Technical Efficiency of Paddy Cultivation in Anicut Schemes in the Walawe Basin

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Mol

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A water-secure worldwww.iwmi.org

Technical Efficiency of Paddy Cultivation in

Anicut Schemes in the Walawe Basin

Mohamed AheeyarThilani Padmajani

www.iwmi.orgA water-secure world

Background

Photos: Mohamed Aheeyar / IWMI


Statistics Sri Lanka• Total anicuts- 12,950• Command area- 98,416 ha• Famer families- 333,400• Average land holding- 0.3 ha


Walawe Basin

• No. of Anicuts- 750• Command area-

6550 ha• Famer families-

20,000


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


• 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


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


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


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


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


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)


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%


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


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


Ratnapura• Machinery services and organic fertilizers

have negatively significant relation• Land size, pesticide cost, family labour

have positively significant relationship


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 (-)


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


• 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

Technical Efficiency of Paddy Cultivation in Anicut Schemes in the Walawe Basin

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