Year: 2017 | Month: August | Volume 10 | Issue 4
Economic Efficiency of Pecan Nut Production: An Application of Output Oriented DEA Model
Abstract:
The economics of pecan nut production in Poonch district of Jammu & Kashmir state was assessed using output oriented DEA model. The NPV and profitability index were positive and the internal rate of return (IRR) was 14% which shows that investing in pecan nut orchard will be a profitable venture until the market interest rate remain below 14%. The results of output oriented model revealed that growers were efficient in terms of pecan nut production at given level of inputs, with mean overall technical efficiency of 0.922, mean pure technical efficiency of 0.949 and mean scale efficiency of 0.972. The real output obtained was 40.65 quintals per acre which was 4.97% less than the optimum output (42.68 quintals/acre) at used level of inputs. Although, the difference in actual and targeted output was less, the percentage of farmers obtaining less than the optimum output was quite high i.e. 44%.
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