Vol. 12, Issue 3 (2023)

Author(s):
Shaik Nayeem Heera and K Nirmal Ravi Kumar

Abstract:
This study measured the Technical Efficiency (TE) and Economic Efficiency (EE) of groundnut farmers participating in Rythu Bharosa Kendras (RBKs) in Guntur district of Andhra Pradesh using Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) from 40 groundnut farmers. According to DEA and SFA results, the mean TE of farmers was found to be 96.8 and 85.45 per cent respectively. The mean EE obtained from DEA and SFA were found to be 73.5 and 70.25 respectively. As a result, DEA explains more variability in terms of both TE and EE compared to SFA. The results indicate that majority of groundnut farmers were found with lesser technical inefficiencies and more economic inefficiencies. Economic inefficiency was due to using high costs on inputs like seed, lime and gypsum and machine charges to produce optimum level of output. Garrett ranking was used to find the constraints faced by farmers in accessing inputs from RBKs. They were mandatory linking of e-crop booking (I) and inadequate amount of capital resources with small farmers (II). It was suggested that government should take measures to avoid technical problems related to e-crop bookings by fixing servers (I) and supply of input subsidies at needed times (II).