Economic Efficiency of Banana Production in Uttara Kannada District of Karnataka, India

Abstract

Aim: Banana cultivation holds significant agricultural importance, contributing substantially to global dietary staples. This study Examines the economic efficiency of banana production in Uttara Kannada district. Sampling Design: Employed purposive and multistage sampling, the study focuses on Sirsi and Siddapur taluks, selecting 80 farmers through random sampling. Methodology: The research examines resource utilization by employing the Cobb-Douglas production function and evaluate efficiency levels by Data Envelopment Analysis (DEA). Results: Allocative efficiency in banana cultivation is apparent through positive MVP/MFC ratios for inputs like suckers (15.89), manure (1.91), fertilizers (7.21), machine labor (1.75), and propping material (6.66), indicating underutilization. Conversely, plant protection chemicals (-22.35) and human labor (-1.20) show negative ratios, signifying overutilization. The ratio of MVP to MFC was differed from unity indicating scope for reallocation of expenditure among various resources. Using Data Envelopment Analysis, individual farm technical and economic efficiency was assessed. Banana, Crop I had a mean technical efficiency of 70.30, while Crop II had 49.40. The results highlight room for improvement, especially in Crop II, emphasizing the need for better resource allocation. Major production constraints include labour scarcity, poor planting material, and pest issues. Marketing hurdles encompass price fluctuations, limited storage, and distant markets. Conclusion: The study emphasizes the banana cultivation revealed significant impacts of resource utilization on yield, with suckers, fertilizers, and plant protection chemicals showing substantial effects. Allocative efficiency analysis indicated underutilization of resources, suggesting potential for yield improvement. However, farmers face challenges including labour scarcity, quality planting material, price fluctuations, and inadequate storage facilities in production and marketing.