Factors Affecting Sugarcane Production of the Credit Owner Farmers of Zarai Tarqiati Bank Limited in Rural area of District Mardan

Naushad Khan


The study was arranged in rural area of district Mardan in 2012. The major objective of the study was to analyze the effect of different factors on sugarcane production of the credit owner of ZTBL in the study area. Total 105 sugarcane growers were selected from 260  ZTBL beneficiaries. With the help of interview schedule data were collected from the respondents and analyzed with the help of  Cob Douglass Production Type and Quintile Regression Function. The result indicates Estimated Results of the Sugarcane per Hectare Yield (kg) of Cob Douglass Production Function of the Respondents in the Study area. According to result, the un-standardized coefficients of land, plough, seeds, fertilizer, pesticides, labor days, irrigation and credit  were estimated .037,-.066, .114, .063, -.012, 1.035 and .155 respectively. The plough, pesticides and credit coefficients were found non-significant, while the remaining were found highly significant. The plough and pesticides relationship with Yield of sugarcane was found inversely, while the remaining independent variables relation were found positive with sugarcane production. The R2 value was found 0.804, which shows the explanatory power of the model, while the F-value was estimated 128.45 and p-value was .000 which shows the significance of overall independent variables in the model. The total output elasticity was found 1.608, which reflects the increasing return in scale and indicates that if one unit input is used for production, then 1.608 units output will be produced.  According to Quintile Regression  the un-standardized coefficient constant value was 6.203, while land, plough, seeds, fertilizer, pesticides, labor days, irrigation and credit coefficients value were  0.0103, 0.006, 0.186, 0.032,0.32 0.172, 0.923 and 0.058 respectively. All variables coefficients were found significant at .05 level and relation with Yield was found positive. If all variables, one percent input of each variables will be applied for production, then land, plough, seeds, fertilizer, pesticides, labor days, irrigation and credit will take positive change 0.0103, 0.006, 0.186, 0.032, 0.32 0.172, 0.923 and 0.058 percents respectively, in the yield of the sugarcane. The R2 value was estimated 0.66, which explain the power of the model and explain 66% variation of the independent variables in the production. The raw sum of deviations was 32.78 and minimum sum of deviations was 11.11, while the total elasticity of the output was 1.42, which shows the increasing return in scale. The elasticity of total output of parametric model was found more than the non-parametric model and reflects more increasing return scale than the non-parametric model. Due to heterodoscity problem the parametric model, misguided the result of the increasing return in the Cob Douglass production function. The cost of the inputs in the study area is very high and because of this they can not apply the required input to their field and get the production less than the expected production which is gained in the developed countries of the world. The farmers have got loan from the bank while the amount was less than the requirement, so it is highly recommended to government of Pakistan to provide loan according to their requirement on free interest basis because when the purchasing power of the farmers were high then they easily purchase inputs in time for enhancement of their production. Good market, Support and Subsided price were also recommended for uplifting the sugarcane production in the study area.

Keywords:  Factors Affecting, Sugarcane Production, Credit Owner of ZTBL, Rural Area,  District Mardan

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