The paper examined the resource use efficiency of small Bt cotton farmers of Punjab province of Pakistan using the production function approach. Data for the study were obtained from 150 randomly selected Bt cotton farmers from Punjab province using a multistage sampling procedure and then categorized into small, medium and large farmers. Average farm size of small farmer was found to be 5 acres. Regression results indicated that Fertilizer, Spray Number, Irrigation acre inch and labour cost were significantly affecting Bt cotton production while farm size was found non significant. The resource use efficiency analysis showed that efficiency ratios i.e. MVP/MFC for inputs fertilizer (Kg), spray number, irrigation (acre inch) and labour cost (Rs) were found to be 1.5, 3.94, 3.01 and 1.27, respectively. All the efficiency ratios, more than unity indicated the under utilization of all the production inputs under consideration in case of small Bt cotton farmers. Bt cotton production for small Bt farmers had an increasing return to scale with elasticity of production 1.27. Opportunities still exists to increase Bt cotton output in the study area by increasing the level of above mentioned productive resources.
