The technical efficiency of vacuum-pan sugar industry of India: An application of a stochastic frontier production function using panel data

A stochastic production frontier method is used to examine technical efficiency among Indian vacuum-pan sugar factories over a five-year period. Most factories are close to Indian best practice in terms of technical efficiency. Smaller firms and firms with access to sweeter cane are likely to be more efficient than other firms, while publicly owned firms are less efficient. There are transitory positive effects of a long crushing season on technical efficiency.