IDEAS home Printed from https://ideas.repec.org/a/ags/phajad/258978.html
   My bibliography  Save this article

Determinants of Demand for Fertilizer: A Case for India

Author

Listed:
  • Chakraborty, Kalyan

Abstract

In India agriculture contributes 14 percent to GDP and provides subsistence to two-thirds of the population. One of the top priorities of the Indian government is to provide food security to more than 1.25 billion people. Hence, increasing farm productivity is viewed as a primary goal for the government. Agricultural growth, with its forward and backward links to the industry and service sectors, is directly linked to India’s economic growth. Using national time-series data, this study estimates a demand function for fertilizer using a simple linear regression model and explores the relationship between demand and various non-price factors. The results from the regression analysis found that non-price factors are more important than the price of fertilizer in determining fertilizer demand. This study recommends that to increase agricultural output, government subsidy policies need to be geared toward the use of balanced nutrients for improving soil conditions, at the same time, provide an incentive to fertilizer manufacturing firms to develop new environmentally-sustainable products for agriculture.

Suggested Citation

  • Chakraborty, Kalyan, 2016. "Determinants of Demand for Fertilizer: A Case for India," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 13(1), June.
    • Handle: RePEc:ags:phajad:258978
    DOI: 10.22004/ag.econ.258978
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/258978/files/AJAD_Demand%20for%20Fertilizer_India.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.258978?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kundu, T. R. & Vashist, D. C., 1991. "Demand for Intermediate Inputs in Indian Agriculture," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 46(2), April.
    2. Sharma, Vijay Paul & Thaker, Hrima, 2009. "Fertilizer Subsidy in India: Who are the Beneficiaries?," IIMA Working Papers WP2009-07-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sharma, Vijay Paul & Thaker, Hrima, 2011. "Demand for Fertiliser in India: Determinants and Outlook for 2020," IIMA Working Papers WP2011-04-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    2. Eberhard Weber, 2012. "Economic reform, social development and conflict in India," Regional Science Policy & Practice, Wiley Blackwell, vol. 4(3), pages 207-230, August.
    3. Vijay Paul Sharma & Hrima Thaker, 2011. "Demand for Fertiliser in India: Determinants and Outlook for 2020," Working Papers id:4348, eSocialSciences.
    4. Sharma, Vijay Paul & Thaker, Hrima, 2011. "Demand for Fertilisers in India: Determinants and Outlook for 2020," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 66(4), pages 1-24.
    5. Basavaraj, G. & Rao, Parthasarathy P. & Achoth, Lalith & Reddy, Ravinder Ch., 2013. "Assessing Competitiveness of Sweet Sorghum for Ethanol Production: A Policy Analysis Matrix Approach," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 26(1), June.

    More about this item

    Keywords

    Crop Production/Industries; Demand and Price Analysis;

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D10 - Microeconomics - - Household Behavior - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:phajad:258978. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/searcph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.