Production efficiency and optimal allocation of resource in cultivation of sugarcane

Abstract

The result of the cross section data collected from 100 sugarcane growers of the Kawardha block of Kabirdham district in Chhattisgarh the comparison of marginal value productivity of resources with their acquisition cost shows that increase in expenditure on manure & fertilizers and machine power contribute significantly to wards gross income from sugarcane crop. There exists little possiblility of getting additional income from sugarcane crop in the area under the existing capital outlay and adoption a pattern. The gross income from sugarcane can be increased by re-allocation of resources in optimal direction and also by reducing the expenditure on human labour and increasing it on seed, manure and fertilizers irrigation, and machine power, Cobb-Douglas production function and test of resource use and allocative efficiency were used to analyze the data. The production function analysis shows that the coefficients were higher and significant for manure and fertilizers and machine power in cultivation of sugarcane. The fitted production function explains more than 85.00 per cent of variation in the gross income from sugarcane due to included variables.