Technical Efficiency in Small Tea Gardens of Assam

Abstract

Although Assam has been the leading producer of tea in India, the small tea growers are a new phenomenon in the state. In the last four decades this sector has experienced tremendous growth. Owners of small plots in the hinterland of eastern Assam have taken to small tea cultivation. The sector has a potential to mitigate underdevelopment; but one needs to understand if there is technical inefficiency in its production. This paper affirms the presence of technical inefficiency and investigates its sources. Our research is based on primary data collected across five districts of eastern and central Assam. Stochastic frontier model has been used to ascertain technical inefficiency. Policy implications are spelled out in the end.