WELFARE EFFECTS OF FOOD PRICE POLICIES IN PRODUCTION AND CONSUMPTION OF SORGHUM IN SUDAN (1970-2007)

Mahmoud A. Amassaib, Salah M. Elawad, Elrashied E. Elkhiedir

Abstract


The main objective of this study is to evaluate the welfare effects of the price policies that applied to achieve self-sufficiency for sorghum. Nominal Protection Coefficient (NPC) and Partial Equilibrium Market Model were used to assess the welfare effects of sorghum price policies. The NPCs explained the policy implemented during (1970-2007), With exception for producer in sub-periods between 1970 and 1985, the producer received and consumer paid prices higher than parity world price (export price). According to welfare analysis results, the combined effect of direct and indirect price interventions through price policies led to inefficiencies in production and consumption of sorghum and losses in consumers` and producers` surpluses. The total efficiencies were positive in two sub-periods ranged betwwen1970-1978 and negative in the others sub-periods from1978 to 2007. Government gains were positive in all periods of (1970-2007). So, most of government price policies applied in periods of (1970-2007) were worse producers and consumers of sorghum and lead to welfare losses as a result of the taxes and/or subsidies structure when comparing domestic prices with efficient prices (world prices).

 


Keywords


Sudan, Partial Equilibrium Market Model, Welfare Effect

Full Text:

PDF

References


Abdelrahman, A. H. 1990. Analysis of consumer demand for cereals using AIDS Model: An application to the Sudan. Unpublished Master Thesis, Iowa State University, Ames.

Aksoy, A. and Isik-Dikmelik A. 2008. Are low food prices pro-poor? Technical report, World Bank Development Research Group, Working Paper 4642.

Amassaib, Mahmoud A. 2011. Impact of agricultural policies on the supply response of sorghum production in semi mechanized rainfed subsector in Sudan. Ph.D. thesis in Agriculture Sciences. University of Khartoum. Sudan.

DeHoyos, R. and Medvedev D. 2009. Poverty effects of higher food prices: A global perspective.Technical report, World Bank policy research working paper.

Faki, Hamid H. M., Gumaa, Yousif T. Ismail, Mohamed A. (1995). Potential of the Sudan's irrigated sector in cereal grains production: Analysis of various policy options. Agricultural Systems Volume 48, Issue 4, 1995, Pages 457-483 Copyright © 1995 Published by Elsevier Science Ltd.

FAO 1992. Agricultural price policy: Government and Market. Training material for agricultural planning 31 .Rome press. Italy.

FAO 2002. Trade and Food Security: Conceptualizing the Linkages Expert Consultation Rome, 11 - 12 July 2002

FAO 2003. Global information and early warning system on food and agriculture, food supply situation and crop prospects in Sub-Saharan Africa. Internet search.

Headey, D. 2011. Was the global food crisis really a crisis? Simulations versus self-reporting”, IFPRI Working Paper No 1087. http://www.ifpri.org/publication/was-global-food-crisis-really-crisis)

Ivanic , M. and Martin W. 2008. Implications of higher global food prices for poverty in lowincome countries. Agricultural Economics, 39(s):405–416.

Levy, V. 1983. Welfare transfer effects of cotton price policies in Egypt; 1965-78. Amer. J.Agr.Econ. 65(3): 576-580.

Lutz, E. and Scandizzo, P. 1980. Price distortions in developing countries: A bias against agriculture. European Review of Agricultural Economics, 7: 5-27.

Mashinini, N.N; Obi, A. and van Schalkwyk, Herman 2005.Welfare effects of the regulation of the maize market in Swaziland. Paper prepared for the International Food & Agribusiness Management Association World Food & Agribusiness Symposium on Re-inventing the Food Chain: New Markets, Customers, and Products, Chicago, Illinois, USA, 25-28 June, 2005.

Maxwell, Simon and Slater, Rachel 2003. Food policy old and new. Development policy review21(5-6): 531-553. Overseas Development Institute. Published by Blackwell Publishing, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA.

Mehrabi, Shah M.1991. Sudan’s ttax structure, agriculture, and economic development. Department of Economics. Mary Washington College. Fredericksburg, Virginia 22401-5358.

Mohamed, Eldaw A. 1999. Sudanese agriculture 1990 -1997. Policies, production, trends and international competitiveness. http:www//D:FAO%20 in format agric.policy%20sudan.htm.

Obih. U.; Emenyonu, C.A.; Onyemauwa, S.C.; Odii, M.A.C.A. and Okafor, R.M. 2008. Welfare effects of shifiting from trade to ban on rice import policies in Nigeria. The Social Sciences 3(4): 309-321.

Perali. F., 2003. Partial equilibrium analysis of policy impacts (part 1). National Agriculture Center (NAPC) Syria. http://www.napcsyr.org/dwnldfiles/training_ materials/en/tm_ partial_equlibrium_analysis 1en.pdf.

Poulton, Colin and Dorward, Andrew 2003. The role of market based economic development in strengthening food security. Forum for Food Security in Southern Africa. Centre for Development and Poverty Reduction, Department of Agricultural Sciences, Imperial College London.

Rafeek, M.I.M and Samaratunga, P.A., 2000. Trade liberalisation and its impact on the rice sector of Sri Lanka. Sri Lankan. Journal of Agricultural Economics. 3(1):143 - 154.

Shapouri, Shahla and Trueblood, Michael 2003. Impacts of agricultural policy reform on low-income countries. Economic Research Service/USDA.

Skoufias E, Tiwari E & Zaman H, 2011. Can we rely on cash transfers to protect dietary diversity during food crises? Estimates from Indonesia. World Bank Policy Research Working Paper No. 5548, World Bank, Washington DC http://wwwwds.worldbank.org/

Tsakok, I. 1990. Agricultural price policy: A practitioner’s guide to partial-equilibrium analysis. Cornel university press; London.

Valdes, A. 1993. The Macroeconomic environment necessary for agricultural trade and policy reform. Food Policy 18(4):267-375.




Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.