COMPARATIVE ADVANTAGE OF SUGARCANE PRODUCTION IN PAKISTAN

Asif Khan, Arshad Farooq and Khuram Nawaz Saddozai

Bangladesh Journal of Agricultural Economics, 2006, vol. 29, issue 01-2, 11

Abstract: This study was undertaken in 2003-04 to determine the competitiveness of sugarcane production in North West Frontier Province (NWFP) of Pakistan. Another major objective of the study was to determine whether Pakistan qualifies for the export of sugarcane/sugar or should produce sugar as import substitution strategy to ensure food security. The Policy Analysis Matrix (PAM) depicts that sugarcane production is more nationally profitable for import substitution than sugarcane production as export promotion objective. The Domestic Resource Cost (DRC) and Social Benefit-Cost (SBC) analysis also confirm the above analysis of competitiveness of sugarcane production in the project area. This implies that the current sets of sectoral and macroeconomics policies are not consistent with the national policy objectives of agricultural development. The results of PAM analysis suggest that sugarcane could be nationally produced as an import substitution strategy for self-sufficiency, while its production should be discouraged for export purpose. This study further recommends that Pakistan's top management and policy makers should make serious efforts to make both sectoral and macroeconomic policies consistent with national goals of agricultural development, trade and food security.

Keywords: Production; Economics (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:bdbjaf:200193

DOI: 10.22004/ag.econ.200193

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