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Economic Welfare Analysis of State Interventions in the Sugarcane Economy of Pakistan |
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| รหัสดีโอไอ | |
| Creator | 1. Muhammad Zulfiqar 2. Ajmal Waheed 3. Anwar F. Chishti |
| Title | Economic Welfare Analysis of State Interventions in the Sugarcane Economy of Pakistan |
| Publisher | School of Development Economic |
| Publication Year | 2552 |
| Journal Title | Development Economic Review |
| Journal Vol. | 4 |
| Journal No. | 1 |
| Page no. | 13 |
| Keyword | Agriculture in trade liberalization, Agriculture policy, Sugarcane economy, Government policy |
| ISSN | 1906-2540 |
| Abstract | The instant study of Pakistan's Sugarcane economy identified state policy interventions and estimated welfare effects associated with state interventions prevailed during the study period. The study points out that Sugarcane crop had been subjected to 'price support-cum-import tax' regime during both study sub periods i.e. during 1985-1995 and 1995-2005. These interventions were found associated with welfare effects higher losses to consumers, Rs.142842.28 million than gains to producers Rs.134671.18 million during pre-WTO period. Similar trend continued during post-WTO period where consumers suffered higher, Rs.208424.66 million per year than benefit received by the producer, Rs.199521.21 million per year. Based on the analysis, the study presents the following recommendations. First, government interventions should be minimized and gap between domestic and international prices should be narrowed down till the two prices arrive at the same level. Second, trade liberalization process should be stepped up, and more specifically, world prices should be allowed to prevail in domestic Sugar market. Third, Government of Pakistan should gradually reduce its role in trading through State Trading Enterprises (STEs) and act as facilitator of trade as per WTO agreements. More investment should be made in research and development, out-reach activities and quality aspects of sugarcane crop. |
