This paper analyses efficiency and productivity changes in 12 broad segments of
food manufacturing industries during pre and post liberalisation periods, covering a
period of two decades, from 1980-1981 to 2001-2002. The nonparametric Data
Envelopment Analysis (DEA) approach is used to compute the Malmquist Total
Factor Productivity (TFP) change, which has been further decomposed into
efficiency and technical change. This paper also evaluates the performance of major
inputs used in the food processing industry and identifies the causes of inefficiency
across various segments. Based on the findings, the paper gives suggestions that
can be used by policy makers and food processors in making decisions regarding
various technical and managerial aspects to improve productivity and efficiency.