Effects of onion Product of Rural Welfare Families in Sistan and Baluchestan Provin

Onion production is an important means to create job opportunities and augment income in Sistan and Baluchestan province of Iran. The geographical location and the climate of the region make it very suitable for production onion. If better modern production methods and marketing strategy is employed, it will prove to be an added advantage for the region. In today’s world, breeding farmers face tough conditions, like recent droughts. In this study to investigate the effects of onion production of rural welfare families in Sistan with utilization of production function like One degree and Cobb Douglas along with ordinary least square method and Eviews software were used. During the investigation in 2011-2012 some data was collected, by randomly selecting breeding farmers and given questionnaires to fill in. Independent variables of this production function are costs, manure, chemical fertilizer, labor, machinery, poisons, other costs, land (m2) and depended variables is onion products value. All Coefficients 0.88 and 0.654 and calculated elements (except chemical fertilizer) are positive. The sum of coefficient’s Cobb-Douglas is more than one and shows an increase return to scale. Production elasticity, except in chemical fertilizer which is negative one, all are positive and less than one and labor production elasticity is higher than other inputs. By paying attention to the increasing unemployment in Sistan and Baluchestan province, high labor production elasticizes can provide appropriate field for creating jobs and decrease unemployment in province.