alexa Economic Analysis of Cotton Production in the Gezira Sc
ISSN: 2167-0234

Journal of Business & Financial Affairs
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Research Article

Economic Analysis of Cotton Production in the Gezira Scheme: 19 70- 2004

Bushara MOA* and Ahmed AMM

Department of Agricultural Economics, University of Gezira, Wad Medani, Gezira, Sudan

*Corresponding Author:
Mohamed OA Bushara
Department of Agricultural Economics
University of Gezira, Wad Medani
Gezira, Sudan
Tel: +249511826694
E-mail: [email protected]

Received date May 08, 2016; Accepted date May 26, 2016; Published date June 06, 2016

Citation: Bushara MOA, Ahmed AMM (2016) Economic Analysis of Cotton Production in the Gezira Scheme: 1970-2004. J Bus Fin Aff 5:191. doi:10.4172/2167-0234.1000191

Copyright: © 2016 Bushara MOA, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

 

Abstract

The Gezira Scheme contributes more than 50% of cotton produced in the Sudan. During the seventies up to late eighties cotton alone contributed between 45 and 65% of the total foreign currency earning. Fluctuation in area, production, average yield and, benefits started from the begging of nineties in addition to high cost of production year after year and Government agricultural policies. Therefore this study was an attempt to evaluate economic indicators (net present worth (NPW) and benefit cost ratio B/C ratio) of cotton production in the Gezira Scheme for the period (1970/71-2003/2004), also to compare three different periods of cotton production in Gezira (joint account system 1970/71-1980/81), (individual account system1981/82-1991/92), and (liberalization 192/93-2002/03) with respect to: Economic indicators (net present worth (NPW), benefit cost ratio B/C ratio), area, production and average yield. To identify some policy measures that may help to improve the production of cotton in the Gezira Scheme. The study mainly based on analysis of secondary data of cotton crop in Gezira Scheme. The methods of analysis used including the measurements of economic evaluation, descriptive statistics, simple mathematics, tabular analysis to describe the different periods. The study proved that the economic evaluation during the periods (1970/71-2003/2004), (1970/1971-1980/1981), (1981/1982-1991/1992) and (1992/1993-2003/2004) were feasible and positive, fluctuation in the benefits, costs, and net benefits related to the Government agricultural policy. It’s recommended that the Government agricultural policies should be proper and subsidized to agriculture particularly increasing the area of cotton crop, and reducing the cost of production are more important, downstream cotton processing for added value, up stream of cotton inputs processing for import substitutions and improving of cotton productivity through research development and extension is necessary.

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