Experiences with Recent Price Stabilization Programs for Agriculture
The stabilization of farm prices and incomes has been a goal of all farm legislation dating back to the establishment of the Farm Board in 1929. After the Farm Board concept failed in the wake of the great crash of 1929, price stabilization turned more and more toward price supports with prices set above market equilibrium. To absorb the differential quantities that arose, loan and storage programs were established for major commodities. Stocks of accumulated grain were used in times of war or world grain production shortfalls to even out the flow of food to consumers
ADMINISTERED PRICING BY COOPERATIVES : EFFECT ON PRODUCER AND CONSUMER PRICES AND SALES OF FLUID MILK
Considerable controversy exists with regard to shifts, in order to control production and thus maintain pricing agricultural commodities, especially when quoted prices. Administered pricing is a rather recent pricing departs from classical market concepts deoccurrence in the pricing of agricultural products, pendent on equating supply and demand [1, 5, 6]. In especially at the farm level. a recent study of alternative Class I pricing systems, it The objectives of this study were to analyze and was suggested that "pricing of milk and dairy products interpret the actions and results of administered is one of the major policy issues to be resolved in the pricing of Grade A fluid milk. In evaluating timing 1970s" [8]. A different pricing system in federal milk and ability of a regional milk producer cooperative to orders was considered urgent enough that a concenchange prices in line with changes in estimated trated study of pricing alternatives was pursued by the production costs and federal order prices, the study U.S. Department of Agriculture [9]. had two ends. These are to analyze the relationship of Under the federal order classified system for producer and retail prices of fluid milk products, and pricing milk, price supports have provided a floor for to evaluate price-quantity relationships at the retail manufacturing grade milk prices. Class I prices for level. Determining linkage between changes in milk milk used in fluid products have been based on the production and comsumption, in terms of responsiveprice for manufacturing grade milk plus a price ness to price changes within the administered pricing differential in each market. In recent years, however, framework, was the overall objective. producer cooperatives have negotiated market-wide Class I prices that are above the minimum established DATAANDMETHODOLOGY by the order. More recently, Class I prices have become Data used in the analysis were monthly prices for announced prices by the cooperatives rather than Class I milk, estimated retail prices for fluid whole negotiated. milk, and sales of fluid milk, by type of product, in Milk pricing under federal orders has been the Georgia Federal Milk Marketing Order area for frequently referred to as "administered pricing." 1970-1975. In addition, an index was used to Present pricing by the cooperatives meets the definiestimate changes in the cost of producing milk. The tion of administered pricing even more so than federal methods and data input for the production cost index order pricing. Under the former, prices are set by action are explained in detail elsewhere [ 2 ]. of the seller and remain the same for a period of time Milk sales, by product types, within the defined and a series of transactions [7]. Usually more of the milk marketing area were adjusted to pounds daily product is offered for sale than is currently demanded, average sales per capita per month. Sales were adjusted but demand may exceed supply. In this case, rationing for variation resulting from seasonality and calendar may occur other than through a price change. day composition [3]. For purposes of analysis, all Manufacturing industries such as auto, steel, textiles, prices were adjusted to a one-half gallon equivalent etc. have operated successfully within an administered unit. pricing framework. Production schedules are adjusted, Ordinary least squares was used to estimate from temporarily closing entire plants to working three relationships resulting from administered pricing of
Did the metamorphosis from Export Processing Zones to Special Economic Zones improve the efficiency of trade enclaves in India?
In this paper, the efficiency of seven conventional Special Economic Zones in India is analyzed, by adopting a stochastic production frontier technique, for the period between 1986–1987 and 2007–2008.Results indicate that although the efficiency scores of these enclaves have improved over the years, specifically with the introduction of the SEZ policy (2000–2001), it is far below the threshold level as identified in the literature. Besides, one can also observe a discrepancy emerging between better export earning zones and efficient zones. On the determinants side, policy intervention and large geographical area, accompanied by clustering of units, are found to have impacted the efficiency scores of these enclaves positively.