Assessing the efficiency of smallholder sugarcane production: The case of Faisalabad, Pakistan

Sobia Asghar, Takuji Tsusaka, Damien Jourdain, Shahab E. Saqib and Nophea Sasaki

Agricultural Water Management, 2022, vol. 269, issue C

Abstract: Declining water tables and shrinking irrigation supply are two major challenges for agricultural production that increase production costs of high delta crops in Pakistan. Crop producers may tackle these threats by optimizing the use of available resources. To devise policies for improved resource use and cost reduction, assessing current efficiency levels and their determinants can provide useful information. This research assessed the technical, allocative, and groundwater-irrigation efficiency of smallholder sugarcane farms in Faisalabad, Pakistan using primary data for 56 tubewell solo owners, 37 tubewell shareholders, and 47 water buyers and applying the data envelopment analysis technique. The factor affecting the allocative efficiency were explored using the tobit regression. We found that the groundwater-irrigation efficiency ranged from 92% for the solo owners, 92% for shareholders, and to 83% for water buyers. On average, technical efficiency at sugarcane farms was more than 90%. Solo owners, shareholders, and water buyers achieved only 40%, 28%, and 37% of allocative efficiency, respectively. By improving the allocative efficiency through optimal allocation of inputs, farms can considerably decrease their costs for a given output level. The allocative efficiency was negatively associated with farmers’ age, farm size, tubewell depth, discharge rate and salinity in groundwater. Our findings imply that sugarcane farms can substantially reduce their production costs by installing smaller tubewells that match their crop irrigation requirement and groundwater depth. Further, improving the allocative efficiency of relatively large sugarcane farms, monitoring and regulating groundwater extraction to prevent further increase in groundwater and irrigation and soil management practices to reduce salinity can improve the efficiency.

Keywords: Allocative efficiency; Sugarcane; Data envelopment analysis (DEA); Tubewell; Groundwater (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378377422001901
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:agiwat:v:269:y:2022:i:c:s0378377422001901

DOI: 10.1016/j.agwat.2022.107643

Access Statistics for this article

Agricultural Water Management is currently edited by B.E. Clothier, W. Dierickx, J. Oster and D. Wichelns

More articles in Agricultural Water Management from Elsevier
Bibliographic data for series maintained by Catherine Liu ().