Technical efficiency of paddy cultivation in anicut schemes in the Walawe Basin

Small run-of-the-river systems (Anicuts) play an important role in irrigated paddy production in Sri Lanka. The total land area under Anicut cultivation is 98,000 ha, benefitting over 333,000 families. Farming under the Anicut schemes is largely smallholder (average 0.3 ha), and the average paddy yield obtained from a hectare of land is about one metric tonne less than the yield of major irrigated areas. As the Anicut schemes are not benefited by reservoirs/storages or major diversions, and are entirely dependent on local rainfall, climate change would make the Anicut farmers more vulnerable. Therefore, increasing efficiency in paddy production is vital to enhancing the productivity and livelihoods of the farmers. This study aimed to measure the farm-level technical efficiency of Anicut farmers in the Walawe Basin. Data collected from162 random farmers in six Anicut schemes in Badulla and Ratnapura districts were used to run the stochastic frontier production function to estimate technical efficiency. Farmer-related exogenous variables causing farm-level variation in technical inefficiency were also assessed. The findings show that the average technical efficiency of the Anicut farmers in Badulla and Ratnapura districts is 65.9% and 74.73%, respectively. This indicates that, in the given mix of inputs used in paddy production, there is a loss of production by 34.1% and 25.27% in Badulla and Ratnapura districts due to inefficiency and allocative errors in the production technique. This paper discusses the determinants of technical efficiency and its relationship with Anicut farmers’ socioeconomic attributes.