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avid
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I
A water-secure worldwww.iwmi.org
Technical Efficiency of Paddy Cultivation in
Anicut Schemes in the Walawe Basin
Mohamed AheeyarThilani Padmajani
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Background
Photos: Mohamed Aheeyar / IWMI
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Statistics Sri Lanka• Total anicuts- 12,950• Command area- 98,416 ha• Famer families- 333,400• Average land holding- 0.3 ha
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Walawe Basin
• No. of Anicuts- 750• Command area-
6550 ha• Famer families-
20,000
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Distribution of Anicuts by command area and number of farmers
1-5 6-10 11-15 16-20 21-25 26-35 36-50 >500
20
40
60
80
100
120
140
160
180
141
36
21
7 7 84 2
168
143
67
42
16
2420
25
Badulla Ratnapura
Command area (ac)
No. o
f Ani
cuts
<5 6-10 11-15 16-20 21-25 26-30 31-40 41-50 51-75 76-100 100<0
20
40
60
80
100
120
140
131
45
16
10 9
5 53 2
0 0
87
112
91
52
2724
34
1720
12
22
Badulla Ratnapura
No. of farmers
No.
of A
nicu
ts
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• Rice cultivation- principal agricultural activity
• Major problem – low yield and high yield variation– One metric tonne lower than the yield of major
irrigation– Average yield varies- 890-1575kg/ac in
Walawe basin• Anicut systems are most vulnerable to the
adverse impacts of climate change- depend on local rainfall and no storage structures
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Technical Efficiency • Farm’s ability to achieve the maximum
output for a given set of inputs and technology
• If available technologies are inefficiently used in the cultivation process, the use of prevailing technologies is more cost effective than investing in new technologies
• Efficiency lead to substantial resource saving
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Objectives
• Measure technical efficiency in rice farming and identify its determinants
• Assess the causes of inefficiency• propose recommendations to improve the
resource use efficiency and productivity
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Methodology
• Stochastic production function and inefficiency effect model
• Data-primary source from following schemes District ADC Name of the Scheme Population Sample
Badulla Nikapotha Nikapotha Maha 40 23
Haldumulla
Kurundugas Ara 41 30
Udahawela Amuna 50 31
Pambahinna Pambahinna Maha 92 30
Ratnapura Godakawela Bogoda ella Amuna 60 24
Kolonna Hatharaliyadda 84 24
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Model
• The basic model for S F Function;• Yi = f (Xi; β) + Vi - Ui • Where,
– Yi is output or production of the ith farm– Xi is vector of input quantities used by the ith
farm– Vi is a symmetric error– Ui is a non- negative random variable
representing inefficiency
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Estimation procedure
• lnYi = β0 + β1lnx1 + β2lnx2 + β3lnx3 + β4lnx4+ β5lnx5+ β6lnx6+ β7lnx7+ β8lnx8+ (Vi - Ui)
• The function was applied with eight independent input variables in this study
Y = yield in each farm (kg/ac) x1 = seed rate (kg/ac) x2 = inorganic fertilizer (kg/ac) x3 = organic fertilizer (kg/ac) x4 = family labour (man days) x5 = hired labour (man days) x6 = machinery services (Rs) x7 = land extent (acres) x8 = agrochemicals (Rs)
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Results• Efficiency Estimates
Parameters Ratnapura Badulla Coefficient SE t-ratio Coefficient SE t-ratio
222vu 0.154 0.029 5.320* 0.207 0.047 4.365*
γ = 2u / 2 0.99 0.000 1.892E+5* 0.99 0.000 1.482E+7*
Log likelihood 22.645 3.521 LR test 39.559 25.489 Mean Technical Efficiency 74.73%
65.9%
Maximum efficiency 99.99% 99.93% Minimum efficiency 26.5% 25.9%
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Frequency Distribution of Technical Efficiency
Technical efficiency level % of Farmers
Badulla Ratnapura
<30 6 1
30-50 22 5
50-70 34 33
70-90 22 38
>90 16 23
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Factors affecting the technical efficiency
Badulla• Seed rate and family labour – negatively
significant• Use of poor quality seed paddy• Possibility of reducing family labor without
affecting production levels
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Ratnapura• Machinery services and organic fertilizers
have negatively significant relation• Land size, pesticide cost, family labour
have positively significant relationship
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Causes of Inefficiency
Badulla• Type of agricultural employment (-), land
size (+) and selection behavior of short duration variety (-)
Ratnapura• Selection behavior of short duration variety
(-), farmer age (-), and location of farm plot along the channel (-)
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Concluding Remarks• Rice farmers in the Anicut irrigation schemes
exhibiting technical inefficiency in using the productive resources
• The average TE of paddy farming in Badulla and Ratnapura Districts - 65.9% and 74.73%,
• or causing potential production losses of 34.1% and 25.27%.
• Or average farm level output can further increase by 34.1% and 25.7% in the respective districts without changing the existing input level and technology
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• Existing low level of technical efficiency is due to institutional gaps
• Education, training and building capacity of the farmers with new innovations
• Provision of quality seed paddy of short duration varieties to enhance the TE and productivity.
Thank you very much