Investigating the Factors Affecting the Sugar Stock Surplus and Ways to Get out of it in Iran

Document Type : Research Article-en

Authors

• N. Mohammadrezazade Bazaz ¹
• M. Ghorbani ¹
• A. Dourandish ²

¹ Department of Agricultural Economics, Faculty of Agriculture, Ferdowsi University of Mashhad, Mashhad, Iran

² Department of Agricultural Economics, University of Tehran, Karaj, Iran

https://doi.org/10.22067/jead.2021.67449.1002

Abstract

Due to the importantance of sugar in daily consumption of Iranian households, governments annually store sugar as a strategic reserve. Therefore, managing and timing adjustment for the inventory of this product is essential in its ability to compete in markets, modifying the temporal and spatial distribution of products and inputs in economic subdivisions. In recent years, at national scale there was extra sugar in warehouses and a few cases of shortages in stock were exception. Higher sugar production along with lower sale, will increase the costs, so the aim of this study was to investigate the factors affecting sugar surplus and its export in Iran data time searies 1991-2017. In this study our results showed that sugar beet and sugar price as product price did not play a decisive role in stock surplus. Therefore, the stock surplus can neither be the result of price policies nor it be resolved through price policies. It seems that the government should adopt other policies, such as adjusting the timing of import decisions, resolving conflicts between government objectives, and providing strategic reserves from domestic products and gradual elimination of imports, support factories for improving and upgrading equipment, and help sugar beet producers to achieve cheaper product rather than using price policies related to sugar and sugar beet prices.
 

Keywords

• Iran
• Sugar
• Simulation
• Stocks

20.1001.1.20084722.1400.35.4.2.8

Main Subjects

• Marketing and Trade of Agriculture Production

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