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2011 (Vol. 3, Issue: 1)
Article Information:

The Effect of Price Liberalization Policy on Agricultural Production Instability in Rahad Agricultural Corporation

M.E. Abd Ellatif Mahir and H. Abdelaziz
Corresponding Author:  H. Abdelaziz 

Key words:  Price liberalization, production instability, Rahad Agricultural Corporation, Sudan, , ,
Vol. 3 , (1): 5-10
Submitted Accepted Published
2010 May, 26 2010 September, 13 2011 January, 10
Abstract:

The study was conducted to measure the extent of instability in the production of the main crops grown in the Rahad scheme and determine the contribution of different components to agricultural production instability before and after adoption of prices liberalization policy. The main crops included in the study w ere cotton, sorghum and groundnuts. The instability of area, yield and production were measured, in addition to the analysis of different components of the sources of change in the mean and variance of production. The results of the study revealed that sorghum witnessed a continuous increase in instability during the periods before and after adoption of prices liberalization policy. The instability in groundnuts and cotton production was observed after the adoption of liberalization policy. The instability in area and productivity of the three crops moved in the same direction and their increasing/decreasing trend resulted in increase/decrease in instability. The decomposition analysis of sources of change in mean production indicated that the m ain contribution in change of mean production of sorghum and groundnuts was due to change in mean yield and due to change in mean area in case of cotton. The analysis of decomposition of variance showed that in case of sorghum the changes in the variance of yield accounted for large shares of changes in variance of production whereas in case of cotton and groundnuts the large shares w ere due to area. The changes in the residual term were important in explaining the changes in the variance of production in groundnuts. Programs and policies such as rehabilitation of irrigation canals, provision of inputs and strengthening the agricultural research and extension can play a vital role in achieving stability in the agricultural production in Rahad Agricultural Corporation.
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  Cite this Reference:
M.E. Abd Ellatif Mahir and H. Abdelaziz, 2011. The Effect of Price Liberalization Policy on Agricultural Production Instability in Rahad Agricultural Corporation.  Asian Journal of Agricultural Sciences, 3(1): 5-10.
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ISSN (Online):  2041-3890
ISSN (Print):   2041-3882
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