Resource Use and Technical Efficiency of Soybean Production in Madhya Pradesh: A Data Envelopment Analysis Approach

Abstract

The resource use-efficiency of soybean production has been computed using primary data collected from 120 soybean growers spread over two blocks each from two selected district Vidisha and Ujjain of Madhya Pradesh. The Use of “DEA” as an analysis method was adopted for this work. The study revealed that the mean technical efficiency of soybean crop regarding most of the farmers were found to be 69 percent which indicated that production of crop may further be raised by 31 percent with available technology. The allocative efficiency of the mean estimated as 0.69, indicating that indicated that the farmers could be minimize cost by 31 percent through using optimum combination of inputs keeping in mind their prices while selecting their quantities. The cost efficiency asserted that farmers may be reduce their overall cost of soybean production up to 73 percent to harvesting the existing level of output at least cost. Undoubtedly, the export of soybean from the state has increased during the period of investigation. Therefore, efficiency measures highlight considerable scope to enhance resource uses by least cost processing through use of appropriate quality combination of inputs and output. The study has also suggested that some measures to increase productivity and income of the farmers in the study area.