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Allocative Efficiency of Tobacco Production in District Mardan, Pakistan

Allocative Efficiency of Tobacco Production in District Mardan, Pakistan

Khurram Nawaz Saddozai1, Muhammad Nasrullah2, Jahangir Khan3*, Syed Attaullah Shah1, Raheel Saqib4, Naheed Zahra5 and Mansoor Rasheed6

1Department of Agriculture and Applied Economics, The University of Agriculture, Peshawar, Khyber Pakhtunkhwa, Pakistan; 2Department of Agriculture and Management, Northeast Agricultural University, Harbin, China; 3Department of Economics, Bacha Khan University, Charsadda, Khyber Pakhtunkhwa, Pakistan; 4Department of Agricultural Extension Education and Communication, The University of Agriculture Peshawar, Pakistan; 5Senior Scientific Officer, ALP, P&DD, PARC, Islamabad, Pakistan; 6Department of Agricultural Economics, Baluchistan Agriculture College, Quetta, Pakistan.

 
*Correspondence | Jahangir Khan, Department of Economics, Bacha Khan University, Charsadda, Khyber Pakhtunkhwa, Pakistan; Email: drjahangir@bkuc.edu.pk 

ABSTRACT

A state of the economy in which output reflects customer desires is known as allocative efficiency. Every good or service is manufactured until the last unit supplies consumers with a marginal gain equal to the marginal cost of production in an economy. The study in hand was designed to assess the allocative efficiency of tobacco growers during 2019. Primary data was collected through face to face interview and a sample of 120 tobacco growers was selected. These growers were randomly selected from three villages namely Takar Kaly, Garo Shah, and Pasand Kaly of tehsil Takhtbai, district Mardan of Khyber Pakhtunkhwa. Empirical findings reveal that labour, chemical, irrigation, seed, poultry manure, and tractor have positive and statistically significant effects on tobacco production. Results of the study also corroborate an insignificant relationship of fertilizer with tobacco production. Findings of the study also showed that the allocation of inputs utilized during production e.g. labour, irrigation, seed, poultry manure and tractor are under-utilized, chemical is optimally-utilized while fertilizer is over-utilized by the growers in the study area. Therefore, this study suggests a rational use of fertilizer and recommends keeping the quantity of chemical use constant.

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Pakistan Journal of Zoology

June

Pakistan J. Zool., Vol. 56, Iss. 3, pp. 1001-1500

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