MEASURING TECHNICAL AND ENVIRONMENTAL EFFICIENCY OF SUGARCANE FARMERS IN PUNJAB, PAKISTAN

Abstract

This study was conducted at Institute of Agricultural and Resource Economics, University of Agriculture, Faisalabad, Pakistan during the year 2012 to sort out technical as well as environmental efficiency related to sugarcane crop in district Faisalabad. Stochastic production frontier approach (SFA) was used to estimate determinants. Primary data (120 respondents) were collected by conducting surveys of four villages of district Faisalabad through simple random sampling. The results showed that sugarcane producers were 88.8 percent technically efficient. Environmental efficiency for use of nitrogenous fertilizer alone was estimated at 50.2 percent and for pesticide alone was estimated at 38 percent. Environmental efficiency for both nitrogenous fertilizer and pesticide environmental efficiency was estimated at 45 percent because of more efficient use of fertilizer. This study also depicted that medium and large famers were environmentally less efficient as compared to small farmers. The findings suggest that role of agricultural extension is a big question. There is a need to train the farmers in a manner to achieve higher and efficient yield. Program should be initiated to educate the farmers regarding the optimum quantity use of inputs and at proper timings. Farmers should be informed to use recommended level of pesticide and fertilizer for the production of sugarcane.