Abstract:
This study was undertaken during the year 2004 covering a period from 1982 to 2002 to determine factors responsible for fluctuation in basmati rice area in Punjab. The data on area, yield, real prices, etc. were collected from different publications of Government of Pakistan. Basmati rice acreage was taken as dependent variable. It was considered to be a function of several variables. However, highly related and quantifiable ones are selected as independent variables. The explanatory variables were lagged basmati area, IRRI rice area, lagged yield of basmati rice, lagged basmati real price and IRRI real price. Overall performance of the estimated equation was acceptable in terms of goodness of fit and diagnostic test. Adjusted Rz was quite high indicating that approximately 84.5 percent of variation in rice planted acreage is explained by the model. The significant positive coefficient of lagged basmati acreage indicates that last year acreage affected much on the current year acreage. The positive coefficient of lagged basmati rice price in acreage equation had positive relationship with basmati rice acreage and basmati price do influence basmati planting decision. Similarly lagged basmati yield had positive relationship with basmati acreage. Regarding cross price effects, coefficients lagged IRRI price had expected negative sign and was significant at 10 percent level suggesting the IRRI rice price had competitive inverse relationship with basmati acreage. However, coefficient of IRRI area had negative sign but found to be insignificant.
Page(s):
231-236
DOI:
DOI not available
Published:
Journal: Journal of Agricultural Research, Volume: 45, Issue: 3, Year: 2007