An Analysis of Allocative Efficiency of Growing Onion in District Swat Khyber Pakhtunkhwa

Agricultural sector is an important component of the Pakistan economy. It has blessed with four seasons, therefore its soil is rich to produce all kinds crops, fruits and vegetables. Agriculture sector contributes to the economic benefit of the farming community in Pakistan, therefore analyzing its potential remain major focus in various studies. Current study has been designed with main aim to estimate the allocative efficiency of onion production in District swat. Using multistage sampling technique cross sectional data was collected from 105 sample respondents in three villages (Aboha, Manyar and Parrai) of Tehsil Barikot, district Swat. Simple Linear Regression Model was employed to individual input contribution in total output. The concept of Marginal Value Products and Marginal Factor Cost was used to calculate Allocative Efficiency. Ordinary Least Square technique was used to drive linear production function. The results revealed that Tractor (hrs), Labor (M-days), FYM (kg), chemical fertilizer (kg), pesticide/weedicide (ml), and irrigation numbers have positive effects on onion production in the research area. Allocative efficiency estimates showed that tractor hours, FYM, chemical fertilizer, and pesticide/weedicide are under-utilized having ratios of 22.15, 8.65, 5.49 and 34.69 respectively. Similarly, seed rate and irrigation numbers are over utilized having values of 0.14 and 0.76 respectively. The allocative efficiency value for labor days was 1.07suggests almost near to allocative efficient level. The study recommends season long trainings for optimal resource allocation, availability of inputs at reasonable prices and facilitation of growers in marketing of output, in order to enhance allocative efficiency of onion growers in the study area.