“Cultivating Efficiency”: An in-depth analysis of technical efficiency in Kerala’s Organic Vegetable Farmers

Deepa Palathingal

No 356760, Agricultural Economics Society 99th Annual Conference, April 14-16, 2025, The University of Bordeaux, France from Agricultural Economics Society (AES)

Abstract: The Kerala government's decision to convert the state to organic farming following a disastrous experience with chemical farming has been met with approval from both farmers and the consumer community, who appreciate the benefits of this approach. However, the significant opportunity cost of the conversion period and the low yield during this time pose a significant challenge. Despite the state's reliance on organic vegetable production, its limited output is a cause for concern. To address this issue, the present study identified and examined influencing factors of technical efficiency of organic vegetable farmers. Employing a stochastic production frontier with a truncated normal distribution, the Cobb-Douglas stochastic production frontier analysis revealed that farmers are operating at an average of 75% below their potential level of output. This finding is significant as it underscores the need for interventions to improve technical efficiency in organic farming, which is crucial for the sustainability and profitability of the sector. Factors such as Experience, age and education play a imparative role in determining farmers' technical efficiency. As a result, the study proposes strategies such as providing better farmers' training programs and extension services, increasing the education level of farmers, and promoting higher technological inventions in organic farming methodologies to reallocate resources and improve technical efficiency.

Keywords: Agribusiness; Research and Development/Tech Change/Emerging Technologies; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 19
New Economics Papers: this item is included in nep-agr and nep-eff
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aes025:356760

DOI: 10.22004/ag.econ.356760

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