Faculty of Management and Commerce South Eastern University of Sri Lanka Oluvil # 32360 Sri Lanka
Abstract
This study focused on measuring the technical efficiency ofpaddy cultivation, to explore
ways of increasing yield and productivity in the Ampara and Batticaloa districts. Both
primary and secondary data were used in this study. Earlier studies revealed of stagnation
in production and productivity of paddy since 1995 in both districts. The primary data
were gathered through personal interviews among 100 farmers from each district for Yala
(irrigatedpaddy) andMaha(rainfedpaddy) during 2001/2002period. In Ampara district
the areas selectedfor field survey were Ninthavur and Akkaraipattu; while in Batticaloa
district the areas selected were Kalawanchikudy and Vantharumoolai. The analytical
framework used in this study was the Maximum Livelihood Estimates (MLE) of the
Stochastic Frontier Model estimated with the 'Frontier 4.1" computer software.
Results of the study indicated significant differences in productivity, resource use and
technical efficiency in both Ampara and Batticaloa districts. The average yield/acre in
Ampara district in Yala was 20 % higher than in the Batticaloa district, while the figure
was 8 % higher in Maha season. Total cost of production was higher in Ampara district
for both seasons when compared to Batticaloa district. This was mainly attributed to the
higher level of input use in Ampara district.
Productive efficiency analysis indicates that the average technical efficiencies of paddy
production were 64% and 82% in the Ampara and Batticaloa districts respectively. Also
only about 12% and 61 % farmers in Ampara and Batticaloa districts respectively had a
technical efficiency of over 80% during Maha season; while during Yala season the
technical efficiency figures were 30% and 76% respectively. Overall the study revealed
that Batticaloa district farmers were more efficient in production and over 60% of farmers
had a technical efficiency of over 80% during Yala and Maha seasons. This is attributed
mainly to small farm size in Batticaloa district.
The findings suggest that increasing technical efficiency is the best approach of enhancing
paddy production in both the districts. As both the two districts command a larger share of
the total paddy production in the country, a concentrated effort should be made to raise
their level of technical efficiency in the future.South Eastern University of Sri Lanka
Oluvil # 32360
Sri Lank