Farm‐Level Fertilizer Demand for Mexican Wheat Varieties in the Indian Punjab

Abstract

Abstract A restricted profit function is used to estimate jointly the profit and factor demand functions from farm‐level, cross‐sectional data for Mexican wheat varieties in the Indian Punjab. The main focus is analysis of fertilizer demand. The results indicate that output price is a more powerful policy instrument than fertilizer price to influence fertilizer use, output supply, and returns to fixed farm resources, that producers attain allocative efficiency, that education of the farm people contributes significantly to agricultural production, and that profit function is a suitable concept for empirical analysis and interpretation.