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Can Information Help Reduce Imbalanced Application of Fertilizers in India? Experimental Evidence from Bihar

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  • Fishman, Ram
  • Kishore, Avinash
  • Rothler, Yoav
  • Ward, Patrick

Abstract

The imbalanced application of chemical fertilizers in India is widely blamed for low yields, poor soil health, pollution of water resources, and large public expenditures on subsidies, amounting to about 1 percent of India’s gross domestic product. To address the issue, the government of India is investing in a large-scale, expensive program of individualized soil testing and customized fertilizer recommendations, with the hope that scientific information will lead farmers to optimize the fertilizer mix. We conducted a randomized controlled trial in the Indian state of Bihar in what we believe to be the first evaluation of the effectiveness of the program as currently implemented. We did not find evidence of a statistically significant impact of customized fertilizer recommendations on fertilizer use. The lack of impact can be attributed to several factors, including a lack of understanding, lack of confidence in the information’s reliability, or other factors such as fertilizer costs that inhibit farmers from optimizing fertilizer application ratios even if the information shifts their underlying preferences. We provide evidence that suggests lack of confidence is the main factor inhibiting farmers’ response.

Suggested Citation

  • Fishman, Ram & Kishore, Avinash & Rothler, Yoav & Ward, Patrick, 2016. "Can Information Help Reduce Imbalanced Application of Fertilizers in India? Experimental Evidence from Bihar," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235705, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235705
    DOI: 10.22004/ag.econ.235705
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    1. Esther Duflo & Michael Kremer & Jonathan Robinson, 2008. "How High Are Rates of Return to Fertilizer? Evidence from Field Experiments in Kenya," American Economic Review, American Economic Association, vol. 98(2), pages 482-488, May.
    2. Patrick S. Ward & Vartika Singh, 2015. "Using Field Experiments to Elicit Risk and Ambiguity Preferences: Behavioural Factors and the Adoption of New Agricultural Technologies in Rural India," Journal of Development Studies, Taylor & Francis Journals, vol. 51(6), pages 707-724, June.
    3. Mullainatha, Sendhil & Hanna, Rema N. & Schwartzstein, Joshua, 2012. "Learning Through Noticing: Theory and Experimental Evidence in Farming," Scholarly Articles 9804491, Harvard Kennedy School of Government.
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    2. Kishore, Avinash & Singh, Vartika, 2021. "Seeds, Water, and Markets to Increase Wheat Productivity in Bihar, India," 2021 Conference, August 17-31, 2021, Virtual 315022, International Association of Agricultural Economists.
    3. Susan Godlonton & Manuel A Hernandez & Mike Murphy, 2018. "Anchoring Bias in Recall Data: Evidence from Central America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(2), pages 479-501.
    4. Berazneva, Julia & Maertens, Annemie & Mhango, Wezi & Michelson, Hope, 2023. "Paying for agricultural information in Malawi: The role of soil heterogeneity," Journal of Development Economics, Elsevier, vol. 165(C).
    5. Panneerselvam Peramaiyan & Peter Craufurd & Virender Kumar & Lavanya P. Seelan & Andrew J. McDonald & Balwinder-Singh & Avinash Kishore & Sudhanshu Singh, 2022. "Agronomic Biofortification of Zinc in Rice for Diminishing Malnutrition in South Asia," Sustainability, MDPI, vol. 14(13), pages 1-20, June.
    6. David M.A. Murphy & Dries Roobroeck & David R. Lee & Janice Thies, 2020. "Underground Knowledge: Estimating the Impacts of Soil Information Transfers Through Experimental Auctions†," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(5), pages 1468-1493, October.
    7. Oyakhilomen Oyinbo & Jordan Chamberlin & Tahirou Abdoulaye & Miet Maertens, 2022. "Digital extension, price risk, and farm performance: experimental evidence from Nigeria," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(2), pages 831-852, March.
    8. Kishore, A & Pala, BD & Joshia, K & Aggarwal, PK, 2018. "Unfolding government policies towards the development of climate smart agriculture in India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 31(2).

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    Keywords

    Agricultural and Food Policy; Environmental Economics and Policy; International Development; Research and Development/Tech Change/Emerging Technologies;
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