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Fertilizer Demand Forecast in Pakistan

In: Business and Management

Submitted By madihasheikh
Words 1816
Pages 8
ABSTRACT

This report provide overview of the information on the Pakistan fertilizer situation from 1990-91 to 2008-09. Pakistan rank 46th in the world in terms of fertilizer consumption and its fertilizer usage per hector is 115kgs.This study has been conducted to find out the factors which have been affecting demand for fertilizer as specified equations for nitrogen, phosphorus and potash, are estimated by using the static models. The results are acceptable from both an economic and statistical point of view. Using a linear regression analysis the result indicated that the demand function equation i.e. Y = 2.9723 + 0.0597 (x) can forecast the future demand of the fertilizer.

Key Words: Demand; Fertilizer; Pakistan; Regression Analysis; demand function equation; future demand of fertilizer.

INTRODUCTION

Fertilizers constitute a key component of the modern farm technology for achieving increased production through improving soil fertility. In this modern agricultural era, fertilizer is basic important input to boost yield. Contribution of balanced fertilization towards increased yield is from 30 to 60 percent in different crop production regions of the country. One kg of fertilizer nutrient produces about 8 kg of cereals (wheat, maize and rice), 2.5 kg of cotton and 114 kg of stripped sugarcane. All of our soils are deficient in nitrogen (N), 80-90 percent are deficient in phosphorus (P) and 30 percent in potassium (K), Wide spread deficiency of micronutrients are also appearing in different areas. Soil fertility is continuously depleting due to mining of the essential plant nutrients from the soils under intensive cultivation. The introduction of the high yielding cereal varieties in 1966-67 having higher nutrient requirements, ushered in the ‘fertilizer era’ in Pakistan and set the stage for ‘green revolution’. Prior to this, the use of fertilizer

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