West Pakistan is at present experiencing remarkable production
increases in agriculture. These appear to be resulting from the rapid
adoption of new varieties of seeds, the increased use of fertilizers and
massive investments in tubewells — coupled with, during the 1968 rabi
(winter) season, favourable weather conditions. Price-incentive
policies, particularly agricultural price support, have helped
considerably in the quick adoption of these innovations by farmers. A
distinctive element of all the innovations so far promoted is that they
are com¬plementary to labour. There are virtually no economies of scale
associated with their use. New seeds and fertilizers are as productive
on small holdings as on large. The private tubewells are sufficiently
inexpensive, even the small farmers can afford to invest in them, at
least through partnership. Water, seeds and fertilizers are essentially
infinitely divisible inputs. They can benefit the small farmers as much
as the large.
Effect of Grain Price Support Policy in China : A Grey Relational Analysis
