PGIHS-RC 2017

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https://ir.lib.pdn.ac.lk/handle/20.500.14444/4075

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Browsing PGIHS-RC 2017 by Author "Athukorala, W."

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    Land use, technical efficiency, and farm income in rice farming under major irrigation schemes in Sri Lanka
    (University of Peradeniya, 2017-03-31) Warnakulasooriya, H.U.; Athukorala, W.
    Scarcity of suitable lands is a major limitation in increasing the production of food crops other than rice. Per capita land extent available for annual food crop production is about 0.07 ha. Raising technical efficiency of rice farming increases factor productivity of rice and helps to release land for other food crops. The need for substitution for imports and expansion of exports, and maintaining agricultural income in the midst of a shrinking agricultural share of GDP, exerts pressure on agricultural land use in Sri Lanka. This study evaluates multiple factor input oriented technical efficiency, and single factor technical efficiency of land, in relation to potential land savings and farmer income changes in major irrigation schemes of Ampara, Anuradhapura, Hambantota, Kurunegala, Polonnaruwa districts and Mahaweli systems B, C, and H in the Yala 2009 season, and the above districts and Mahaweli systems plus Mannar district during the Maha 2009/10 season. Data on inputs and output of rice collected from 442 rice farmers in Yala 2009 season and 488 rice farmers in Maha 2009/10 seasons were used to estimate stochastic frontier production functions of Cobb-Douglas form with intercept dummies to represent differences of districts. The estimates of elasticity of production have expected positive signs and are highly significant for land, labour, and machinery services during both seasons. The sums of the elasticities of production indicate agricultural technologies, in general, represent mild increasing returns to scale in Yala 2009, and almost unity returns to scale in Maha 2009/10. The estimated average input oriented multiple factor technical efficiency indices for all districts are 0.76 for Yala season and 0.81 for Maha season. The estimated average land technical efficiency indices are 0.67 for Yala season and 0.76 for Maha season for all districts. The proportionate savings of all inputs would give the highest aggregate income gains to farmers, and the potential welfare loss due to following a strategy of maximizing land savings, when compared with savings of all inputs, is Rs 4.8 billion in the studied districts. The potential aggregate land savings associated with raising technical efficiency are 70,900 ha during Yala season and 58,820 ha during Maha season by proportionate saving of all inputs, and 99,290 ha during Yala season and 73,600 ha during Maha season by maximizing land savings.
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    Welfare implications of raising technical efficiency in rice farming under major irrigation in Sri Lanka
    (University of Peradeniya, 2017-03-31) Warnakulasooriya, H.U.; Athukorala, W.
    Sri Lanka reached self-sufficiency in rice production by the year 2010. The National Food Production Programme (2016-2018) envisages increasing domestic rice production from year 2015 by 24% between 2016 and 2018. A substantial increase of domestic supply would suppress domestic prices and erode welfare of rice farmers. The objective of this study is to examine how raising technical efficiency of rice farmers in areas under major irrigation affects the incomes of rice farmers and consumers. Stochastic frontier production functions of Cobb-Douglas form were estimated for samples of 440 farms under major irrigation of five districts and three Mahaweli systems for Yala 2009, and 488 farms of six districts and three Mahaweli systems in 2009/10 Maha. Results of the stochastic frontier production function analysis were incorporated into classical welfare analysis framework to measure welfare effects of raising technical efficiency. The relationship of the ratio of actual output to estimated output as technical efficiency, and aggregate production estimates are used for estimation of the potential aggregate production in major irrigated areas. Price elasticity of demand of rice was assumed to be -0.75 for the purposes of the study. In the stochastic frontier production functions, estimated elasticities of production are significant at 1% level for land, labour and machinery services for 2009 Yala season, and of land, labour, seed cost and machinery services for the Maha 2009/10 season. The averages of output-oriented efficiency indices are 0.75 of Yala season and 0.81 of Maha season. The potential production increases associated with averages of technical efficiencies, in average are 33% for Yala and 24% for Maha. The welfare losses due to fall of price exceed the gains due to yield increases associated with raising technical efficiency in either season resulting welfare losses to farmers, and gains of welfare to consumers, and to the society as a whole. The estimated loss of welfare in major irrigated areas is Rs 7.5 billion in Yala 2009 and Rs 6.2 billion in Maha 2009/10 with an annual loss of Rs 13.7 billion. However, total welfare gain to consumers is Rs 52.1 billion. The annual producer loss is Rs 25. 7 billion leading to a net social gain of by Rs 27.4 billion.