Identifying and Ranking the Problems of Guaranteed Purchase Policy of Agricultural Products and Alternative Solutions

Document Type : Original Article

Authors

1 Corresponding Author and Associate Professor, Department of Agricultural Economics, University of Tabriz, Tabriz, Iran

2 Assistant Professor, Dryland Agricultural Research Institute, Agricultural Research, Education and Extension Organization (AREEO), Maragheh, Iran.

Abstract

Guaranteed purchase policy is one of the government's support policies that has been implemented in Iran since 1989 for some products. Therefore, this research was implemented through the paired comparison questionnaire completed by all managers and officials of the Central Rural Cooperative Organization as the policy executive institution as well as provincial executives in Fars, Khuzestan, Ardabil, Golestan, Isfahan and Kerman provinces and also, purchase managers in 2017. The Analytical Hierarchy Process (AHP) was used to identify and rank the problems of guaranteed purchase policy and prioritize solutions to solve these problems. Based on the study results, the identified problems of the guaranteed purchase policy included legal and institutional, administrative and organizational system, pricing, quality grading and separation, credit and financial, and storage and processing facility issues, respectively in a priority-based order. Also, the suggested solutions according to the obtained weights for the mentioned issues using pairwise comparisons and the AHP method were respectively determined in a priority-based order as selling in the form of an auction or price inquiry, selling in the form of ignored formalities, selling in the stock market and paying the difference to farmers, providing loans facilities, subsidizing the production and continuing the current situation by improving the issues. Therefore, it is recommended to use the guaranteed purchase policy along with policies to increase performance and productivity to be more effective in increasing the income of farmers as well as investing in the production of agricultural products and reducing poverty and consumption of inputs in the agricultural sector.

Keywords

References

Akbarian, R. Vafamkar, M. (2019). Investigating the relationship between income inequality, educational expenses and economic growth. Scientific-research quarterly, economic growth and development researches, first year, number 1: 162-185. (Persian)
Alipour, A., Mousavi, S.H.A., Khalilian, S. and Mortazavi, S.A. (2018). Evaluating the effectiveness of guaranteed purchase policy in stabilizing wheat production in Iran. Journal of Agricultural Economics, Volume 13, Number 2, Page: 107-135. (Persian)
Bakhshudeh, M. and Shafii, H. (2014). Investigating the amount of support for the guaranteed purchase policy of cotton, dates, potatoes, onions and raisins in Fars province. Iranian Journal of Agricultural Sciences 3 (36). (Persian)
Carriquiry, M. Elobeid, A. (2016). Analyzing the impact of Chinese wheat support policies on U.S. and global wheat production, trade and prices. A study prepared for the U.S. Wheat Associates. Global Agricultural Market and Policy Research Services.
Chandio, A. A. and Jiang, Y. (2019). Using the ARDL-ECM approach to investigate the nexus between support price and wheat production. Journal of Asian Business and Economic Studies. 26(1): 139-152.
Chintapalli, P. and Tang, Ch. (2021). The Impact of Crop Minimum Support Prices on Crop Production and Farmer Welfare. UCLA Anderson School of Management.
Elgaili Elsheikh, O., Abdelbaghi Elbushra, A. and Salih, A. (2016) Economic impacts of changes in wheat’s import tariff on the Sudanese economy. Journal of the Saudi Society of Agricultural Sciences, Volume 14, Issue 1, January 2015, Pages 68-75
Frizni, Z. and Moghadasi, R. (2012). Dynamic analysis of the effects of the guaranteed purchase policy of agricultural products, a case study (potatoes, onions, wheat, rice). The first national conference on sustainable agriculture and natural resources. (Persian)
Jafari Lisar, N., Karamatzadeh, A. and Jolayi, R. (2018). Investigating the impact of government support policies on rice supply in Iran. Journal of Agricultural Economics Research, Volume 11, Number 1, pp. 17-38. (Persian)
Khademipour, G. and Najafi, B. (2007). The effect of government support policies on the motivation to produce major agricultural products: the application of political analysis matrix. The article presented orally in the Proceedings of the 6th Iranian Agricultural Economics Conference, Ferdowsi University of Mashhad: 1-18. (Persian)
Löfgren, H and El-Said. (2000). A General Equilibrium Analysis of Alternative Scenarios for Food Subsidy Reform in Egypt. International Food Policy Research Institute.No,48.
Najafi, B. and Bakhshodeh, M. (2002). Effectiveness Of Government Protective Policies on Rice Production in Iran. paper prepared for presentation at the Xth EAAE congress ، Exploring Diversity in the European Agri-Food System, Zaragoza (Spain), 28_ 31 August 2002.
Sadat Barikani, S.H. and Azari, A. (2013). The effectiveness of agricultural support policies on rice production in Iran. Journal of Agricultural Economics Research, Volume 4, Number 3. pp. 205-185. (Persian)
Shabanzadeh, M., Peykani Machiani, G.R., Hosseyni, S.S. and Yazdani, S. (2018). Turning from guaranteed purchase policy to guaranteed price and its effects on the crop cultivation pattern of Qazvin Plain. Journal of Agricultural Economics Research, Volume 11, Number 1, Page: 101-130. (Persian)
Sudhakar, G. and Wale, Z. (2017). Minimum Support Prices and Its Impact on Agricultural Economy. IIARD International Journal of Economics and Business Management ISSN 2489-0065 Vol. 3 No. 2.

Files

Share

How to cite

Statistics