Allocative Efficiency and Profitability Analysis of High-Tech Cotton-Melon Multiple Cropping System in Punjab, Pakistan
Allocative Efficiency and Profitability Analysis of High-Tech Cotton-Melon Multiple Cropping System in Punjab, Pakistan
Hina Fatima, Lal Almas and Bushra Yasmin
ABSTRACT
This study considered the cost efficiency analysis of cotton-melon cropping system under tunnels. The data were collected from 150 farmers; those were cultivating cotton-melon crops in combination under tunnels. The study area was Punjab, Pakistan. The stochastic cost frontier analysis was used to estimate the allocative efficiency of cotton-melon cropping systems efficiency. The result illustrates that none of the farmers to be optimally using their inputs. The average allocative efficiency was around 75%. Approximately 36 percent of farms allocative efficiency varies from 0.20 to 0.60. Around 60% of farms allocative efficiency ranges from 0.61 to above 0.90. The under and over-utilization of inputs such as land, seeds, fertilizers and pesticides reflect the general performance of the inputs in terms of their degree of changes in cotton-melon output to change inputs reflected by the allocative efficiency analysis. It is indispensable that policies aimed at adapting innovative farming techniques must be implemented in an efficient manner. Effectively implementation of agricultural schemes, formal education and in-formal education should be realized. During and after conducting the agricultural research, it is needed to recommend the farmers about the rate of inputs application i.e. seed, pesticide spray and NPK that are best suited to the local weather patterns and cropping systems.
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