Journal of Engineering and Applied Sciences

Year: 2006
Volume: 1
Issue: 2
Page No. 135 - 137

Analyses of Relative Prices of Inputs and Staples Vis-à-vis Prices Volatility in 2004-05

Authors : O.O. Peter and O.S. Lamidi

Abstract: This study tested the hypothesis that prices` volatility of 2004 and 2005 could limit cropping intensifications leading to reduced availability of crop residues and grains for ruminants` nutrition. The major catalyst of the volatility is refined fuels and oils prices that rose by 37.00% during the period. Prices data from Kano, Bauchi, Oyo, FCT, Adamawa, Cross-Rivers, Abia, Imo and Katsina as published by NAMIS were used. These states, supplied improved maize, sorghum and rice seeds and fertilizers to their farmers with subsidies. Three groups: seeds, as inputs, fertilizers and commodities` prices were analysed and relative and cumulative indices calculated for it. Results showed the following subsidy levels: 7.00, 4.00 and 8.00% in Bauchi, Niger and Katsina States, respectively for seeds and 2.00 and 40.00 in Bauchi and FCT for fertilizers. And for others, price rises of between 2.00 and 11.00%. As for food staples, highest price rise was in Abia at 78.00 and the lowest in Bauchi at 6.00%. States with staple prices higher than inflation of 10.00-15.00% (2004-2005) were Kano, Oyo, Abia, Niger and Katsina implying that relative erosion of disposable incomes of farmers was not universal and relatively, were dampened by higher commodity prices. The hypothesis was rejected, as it is plausible to assume that if prevailing subsidies continued, cropping intensifications would not be dampened. Subsidizing and providing labour saving devices and creating clusters farming operations supports to provide it would enhance productivity.

How to cite this article:

O.O. Peter and O.S. Lamidi , 2006. Analyses of Relative Prices of Inputs and Staples Vis-à-vis Prices Volatility in 2004-05. Journal of Engineering and Applied Sciences, 1: 135-137.

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