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International Journal of Agricultural Research
  Year: 2007 | Volume: 2 | Issue: 1 | Page No.: 81-86
DOI: 10.3923/ijar.2007.81.86
 
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Fertilizer Sector Liberalization: Effects on the Profitability of Nitrogen Fertilizer Application in Egusi, Okra and Tomato Production in Nigeria
O.J. Ayodele, M.O. Oladapo and S.O. Omotoso

Abstract:
Subsidy withdrawal is an instrument of the on-going liberalization in the fertilizer sector. The effects on rising fertilizer retail prices were evaluated on the profitability of nitrogen (N) application to egusi, okra and tomato, using Cost-Benefit analysis. Returns to N application were positive at the 1996 highly-subsidized fertilizer prices, with highest Value-Cost Ratios (VCRs) at 30, 50 and 60 kg N ha-1 for tomato, egusi and okra, respectively. Without subsidy, net returns and VCRs decreased, such that N application to egusi was not profitable. At the higher subsidized and unsubsidized fertilizer prices in the 2004/2005 season, N application to okra and tomato was profitable. Returns and VCRs confirmed 30 and 60 kg N ha-1 as economic rates for tomato and okra, respectively. Okra and tomato will accommodate 24 and 385% increase in price, respectively, above the unsubsidized N2900.00 per 50 kg bag, based on target VCR = 2.0.
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How to cite this article:

O.J. Ayodele, M.O. Oladapo and S.O. Omotoso, 2007. Fertilizer Sector Liberalization: Effects on the Profitability of Nitrogen Fertilizer Application in Egusi, Okra and Tomato Production in Nigeria. International Journal of Agricultural Research, 2: 81-86.

DOI: 10.3923/ijar.2007.81.86

URL: https://scialert.net/abstract/?doi=ijar.2007.81.86

 
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