Journal of Agricultural Science and Engineering
Articles Information
Journal of Agricultural Science and Engineering, Vol.6, No.1, Mar. 2020, Pub. Date: Mar. 24, 2020
The Economic Impact of Price Policy (Focus Price Policy) on Production and Consumption of Wheat in Sudan
Pages: 1-7 Views: 933 Downloads: 263
[01] Tomador Muzamill, Department of Socio-economic Studies, Institute of Environment, Natural Resources & Desertification Research, National Center for Research, Ministry of Higher Education and Scientific Research, Khartoum, Sudan.
[02] Intisar Elbashier, Department of Agricultural Economics, College of Agricultural Studies, Sudan University of Sciences and Technology, Ministry of Higher Education and Scientific Research, Khartoum, Sudan.
The study was conducted to partially analyze Wheat market equilibrium during the period 2015-2019, it aimed to determine the impact of focus price policy on Wheat producers and consumers through assessing profits, losses and efficiency in Wheat market. The study depends on secondary data; partial analysis model was used as an analytical tool. The study concluded that the elasticity of supply of Wheat was 0.11 and the elasticity of demand of Wheat was 0.33, i.e. supply and demand for Wheat were inelastic. The study showed that the value of the nominal protection coefficient for producer and consumer during the seasons 2015-2018 was less than one, this indicate that there were taxes imposed on producers and support for consumer but in season 2018-2019 the value of nominal protection coefficient of producers was 1.36, i.e. there was support for producers and taxes imposed on the consumers because the value of nominal coefficient protection of consumer was greater than one (1.29). Quantities produced and consumed under the policy was less than quantities produced and consumed in the case of non-intervention except in season 2018-2019 in which production was increased from 556,650 MT without policy intervention to 6199,00 MT under focus price policy leading waste of resources where as consumption increased from 236,015,0 MT without policy intervention to 242,270,0 MT under focus price policy causing waste of foreign exchange in order to cover Wheat imports. The change in the quantity supplied (632,50 MT) was greater than the change in the quantity demanded (625,50 MT). Results also showed that loss in production efficiency was 156.1SDG/MT, loss in consumption efficiency was 123.1SDG/MT and loss in society efficiency was 279.24SDG/MT. Study recommended that government should adopt an alternative policy to the focus price policy in order to encourage small farmers to produce Wheat such as reducing taxes and subsidizing production inputs.
Wheat, Price Policy, Equilibrium, Quantity, Demand, Supply, Production, Consumption
[01] Speech, M., Market performance of agricultural commodities in semi-arid South Kordofan, Sudan. Geoforum, 1989. 20 (4): p. 409-424.
[02] Faki, H. and A. Taha, Distortions to Agricultural Incentives in Sudan. 2007.
[03] Herrmann, R. and P. M. Schmitz, Stabilizing producers' revenue by fixing agricultural prices within the EC? European Review of Agricultural Economics, 1984. 11 (4): p. 395-414.
[04] Colloredo-Mansfeld, R., The native leisure class: Consumption and cultural creativity in the Andes. 1999: University of Chicago Press.
[05] Morgan, K. and R. Sonnino, The urban foodscape: world cities and the new food equation. Cambridge Journal of Regions, Economy and Society, 2010. 3 (2): p. 209-224.
[06] Elmulthum, N. A. M., M. E. A. Awaad, and A. E. M. Elamin, Can Sudan achieve food security during the next decade?: some forecasts of self-sufficiency in cereals. Scientific Research and Essays, 2011. 6 (3): p. 529-532.
[07] Mason, N. M., T. Jayne, and B. Shiferaw, Africa's rising demand for wheat: trends, drivers, and policy implications. Development Policy Review, 2015. 33 (5): p. 581-613.
[08] Chebil, A., et al., Metafrontier analysis of technical efficiency of wheat farms in Sudan. Journal of Agricultural Science, 2016. 8 (2): p. 179.
[09] Ngobese, P., The economics of large scale wheat production in Zimbabwe. 1987, Virginia Tech.
[10] Abdelrahman, A. H., Trends in Sudanese cereal production, consumption, and trade. 1998.
[11] El-Dukheri, I., N. Elamin, and M. Kherallah, Farmers’ response to soaring food prices in the Arab region. Food Security, 2011. 3 (1): p. 149-162.
[12] Cleaver, K. M., The impact of price and exchange rate policies on agriculture in sub-Saharan Africa. 1985: World Bank Washington, DC.
[13] Shiferaw, B., et al., Crops that feed the world 10. Past successes and future challenges to the role played by wheat in global food security. Food Security, 2013. 5 (3): p. 291-317.
[14] Elsheikh, O. E., A. A. Elbushra, and A. A. Salih, Economic impacts of changes in wheat’s import tariff on the Sudanese economy. Journal of the Saudi Society of Agricultural Sciences, 2015. 14 (1): p. 68-75.
[15] Giller, K. E., et al., Conservation agriculture and smallholder farming in Africa: the heretics’ view. Field crops research, 2009. 114 (1): p. 23-34.
MA 02210, USA
AIS is an academia-oriented and non-commercial institute aiming at providing users with a way to quickly and easily get the academic and scientific information.
Copyright © 2014 - American Institute of Science except certain content provided by third parties.