Profitability and Competitiveness of the Main Crops Grown under Rain-Fed Sector of Gadarif State, Sudan

Abstract

The aim of this study was to examine the profitability and competitiveness of the main crops grown under the rain-fed sector of Gadarif state: sorghum, millet, sesame and groundnuts. The study used both primary and secondary data. Primary data covered the three scale of semi-mechanized farms in the state (small, intermediate and large scale). Primary data on small-scale farmers were collected by means of questionnaire from 175 in Gadarif State, during 2012/2013 season. Primary data on large and intermediate-scale farmers were collected from unpublished records of the Ministry of Agriculture and Forestry, Gadarif State. Secondary data were collected from Central Bureau of Statistics and Federal Ministry of Agriculture. Policy analysis matrix was used to reach to the stated objective. Results revealed that, the four grown crops in the study area are proved to be financially and socially profitable despite the discouraging policies. The taxes on domestic input transfer for the four crops and output for groundnuts negatively affects the profitability, competitiveness and comparative advantages of all crops and give fragile results under shocks, except sesame which showed strong results under all conditions. Policy-wise, government should reduce taxes and provide incentives for farmers participating and adopting extension programs. It should also invest on the infrastructure to link farmers to a high value markets. Likewise, they should expand microfinance to cover all farmers.