Some Non-price Explanatory Variables in Fertiliser Demand: The Case of Irrigated Pakistan

In: The Pakistan development review: PDR, Volume 39, Issue 4II, p. 477-486

Abstract

It follows from the experience of World economies that rising
and balanced use of fertilisers is the key factor in agricultural
productivity [FAO (1995); SFS and STI (1996); Habib-ur-Rehman (1982) and
Pinstrup-Anderson (1976)]. In the case of Pakistan the stepped up
fertiliser use has been argued to be incritable to realise existing
untapped yield potential of major crops [Johnston and Kilby (1975)] and
to induce yield increasing technological change in future [John Mellor
Associates and Asianics Agro-Dev. International (1993)]. Although proper
malnutrition involves the use of primary, secondary and micro-nutrients,
Nitrogen (N), Phosphorus and Potassium (K) or NPK is generally
considered to be sufficient to harvest normal crop yields [FAO and IFA
(1999)]. Given this situation, this paper looks at various factors that
determine fertiliser use in Pakistan. Although price of fertiliser is a
critical factor in this respect [Schultz (1965) and Johnston and Cownie
(1969)], only non-price factors are considered in this paper due to
limitations of data. Apart from this introductory section, the paper
comprises of three more sections. The following Section 2 explains the
data and the empirical model. Section 3 presents the results. Section 4
summarises the main findings along with their policy
implications.