Design, income distribution, and consumption effects of maize pricing policies in Zambia

The organization of maize marketing in Zambia reflects the main objective of the system—supplying urban areas with cheap food. Maize purchased from farmers is sold only to the major milling companies, all of which are located in urban centers. The marketing subsidy, reflected in the low sale price t...

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Autor principal: Kumar, Shubh K.
Formato: Capítulo de libro
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 1988
Materias:
Acceso en línea:https://hdl.handle.net/10568/161112
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author Kumar, Shubh K.
author_browse Kumar, Shubh K.
author_facet Kumar, Shubh K.
author_sort Kumar, Shubh K.
collection Repository of Agricultural Research Outputs (CGSpace)
description The organization of maize marketing in Zambia reflects the main objective of the system—supplying urban areas with cheap food. Maize purchased from farmers is sold only to the major milling companies, all of which are located in urban centers. The marketing subsidy, reflected in the low sale price to these millers, is in effect a subsidy to mainly urban consumers. Rural retailers are allowed an explicit markup to cover transport costs back to rural areas. However, to the extent that the price of milled maize purchased in urban areas incorporates not only an explicit transport subsidy but also storage and often milling subsidies as well, the rural consumers of the purchased meal may also be deriving some price advantage. This is of course in addition to the implicit subsidy via a somewhat lower domestic price and inflated exchange rate that has remained part of the situation during most of the past twenty years. It should be noted that this analysis represents the situation only up to the mid-1980s, prior to the recent inflationary and exchange rate changes.
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spelling CGSpace1611122025-04-08T18:26:45Z Design, income distribution, and consumption effects of maize pricing policies in Zambia Kumar, Shubh K. subsidies developing countries food aid agricultural policies The organization of maize marketing in Zambia reflects the main objective of the system—supplying urban areas with cheap food. Maize purchased from farmers is sold only to the major milling companies, all of which are located in urban centers. The marketing subsidy, reflected in the low sale price to these millers, is in effect a subsidy to mainly urban consumers. Rural retailers are allowed an explicit markup to cover transport costs back to rural areas. However, to the extent that the price of milled maize purchased in urban areas incorporates not only an explicit transport subsidy but also storage and often milling subsidies as well, the rural consumers of the purchased meal may also be deriving some price advantage. This is of course in addition to the implicit subsidy via a somewhat lower domestic price and inflated exchange rate that has remained part of the situation during most of the past twenty years. It should be noted that this analysis represents the situation only up to the mid-1980s, prior to the recent inflationary and exchange rate changes. 1988 2024-11-21T09:53:33Z 2024-11-21T09:53:33Z Book Chapter https://hdl.handle.net/10568/161112 en Open Access application/pdf International Food Policy Research Institute Kumar, Shubh K. 1988. Design, income distribution, and consumption effects of maize pricing policies in Zambia. In Food subsidies in developing countries: costs, benefits, and policy options. Pinstrup-Andersen, Per (Ed.) Chapter 21. Pp. 289-300. Baltimore, MD: Published for the International Food Policy Research Institute (IFPRI) by Johns Hopkins University Press. https://hdl.handle.net/10568/161112
spellingShingle subsidies
developing countries
food aid
agricultural policies
Kumar, Shubh K.
Design, income distribution, and consumption effects of maize pricing policies in Zambia
title Design, income distribution, and consumption effects of maize pricing policies in Zambia
title_full Design, income distribution, and consumption effects of maize pricing policies in Zambia
title_fullStr Design, income distribution, and consumption effects of maize pricing policies in Zambia
title_full_unstemmed Design, income distribution, and consumption effects of maize pricing policies in Zambia
title_short Design, income distribution, and consumption effects of maize pricing policies in Zambia
title_sort design income distribution and consumption effects of maize pricing policies in zambia
topic subsidies
developing countries
food aid
agricultural policies
url https://hdl.handle.net/10568/161112
work_keys_str_mv AT kumarshubhk designincomedistributionandconsumptioneffectsofmaizepricingpoliciesinzambia