer, as other machine learning models in agriculture have used mostly satellite, spectral imaging and soil property data to detect disease, weeds and crops.