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The Effect of Government Intervention in Rice Market and Its Reflection on Efficiency, Welfare and Revenues for The Society
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Abstract: ________________________________________________________________________________________________
• Egyptian Journal of Agricultural Economics. Egyptian Association of Agricultural Economics. Vol.(17), No.(4), Cairo, Egypt, December 2007.
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Rice is considered to be one of the important exporting crops. This crop witnessed transformations in its price policy during the period between government intervention and liberalization, which lead to price distortion that affected the revenues for producers, consumers, and the Government. Therefore, the research aims to analyze the impacts of this policy during the period (1990-2006). The research presents some forms of governmental intervention policies in, either in production or exports, in some of the rice exporting countries.
The economic and statistical analysis showed the following results:
-Area, yield and total production increased significantly by 1.9%, 2.1%, and 5.05% per year respectively during the period 1990-2006. National and per capita consumption of rice also increased significantly by 5.1, and 1.23% per year respectively during the same period.
- Self-sufficiency ratio ranged between 132.1% in 1999 as a maximum value, and 100.8 % in 1998 as a minimum value.
-Producer price, consumer price, and total revenue per feddan, total cost per feddan and net profit per feddan in current prices increased significantly by 4.6%, 5.5%, 7.2%, and 7.6% per year respectively during the period 1990-2006.
-The study used the Partial Equilibrium Model to measure the effect of Governmental intervention in rice market on producers, consumers, hard currency, and Government’s revenue during the period 1990-2006. The main finding indicate a decrease in Governmental revenue that ranged between L.E 3587 and L.E 994 thousand during 1991 and 2002 respectively; a decrease in hard currency earnings that ranged between L.E 205392 and L.E 1727 thousand during the same previous two years; a net economic loss in production that reached L.E 12841 thousand in 2004 as a maximum value and L.E 153 thousand in 2002 as a minimum value; a net economic loss in consumption that ranged between L.E 72542 thousand in 1991 and L.E. 570 thousand in 2002; a net social loss that ranged between L.E 70127 thousand in and L.E 236 thousand during 1991 and 2003 respectively. The decrease in producer surplus ranged between L.E 7223 thousand in 2004 and L.E 938 thousand in 2002 respectively, while the increase in the consumer surplus reached about L.E 66344 thousand in 1991 and L.E 751 thousand in 2004.
-The only beneficiary from the current rice policy is the consumer. Results of the applied model show that the Government can save in hard currency earnings if the price policy by which the producer shall receive the real revenue for his production and the consumer shall incur the real cost of his consumption is applied, based on which production can be increased and consumption can be rationalized, thus exports volume can increased.
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2007
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مكتبة معهد بحوث الاقتصاد الزراعي-7 ش نادى الصيد - مبنى الهيئات والشركات - الدقي- الجيزة (الدور الرابع)
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القاهرة
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| serial title |
المجلة المصرية للاقتصاد الزراعي
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| Agris Categories |
Feed compositionFeed technology
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AGROVOC
TERMS |
Exports.
Market economies.
Marketing techniques.
Rice.
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| Publication Type |
Journal
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