Can protectionism improve food security? Evidence from an imposed tariff on imported edible oil in Tanzania
Charles Peter Mgeni (),
T. S. Amjath-Babu and
Khamaldin Daud Mutabazi
Additional contact information
Charles Peter Mgeni: Humboldt Universität zu Berlin
Stefan Sieber: Leibniz Centre for Agricultural Landscape Research (ZALF), Institute for Socio-Economics
T. S. Amjath-Babu: Leibniz Centre for Agricultural Landscape Research (ZALF), Institute for Socio-Economics
Khamaldin Daud Mutabazi: Sokoine University of Agriculture
Food Security: The Science, Sociology and Economics of Food Production and Access to Food, 2018, vol. 10, issue 4, 799-806
Abstract To improve food security, many countries adopt protectionist measures and block actions that are needed to improve the competitiveness and efficiency of domestic food commodity production. This article evaluates the policy of imposing an import tariff in order to improve the domestic production of sunflower oil in Tanzania. Promoting domestic production of edible oil in Tanzania through reduction in production costs and increase in productivity efficiency could lead to a stable and sustainable supply of edible oil at affordable prices to consumers. Annual edible oil demand currently is around 400,000 t, a figure that is increasing at a rate of 3% annually. Tanzania imports 60% of its edible oil needs, consuming much of its scarce foreign currency reserves. There is growing interest and efforts by the government and other stakeholders to improve the competitiveness of domestic sources of edible oils in order to substitute for imports. Tanzania, in line with its edible oil strategy 2016–2020, has imposed a 10% tariff on imported edible oils as an import substitution trade policy. There is a strong need for evidence-based assessment of this policy intervention, with this paper evaluating it, using the Policy Analysis Matrix (PAM) approach. Three central issues – competitiveness, efficiency, and policy transfers – are analyzed here. Results show that domestic edible oil producers have a comparative advantage but taxes on tradable inputs render domestic edible oil producers uncompetitive. Therefore, there is a need for Tanzania to protect domestic edible oil producers by reducing taxes on tradable inputs, as this will enable an increase in the domestic production of edible oils, which consequently would save the country the foreign currency that is spent on edible oil imports. Tanzania needs to adopt policies that can improve the competitiveness and efficiency of agriculture rather than increased protectionism.
Keywords: Edible oil; Demand; Protectionism; PAM; Competitiveness; Efficiency; Tanzania (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s12571-017-0746-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:ssefpa:v:10:y:2018:i:4:d:10.1007_s12571-017-0746-3
Ordering information: This journal article can be ordered from
http://www.springer. ... ulture/journal/12571
Access Statistics for this article
Food Security: The Science, Sociology and Economics of Food Production and Access to Food is currently edited by R.N. Strange
More articles in Food Security: The Science, Sociology and Economics of Food Production and Access to Food from Springer, The International Society for Plant Pathology
Bibliographic data for series maintained by Sonal Shukla ().