Pakistan Institute of Development Economics

PDR

THE PAKISTAN DEVELOPMENT REVIEW 

A Note on the Demand for Fertilizer in West Pakistan (Notes & Comments)

West Pakistan has experienced a remarkable revolution in agriculture during its Third Five Year Plan. Very large increases in agricultural output have resulted from the rapidly growing use of improved seeds, fertilizer, and from improved water supplies. Agricultural pricing-policy has also played a part in this achievement. In this paper only one aspect of this revolution will be examined in isolation—the rapidly growing demand for chemical fertilizers. It is to be hoped that similar studies on other agricultural inputs will follow and that as a result it will be possible to consider the interactions and aggregate significance of various inputs. Increasing quantities of fertilizers are being sold in West Pakistan, and considerable public resources have been devoted to their purchase and distri¬bution. The growth of fertilizer industry and of sales has largely been the result of efforts in the public sector, whereas in the case of tubewells it was the private sector which led the way. The private sector has recently been brought into the distribution of fertilizers, and will be taking over the responsibility for retail distribution. The sale of fertilizer has been subsidised in West Pakistan and for this reason it is of primary importance to identify and quantify the factors determining demand.

P. L. Leonard

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