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Demand for Fruit Quantity and Quality in Pakistan: A Comparison of Urban and Rural Households

Demand for Fruit Quantity and Quality in Pakistan: A Comparison of Urban and Rural Households

Abbas Ullah Jan1, Muhammad Fayaz1*, Yousaf Hayat2, Dawood Jan3 and Ghaffar Ali3 

1Department of Agricultural and Applied Economics, The University of Agriculture, Peshawar, Pakistan; 2Department of Maths, Stats and Computer Sciences, The University of Agriculture, Peshawar, Pakistan; 3Department of Agricultural and Applied Economics, The University of Agriculture, Peshawar, Pakistan.

mfayaz@aup.edu.pk 

ABSTRACT

This study was carried out to estimate demand for fruit quantity and quality for urban and rural households using household income and expenditure data of Pakistan Social and Living Standard Measurement (PSLM) survey 2005. The log-log-inverse econometric model, representing nonlinear Engel curve relationship proved to be a valid estimation technique for fruit consumption in Pakistan. The results show that quantity elasticity with respect to income is constant for dates, grapes, guava and mango and tends to increase in all fruits, apple, banana and citrus with increase in household income for urban households. For rural households with increase in household income, quantity elasticity of all the fruits tends increase with the exception of grapes where it decreases and remains constant in dates. The estimated quality elasticities reveal that both the urban and rural households purchase higher quality fruits as their income rise and are willing to pay a higher price for enhanced quality. Compared to rural households, the urban households are more responsive to quality in all fruits as a group and apple, banana, and grapes individually. Quality response is more in dates, mango and particularly guava for rural households. Empirical evidence suggests that there exists greater potential of increased profits for entrepreneurs involved in the production and marketing of fruits if they focus on quality enhancement as both the urban and rural households are willing to pay a higher price for higher quality fruits. 

 

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Sarhad Journal of Agriculture (Associated Journal)

September

Vol. 33, Iss. 3, Pages 338-500

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