Prahlad K. Thapa

Ministry of Agriculture, Kathmandu, Nepal

DOI

ABSTRACT

This study examined the technical efficiency in contractual vegetable seed production in the Eastern Hills of Nepal. It used primary data collected for a period of July 1996 to June 1997. A modified translog frontier production function was used to derive the efficiency measures. The measured mean technical efficiency in seed production was 89.68%. It shows that production can increase by improving the technical efficiency thereby reducing per unit cost of seed. Farmer’s education and experience can significantly improve efficiency. Production in more remote district was significantly lower than that in more accessible district. It was also related to the finding that farmers who visit technical information centers more frequently were technically more efficient than others. Moreover, farms farther from the source of inputs were technically less efficient. Because vegetable seed production is purely a market- oriented program, these findings point to the need to review the policy of encouraging vegetable seed production in remote areas.