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Profit Efficiency Among Basmati Rice Producers in Pakistan Punjab
Author(s) -
Ali Mubarik,
Flinn John C.
Publication year - 1989
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1241587
Subject(s) - inefficiency , profit (economics) , hectare , economics , agricultural economics , gross profit , marginal profit , agricultural science , business , agriculture , microeconomics , environmental science , geography , archaeology
Farm‐specific profit inefficiency among Basmati rice producers was estimated from a variable‐coefficient profit frontier. The mean level of inefficiency at farm resources and price levels was 28%, with a wide range (5%–87%). Average loss of profit was Rs 1,222 per hectare. Socioeconomic factors related to profit loss were the farm household's education, nonagricultural employment, and a credit constraint. Institutional determinants of profit loss were a water constraint and the late application of fertilizer. Punjab‐wide benefits of increasing farmer's profit efficiency are large; a 25% reduction in profit loss among Basmati rice producers may generate over Rs 240 million in extra profits each rice season.