Fertilizer Subsidy Research Articles

Program Aplikasi Optimalisasi Perencanaan Produksi dengan Metode Goal Programming (Kasus CV. G)

Indonesia today is still a State agrarian. Thus agriculture in Indonesia always get more attention by the government. Many government programs are rolled out to support the agricultural development of Indonesia, and one of them is the fertilizer subsidy to farmers Indonesia. Fertilizer itself is very useful to nourish the soil and provide vitamins to the plants, thus increasing the amount of production generated. Therefore it is necessary fertilizer for agriculture in Indonesia. CV. G company is one of the companies that produce fertilizer. Fertilizer produced by this company is an organic fertilizer and inorganic fertilizer. Problems faced by these companies are in planning the production of fertilizer produced. Companies want to optimize the amount of production of each fertilizer, maximize revenues, minimize production costs, and simultaneously optimize the working hours of employees. To meet these objectives, this research created program package using goal programming methods. Goal programming method can provide an effective solution / equilibrium toward the goals set, and the calculation will be assisted by using the Simplex method that has been modified. This method is an extension of linear programming, linear programming which can only solve problems with a single goal while the goal programming to solve problems with multiple objectives.

Seeking an Alternative Modality to the Management of Nigeria's Fertilizer Subsidy Scheme-An Empirical Approach to the Case Study of Ondo State (1976-1996)

Problem statement: The objective of Nigeria's fertilizer subsidy schem e was to make inorganic fertilizers readily available to farmers at affordable prices in order to boost food product ion in the country. Shortly into the scheme, farmers co mplained that fertilizers were not received at the time of need and in sufficient quantities. Approach: Using Ondo State, Nigeria as a case study, to determine; inter alia, if the farmers' complaints w ere founded and if so, to design alternative ways o f administering the scheme such that the lofty goals for which it was established could be realized. Methodology: Primary data were collected from 596 farmers randomly selected from the state. Secondary data were collected from purposively sele cted NAFCON, AISC, ADP, FPDD (now FFD) and a published book source. The primary data were analyzed with the use of descriptive statistics suc h as percentages and means. The secondary data were analyzed with the use of OLS and TLS regression methods. Results: The descriptive analyses showed that farmers in On do State did not receive their fertilizer supplies in sufficient quantities and at the time of need, despite the fact that supply sur passed adoption (demand) for most years of the study perio d. The inferential analyses showed that a subsidy introduced into NAFCON and other producing firms' production processes would engender increased output and induce fertilizer prices to fall in Ondo State. Conclusion: These results showed that farmers in Ondo State did not receive their fertilizer supp lies at the time of need and in sufficient quantiti es due to leakages and diversion of the substance from the vast bureaucratic distribution channels. As an alternative, if subsidy was administered through th e producing firms' production processes, output of fertilizers would have increased making the market supply curve of fertilizers to shift to the right. This would have also caused the price of fertilizer to f all in the state.

The public sector corruption and organised crime nexus: The case of the fertiliser subsidy programme in Malawi

The article argues that there is a direct link between corruption and organised crime. A case study of the Malawi fertiliser subsidy programme is used to highlight the fact that corruption not only gives rise to organised criminal groups but also acts as a lubricant for the effective operation and survival of such groups. In this regard, the prevailing corruption has given rise to organised criminal groups who have hijacked the whole process and either smuggled the subsidised fertiliser to other countries or took it for their personal use. The problem has been exacerbated by the international dimensions of the crime and the fact that traditional leaders, politicians and government officials have been key players in the process, thereby intensifying the corruption / organised crime nexus.

The Impact of Fertilizer Subsidy on Paddy Cultivation in Sri Lanka

The Government of Sri Lanka has been subsidizing fertilizer for more than four decades. This study attempts to analyse the impact of fertilizer subsidies with reference to paddy cultivation in Sri Lanka. The issue is analysed by employing three separate demand functions for major fertilizers by using simple regression model. Regression results indicate that changes in the prices of fertilizer and paddy do not have a significant effect on fertilizer usage, which points to the fact that the fertilizer subsidy is not a key determinant of the use of fertilizer in paddy cultivation. The study also found that there is a relatively higher correlation between fertilizer usage and paddy price than between fertilizer usage and fertilizer price. These findings suggest that the fertilizer subsidy could be withdrawn gradually over time. In its place, appropriate infrastructure and institutional facilities that are required to increase productivity in paddy cultivation and an effective mechanism for marketing the output that would result in favourable prices for paddy may be introduced for a more effective outcome. (JEL N551, Q19)

Fertiliser Use, Nutrient Imbalances and Subsidies

Fertiliser use in India has seen higher growth rates than any other major agricultural input in the last four decades. There has recently been a serious slowdown in the growth of fertiliser use, primarily caused by supply-side constraints. The composition of fertiliser use has also resulted in serious imbalances in the use of major plant nutrients, which could cumulatively have a detrimental effect on soil health and crop productivity. The main cause of the imbalance is found in the price distortions resulting from the structure of fertiliser subsidies. The trend in the prices of agricultural products offers scope for reducing and rationalising fertiliser subsidies to boost fertiliser production and reduce nutritional imbalances.

An appraisal of fertilizer subsidy in developing countries.

Most developing countries’ fertilizer subsidy scheme is largely bureaucratically administered. Leakages occur causing unintended beneficiaries to benefit from the scheme while the intended beneficiaries are excluded. A cross-country survey of literature was carried out on fertilizer subsidy management in some selected developing countries. The survey largely revealed that fertilizer supply (availability) and demand improved in some developing countries that have made serious efforts at reforming their fertilizer supply and demand sectors; although some few observers hold dissenting views especially about the outcomes in the supply sector. Also, fertilizer supply and demand did not improve in the developing countries that did not make serious efforts at reforming these sectors. This suggests that the reform objectives of removing transaction costs and making fertilizers readily available to farmers at reduced prices seem to have been achieved in the reforming countries. The study therefore recommends that in order for the non-reforming countries’ farmers to be more accessible to fertilizers in sufficient quantities and at reduced prices, more serious efforts must be made at reforming these countries’ fertilizer supply and demand sectors. However, these reform efforts should be complemented with an institution of a workable output price support policy. Keywords : fertilizer subsidy, leakages, fertilizer supply, fertilizer demand, shifting the fertilizer supply curve to the right (SSCR).

Farmers\' Perceived Agricultural Input Factors Influencing Adoption And Production Of Food Crops In Akure Area Of Ondo State, Nigeria

The study investigated agricultural input factors influencing adoption and production of food crops in Ondo State, Nigeria. Data from 120 randomly selected farmers were used for the study. Findings show that the major inputs used by the respondents are improved seeds (89.2%), fertilizer (66.7%) and agrochemicals (59.1%) with private agencies as the major source (55.0%). Use of improved varieties influenced food crops production while tractor, fungicides and herbicides had low influence on food crops production. Major input factors responsible for non-utilization of food crop technologies are unavailability, inaccessibility, high cost and knowledge of the inputs. Adoption was significantly correlated with cost and unavailability of inputs in all the crops, knowledge of input in cowpea (r = 0.3165) and with labour in root crops (r = 0.3346). There is a need for government to reorganize input distribution system, review policy on fertilizer subsidy and use of cooperative societies by farmers should be encouraged. Keywords: Farmers, Agricultural Input Factors, Adoption, Food Crops ProductionGlobal Approaches to Extension Practice Vol. 2 (1) 2006: pp. 1-8

Input Subsidies to Agriculture: Case of Subsidies to Fertiliser Industry across Countries

The fertiliser industry in developing countries is facing challenge and uncertain future due to their commitments to the WTO. This is part of the reason that the developing countries are pushing for reducing of subsidies given by the developed countries to their agriculture which is much bigger making the subsidies to agriculture becoming a contentious issue in the WTO negotiations. Some of the subsidies are accepted in the WTO context whereas the others are not. In India the farm sector subsidies are given in the form of irrigation, electricity, fertilisers etc. By far the fertiliser and food subsidies are the most significant amounting to about US$9.3 billion in 2004 (less than 0.5 percent of GDP). Thus, while from the WTO point of view, it is not necessary to reduce fertiliser subsidy in India. However, because of the WTO commitments, quantitative restrictions in this sector had to be removed by the end of March 2001 in India. Cheaper imports have been threatening the domestic industry specially the units that do not use gas as feedstock. In the short run domestic companies may enjoy the protection of differential subsidy in some form or the other. But in the long run they will have to compete on a stand-alone basis. This paper examines the experience and impact of fertiliser subsidy across various countries and shows that it is a common tool to promote farm production. But the evidence shows that the fertiliser subsidy tends to benefit the rich farmers more than the poor farmers. The study examines the different approaches used by the policymakers to reach the targeted farmers. In this context the paper records the evidence from some countries where the fertiliser industry has come forward and complemented the policymakers' efforts to meet this objective and in the process ensured their better future.

PERSEPSIPETANITERHADAPKEBIJAKANSUBSIDIPUPUK DIDESAMISKIN KABUPATEN BLORA

Economic crisis forced Indonesia to ask IMF support .As a consequences, several policies which was not popular had to be taken .In1998, fertilizer subsidy was withdrawn. The policy was espected to have positive impact both on their supply and their prices infarmers level due to the healthy competitive market. However, the impacts of the policy were the price increasing of fertiliers and cost production as well as the flooding of lower prices imported comodities. A side of farmers term of trade were lowered, farms' productivity were also decreasing. Cut off Indonesia and IMF relationship made possible for thegovernment to resubsidize the fertilizers since in theend of 2003. Hopefully the policy will encourage farmers to intensify their farming due to the lower cost of production. To findout farmers perception on the resubsidy policy, survey was carried out in Blora District in Agustus-Nopember 2005. Results showed that since farmers pay the fertilizerin cash, thesubsidy withdrawl added their burden. Respondents stated that in the last five years, fertilizers' prices tended to increase. Most respondents hope that urea prices is not more than Rp. l.050,-/kg to make them do not loss money in paddy farming. Only part of farmers stated that urea price should range from Rp.l.100,- to Rp.l.200,-/kg. Unfortunately, most of them (43.95%) stated that less information from the agricultural extension workers caused around 41.12% of respondent did not know the fertilizer subsidy policy. Farmers were also not fully realize the policy. As much as 22.42% of respondents stated that the fertilizer price was not differ, while 31.77% of them stated that the price even higher compare to the condition before the policy. The result of survey showed that field extension workers (Penyuluh Pertanian Lapangan) still have significant role as a source of information either in agricultural innovation or govenunent policies. However, repositioning of their job description need to be developed further.

Fertilizer procurement, distribution and subsidy policies in Nigeria

The study examined the nature of the pricing, distribution and subsidy policies of fertilizer operated by the Federal Government of Nigeria. Secondary data were used for the study. Data used for the study covered the period 1985–2003. Data were analyzed using means, frequencies and percentages. Results show that 84% of the total quantity of fertilizer distributed went to the three Northern geopolitical zones, while only 16% went to the three southern geopolitical zones of the country. An examination of the fertilizer procurement, distribution and subsidy policies in Nigeria between 1976 and 2002 revealed that the policies have been inconsistent. The pricing and subsidy polices operated by the Federal Government of Nigeria are, government monopoly procurement and subsidy on the product, government partial procurement and subsidy on the procured final product only, subsidy at source, and subsidy at source including transportation subsidy to delivery points. It was recommended that the National Fertilizer Company of Nigeria (NAFCON) Onne, Port Harcourt should be revitalized and privatized to enhance local production of the input.Keywords: fertilizer procurement, distribution, subsidy policies, NigeriaInternational Journal of Agriculture and Rural Development Vol. 6 2005: 58-65

STOCHASTIC DOMINANCE ANALYSIS OF SOIL FERTILITY RESTORATION OPTIONS ON SANDY SAHELIAN SOILS IN SOUTHWEST NIGER

The poor fertility of sandy Sahelian soils remains one of the major constraints to pearl millet (Pennisetum glaucum) production in West Africa. On-farm trials under farmers' management were conducted in two rainfall zones of Niger in 1996 and 1997 to evaluate the risk characteristics of six soil fertility restoration options. Stochastic dominance analysis was used to compare the fertilizer treatments tested. Results showed that the farmers' traditional method (no fertilizer control), Tahoua phosphate rock (PRT) alone applied at 13 kg P ha−1 broadcast, and a combination of PRT broadcast at 13 kg P ha−1 and single super phosphate (SSP) hill-placed at 4 kg P ha−1 had the most desirable risk characteristics and were acceptable to risk averse decision-makers in both rainfall zones. At current input–output price ratios, most fertilizer-using farmers would choose the combination of PRT broadcast and SSP hill-placed. If the availability of SSP was limited, some farmers would use PRT alone. The demand for risk efficient alternatives could significantly increase if farmers could bear less than half the fertilizer costs at the current output price, although further research is required to say if a fertilizer subsidy could be justified on broader economic or social grounds.

The Impact of Agricultural Extension on Farm Production in Resettlement Areas of Zimbabwe

In this paper, we revisit the contested issue of the impact of agricultural extension on farm production. We exploit two features of the data available to us: its longitudinal nature and explicit measures of farmer ability. We find that after controlling for innate productivity characteristics and farmer ability either using household fixed effects estimation, or by including a measure of farmer ability and village fixed effects, access to agricultural extension services, defined as receiving one or two visits per agricultural year, raises the value of crop production by about 15 per cent. This parameter estimate is statistically significant. However, we also find variability in these parameter estimates across individual crop years, with the impact being markedly different in drought and non-drought years. Collectively, these results suggest that although access to farm-level extension visits does increase productivity even after controlling for innate productivity characteristics and farmer ability, results from single-year cross-sectional studies should be treated with caution

Measuring Inefficiency in the Presence of an Export Tax, an Import Tariff, and a State Trading Enterprise

AbstractAgricultural sales cooperative unions (ASCUs) in Turkey are heavily influenced by both domestic and international government policies. Both export taxes and import tariffs are used as policy tools to regulate cotton markets. Domestic price support programs, water subsidies, fertilizer subsidies, and credit subsidies have also been used as domestic policy tools. These types of subsidies are not uncommon among developing countries. This paper provides empirical estimates of the degree of economic inefficiency associated with government intervention in Turkish cotton markets. A two-region partial equilibrium model of cotton exports and imports is developed under the “small country assumption” to obtain empirical estimates of the deadweight welfare loss associated with these government subsidies. Although government intervention results in significant income distribution among the various cotton sectors within Turkey, the overall economic inefficiency of the redistribution is very low.

Supply response under market liberalisation: A case study of Malawian agriculture

In order to analyse the effects of policy reforms, output supply and factor demand responses to input and output prices for Malawian agriculture are estimated in this article in a multiple-output, multiple-input framework. The implications of various structural adjustment policies implemented in Malawi are analysed using the model results for their impact on the smallholder agricultural sector. The results of the analysis indicate that removal of fertiliser subsidy – a major component of market reform policies – does not substantially reduce the production of maize, the major staple food in Malawi. However, when implemented in appropriate sequence along with other output market liberalisation policies and increased investment in infrastructure, such a policy is likely to increase the productivity of smallholder agriculture.

Structural Adjustment and Economic Efficiency of Rice Farmers in Northern Ghana

Structural Adjustment and Economic Efficiency of Rice Farmers in Northern Ghana

India's New Economic Policy of 1991 and its Impact on Women's Poverty and AIDS

This paper examines the effects of current policies intended to liberalize the Indian economy and facilitate globalization on women close to poverty. The New Economic Policy of 1991 included standard structural adjustment measures including the devaluation of the rupee, increase in interest rates, reduction in public investment and expenditure, reduction in public sector food and fertilizer subsidies, increase in imports and foreign investment in capital-intensive and high-tech activities, and abolition of the cash compensatory support for exports. These policies have resulted in increased urbanization, and fewer job opportunities for women in the formal sector. Such conditions increase poverty for women in particular. As a result, many women flow into cities looking for work in the informal sector. This may have increased numbers of women in sex work, for lack of better economic opportunity. Sufficient data are not available to confirm whether HIV infection rates have risen as a result; however, the evidence suggests there may be a relationship between macroeconomic policies and health outcomes.

Fertilizer Subsidy Reform in the Indian Foodgrain Market: A Comparative Static Analysis with Respect to an Increase in Fertilizer Price

Fertilizer Subsidy Reform in the Indian Foodgrain Market: A Comparative Static Analysis with Respect to an Increase in Fertilizer Price

New environmentally friendly fertiliser advisory system, based on the data set of the Hungarian long‐term field trials set up between 1960 and 1995

Following the 25‐year intensive fertilisation practice in the country, two‐thirds of Hungarian soils became well or very well supplied with phosphorus (P) and potassium (K). As a consequence of both political and ecological changes in the late 1980s and early 1990s, fertiliser subsidies were withdrawn, and nitrogen (N) use has dropped to one‐fifth, one‐third, P and K use to one twenty‐fifth, one‐twentieth of the amounts used in the early‐mid 1980s. An enormous demand has risen for a new, cost saving, and environmentally friendly fertiliser recommendation system. The new system based on the results of the published long‐term field trial data in the period of 1960–1995 faces the new challenges.

Output response to prices and public investment in agriculture: Indonesian food crops

This paper analyzes dynamic food crop supply response in Indonesia. The effects of technology, prices, and investments on output growth for rice, corn, soybean, and cassava are examined. The analysis generates crop-wise area, yield, and input demand parameters suitable for the evaluation of price and investment policies, and shows the large impact of public investment in agricultural research, extension, and irrigation on long-run output growth in Indonesia. Elimination of the fertilizer subsidy and reinvestment of the resulting fiscal savings in research, extension and irrigation would produce large benefits.

The Impact of Fertilizer Subsidy on Indian Agriculture, 1970-1990

Achievement of a high and sustained rate of growth of agricultural production is a primary objective of Indian economic development. This is expected to meet the requirement of food security increased agricultural exports as well as containment of inflationary pressures in the economy through adequate supply of agricultural produce and consequent stable agricultural prices. Towards this end the Indian Government has been following a policy of input price subsidisation and output price guarantee (procurement prices) as a package of incentives to the farmers in the country to augment agricultural production.