Volume 7, Issue 3, August 2014, Pages 826–831
Sunair Junaid1, Shahid Ali2, Salamat Ali3, Abbas Ullah Jan4, and Syed Attaullah Shah5
1 MSc (HONS), Department of Agricultural & Applied Economics, The University of Agriculture, Peshawar, Pakistan
2 Assistant Professor, Department of Agricultural & Applied Economics The University of Agriculture, Peshawar, Pakistan
3 Department of Agricultural & Applied Economics The University of Agriculture, Peshawar, Pakistan
4 Associate Professor, Department of Agricultural & Applied Economics, The University of Agriculture, Peshawar, Pakistan
5 Lecturer, Department of Agricultural & Applied Economics, The University of Agriculture, Peshawar, Pakistan
Original language: English
Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
The study was designed to estimate output supply and inputs demand elasticities of rice crop in Gujranwala, Punjab, Pakistan. Data was collected from 100 respondents using proportional allocation sampling technique. The study utilized normalized restricted translog profit function approach for data analysis. Results indicated that the farmers were price responsive. Rice own price elasticity was 1.873. The output supply elasticity of rice with respect to education, land, fertilizer price and irrigation cost were 0.169, 1.274, -0.873 and -0.953 respectively. Irrigation demand elasticity with respect to education, land, fertilizer price, irrigation cost and output price were 0.144, 1.142, -0.783, -1.842 and 1.780 respectively. Fertilizer demand elasticity with respect to education, land, fertilizer price, irrigation cost and output price were 0.023, 0.792, -1.650, -0.851 and 1.851 respectively. Lastly the elasticity of profit with respect to education, land, fertilizer price, irrigation cost and output price were 0.200, 1.101, -0.832, -1.136 and 1.920 respectively. It is recommended that government should provide consistent electricity with stable rates, so that, they irrigate their fields through electric tube wells and ultimately their cost of irrigation decreases. The study also suggests that government should stabilized fertilizer prices to encourage its application. Furthermore government should raise procurement price of rice to encourage its supply this in turn will also increase profit of the farmers.
Author Keywords: Supply response analysis, Normalized restricted translog profit function, Rice, Punjab, Pakistan.
Sunair Junaid1, Shahid Ali2, Salamat Ali3, Abbas Ullah Jan4, and Syed Attaullah Shah5
1 MSc (HONS), Department of Agricultural & Applied Economics, The University of Agriculture, Peshawar, Pakistan
2 Assistant Professor, Department of Agricultural & Applied Economics The University of Agriculture, Peshawar, Pakistan
3 Department of Agricultural & Applied Economics The University of Agriculture, Peshawar, Pakistan
4 Associate Professor, Department of Agricultural & Applied Economics, The University of Agriculture, Peshawar, Pakistan
5 Lecturer, Department of Agricultural & Applied Economics, The University of Agriculture, Peshawar, Pakistan
Original language: English
Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
The study was designed to estimate output supply and inputs demand elasticities of rice crop in Gujranwala, Punjab, Pakistan. Data was collected from 100 respondents using proportional allocation sampling technique. The study utilized normalized restricted translog profit function approach for data analysis. Results indicated that the farmers were price responsive. Rice own price elasticity was 1.873. The output supply elasticity of rice with respect to education, land, fertilizer price and irrigation cost were 0.169, 1.274, -0.873 and -0.953 respectively. Irrigation demand elasticity with respect to education, land, fertilizer price, irrigation cost and output price were 0.144, 1.142, -0.783, -1.842 and 1.780 respectively. Fertilizer demand elasticity with respect to education, land, fertilizer price, irrigation cost and output price were 0.023, 0.792, -1.650, -0.851 and 1.851 respectively. Lastly the elasticity of profit with respect to education, land, fertilizer price, irrigation cost and output price were 0.200, 1.101, -0.832, -1.136 and 1.920 respectively. It is recommended that government should provide consistent electricity with stable rates, so that, they irrigate their fields through electric tube wells and ultimately their cost of irrigation decreases. The study also suggests that government should stabilized fertilizer prices to encourage its application. Furthermore government should raise procurement price of rice to encourage its supply this in turn will also increase profit of the farmers.
Author Keywords: Supply response analysis, Normalized restricted translog profit function, Rice, Punjab, Pakistan.
How to Cite this Article
Sunair Junaid, Shahid Ali, Salamat Ali, Abbas Ullah Jan, and Syed Attaullah Shah, “SUPPLY RESPONSE ANALYSIS OF RICE IN PAKISTAN: NORMALIZED RESTRICTED TRANSLOG PROFIT FUNCTION APPROACH,” International Journal of Innovation and Applied Studies, vol. 7, no. 3, pp. 826–831, August 2014.
