IMPACT ANALYSIS OF THE GOVERNMENT POLICIES ON FRUIT AND VEGETABLE SECTOR IN SUDAN IN 2003 AND 2009

Document Type : Original Article

Authors

1 Department of Agricultural Economics, Faculty of Agricultural Sciences, University of Gezira, Wad Medani, Sudan

2 Ministry of Agricultural, Gezira State, Wad Medani, Sudan

Abstract

The main objective of this paper was to analyze the impact of government policies on fruit and vegetable sector  in 2003 and 2009 in terms of profitability, protection, efficiency, competitiveness and comparative advantages. The study depended on secondary data and information collected from relevant sources and references. The policy analysis matrix (PAM) adopted as an analytical model to achieve the study objective. Private profitability, social profitability, nominal protection coefficient on outputs, nominal protection coefficient on inputs, effective protection coefficient, domestic resources coefficient private cost ratio and subsidy ratio to producer were calculated for the crops under study. The study results show that fruit and vegetable sector was taxed for outputs and subsidized for inputs, the net effect of outputs taxation and inputs subsidies resulted in a net taxation on value added at varying degrees. Consequently, it could be concluded that, although the overall impact was negative and tending to be worse, but the study results indicate that there are still comparative advantages in fruit and vegetable crops production. The study recommended further vertical and horizontal expansion of fruits and vegetables, strengthening production infrastructures, and government should enact efficient policies that correct the distorting tradable - outputs policy.

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