Graded discussion board, Microeconomics

Assignment Help:
The Case:
In Pakistan, sugarcane, wheat, rice and cotton accounted for 90% of the value added in crops and 6% of GDP in the last fiscal year but the average yield of these crops is very low as compared to other countries. There are several factors for this low productivity like soil conditions, low income and purchasing power of growers, unavailability of proper inputs, lack of modern technologies of production etc. Due to high dependency burden, expensive health facilities, inflation and high prices of energy, farmers hardly fulfill their domestic expenditures which restrict their investment capability. Upward price fluctuations of all inputs (seed, fertilizer, pesticides etc) and varying prices of outputs (cotton, rice, wheat, sugarcane etc) adversely affect the farmer’s ability and choice to invest. At the start of crop season, there is demand pressure for inputs when growers have to purchase inputs for cultivation whereas at the end of crop season, there is supply pressure of output in the market. Farmers have to sell their crops immediately after harvesting due to financial stress and lack of storage facility. Suppliers of inputs create shortage and force farmers to buy inputs at higher costs. Middlemen purchase farmer’s products below the market prices. Farmers have no choice but to accept the whole situation. They pay some part of total input bill and promise the suppliers to pay rest of the bill at the end of next crop season. This sometimes bounds them to sell their products to the same supplier year after year. The present market system is inefficient that supports middlemen and discriminates against farmers.

Related Discussions:- Graded discussion board

International financial institutions, Conditionality: International financi...

Conditionality: International financial institutions (such as World Bank andInternational Monetary Fund) usually attach strong conditions to emergency loans they make to developing

When tree berson shared , ahmed has 500 dolars.asma has 700 dolars.cismaan...

ahmed has 500 dolars.asma has 700 dolars.cismaan has 800 dolar

Economics, What are the factors that producers in the society may take into...

What are the factors that producers in the society may take into consideration when deciding on the what to produce,how to produce and for whom ?

Help PLease, In an essay of at least four well-developed paragraphs, discus...

In an essay of at least four well-developed paragraphs, discuss U.S. economic policy. Be sure to include the following information in your essay: Compare and contrast the economi

Effects of global economic crisis, The global financial crisis, brewing for...

The global financial crisis, brewing for a while, really started to show its effects in the middle of 2007 and into 2008. It originated from countries with highly sophisticated fin

Use of income elasticity of demand, Use of Income elasticity of demand: ...

Use of Income elasticity of demand: Income elasticity of demand on the other hand, has the following uses (i) Income elasticity of demand shows how the pattern of consumer de

Estimate the decline parameters and economic rate of return, 1. The figure ...

1. The figure below is historical production data from the Kuparuk River field. The OOIP is 5,332,979 Mstb and cumulative recovery through 12/31/2004 is 1,971,200,654 stb.

Is economic development is based on goverment, Is economic development is b...

Is economic development is based on goverment Many governments--mainly unelected governments-aren't that interested in economic development. Giving valuable industrial franchis

Selective in exports, Selective in Exports: There are many industries ...

Selective in Exports: There are many industries where India has an advantage because of relatively lower costs of all forms of manpower whether it is professional or factory l

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd