Macroeconomic determinants of organic farming efficiency: Double bootstrap DEA estimates from the Indian states

In developing nations such as India, organic farming has emerged as an alternative and sustainable agricultural strategy. Therefore, it is critical to determine the key determinants that could effectively enhance the efficiency of organic farming in India and promote its expansion. This study focuses on the macroeconomic determinants that affect the efficiency of organic farming in India. The study utilizes data from 2012-13 to 2017–18 for 22 Indian states and empirically analyses the macroeconomic determinants of organic farming efficiency by incorporating the double bootstrap Data Envelopment Analysis (DEA) method. The efficiency of organic farming is assessed by considering three crucial determinants: human capital, agricultural infrastructure, and agricultural public spending. The empirical evidence suggests minor impact of agricultural infrastructure and public spendings have overall significant and positive impact on organic farming efficiency. Moreover, the allocation of various funds toward agricultural public expenditure would likely to enhance the adoption of organic farming practices in India.