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Net Return and Allocative Efficiency of Sugarcane Production in District D.I. Khan, Khyber Pakhtunkhwa

Net Return and Allocative Efficiency of Sugarcane Production in District D.I. Khan, Khyber Pakhtunkhwa

Amjad Ali1, Rajan Shrestha2, Ghaffar Ali1, Irfan Ullah1 and Salman Khan1 

1Department of Agricultural & Applied Economics, The University of Agriculture, Peshawar, Pakistan;2Dry Land Agriculture Institute, West Texas A&M University, Canyon, Texas, USA.

amjad_ali@aup.edu.pk 

ABSTRACT

Sugarcane is the main and industrial crop of Pakistan and a source of direct and indirect employment in the country. Current study was designed to explore net return and resource use efficiency in sugarcane production in district D.I. Khan, Khyber Pakhtunkhwa. To realize the objectives of the study, primary data was collected from 76 sugarcane growers through a well-designed interview schedule. Debartin formula was used to calculate net return, while a Cobb-Douglas type production function (double log form) was employed to estimate sugarcane yield and its determinants in study area. The results revealed that per acre net return after subtracting total cost from gross revenue was Rs. 33,173.65/-. Results illustrate that labor days, seed quantity, tractor hours, urea and pesticides have positive significant effect on sugarcane yield. Resource use efficiency analysis shows that marginal value product (MVP) to marginal factor cost (MFC) ratios for labor days, irrigation, urea, FYM and pesticides are more than unity indicate underutilization of these resources which underlines scope of expansion in these resources. Study results illustrate that land, seed quantity, tractor hours and DAP are over utilized which need readjustment. Study recommends improvement in extension services to guide farmers on proper inputs utilization, low interest rate crop based loans and comprehensive policy of setting right price for output to increase net return and per unit yield. 

 

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Sarhad Journal of Agriculture

June

Vol. 35, Iss. 2, Pages 320-662

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