Technical Efficiency of Shrimp Farming in Andhra Pradesh: Estimation and Implications

Abstract

Shrimp farming is a key subsector of Indian aquaculture which has seen a remarkable growth in the past decades and has a tremendous potential in future. The present study analyzes the technical efficiency of the shrimp famers of East Godavari district of Andhra Pradesh using the Stochastic Production Frontier Function with the technical inefficiency effects. The estimates mean technical efficiency of the farmers was 93.06 % which means the farmers operate at 6.94 % below the production frontier production. Age, education, experience of the farmers and their membership status in farmers associations and societies were found to have a significant effect on the technical efficiency. The variation in the technical efficiency also confirms the differences in the extent of adoption of the shrimp farming technology among the farmers. Proper technical training opportunities could facilitate the farmers to adopt the improved technologies to increase their farm productivity.