Economic Efficiency of Farmers Adopting E-Commerce for Production and Marketing of Chilli in Guntur District of Andhra Pradesh

Author: Malleswari B., Uma Devi K., Srikanth Rupavatharam and Suseela K.

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Abstract

In this study, technical, allocative and economic efficiencies and determinants of technical and economic efficiency of farmers adopting e-commerce for chilli production and marketing in Guntur district of Andhra Pradesh was estimated. The platform selected for the study was Kalgudi Digital platform. The farmers purchase inputs such as tarpaulins, silpaulins, seed, plant-protection chemicals etc., from Kalgudi. Proportionate sampling was used to select respondents from six FPOs for the study. Data envelopment analysis was used to determine the efficiencies of the farmers. Multiple-input and single output variable returns to scale (VRS) DEA was used to measure the efficiencies of farmers. Tobit regression model was used to analyse the determinants of technical and economic efficiencies. The results of the study revealed that, the average technical, allocative and economic efficiency of adopters were, 0.953, 0.653 and 0.626 and that of non-adopters were 0.874, 0.664 and 0.582. The entire adopter and non-adopter sample was pooled, and efficiency was calculated to determine the determinants of technical and economic efficiencies using Tobit model. But the results cannot be implied to the entire state as the study has been conducted in one district of Andhra Pradesh with selected sample of farmers. This is the major drawback of the study. The study had contributed to determine the excess inputs that are used by the farmers, so that they can reduce their usage during the cultivation process.

Keywords

e-commerce, Kalgudi, DEA, Tobit, FPO, chilli, Guntur

Conclusion

The study established that chilli farmers are inefficient in the production with mean technical, allocative and economic efficiency levels of 0.875, 0.503 and 0.453, respectively. However, adopters are more efficient than non-adopters both technically and economically but allocatively less efficient. This may be due to using high quantities of inputs by adopters. The adopters were using the inputs in higher excessive quantities (land 1.82%, fertilizer 31.02%, PPC- 50.73%, Human labour- 53.98%, Machine 33.22% and animal 25.51%) than non-adopters (land- 63.97%, fertilizer 8.6%, PPC- 10.92 %, Human labour- 5.7%, Machine 5.47% and animal -6.55%). Only excessive usage of land, seed and FYM and other inputs were higher in non-adopters. This indicate that the non-adopters should reduce the usage of inputs and choose much cost-efficient inputs and adopters should properly allocate their inputs in a cost-efficient manner. Another reason for lower AE of adopters is due to high TE of adopters (as AE = EE/TE). A Tobit regression analysis results reveal that the farmer should attend more training programmes and should reduce the cost associated with labour. He should attain credit from authenticated sources like banks with reasonable interest rates rather than unauthorised sources like middleman. Finding of the study implies that there should be strategies to improve the farmer technique and fulfil the standard requirement so as to further improve the chilli production efficiency in Guntur District of Andhra Pradesh. Moreover, policies and strategies should also support the adoption of new technologies by the farmer. Furthermore, farmers’ associations should also be re-structured in personnel and technology in order to ensure member are benefited from their adoption and improve their resource use efficiency.

References

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How to cite this article

Malleswari B., Uma Devi K., Srikanth Rupavatharam and Suseela K. (2023). Economic Efficiency of Farmers Adopting E-Commerce for Production and Marketing of Chilli in Guntur District of Andhra Pradesh. Biological Forum – An International Journal, 15(3): 147-155.