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: 11-7 Views: 73 Downloads: 26
Authors
[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.
Abstract
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.
Keywords
Wheat, Price Policy, Equilibrium, Quantity, Demand, Supply, Production, Consumption
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