Vol - 19, Issue - 03
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Journal of the Austrian Society of Agricultural Economics (JASAE)
Journal ID : JASAE-16-03-2023-222
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Title : An Empirical Investigation of Food Demand in district Kotli, Azad Kashmir-Pakistan
by Syed Kafait Hussain Naqvi, Izba Javed, Muhammad Luqman,
Abstract : This study is an attempt to empirically analyze the current and projected demand of selected food grains; namely Wheat, Maize and Rice in district Kotli, Azad Kashmir (AJK)-Pakistan. The aims of the study are to examine how prices and socio demographic factors affect the demand for food; determining own and cross price elasticities; and to project the future demand of these grains based on primary data using Simple Random Sampling during 2017-18. For the empirical investigation, Linear Approximation Almost Ideal Demand System (LA/AIDS) is employed and compensated and uncompensated elasticities are obtained. The findings show that cross prices affect demand of selected food grains significantly while socio demographic factors (gender, locality, age and education level) do not significantly affect demand of food grains. Compensated and uncompensated own-price elasticities appeared with the opposite signs whereas, all cross-price elasticities appeared with the positive sign as expected for substitutes (except uncompensated elasticity between Wheat and Rice, which shows, that these grains are complements to each other). Similarly, expenditure elasticities show that the selected grains are normal commodities for the households. Estimates of the future projection signifies that the demand for food grains is growing with the population growth and hence a high demand of food grains will be faced during 2017-2041. The findings are important grain producers and policy makers. Government should adopt population control measures or increase supply of food in Azad Kashmir.

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