Economic efficiency of litchi (Litchi chinensis) production in selected areas of Dinajpur District
1Department of Economics, Faculty of Social Science and Humanities, Hajee Mohammad Danesh Science & Technology University, Dinajpur 2School of Economics and Finance, Xi’an Jiaotong University, Xi’an, Shaanxi, China. 3Department of Economics, Pabna University of Science and Technology, Pabna-6600, Bangladesh. Corresponding e-mail: yahia.bapari@pust.ac.bd
DOI: https://doi.org/10.37855/jah.2026.v28i02.54
This paper examines the productive efficiency of litchi growers using the Stochastic Frontier Approach (SFA) based on primary data from 164 farmers. The model provides estimates of the effects of several important inputs, including fixed and variable land, labor, and fertilizers, and other farm resources, on litchi output, and?it also decomposes technical inefficiency from random shocks. The results show that litchi production is significantly and positively correlated with land size and human labor, highlighting scale effects and labor intensity in litchi cultivation. The adoption of chemical inputs, such as urea, TSP, and MoP, also has a positive coefficient, though the negative coefficient on DAP may indicate nutrient misuse or imbalance. Although pesticides are primarily used for pest management, their application can significantly increase crop production by reducing pest-related losses. On the other hand, the effects of irrigation cost and cow dung are weak or negative, suggesting the possibility of improving?water and organic input application. The technical efficiency of litchi growers is relatively high, with over 91% on the efficient frontier; yet economic efficiency varies with access to markets, input cost management, and ease of profitability. The paper argues that such output uncertainty is largely due to exogenous shocks rather than inefficiency, thereby underscoring the importance of risk management alongside technology adoption. Results are consistent with the Sustainable Development Goals in reducing global objectives for sustainable agriculture, decent work, responsible use of inputs, and climate resilience. The results are useful for policymakers in formulating measures to enhance litchi productivity and farmers’ income in the country by intervening in land access, labor productivity, input use management, and market linkage systems.
