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EFFECTS OF CUSTOMS UNION TARIFFS ON DOMESTIC RICE COMPETITIVENESS: THE CASE OF IRRIGATED RICE IN NIGER

Nigerâs irrigated rice production system was evaluated within the context of the countryâs
common external tariff regime. The effects of the common external tariff (CET) on the
performance of the irrigated rice production system were evaluated at various comparison
points where local rice enters into competition with imported rice and by considering the
main rice marketing systems (retail and wholesale markets). These comparisons were made
taking into account the various brands of imported rice that are commercialised in the
country. The results of the policy analysis matrix (PAM) base scenario for the irrigated rice
system under the CET show that the system is generally competitive (positive private
profitability) and has potential for growth (positive economic profitability). These results
are disaggregated by type of rice quality, type of rice market (retail or wholesale) and by
two points of comparison (Niamey and Tillabery).
At both points of comparison, the PAM indicators show positive financial profitability,
indicating that the system is generally competitive and that operators are making some
financial gains. Moreover, the irrigated rice production enterprise reveals positive
economic profitability for both retailers and wholesalers. Therefore, as an economic
activity, it generates net positive income for the national economy per unit of land devoted
to this activity. It can be maintained that despite the fact that the inputs used in irrigated rice
production are affected by the various common external tariff (CET) measures, the activity still performs to a level that permits the various actors to earn some positive income and
sustain their businesses. Despite its competitiveness and efficiency, however, irrigated rice
production still performs below potential because it lacks certain additional incentives.
To investigate this issue, various sensitivity analyses were performed, using single factors
as well as simultaneous changes in several factors. These sensitivity analyses were
performed in order to diagnose the effects of possible policy changes on elements such as
financial and social profitability, production incentives, and protection coefficients. The
sensitivity analyses show that private and social profits, ceteris paribus, are sensitive to
improvements in technological factors such as farm-level productivity and post-harvest
techniques that enhance the milling conversion rate of paddy into milled rice. The
incentives and protection coefficients are also found to be sensitive to possible policy
changes. Furthermore, private and social profits, including incentives and protection
coefficients, are sensitive to changes in economic factors relating to the reduction of import
duties on inputs, as well as to increases in import duties on imported rice and changes in
exchange rates.
Nigerâs irrigated rice system generally performs well under the CET regime, but because
certain resources are diverted away from it, the system is in fact being taxed. There is a
need to provide greater incentives to everyone active in the system, in the form of
technological improvements (farm-level productivity improvement and post-harvest quality
enhancement). Greater incentives should also be given in terms of improving marketing
channels, especially retail marketing, where a great number of women rice traders are
active. More research needs to be conducted on this aspect.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:ufs/oai:etd.uovs.ac.za:etd-07142011-121543
Date14 July 2011
CreatorsAbdourahmane, Touré Ali
ContributorsDr B Grové, Prof J Groenewald
PublisherUniversity of the Free State
Source SetsSouth African National ETD Portal
Languageen-uk
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.uovs.ac.za//theses/available/etd-07142011-121543/restricted/
Rightsunrestricted, I hereby certify that, if appropriate, I have obtained and attached hereto a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report, allowing distribution as specified below. I certify that the version I submitted is the same as that approved by my advisory committee. I hereby grant to University Free State or its agents the non-exclusive license to archive and make accessible, under the conditions specified below, my thesis, dissertation, or project report in whole or in part in all forms of media, now or hereafter known. I retain all other ownership rights to the copyright of the thesis, dissertation or project report. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or project report.

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