Measurement of Allocative Efficiency in Tomato Production and its Determinants: Evidence from District Bajaur- Khyber Pakhtunkhwa, Pakistan
Measurement of Allocative Efficiency in Tomato Production and its Determinants: Evidence from District Bajaur- Khyber Pakhtunkhwa, Pakistan
Khuram Nawaz Sadozai1, Amjad Ali1, Munawar Raza Kazmi2, Rizwan Ahmad3 and Hazrat Younas1*
ABSTRACT
Current study was conducted to estimate allocative efficiency of tomato growers in district, Bajaur Khyber Pakhtunkhwa during crop season 2024. Data was collected from 214 tomato growers in tehsil Utman khel villages Gul Dehari and Matako Gulibage through random sampling technique. Cost frontier was arrived by applying self-dual property of stochastic frontier Cobb– Douglas type production function. The estimated average allocative efficiency score was 78 percent, while only 18 % growers have achieved above the 90 % level. 28.51 % respondents’ allocative efficiency varies from 71–80 %, followed by 22.4 % in the range of 81-90 %. Results illustrates, there is still scope to increase production and reduce cost by 22 % at existing level of inputs use and technology available. Tomato yield and inputs cost and land rent were explanatory variables, while total cost was dependent variable. Coefficient for yield is negative which shows that with one percent increase in yield decrease the cost by 0.069 percent. Estimated elasticities for land rent and inputs (seed, labor tractor hours, urea, DAP, farmyard manure, pesticides, and irrigation) cost has positive and significant effect on total cost of production. Optimal mix of inputs could reduce cost of production. In management variables, grower’s age being a proxy for relevant experience and access to extension services were found significant contributors to allocative efficiency. On the other hand, allocative inefficiency has increased with increase in grower’s formal education and family size. Through policies, keeping experienced growers involved in tomato production, reconsidering financial resources allocation to inputs by growers and their technical assistance via extension department could improve allocative efficiency score in study area.
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