Efficiency of Rice Farms during Boro Period in Bangladesh: An Econometric Approach

Abstract

Bangladesh is an agro-based economy. To achieve self sufficiency of food-grain production in Bangladesh, it is very important to increase the production of rice, particularly Boro rice. Production may be increased, firstly, by introducing modern technology in the long-run or secondly, by improving the efficiency of the farmers in the short-term. In this study, researcher is focusing to achieve the target by improving the efficiency of the farmers. Modern econometric tools, like Stochastic Frontier Approach (SFA) is used for measuring the efficiencies of the farmers. Empirical results of this study shows that average technical, allocative and economic efficiency of the farmers during Boro period are 86 per cent, 75 per cent and 64 per cent respectively. So, it is possible by making the farmers technically and allocatively efficient, production of Boro rice could be increased by 14 to 36 per cent without any increase in input use, technology is given. In this study, we also find some important inefficiency factors which affect the production of Boro rice in Bangladesh, such as, inadequate extension services, insufficient credit facilities, and land degradation. Importantly, we are trying to quantify them by using Tobit regression model. Study suggests that authority should address these inefficiency factors properly and take necessary action by increasing credit facilities and extension services and reducing land degradation by using more environment friendly fertilizers and pesticides. Therefore, it expected that inefficiency of the farmers decrease and eventually the target of self-sufficiency of food-grain production by 2013 may be achieved.