Conceptualising Graduation from Agricultural Input Subsidies in Malawi

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Main author: Chirwa, Ephraim
Other authors: Dorward, Andrew
Matita, Mirriam
Format: Monographs and Working Papers           
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id eprints-16726
recordtype eprints
institution SOAS, University of London
collection SOAS Research Online
language English
language_search English
description The government of Malawi has been implementing agricultural input subsidies since 2005/06 as an intervention aimed at improving food security among resource poor smallholder farmers. Although the issue of graduation is not articulated in the design of the programme, this study investigates the determinants of changes in the demand for commercial fertilizers in the presence of the subsidy programme. The increase in purchase of commercial fertilizers by subsidized households may indicate prospects of graduation from the subsidy programme in future. Using panel data between the 2004/05 and 2008/09 seasons, we find that 6 percent of households that did not purchase commercial fertilizer in 2004/05 could afford to purchase fertilizers commercially in subsidy years. Relative to those that never purchase fertilizers, these households tend to have higher per capita expenditure and higher values of durable assets. The econometric results show that initial conditions matter, with initial household size, per capita expenditure, agricultural output, and existence of business enterprise all playing a positive role in the changes in demand for commercial fertilizer. We also find that commercial fertilizers decreases with initial commercial fertilizers, land holdings and existence of ADMARC. The results suggest that the poor may have low prospects of graduation and less involvement of ADMARC and greater participation of the private sector can help in improving the ‘potential graduation conditions’.
format Monographs and Working Papers
author Chirwa, Ephraim
author_facet Chirwa, Ephraim
Dorward, Andrew
Matita, Mirriam
authorStr Chirwa, Ephraim
author_letter Chirwa, Ephraim
author2 Dorward, Andrew
Matita, Mirriam
author2Str Dorward, Andrew
Matita, Mirriam
title Conceptualising Graduation from Agricultural Input Subsidies in Malawi
publisher Future Agricultures Consortium
publishDate 2011
url https://eprints.soas.ac.uk/16726/

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