Fertilizer Use, Value, and Knowledge Capital: A Case of Indian Farming

Abstract

Using the recently released microdata covering input use in Indian agriculture, this study analyzes the relation between value and fertilizer consumption along with four layers of explanation. These layers include factors of production, knowledge capital, social identity, and human capital for both agricultural seasons. Subsequently, the study also examines the propensity to use diverse channels of information. This study uses both regression and machine learning methods for analysis. The main finding of the study is that fertilizer use is directly associated with the value of production. However, the propensity to use fertilizer is the highest for the lowest quantile. Moreover, fertilizer use is a positive covariant of select information sources. Further, similar to tangible resources, the study observes that information plays a crucial role in fertilizer use. Information channels such as extension services have a pivotal role in promoting sustainable farming, especially among marginal farms.