Benchmarking productive efficiency of selected wheat areas in Pakistan and India using data envelopment analysis

Food demand is bound to increase significantly in future as a result of a growing world population. As a large proportion of the available land and water resources have been developed, there is limited scope for further increase in the use of these resources. Thus future increases in food production will originate from improvements in performance of existing agriculture rather than development of new resources. It is anticipated that wheat demand in the South Asia will rise significantly in future. In order to increase production and overcome diminishing water availability for irrigation, performance of wheat farms must increase. This paper describes the process of benchmarking the productive efficiency of wheat in selected areas of Pakistan and India. Data envelopment analysis (DEA) is used to evaluate and rank productivity performance of wheat growing areas in both countries based on three inputs: irrigation (m(3) ha(-1)), seed (kg ha(-1)) and fertiliser use (kg ha(-1)). The results of analysis show that DEA is an effective tool for analysing and benchmarking productive efficiency of agricultural units. Ranking of productive efficiency based on three inputs is also shown to differ significantly from that based on a single resource (irrigation). Copyright (C) 2006 John Wiley & Sons, Ltd.