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Supply Response Analysis of Wheat Growers in District Swabi, Khyber Pakhtunkhwa: Farm Level Analysis

Supply Response Analysis of Wheat Growers in District Swabi, Khyber Pakhtunkhwa: Farm Level Analysis

Farhan, Shahid Ali* and Syed Attaullah Shah 

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

drshahid@aup.edu.pk  

ABSTRACT

This study estimated output supply and input demand elasticities of wheat growers in district Swabi of Khyber Pakhtunkhwa, Pakistan. For this purpose, 160 wheat growers were selected through multi-stage stratified random sampling technique. Primary data was collected through well designed interview schedule. Normalized restricted trans log profit function was first approximated for further estimation of output supply and input demand elasticities. Results indicated that response of output supply to the price of wheat and land was positive and elastic. Output supply in response to wage rate was negative and inelastic. Output elasticity in response to fertilizer price was negative and elastic. Education has positive relation with the output supply but inelastic. Labor demand in response to output price, land and education was positive and elastic. Labor demand in relation to wage rate and fertilizer price was negative and elastic. Fertilizer demand in relation to wheat price, land and education was positive and elastic. Wage rate has negative and inelastic effect on fertilizer demand. Own price elasticity for fertilizer demand was negative and elastic. Profit elasticities of wheat as a result of wheat price, fertilizer price and land were positive and elastic. Response of profit to wage rate and education was positive but inelastic. It is recommended that government needs to set and declare increased procurement price of wheat prior to sowing season. This in response will lead to more supply, employment and profit. Wheat growers need to be facilitated with subsidized prices of fertilizer to encourage its application that will raise output and profit of wheat growers. Trainings of wheat growers for optimal application of inputs for wheat crop be arranged at regular intervals by concerned departments for efficient utilization of resources and increased output. 

 

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Sarhad Journal of Agriculture

September

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

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