TECHNICAL EFFICIENCY OF MUSTARD PRODUCTION IN JAMALPUR DISTRICT

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Date

2007-07

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Sher-e-Bangla Agricultural University Research System, Sher-e-Bangla Agricultural University, Dhaka, Bangladesh

Abstract

Present study was undertaken to determine the level of technical efficiency and analyse the status of resource allocation for mustard production in Jamalpur districts. The Cobb-Douglas stochastic production frontier model was used to analyse the data. The study revealed that cultivation of mustard is profitable but not at satisfactory level. By cultivating Tory-7 variety of mustard, net return was only Tk 1,5 16/-, and gross margin was only Tk 4,5 I6/- per hectare. The benefit cost ratio (BCR) was I. I I for mustard. All of the fanners were found to have produced outputs with their mean technical efficiency was 80% (efficiency levels varying from 20% to 97%). On average, 20% technical inefficiency appears, which implies that the output per farm can be increased on average by 20% for mustard production under the prevailing technology (with Tory-7 variety) without incurring any additional production costs. Side by side advanced technology (high yielding variety) could be adapted to increase production of this oil crop.

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Keywords

Efficiency, Resource allocation, Cobb-Douglas production function, Problem of mustard production

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