Economic Analysis of Fertilizer use and its Price Variability Effects on Wheat Productivity in Punjab- A Case Study of Faisalabad
Economic Analysis of Fertilizer use and its Price Variability Effects on Wheat Productivity in Punjab- A Case Study of Faisalabad
Sadia Rashid1, Muhammad Waqas Alam Chattha2, Almazea Fatima1*, Muhammad Farooq Hyder3 and Nazia Tabasam1
ABSTRACT
Pakistan is mainstay of its economic development and known as an agricultural country. In the agriculture sector, wheat is the most important crop cultivated in the largest areas in almost every part of the country. In wheat production, fertilizer is one of the important inputs like other crops. In the current growing season, the shortage of fertilizer on the one hand and the higher prices, on the other hand negatively effecting the use of this input in wheat production. This study was designed to identify the impact of fertilizer shortage and their high prices effect on fertilizer use and their subsequent impact on wheat productivity. This study was carried out in the Faisalabad district. Data were collected from 110 farmers in the district of Faisalabad. For data analysis, statistical packages for social sciences and Microsoft Excel were used. The results of the wheat productivity analysis show that the wheat yield was 36 percent lower among sampled farmers. Profitability analysis reveals that fertilizer cost are the highest among the other production costs, accounting for 33.90 percent of the total cost. The value of the benefit-cost ratio is 1.17 in 2022 and 1.42 in 2021 which shows that the net return of the farmers is 25 percent greater than their cost in 2021 and decreases in 2022. The result of study demonstrated that increasing fertilizer prices led to decrease wheat yield. Random-effect regression shows that all the independent variables have a significant effect on wheat yield 2022 as compared to the recent year. The value of R2 shows variation in the model due to the independent variables. The main increase was observed in DAP, urea, NPK, pesticide cost and quantities. It is suggested that there is a need to lower the fertilizer prices, timely availability of fertilizer, pesticide, and seed. The reason for the decline in wheat productivity was mainly attributed to less use of fertilizer due to soaring prices. Consolidated efforts could be used to improve the market price of wheat by lowering the prices of fertilizer.
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