Impact of wheat policy on dryland wheat production in the Republic of Yemen
1996
Salem, M.A. (Jordan Univ., Amman (Jordan). Dept. of Agricultural Economic and Extension, Faculty of Agriculture)
The objective of this study was to assess the impact of wheat policy on dryland wheat production in Yemen. Total value of subsidy in 1993 was estimated by 8.1 billion YRs for imported wheat, meanwhile the total value of subsidy for production input was only 477 million YRs. The results of this study indicated that dryland wheat production is economically feasible, and Yemen has a comparative advantage of producing it. The nominal protection coefficient for tradable input (NPCI) for dryland wheat was estimated by 59%; and value of the subsidy for the tradable input and domestic factors for dryland wheat was estimated by 3098 YRs/ton. Also, it was shown that there is a tax on mechanical labour, which did not encourage the expansion of agricultural machinery toward the private sector.
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