Abstract:
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Sudan has the features of the least developing economy which are
mainly the inadequacy of foreign reserves. The agricultural sector is the
main source of non oil exports and provides 90% of the country's
foreign exchange earnings from non oil exports.
The objective of the study was to analyze the agricultural price
policy that affects the profitability and competitiveness of production
and exports of oil seed crops (sesame and groundnut). In order to study
the impact of these policies on the oil seed crops, secondary data for the
period 2001/02 – 2006/07 was analyzed using the Policy Analysis
Matrix (PAM) as a quantitative tool of analysis to quantify the private
and social profitability of oil seeds.
A basic result was that both crops, in different production systems
were profitable and competitive in relative and absolute terms, but
irrigated groundnut was more competitive than rainfed groundnut. Also, the
sesame production in the mechanized sector was more competitive than in
the traditional sector.
In relative and absolute terms, groundnut was more competitive
than sesame. Although, the study results showed a slight increase of
implicit subsidies in North and South Kordofan, they revealed that both
crops were heavily taxed at different production farming systems in the
selected areas.
To establish right and stable price policies for oil seeds production,
the study concluded the need for complementary relationships between
these policies instruments and their time synchronization.
Also, the study emphasized the need for effective export
promotion policy package to increase oil seeds exports.
The study recommended revision of policy package (the taxes and
levies) to increase oil seeds yield and to improve seed quality that could
result in vertical expansion of oil seeds production.
Also, the study recommended coordination among government
entities with regard to oil seeds production, processing and marketing
that might be reflected in reduction in production and marketing costs. |