The supply response of basmati rice growers in Punjab, Pakistan: price and non‐price determinants

Abstract

Pakistan's stated policy is to increase basmati rice production through price support measures and liberalization of input markets. The present study assesses the scope for price support policy to achieve growth targets and whether additional assistance is needed from non-price policy measures. The econometric analysis is based on a profit function using farm household survey data from the Punjab. Pakistan for 1995-1996. The results reveal that to achieve production targets, very high support prices are required. Since these price levels may not be feasible, a more appropriate option may involve some inducements to expand paddy area and the area allocated to modern varieties. Copyright © 2001 John Wiley & Sons, Ltd.

Competitiveness, Profitability, Input Demand and Output Supply of Maize Production in Bangladesh

“…The general form of the translog profit function, dropping the ith subscript for the farm, is defined as [24,25]:…”

“…The elasticity of demand for variable input with respect to output price, P y (η jy ) was computed as [25]:…”

“…The elasticity of output supply with respect to price of jth variable input (ε yj ) was computed as [25]:…”

Environmental constraints and profitability relationships in agriculture: a case study of wheat farming in Bangladesh

“…The monotonicity property of a translog profit function model holds if the estimated output share is positive (Farooq et al 2001) which was found in our case. The symmetry property was Downloaded by [University of Tennessee, Knoxville] at 02:25 26 December 2014 tested by imposing cross-equation restrictions of equality on the corresponding parameters between the profit function and the four factor demand equations.…”

“…A positive response of output supply (rice or wheat) to its price has been common in Asia since the 1970s. For example, supply response of high-yielding varieties (HYVs) of rice in Bangladesh is estimated at 0.36 (Rahman and Shankar 2009), Basmati rice in Punjab, Pakistan, at 0.27 (Farooq et al 2001) and Mexican wheat in Punjab, India, at 0.63 (Sidhu and Baanante 1981 Note: Variables P i = normalized variable input prices, and Z k = fixed inputs; subscripts F = fertilizer price, W = labor wage, M = animal power price, S = seed price, A = land area cultivated, I = irrigation, L = land suitability, and E = other environmental constraints, based on the estimation of the restricted translog profit function and four variable input share equations with across-equation restrictions (symmetry) and linear homogeneity imposed. * Significant at 10% level (p < .10).…”