Economic Analysis of Fertilizer Demand in the Punjab

Abdul Salam


It is a well known fact that increased use of purchased farm
inputs, such as chemical fertilizers, pesticides, seeds and farm
machinery, etc., has been associated with a substantial increase in
agricultural production and higher farm productivity. Since demand for
farm inputs is derived from demand for farm products, therefore,
agricultural development in a country or region may be studied either
through the changes in farm production and productivity, or through the
changes in demand for various farm inputs. The demand for fertilizers,
especially, lends itself to this type of analysis, because fertilizer is
a highly divisible farm input.

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