Some Non-price Explanatory Variables in Fertiliser Demand: The Case of Irrigated Pakistan

Munir Ahmad, M. Ghaffar Chaudhry, Ghulam Mustafa Chaudhry


It follows from the experience of World economies that rising
and balanced use of fertilisers is the key factor in agricultural
productivity [FAO (1995); SFS and STI (1996); Habib-ur-Rehman (1982) and
Pinstrup-Anderson (1976)]. In the case of Pakistan the stepped up
fertiliser use has been argued to be incritable to realise existing
untapped yield potential of major crops [Johnston and Kilby (1975)] and
to induce yield increasing technological change in future [John Mellor
Associates and Asianics Agro-Dev. International (1993)]. Although proper
malnutrition involves the use of primary, secondary and micro-nutrients,
Nitrogen (N), Phosphorus and Potassium (K) or NPK is generally
considered to be sufficient to harvest normal crop yields [FAO and IFA
(1999)]. Given this situation, this paper looks at various factors that
determine fertiliser use in Pakistan. Although price of fertiliser is a
critical factor in this respect [Schultz (1965) and Johnston and Cownie
(1969)], only non-price factors are considered in this paper due to
limitations of data. Apart from this introductory section, the paper
comprises of three more sections. The following Section 2 explains the
data and the empirical model. Section 3 presents the results. Section 4
summarises the main findings along with their policy

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