STOCHASTIC FRONTIER PRODUCTION ANALYSIS OF TOBACCO GROWERS IN DISTRICT MARDAN, PAKISTAN
Khurram Nawaz Saddozai*, Muhammad Nasrullah* and Noor P. Khan**
The theme of this research was to analyze the stochastic frontier production of tobacco growers. This parametric approach was encompassed to investigate the technical efficiency of growers. The primary data was gleaned during 2014-15 from sampled population of three villages namely Takkar Kali, Garo Shah and Passand Kali of Takhtbhai Tehsil, Mardan district of Khyber Pakhtunkhwa province. The multi-stage sampling technique was utilized to obtain the desired sample size of 120 tobacco growers. The major findings of stochastic production frontier analysis indicate that all variables were statistically significant and have portrayed positive contribution to tobacco production except fertilizer which was found significant but has revealed inverse relation with tobacco production. The mean technical efficiency was estimated at 0.85 depicting that tobacco growers can further amplify efficiency by 15% with given level of inputs. The inefficiency model estimates demonstrate that only experience of tobacco growers in study area was significantly decreasing the inefficiency of the growers. The study has concluded that tobacco growers are operating in the second stage of production; therefore, tobacco production can still be enhanced. It is recommended that season long trainings for tobacco growers may be undertaken by the concerned authorities to enhance the crop management skills for rational use of input.