Agricultural inputs industry in El Salvador

This decision has not only lowered per capita food production, but has also adversely affected the agricultural inputs industry, which provides the seeds, fertilizers, and pesticides essential to a productivity-led focus. This study examines El Salvador"s agricultural inputs industry in four broad areas: (1) trends in the demand for and use of agricultural inputs (revealing a declining use of fertilizers and pesticides), along with the conditions contributing to these trends; (2) the structure, conduct, and performance of the industry itself; (3) the legal and regulatory environment of the agrochemical subsector; and (4) the technological parameters of production systems and related research and extension activities. The study concludes that the undesirable production trends can be traced to the policies which between 1975 and 1988 forced farmers to shift their focus from productivity to subsistence. However, many macroeconomic, sectoral, trade, and institutional policy changes since 1988/89 have set the stage for a reversal of these trends, and as result, the demand for agricultural inputs can be expected to increase and the national food security situation to improve.