Technical, Allocative, and Economic Efficiency Among Wheat Producers, (Case Study: Dahne Ghori District)

Abstract

Wheat is the staple food in many third-world countries and no other crop has been able to diminish the significance of this staple in the food basket. Therefore, its role in the development process is of paramount importance. Wheat is one of the major cereal crops utilized and exploited for various purposes and provides numerous products for human sustenance. The overall objective of this study is to investigate the technical, allocative, and economic efficiency of wheat producers in the Dahne Ghori district. The target population for this study comprised wheat producers in the Dahne Ghori district of Baghlan province, and information was collected from 100 sampled wheat farmers using the Cochrane formula. The findings indicate that the technical efficiency of wheat farmers in Dahne Ghori ranges from a minimum of 22.7 to a maximum of 100 percent, with an average technical efficiency of 58.3 percent in this district. These results suggest that through better management of wheat production units; it is possible to increase production by 41.7 percent with the same input levels. The allocative efficiency of wheat production units in Dahne Ghori varies from 2.8 to 84 percent, with an average allocative efficiency of 45 percent. This conclusion signifies that through proper resource allocation; farm efficiency can be improved by up to 55 percent. The economic efficiency of wheat farms in Dahne Ghori ranges from 2.2 to 84 percent, with an average of 25 percent. This outcome indicates that by enhancing management practices, economic efficiency can be enhanced by 75 percent. Overall, the research findings demonstrate that a majority of wheat farmers are inefficient. Therefore, it is crucial to prioritize proper management and optimal resource allocation to achieve efficiency. Moreover, government intervention through appropriate policies is essential to enhance productivity of wheat farms, which is a strategic and essential commodity.