Sugarcane policy analysis: A case study of Charsadda and Mardandistrict [Pakistan]
2005
Khan, A.,Technology Transfer Inst., Tarnab (Pakistan))Khan, N.Ishaq, M
This study was undertaken in Charsadda and Mardan districtsduring 2002-03 to analyze policy structure of sugarcane production toknow whether the policy incentives have favoured or discriminatedagainst the sugarcane activity. Another major objective of the studywas to determine whether Pakistan qualifies for the export ofsugarcane/sugar or should produce sugar as import substitutionstrategy to ensure food security. Nominal Protection Co-efficient (NPC)and Effective Protection Co-efficient (EPC), the indicators of policyeffects, show that sugarcane production is encouraged by policyincentives as export promotion, while it is discouraged as importsubstitution strategy. This implies that the current sets of sectoral andmacroeconomics policies are not consistent with the national policyobjectives of agricultural development. The results of PAM analysissuggest that sugarcane could be nationally produced as an importsubstitution strategy for self-sufficiency, while its production shouldbe discouraged for export purpose. The analysis further revealed thatland rent was the major cost item of cane production, indicating itsscarcity and high opportunity cost. The study recommends introductionand on-farm trial of improved cane varieties with high sucrose content,and then their dissemination to farmers at lowest possible price. Thisstudy further recommends that Pakistan's top management and policymakers should make serious efforts to make both sectoral andmacroeconomic policies consistent with national goals of agriculturaldevelopment, trade and food security.
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