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Profitability analysis of foodgrain in the Sudan's irrigated agricultural sector

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  • Yusuf T. Gumaa
  • Hamid H. Faki
  • Abu Bakr I. Mohamed
  • Mohamed A. Ismail

Abstract

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.

Suggested Citation

  • Yusuf T. Gumaa & Hamid H. Faki & Abu Bakr I. Mohamed & Mohamed A. Ismail, 1994. "Profitability analysis of foodgrain in the Sudan's irrigated agricultural sector," Agricultural Economics, International Association of Agricultural Economists, vol. 11(2-3), pages 325-333, December.
    • Handle: RePEc:bla:agecon:v:11:y:1994:i:2-3:p:325-333
    DOI: 10.1111/j.1574-0862.1994.tb00341.x
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    Cited by:

    1. Salah M. Elawad & Elrashied E. Elkhiedir & Mahmoud A. Amassaib & Ahmed M. El Naim, 2017. "Government Policies and Food Security in Sudan (1970-2007): Incentives, Efficiencies and Comparative Advantage for Sorghum Producing in Mechanised Rain-fed Subsector," Academic Journal of Life Sciences, Academic Research Publishing Group, vol. 3(3), pages 12-17, 03-2017.

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