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Comparative Advantage Of Sugarcane Production In Pakistan

Author

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  • Khan, Asif
  • Farooq, Arshad
  • Saddozai, Khuram Nawaz

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.

Suggested Citation

  • Khan, Asif & Farooq, Arshad & Saddozai, Khuram Nawaz, 2006. "Comparative Advantage Of Sugarcane Production In Pakistan," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 29(1-2), pages 1-11, December.
    • Handle: RePEc:ags:bdbjaf:200193
    DOI: 10.22004/ag.econ.200193
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    Cited by:

    1. Bilal Ahmad & Yan Yunxian & Zia Ur Rahman & Humaira Gultaj & Badar Naseem Siddiqui & Muhammad Ali & Jamal Nasar, 2022. "Enhancement of sugarcane production by counteracting the adverse effects of climate change in Sindh Province, Pakistan," Growth and Change, Wiley Blackwell, vol. 53(1), pages 76-90, March.
    2. Truong, Kiet Hong Vo Tuan & Sidique, Shaufique Fahmi & Shamsudin, Mad Nasir & Hadi, Ahmad Hanis Izani Abdul, 2022. "Cost Structure and Comparative Advantage of Export Supply Chain of Chu-Mango in the Mekong Delta, Vietnam," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 13(03), September.
    3. Asghar, Sobia & Tsusaka, Takuji W. & Jourdain, Damien & Saqib, Shahab E. & Sasaki, Nophea, 2022. "Assessing the efficiency of smallholder sugarcane production: The case of Faisalabad, Pakistan," Agricultural Water Management, Elsevier, vol. 269(C).

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    Keywords

    Production Economics;

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