PREFERENCES AND DEMAND FOR VEGETABLE CONSUMPTION IN KHYBER PAKHTUNKHWA PAKISTAN

Abstract

Research Background: Vegetables play a crucial role in human nutrition, particularly for individuals with a dietary preference, especially in developing nations such as Pakistan. Households’ consumption patterns and decisions are influenced by factors like income and prices. Purpose: The study is designed to investigate consumption of main vegetables and to estimate and compare vegetables own, cross price demand elasticities and expenditure elasticities in Khyber Pakhtunkhwa Pakistan. Research Methodology: The recently available data from the Household integrated Economic Survey of Pakistan is used and for analysis the Linear Approximate Almost Ideal Demand System (LA/AIDS) as a model is utilized. Results: The results show that the negative and less than one values of both Marshallian and Hicksian for own-price elasticities (OPE) for all provinces categorized vegetables as necessities. The Marshallian cross-price elasticities (CPE) of demand for the majority of vegetables having negative sign shows that these are complements while few vegetables having positive sign shows substitutes in the study area. Positive signs of expenditure elasticities (ES) in all provinces were observed categorized them as normal goods, while tomatoes and others are classified as luxury commodities. Short-term price increases will lower real income for consumers, which may in turn lower demand for price-inelastic vegetables. Household would allocate a substantial portion of their income to basic needs. Policies aimed at stabilizing prices should be crafted to improve the minimum amount of food that a household needs to eat each day and ensure the right consumption of various food.