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

Why is investment so important in an economy, Why is investment so importan...

Why is investment so important in an economy? Define investment as an enhance in capital stock and link this to broad macro issues; future output, enhance in living standards, ta

Adulteration, How can we test adulterants in vegetable oils?

How can we test adulterants in vegetable oils?

What do you meant by private equity, Q. What do you meant by Private Equity...

Q. What do you meant by Private Equity? Private Equity: A form of business in which company's entire equity base is owned by one or a small group of individual investors. Under

Explain about non-renewable resources, How the above would apply to non-ren...

How the above would apply to non-renewable resources such as oil. This has general applicability to any competitive market. The issue here is that potential supply has a finite

Point elasticity of demand, solution for calculate price elasticity of dema...

solution for calculate price elasticity of demand for demand function Q= 10 - 2p for decrease in price from Rs. 3 to Rs.2..

Estimate all of the parameters in the saving equation, Consider a family sa...

Consider a family saving function for the population of all families in the United States: sav = β 0 + β 1 inc + β 2 hhsize + β 3 educ + β 4 age + u where hhsize is househol

Shifting the ppf curve, Shifting the PPF Curve To raise the manufacturi...

Shifting the PPF Curve To raise the manufacturing of one good without reducing the production of the other, the PPF curve should shift outward. The PPF curve shifts outward as

Help, I have some Microeconomics problem need to be solve, three Long quest...

I have some Microeconomics problem need to be solve, three Long question and 10 multiple-choice. If I give you four hours can you finish.

Price elasticity of demand, Elasticity of Demand Price elasticity of de...

Elasticity of Demand Price elasticity of demand measures percentage change in quantity demanded which results from a 1 % change in price.                 Price Elasticity

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