Resource allocation efficiency of the prawn-carp farmers of Bangladesh

Abstract

This paper evaluates resource allocation efficiency of prawn-carp polyculture systems by making use of the data of 105 farmers of Bangladesh. Data Envelopment Analysis (DEA) was employed to estimate the efficiency. Mean technical efficiency (TE), allocative efficiency (AE) and cost efficiency (CE) were 85%, 58%, and 49%, respectively. Fifty percent of prawn-carp farmers displayed full TE whereas only 9%were cost efficient. Actual input application largely deviated from the technical and cost-efficient levels. TEs and AEs showed a positive and negative correlation with pond size, respectively. Labor, fingerlings and feed were overused while organic and inorganic fertilizers were underused in general. Adjustments in actual input allocations were necessary to make use consistent with TE and CE levels. The study concludes that mere achievement of technical efficiency in prawn-carp production may be a short-run concern; the farmers have to be economically efficient in the long-run.