Economic Analysis of Fertilizer Demand in the Punjab

It is a well known fact that increased use of purchased farm inputs, such as chemical fertilizers, pesticides, seeds and farm machinery, etc., has been associated with a substantial increase in agricultural production and higher farm productivity. Since demand for farm inputs is derived from demand for farm products, therefore, agricultural development in a country or region may be studied either through the changes in farm production and productivity, or through the changes in demand for various farm inputs. The demand for fertilizers, especially, lends itself to this type of analysis, because fertilizer is a highly divisible farm input.