Measurement of technical efficiency in the stochastic frontier production function model: An application to the tea industry in Nilgriis district

Abstract

The study was conducted in the Nilgiris district of Tamil Nadu during this year 1998-99 to estimate technical efficiency in the stochastic frontier production function model. It was found that the co-efficient of labour, FYM and fertilizers, plant protection chemicals and variety for both tea farmers and corporate sector remained significant. It was also identified that about 15.00 per cent of the total farmers who operated the estates belonged to the most efficient category (91-99 per cent) and 65.00 per cent in the least efficient group (64-80 per cent) with a mean technical efficiency of 76.52 per cent. Whereas in the case of corporate units, about 70.00 per cent belonged to the most efficient category (91-99 per cent) and 11.67 per cent in (64-80 per cent the least efficient group with a mean technical efficiency of 86.68 per cent. Therefore, in short run it is possible to increase tea yield on an average by 23.48 per cent in the case of farmers and 13.32 per cent in the case of corporate units by adopting better management practices used by the best performers.

DOI

https://doi.org/10.29321/MAJ.10.A00108

Pages

286 - 291

Creative Commons

Copyright

© The Author(s), 2025. Published by Madras Agricultural Students' Union in Madras Agricultural Journal (MAJ). This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium, provided the original work is properly cited by the user.

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