Food Pricing Policy in Developing Countries: Bias against Agriculture or for Urban Consumers?

Derek Byerlee and Gustavo Sain

American Journal of Agricultural Economics, 1986, vol. 68, issue 4, 961-969

Abstract: Price policy discrimination against agricultural producers, in order to provide cheap food for urban consumers, has been widely cited in development forums as a cause of agricultural stagnation. Evidence is presented that suggests no consistent pattern of discrimination against producers for a major food commodity, wheat. However, consumer subsidies and trade policies have reduced bread prices to urban consumers in many countries. Price data from the early 1980s are assembled for thirty-one developing countries. Nominal protection coefficients for producers and consumers at official and corrected exchange rates and wheat-fertilizer price ratios are estimated for each country.

Date: 1986
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:68:y:1986:i:4:p:961-969.

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