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Abstract

This paper analyses farm level efficiencies using Stochastic Frontier Production Function in two major wheat producing states of India: Uttar Pradesh and Haryana for the period 2015-16. For this empirical study, a total of 603 farmers were intensively surveyed using stratified random sampling in the study domain covering 8 villages and from each village at least 75 wheat growers were selected. The frontier production function was estimated using inputs like, labour (hour/ha), tractor use (hour/ha), quantity of seed (kg), fertiliser (kg/ha), and water usage (cum/ha), water market regimes, consumptive use of water etc. Overall, Technical Efficiency (TE) of the sample farmers in states was estimated to be 90 per cent, and TE of Haryana is only 2 per cent higher in comparison to Uttar Pradesh. This higher TE may be attributed to the consumptive irrigation. The result shows that majority of wheat farms attained TE more than70 per cent and other efficiency majors corresponding to these firms were higher. However, about 45per cent farms were at low lever level of TE. Thus, there is scope of improving the efficiency of these farms. The irrigation does influence the TE for both the states positively but it had significantly high impact on consumptive users as compared to ground water users. The farmers located in Haryana were found to be marginally more efficient than was Uttar Pradesh. The farm level innovations or new technology breakthrough can shift frontier production on the higher side to improve productivity and resource use efficiency of wheat growers.

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