PESTICIDE DEMAND AMONG HYBRID VEGETABLE AND CEREAL SEED PRODUCERS IN BANGLADESH: A SIMULTANEOUS EQUATION ANALYSIS
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Demand for pesticides, inorganic and organic fertilizers were jointly estimated using survey data from a randomly selected 81 BRAC `contract hybrid vegetables and cereal seed growers' in northwestern Bangladesh applying a simultaneous equation framework. Pesticide cost accounts for 6.9% of the gross value of output in hybrid seeds of vegetables and 3.2% in cereals. About 87% of farmers used pesticides at least once with mean number of application of 4.4 times. Twenty-seven brands of pesticides were used including a substantial number of banned pesticides. Price elasticity of demand for pesticides, fertilizers and biofertilizers were estimated at -0.83, -0.21 and -1.13, respectively. Farmers treat chemical fertilizers and pesticides as complements. Increase in prices of both vegetable and cereal seeds significantly increases pesticide demand. Farmers who use mask as a precaution during pesticide application apply significantly higher amount of all three inputs. Farmers' level of education and experience significantly reduce pesticide use. Major thrust for pesticides regulation and effective implementation, promotion of education and increasing farmers' awareness on effects of pesticide use were suggested to safeguard the farmers.