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Evaluation of comparative advantage on production and export of saffron

Document Type : Research Paper

Authors

1 Associate Professor of Agricultural Economic, Ferdowsi University of Mashhad, Mashhad, Iran, and Visiting Professor of Agricultural Economic, University of Torbat Heydarieh, Torbat Heydarieh, Iran

2 Assistant Professor of Agricultural Economic, University of Torbat Heydarieh, Torbat Heydarieh, Iran

Abstract

With due attention to facilities, and different potentials and sources in agriculture of Torbat Heydarieh city, this region is suitable for cultivation and production of saffron. In this study comparative advantage of saffron production in Torbat Heydarieh investigated using DRC index and policy analysis matrix (PAM) during 2012-13. Also in this study evaluated comparative advantage of saffron export using RCA and RSCA index. The Results showed that saffron production in Torbat Heydarieh has a comparative advantage. According to the NPC price index is higher than market price and so producers benefited from subsidies and market support. According to the EPC standard, government interventions has a positive effect on production of this crop, so was supported from input and production markets this crop. In result, NSP index was positive in all sectors. Results of these two indexes showed that Iran, Spain and Greece had preferences on export relative advantage in the world during 2004-2012. While value added of Iran saffron export is not considerable, therefore, for improving this condition, joining Iran to the WTO in order to reduce tariffs on exports, paying more attention in marketing and supplying necessary facilities such as foreign exchange support in the country was suggested.

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References
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Saffron Agronomy and Technology
Volume 2, Issue 1 - Serial Number 1
June 2014
Pages 59-74
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