Technical efficiency of carp production in India: a stochastic frontier production function analysis

This paper aims to examine the levels and determinants of technical efficiency in carp pond culture in India. The stochastic production frontier technique involving the model for technical inefficiency effects is applied separately to samples of semi‐intensive/intensive and extensive carp producers interviewed during 1994–95. The results showed significant technical inefficiencies in carp production in India, especially among extensive farms. The mean technical efficiencies for semi‐intensive/intensive and extensive sample farms were estimated to be 0.805 and 0.658 respectively. By operating at full technical efficiency levels, the semi‐intensive/intensive farms could, on average, increase their production from about 3.4 Mt ha^?1 to 4.1 Mt ha^?1. Likewise, the extensive farms could increase their production from 1.3 Mt ha^?1 to 1.9 Mt ha^?1. Much of these efficiency gains would come from improvement in the adoption of recommended fish, water and feed management and monitoring practices. Besides expanding production area, the results indicated several other possibilities for increasing carp production in India by increasing yields per hectare, such as: (1) increased intensification of carp culture (i.e. moving from extensive to semi‐intensive or intensive systems); (2) improvement in technical efficiency at the farm level; and (3) technological progress. However, the realization of these potentials will depend on continuous efforts by the government in ensuring an adequate supply of inputs, technology transfer and development and adequate provision of research, extension and credit services in aquaculture.