Abstract

A stochastic frontier production model was applied to estimate technical efficiency in a sample of Tamil Nadu in Erode district organic and conventional farms. The main purpose was to assess which production technique revealed higher efficiency. Statistical tests on the common production function model suggested that the two cultivation methods might lie on different frontiers. The study covered all the 30 farmers practicing organic farming system. In order to make a comparative study a control group of 30 farmers practicing conventional agriculture were selected from the neighborhood of organic farms. The criteria for selection of these farmers are that they represent the same characters of organic farmers in terms of socio – economic background, geographical location and crops grown. Analysis also estimated that efficiency plays a crucial role into the factors affecting productivity in the organic process. Some policy implications can be drawn from these findings.

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