Efficiency Evaluation of Farmer Producer Organisations in Sikkim: A DEA Approach


Published On: 2023-12-18 16:38:27

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Author: Rajiv Gurung and Manesh Choubey

Author Address: Assistant Professor, Department of Economics, Sri Sathya Sai Institute of Higher Learning, Prasanthi Nilayam Campus, Puttaparthi-515 134 (Andhra Pradesh) and Professor, Department of Economics, Sikkim University, Gangtok-747 102 (Sikkim)

Keywords: Data envelopment analysis, farmer producer organisations, organic farming, technical efficiency.

JEL Codes: C67, C80, Q13.


Abstract

Using Data Envelopment Analysis (DEA), this study estimated technical, scale, and pure technical efficiencies for 20 Farmer Producer Organisations (FPOs) in India's hilly state, Sikkim. Despite the financial and non-financial support provided by the central government and many other incentives provided by the state government, the findings indicated that the performance of FPOs in Sikkim was not satisfactory. Only 25 per cent of the sampled FPOs in the state were efficient. The mean values of TE, PTE and SE of FPOs were 0.656, 0.819, and 0.769, respectively. It was found that scale inefficiency was the primary source of technical inefficiency, followed by pure technical inefficiency. The results suggested that FPOs in Sikkim face challenges and need immediate action.


Description

Indian J Econ Dev, 2023, 19(4), 823-830

https://doi.org/10.35716/IJED-22402