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Allocative Efficiency of Tomato Growers in District Mardan, Khyber Pakhtunkhwa Province of Pakistan

Allocative Efficiency of Tomato Growers in District Mardan, Khyber Pakhtunkhwa Province of Pakistan

Mehran Ahmad, Syed Attaullah Shah and Shahid Ali* 

Department of Agricultural and Applied Economics, The University of Agriculture, Peshawar, Khyber Pakhtunkhwa, Pakistan.

drshahid@aup.edu.pk  

ABSTRACT

 This study was carried out to identify major determinants that influence tomato yield and estimate allocative efficiency of tomato growers in district Mardan of Khyber Pakhtunkhwa province of Pakistan. The study was based on primary data, collected from a sample of 105 tomato growers selected through multistage random sampling procedure. Data was collected through a well-designed interview schedule during January-July, 2018. Cobb-Douglas type production function was used to estimate effect of important determinants on tomato yield. Results showed that the estimated coefficient of net farming (dummy) is 0.25; implies that tomato yield with net farming is 25 percent more than traditional production technology. DAP, Nitrate and Urea, labor and FYM had positive significant effects on tomato yield. Estimated allocative efficiencies of DAP, Nitrate and FYM, were greater than 1, indicating that growers were underutilizing these inputs. This might be due to growers’ lack of knowledge or budget constraint. Nitrophous and chemicals were over utilized as their allocative efficiencies were less than 1. The study recommends that government may provide subsidized inputs and interest free production credit to poor farmers for purchase of chemical fertilizers for optimal utilization of these inputs.

 

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Sarhad Journal of Agriculture

September

Vol. 35, Iss. 3, Pages 663-1019

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