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