Groundnut is an important oilseed and Anantapur district of Andhra Pradesh occupies a prominent position both in acreage and production. Data was obtained from forty farmers using structured questionnaire and the input-output relation of groundnut production via Cobb-Douglas production function was examined in this study. It was found that the sum of elasticities was 0.73. The result of the t’ test proved that in groundnut farms S bi was less than one, it indicates decreasing returns to scale, which indicates some of the inputs are excessively used. The production elasticities for human labour, bullock labour, machine labour charges, seed cost and pesticides were positive and significant where as farm yard manure and fertilizers cost was negative which showed that increase in these costs result in decrease in output. The MVP of selected input variables were estimated to be 25.08, 4.21, 6.74, 1.87, 17.34, -19.46 and -7.67 showing that FYM and fertilizers are over utilized and the rest of the variables are underutilized. The groundnut production in the study area would be profitable.
This paper focused on consumer demand system of agri-food in Tanzania. The study investigated on the budget share of agri-food, estimated own price and income elasticities of demand of agri-food consumed by the households in Tanzanian context. The Almost Ideal Demand System (AIDS) was employed to estimate the consumer demand system of agri-food. The empirical results revealed that households' food budget share was 60% on average per month. The own price elasticity of demand for aggregated agri-food was inelastic (0.86). Income elasticity of demand for aggregated agri-food was 0.96. Moreover, inelastic demand of own price elasticity of agri-food products informed the government intervention in terms of agri-food price stabilization policies and programmes. Furthermore, income elasticity of < 1 suggested that interventions of Tanzanian government in terms of 'income support policies' can be done by increasing the incomes of lower and middle class income earners in rural and urban areas as consumers' economic stimulus package to increase normal food consumption. In rural areas where majority of farmers dwell, this can be done by promoting the price of farm products through minimum support price so that farmers can earn much more incomes from their economic activities as a result they can use it for purchasing normal food from the business sector.
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