AN EFFICIENCY ANALYSIS OF STATICE CUT-FLOWER: A CASE STUDY OF DISTRICT KASUR, PAKISTAN

Abstract

Farmers in developing countries like Pakistan do not make the best use of all
potential resources; therefore, they make inefficient decisions in their agricultural activities. Primarily
this study aims at estimating efficiency in Statice (cut-flower) production and also investigating some
socioeconomic factors responsible for inefficiency. A survey with a sample of 70 farmers engaged in
the cultivation of Statice cut flower was conducted during the year 2012 in district Kasur of Punjab
province, Pakistan. Purposing sampling technique was employed for the selectrion of the respondents.
The non-parametric Data Envelopment Analysis (DEA) and Tobit regression model was used for data
analysis. The mean technical, allocative and economic efficiency of the sampled farmers were
calculated as 0.86, 0.67 and 0.57 percent, respectively. Results of Tobit Regression model indicated
that the variable, years of schooling as well as irrigation source (canal water), have a negative and
significant impact on technical, allocative and economic inefficiency of Statice cut flower. It was also
found that farmer's flowers growing experience and area under cut-flowers also negatively and
significantly affected inefficiency. It is recommended that government should motivate the educated
and experienced farmers in this venture and the availability of sufficient canal water should be ensured
to the farmers, cultivating Statice cut flower.