Analysis of sugar cane supply response
1999
Somporn Isvilanonda (Kasetsart Univ., Bangkok (Thailand). Faculty of Economics)
Finding indicates that a higher price of sugar cane in relative to other upland crops price, a lower real paddy price, and higher investment in sugar cane research were important factors affecting the expansion of sugar cane supply. The result also suggests that using the benefit sharing system in determining the sugar cane price is appropriate only in the short-run. The higher relative sugar cane price in the long run will create a problem in upland crop structure and also the sharing system due to a dramatic rise in sugar cane production area. To divert the future problem, government should invest more in sugar cane research to generate a new technology for productivity improvement and also for the reducing the production cost. This will enhance the industry competitiveness.
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