Abstract:
Chilli is one of the major cash crops grown in Sri Lanka. The resource use
efficiency in chilli production has a significant contribution to household income.
Technical efficiency is determined by several efficiencies and inefficiency
variables. The major objective of this study was to analyse the resource use
efficiency and its contribution to household farm income in Manmunai South and
Eruvilpattu DS divisions. Quantity of urea, NPK, organic fertilizer and pesticides
and method of irrigation were included as explanatory variables in the
production function. Age of farmer, education, involvement, experience,
extension services and the number of plants in the field were considered as the
factors for the inefficiency of chilli production. Descriptive statistics, and Cobb
Douglas stochastic frontier production function were used to analyse data. The
result of this study shows that, in Cobb Douglas production function, the
coefficient of urea (0.1) is positive and significant. It indicates that if the
quantities of urea per plant increase by 1%, it increases the yield of green chilli
per plant by 0.1% while other things equal. In the inefficiency model, the number
of plants in the farm was positive and significant. The coefficient of number of
plants indicates that number of plants in the farm increases by 1000 units, the
inefficiency of the farm increases by 2%. The average technical efficiency of chilli
production in this study area is around 81%. Variations in the efficiency of chilli
productivity in the farms were around 81%. Therefore, there is high potential to
increase the efficiency in chilli production by 19% with available current
technology. This study indicates that small chilli farms are more efficient than
large chilli farms. Therefore, Department of Agriculture should provide materials
and technical assistances to small farms to increase the efficiency and chilli total
production in this study area.
