efficiency of rice farms in andhra pradesh: a stochastic frontier approach

177 Pages·2016·2.87 MB·English

EFFICIENCY OF RICE FARMS IN ANDHRA
PRADESH: A STOCHASTIC FRONTIER

APPROACH

BY
ATHOTA SAMARPITHA

M.Sc. (Ag.)

THESIS SUBMITTED TO THE PROFESSOR JAYASHANKAR
TELANGANA STATE AGRICULTURAL UNIVERSITY IN
PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE
AWARD OF THE DEGREE OF

DOCTOR OF PHILOSOPHY IN AGRICULTURE
(AGRICULTURAL ECONOMICS)

CHAIRPERSON: Dr. N. VASUDEV

DEPARTMENT OF AGRICULTURAL ECONOMICS
COLLEGE OF AGRICULTURE
RAJENDRANAGAR, HYDERABAD-500 030
PROFESSOR JAYASHANKAR TELANGANA STATE
AGRICULTURAL UNIVERSITY
2015
DECLARATION

I, Ms. ATHOTA SAMARPITHA, hereby declare that the thesis entitled
“EFFICIENCY OF RICE FARMS IN ANDHRA PRADESH: A STOCHASTIC
FRONTIER APPROACH” submitted to the Professor Jayashankar Telangana
State Agricultural University for the degree of Doctor of Philosophy in
Agriculture is the result of original research work done by me. I also declare that
no material contained in the thesis has been published earlier in any manner.

Place: Rajendranagar, (ATHOTA SAMARPITHA)
Hyderabad. I. D. No. RAD/12-08

Date: 18-03-2016

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CERTIFICATE
Ms. ATHOTA SAMARPITHA has satisfactorily prosecuted the course of
research and that the thesis entitled “EFFICIENCY OF RICE FARMS IN
ANDHRA PRADESH: A STOCHASTIC FRONTIER APPROACH” submitted is
the result of original research work and is of sufficiently high standard to warrant
its presentation to the examination. I also certify that neither the thesis nor its part
thereof has been previously submitted by her for a degree of any University.

Date: 18-03-2016 (Dr. N. VASUDEV)
Chairperson

ii
CERTIFICATE

This is to certify that the thesis entitled “EFFICIENCY OF RICE FARMS IN
ANDHRA PRADESH: A STOCHASTIC FRONTIER APPROACH” submitted in
partial fulfillment of the requirements for the degree of ‘Doctor of Philosophy in
Agriculture’ of the Professor Jayashankar Telangana State Agricultural University,
Hyderabad is a record of the bonafide original research work carried out by
Ms. ATHOTA SAMARPITHA under our guidance and supervision.
No part of the thesis has been submitted by the student for any other degree or
diploma. The published part and all assistance and help received during the course of the
investigations have been duly acknowledged by the author of the thesis.

(Dr. N. VASUDEV)
Chairperson of the Advisory Committee
Thesis approved by the Student Advisory Committee.

Chairperson Dr. N. VASUDEV
Director of Extension,
Professor Jayashankar Telangana
State Agricultural University,
Rajendranagar, Hyderabad – 500 030 _________________

Member Dr. K. SUHASINI
Professor and Head,
Department of Agricultural Economics,
College of Agriculture, Rajendranagar.
Hyderabad – 500 030 _________________

Member Dr. I. SREENIVASA RAO
Professor and Head,
Department of Agricultural Extension
College of Agriculture, Rajendranagar.
Hyderabad – 500 030 _________________

Member: Sri. M. H. V. BHAVE
Associate Professor and Head
Department of Statistics and Mathematics,
College of Agriculture, Rajendranagar.
Hyderabad – 500 030 _________________

External Examiner Dr. K. MANI
of final viva-voce Professor and Head,
Department of Agricultural Economics,
Centre for Agricultural and rural Development Studies,
Tamil Nadu Agricultural University,
Coimbatore-641003 _________________

Date of final viva-voice: 18-03-2016
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ACKNOWLEDGEMENTS
“For the LORD gives wisdom, from his mouth come knowledge and

understanding-Proverbs 2:6”

I would like to thank the Lord Almighty for his unconditional love, for all the
blessings he has given me, for being with me, watching over me, guiding me and also for
giving me the opportunity to complete this study. I would also like to thank Him for all the
special people around me.
I feel privileged to have worked under the able and thoughtful guidance of my
esteemed Chairman of advisory committee, Dr. N. Vasudev. I would like to thank him for
his meticulous guidance, pragmatic suggestions and abundant cooperation during the
course of investigation and for his constant help and tremendous support in completing
the research work.
I am thankful to Dr. K. Suhasini, member of student advisory committee, for her
valuable suggestions, thoughtful encouragement, careful supervision, immeasurable help,
constructive criticism and inspiration given to me throughout the course of the study and
in preparation of the manuscript of this thesis.
I earnestly extend my profound thanks to Dr. I. Sreenivasa Rao, member of
student advisory committee for his valuable advice, motivation and guidance during the
course of study and his unique way of teaching.
I am thankful to Sri. M. H. V. Bhave, member of student advisory committee for his
kind cooperation and immensely valuable advice. I owe my gratitude to him for his timely
suggestions and worthy counsel during the course of study.
I am grateful to Dr.R.Vijaya Kumari, Associate Professor, Dr.T.Lavanya,
Assistant Professor, Dr.C.V.Hanumanthaiah, Professor and Dr.D.V.Subba Rao, Professor,
Faculty of Department of Agricultural Economics, College of Agriculture, Rajendranagar,
for their support and cooperation during the course of my study.
I express my heartfelt thanks to Dr.Sreeramaraju, Centre for Economic and Social
Studies, Hyderabad for his rational approach in conducting analysis and help given to me
during the course of study.
I take this opportunity to thank Dr.Lalith Achoth, Professor, Dept. of Agricultural
Economics, University of Agricultural Sciences, Dharwad for his impeccable suggestions,
highly informative advice and precious guidance during the study.
Words do not suffice to convey my deep sense of honour, love and gratitude to my
beloved parents, Sri. A. Prasada Rao and Smt. Victoria for their love and dedicated
efforts in shaping my career since childhood and bringing out the best in each of my
endeavours.
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I would lovingly acknowledge the enduring love, motivation, encouragement and
guidance of my husband, Chakravarthy, for being my best friend and understanding and
supporting me through this amazing journey.
With boundless affection, I would heartily acknowledge the unwavering support,
constant encouragement, assistance and inspiration given to me by my caring brother,
Samson, who encouraged me to pursue doctoral studies. I would like to thank my sister-
in-law Ananda, my nephew-niece Steven-Shirley for their love.
I would like to acknowledge the love and affection of my parents-in-law,
Sri.P. Abraham and Smt .Eunise, my sister-in-law, Ramya, brothers-in-law, Ramesh and
Abhinash and my niece Amy.
I would like to thank my aunt, Smt. Annie Grace and my brother, Sasi Kiran for
their love.
My sincere thanks to Dr.T.S.K.K. Kiran Patro and Dr.Emmanuel for their
affection, love, help, constant motivation and priceless suggestions offered to me. My
heartfelt thanks to Dr. S. Rahul and Grace akka for their help, affection and love.
I accord my sincere thanks to Rev. Dr. G.S.Vijay Bhushanam uncle, Esther aunty,
Patrick anna, Ruth akka, Rev. John Moses uncle, Prabha akka, Rev.Vijay Shekhar
anna-Jaya akka, Angel and Spandana akka for their prayers.
I would like to thank Mandal Agricultural Officers and Agricultural Extension
Officers, Sri, R.S. Prasad, Smt. Jyothi, Sri. Madhav, Sri. Khan, Sri. Kalyan, Smt.
Jayaprada, Sri. D. Priyatham Kumar for their help and cooperation in data collection. I
would also like to thank all the sample farmers who responded to my request for
information and provided valuable data for the accomplishment of the study.
Diction is not enough to express my thanks to my colleagues and friends
El Muonzo, Latika, Shakuntala, Sowjanya, Archana.P, Archana, Deep, Pavan Kalyan,
Balasubramaniam and Jainuddin for their friendly cooperation throughout the course
of the study.
I humbly thank the authorities of Acharya N. G. Ranga Agricultural University and
Professor Jayashankar Telangana State Agricultural University for providing financial
help in the form of stipend during my study period.
Finally, I humbly thank one and all who have directly or indirectly contributed to
the conduct of the study.
Date: 18-03-2016
Place: Rajendranagar (A. Samarpitha)

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LIST OF CONTENTS

CHAPTER NO. TITLE PAGE NO.
I INTRODUCTION 1-8
II REVIEW OF LITERATURE 9-27
III MATERIAL AND METHODS 28-44
IV RESULTS AND DISCUSSION 45-136
V SUMMARY AND CONCLUSIONS 137-154
LITERATURE CITED 155-162

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LIST OF TABLES

Table No. Title Page No.
1.1 Country-wise area of rice in the world during 2013-14 7
1.2 Milled rice production by country during 2013-14 7
1.3 Major rice exporting countries of the world during 2013-14 8
1.4 State-wise production of rice in India during 2013-2014 8
District-wise average of 5 years rice production (‘000 tonnes) in
3.1 34
Andhra Pradesh
4.1 Age group of the sample farmers 46
4.2 Family size and type of family of the farmers 47
4.3 Educational profile of sample farmers 48
4.4 Experience of sample farmers in rice cultivation 49
4.5 Tenurial status of sample farmers 51
4.6 Area covered under different tenurial status (ha) 51
4.7 Source wise irrigation particulars of sample rice farmers 52
4.8 Farm size-wise area covered under various sources of irrigation 54
4.9 Particulars of farms and area under different types of soils 55
4.10 Contact of sample farmers with extension agency 56
4.11 Membership in Rythu Mitra Groups (RMG) 57

Membership of sample farmers in cooperative society or gram
4.12 59
panchayat or political party
4.13 Primary occupation of sample farmers 60
4.14 Secondary occupation of sample farmers 60
4.15 Livestock ownership of sample farmers 61
4.16 Credit access to the sample respondents 62
4.17 Resource-use pattern for kharif rice 2013-14 64
4.18 Resource use pattern for rabi rice during 2013-14 65
Farm-size wise cost of cultivation of kharif rice in Kurnool
4.19 75
district
Farm-size wise cost of cultivation of kharif rice in Nalgonda
4.20 77
district
Farm-size cost of cultivation of kharif rice in West Godavari
4.21 80
district
Comparative cost of cultivation of kharif rice among three
4.22 82
districts
4.23 Farm-size wise cost of cultivation of kharif rice in three districts 87
4.24 Cost of cultivation of kharif rice 89
4.25 Returns from kharif rice cultivation according to farm size 92
4.26 Unit cost of production and productivity of kharif rice 96
4.27 Farm-size wise cost of cultivation of rabi rice in Kurnool district 98
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Farm-size wise cost of cultivation of rabi rice in Nalgonda
4.28 101
district
Farm-size wise cost of cultivation of rabi rice in West Godavari
4.29 104
district
Comparative cost of cultivation of rabi rice among three
4.30 105
districts
4.31 Farm-size cost of cultivation of rabi rice in three districts 109
4.32 Cost of cultivation of rabi rice 112
4.33 Returns from rice cultivation in rabi according to farm size 115
4.34 Unit cost of production and productivity of rabi rice 118
4.35 Comparison of sale price of paddy 119
District-wise estimates of stochastic production frontier function
4.36 120
for kharif rice
District-wise estimates of stochastic production frontier function
4.37 122
for rabi rice
District-wise estimates of stochastic profit frontier function for
4.38 123
kharif rice
District-wise estimates of stochastic profit frontier function for
4.39 124
rabi rice
Frequency distribution of sample rice farmers under different
4.40 125
levels of technical efficiency during kharif
Frequency distribution of sample rice farmers under different
4.41 127
levels of technical efficiency during rabi
Frequency distribution of sample rice farmers under different
4.42 128
levels of economic efficiency during kharif
Frequency distribution of sample rice farmers under different
4.43 129
levels of economic efficiency during rabi
Frequency distribution of sample rice farmers under different
4.44 130
levels of allocative efficiency during kharif
Frequency distribution of sample rice farmers under different
4.45 131
levels of allocative efficiency during rabi
District-wise and season-wise technical, allocative and
4.46 132
economic efficiencies
Determinants of TE, EE and AE of rice farmers in kharif and
4.47 134
rabi

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LIST OF ILLUSTRATIONS

Figure Page
Title
No. No.
3.1 Map of Andhra Pradesh showing Telangana, coastal Andhra and
29
Rayalaseema regions
3.2 Mandal map of Nalgonda district 31
3.3 Mandal map of West Godavari district 32
3.4 Mandal map of Kurnool district 33
3.5 Detailed sampling design of the study 36
3.6 Technical efficiency (Farrell, 1957) 41
4.1 Age group of sample farmers 46
4.2 Educational profile of the sample farmers 48
4.3 Experience of sample farmers in rice cultivation 50
4.4 Contact of sample farmers with extension agency 56
4.5 Membership of sample farmers in Rythu Mitra Groups 57
4.6 Livestock ownership of sample farmers 61
4.7 District-wise quantity of seed used (kg ha-1) 66
4.8 District-wise human labour used (Mandays ha-1) 67
4.9 District-wise components of cost of cultivation in kharif 84
4.10 District-wise break-up of cost of cultivation for kharif 84
4.11 Farm size wise cost of cultivation for kharif rice (` ha-1) 90
4.12 Farm size wise net returns obtained in kharif (` ha-1) 93
4.13 District-wise components of cost of cultivation in rabi 106
4.14 District-wise break-up of cost of cultivation during rabi 106
4.15 Farm size-wise cost of cultivation for rabi rice 113
4.16 District-wise cost of cultivation of rice in kharif and rabi 113
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