Prospects of Growth in Fertiliser Consumption in the Western Region

Desai G M

IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: Western Region (comprising of Gujarat, Madhya Pradesh, Mahareshtra and Goa) accounts for about one-sixth of India’s fertilizer consumption and more than one-third of fertilizer production. Substantial additional capacity of fertilizer production is being installed in the region. Because of this reason and also because of the importance of the region in Indian agriculture, it is pertinent to enquire into the prospects of further rapid growth in fertilizer consumption in the Western Region. On the basis of the past experience, one could be either a pessimist or an optimist about the pace at which fertilizer consumption will grow in the region. This is so because a linear trend fits the past data of fertilizer consumption just as well as a semi-log trend. Despite its low level of irrigation, there is a vast scope for growth in fertilizer consumption in the region but this does not automatically ensure prospects of rapid growth. To improve these prospects, simultaneous and well-coordinated efforts are required to convert the untapped potential of fertilizer use on certain crops into farmers’ demand for fertilizers, increase the flow of crop loans to farmers and remove deficiencies in the agricultural credit systems and expand fertilizer distribution systems and improve their working.

Date: 1984-01-01
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