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Profitability analysis of foodgrain in the Sudan's irrigated agricultural sector
Author(s) -
Gumaa Yusuf T.,
Faki Hamid H.,
Mohamed Abu Bakr I.,
Ismail Mohamed A.
Publication year - 1994
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.1994.tb00341.x
Subject(s) - profitability index , devaluation , economics , agriculture , agricultural economics , currency , exchange rate , resource (disambiguation) , business , monetary economics , finance , ecology , computer network , computer science , biology
This paper discusses the situation of irrigated sorghum and wheat with respect to their financial and economic profitability and international competitiveness in use of domestic resources, in light of declared government policy which emphasizes shifting from traditional rainfed sector to irrigated sector for production of staple foodgrain. Domestic resource cost analysis has been employed using official and shadow exchange rates. Measures of domestic resource cost ratio, international value added, international competitiveness, nominal and effective protection coefficients were also estimated. Results indicate that the economic profitability has been significantly higher than the financial one due mainly to variability in international prices, yields and overvalued exchange rates; but devaluation of the currency is not a sufficient condition for paying higher prices to farmers.