Evaluation of Production Efficiency of Rice Producing Indian States: Post Reforms Analysis Using Translog Production Function

The paper examines the production efficiency of rice producing states of India using state level data
for the periods 1990-91 to 2004-05 and 2005-06 to 2013-14. Stochastic production frontier model
using panel data, as proposed by Battese and Coelli (1995), has been used for estimating the
efficiency variations taking an integrated effect model into consideration. The results show that
inefficiency is present in agricultural production of the states where mean efficiency estimates ranges
from 0.9863 to 0.6160 for 1990-91 to 2004-05 and from 0.8307 to 0.3198 for 2005-06 to 2013-14. For
1990-91 to 2004-05, net irrigated area, consumption of fertilizers and consumption of pesticides are
seen to have a significant positive impact on agricultural production in these states. There is a positive
relationship between agricultural productivity and higher use of institutional credit for 2005-06 to 2013-
14. Total state road length per unit of area is seen to be statistically significant in reducing inefficiency
for both sub-periods.