Determination of technical efficiency in Paddy farms of canal irrigated systems in Tamil Nadu: A data envelopment analysis approach

Abstract

This study is carried out to analyze the performance of paddy farms Cauvery delta zone in Tamil Nadu by estimating the level of technical efficiency. Data Envelopment Analysis (DEA), a nonparametric method was applied to estimate technical efficiency of paddy farms. The data collected for the year 2010-11 under the Cost of Cultivation Scheme of Tamil Nadu Centre were used for the study. The technical efficiency index ranged from 0.41 to 1.00 under both Constant Returns to Scale (CRS) and 0.48 to 1.00 under Variable Returns to Scale (VRS) specification. The mean technical efficiencies were 0.76 and 0.81 under CRS and VRS specification, respectively. The scale efficiency ranges between 0.75 and 1.00 with a mean of 0.93. Of the 100 Paddy farmers, nine shows constant returns to scale, 81 shows increasing return to scale while three shows decreasing return to scale. This result shows that there is small scale inefficiency in the study area. There are excess uses for all inputs especially for fertilizers like potash, phosphorus and farm yard manure.