Profit Efficiency among Transplanting and Direct Seeded Rice Producers (Case Study of Certain Rice Growing Areas of Province Punjab, Pakistan)

Profit efficiency of transplanted rice production (TRP) and direct seeded rice system (DRS) is gaining greater attention in Pakistan. Profit efficiencies of TRP and DRS are estimated with data from farmers belonging to various districts of Punjab. Gujranwala, Hafizabad, Sheikhupura, Jhang and Sialkot are the major rice producing areas of Punjab. The primary data is collected from the above mentioned areas through random sampling. Stochastic Frontier Analysis (SFA) serves as a tool of obtaining reliable estimations of profit efficiency of rice production. Findings from SFA reveal profit efficiency of rice farmers for TRP to be 57% and 83% for DRS farmers. The results further Bring to light the loss of 43% profit of TRP and 17% profit loss of DRS due to unsuitable combinations of inputs. Direct seeded rice farmers displayed more efficiency compared to the transplanted rice farmers. However, for DRS and TRP farmers’ opportunities still exist to maximize profit through adopting improved farming practices and production techniques. Moreover, the results also demonstrated that farmer’s education, age, farming experience, extension service facility and land tenancy considerably effects profit efficiency of rice producers. Therefore, the efficiency of rice farmers can be improved through increase in the number of educated people in farming system, and the enrichment of extension services in the rural areas.