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The Impact of Gypsum Application on Groundnut Yield in Rainfed Pothwar: An Economic Perspective

Hussnain Shah (), Muhammad Azeem Khan (), Tariq Azeem (), Abdul Majid () and Abid Mehmood ()
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Hussnain Shah: Social Sciences Institute in Islamabad, Pakistan.
Muhammad Azeem Khan: Social Sciences Institute in Islamabad, Pakistan.
Tariq Azeem: Barani Agricultural Research Institute, Chakwal, Pakistan
Abid Mehmood: Barani Agricultural Research Institute, Chakwal, Pakistan.

Lahore Journal of Economics, 2012, vol. 17, issue 1, 83-100

Abstract: This study presents an economic analysis of experimental on-farm data on the yield effect of gypsum on groundnut production in Pakistan’s Pothwar region. The data indicates that groundnut pod yield increases significantly with the application of gypsum at 500 kg/ha for both local and improved (chakori) varieties of groundnut. The higher net benefits generate a marginal rate of return of up to 132 percent for local and 202 percent for improved varieties of groundnut. We carry out a sensitivity analysis and minimum returns analysis, and find, respectively, that the recommended application is capable of withstanding price variability and variability in yield. Since price structure changes more rapidly than technology, recommendations should be based on an analysis of returns under varying input and output prices.

Keywords: Groundnut; gypsum; economic analysis; rate of return; Pakistan. (search for similar items in EconPapers)
JEL-codes: Q19 (search for similar items in EconPapers)
Date: 2012
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Handle: RePEc:lje:journl:v:17:y:2012:i:1:p:83-100