Economic analysis of policy production of rice crop under pricing of irrigation water
2011
Fahmy, H.M.
The study aimed at analyzing the production policy for the rice crop under the pricing of irrigation water by using a PAM productivity assuming six price levels per cubic meter used in the cultivation of rice, The results indicated that Nominal Protection Coefficient of Traceable Input of the crop without the cost of irrigation water was estimated at 0.75.this means that the existence of indirect taxes to the producers of the crop. The Nominal Protection Coefficient of return per feddan was 0.93. This means that producers do not to get their, real prices, which turned in the form of support to consumers of this crop, while the estimated Effective Protection Coefficient was 0.73, which means that producers receive higher returns in the case of the using of border prices rather than domestic prices. Also Domestic Resource Cost was 0.27 which means that Egypt has a comparative advantage in rice production.The results of the analysis of the matrix under the pricing of irrigation water showed that assumed to the progressive increase for the price of one cubic meter of irrigation water by about 5.10, 20, 30, 40, 50 did not change the Nominal Protection Coefficient of return per feddan, while increasing both the Nominal Protection Coefficient of Traceable Input and Domestic Resource Cost increase, while Effective Protection Coefficient gradually decreases. The crop lost its comparative advantage when the price per cubic meter reached 40 Pt, and the crop gives loss to the farmer when the price was 30 Pt per m3 and the result indicated that the best price could give suitable monthly turn for farm, and additional annual revenue to the State when it reaches 5 Pt per cubic meter.
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