DOI : 10.26480/aedc.01.2025.55.57

ABSTRACT

Technical efficiency assessment plays a vital role in determining agricultural productivity, especially in circumstances where resources are scarce. As a major commercial crop in Nepal, potato (Solanum tuberosum L.) exhibits inadequate cultivation outcomes because of inefficient use of inputs. The Stochastic Frontier Analysis technique and Cobb-Douglas production function were used to evaluate the technical efficiency of potato farmers in Sindhupalchowk district. Similarly, a Maximum Likelihood Estimation (MLE) method was used to analyze data from 80 randomly chosen farmers for efficiency level identification and determinant identification. Mean technical efficiency levels of potato farmers in Sindhupalchowk district were found to be 74.07%, which shows that additional production output of 25.93% is possible through optimization of current farm input usage. A gamma estimation of 0.969 indicates that 96.9% of output change originates from inefficiencies which surpass random factors. The factors that significantly influence efficiency are education, which shows positive results, as well as training, with highly significant positive effects, whereas subsidy access has positive results at p<0.1, however, age results in negative efficiency. The study demonstrates that specific interventions could enhance potato production results. To boost productivity and profitability, the policy should increase farmer training programs, while enhancing the accessibility of subsidies, and strengthening the extension service delivery. The resolution of production bottlenecks creates potential to enhance Nepalese potato cultivation, which supports national food security goals.