IMPACT OF AREA UNDER CULTIVATION, CREDIT DISBURSEMENT AND FERTILIZERS OFF-TAKE ON SUGARCANE PRODUCTION: AN ECONOMETRIC ANALYSIS

Abstract

This study investigates the impact of area under sugar cane crop, fertilizers off- take and credit disbursement on its productivity in Pakistan using time series data from 1980 to 2013 using econometrics analysis. The study showed that one hectare increase in area under sugarcane cultivation brings 57.41 tons increase in sugarcane productivity, 1% increase in fertilizer off-take bring 31.80 tons increase in sugar cane productivity while 1% increase in credit disbursement increases 0.018 tons increase in sugarcane production. The result suggests that area under cultivation could be increased. Appropriate application of pure fertilizers off-take and credit disbursement to sugarcane producing farmers can further enhance its production.