Analysis Of Agricultural Policy On Catfish Value Chain In Akwa Ibom State, Nigeria
- February 9, 2021
- Posted by: RSIS Team
- Categories: Agriculture, IJRIAS
International Journal of Research and Innovation in Applied Science (IJRIAS) | Volume VI, Issue I, January 2021 | ISSN 2454–6186
Analysis Of Agricultural Policy On Catfish Value Chain In Akwa Ibom State, Nigeria
Obot Akaninyene, Osuafor Ogonna , Nwigwe Cecilia , Ositanwosu Chukwunonso
Department of Agricultural Economics and Extension, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria.
ABSTRACT
The study used Policy Analysis Matrix (PAM) to analyze the effect of government policies on catfish value chain. The Nominal Protection Coefficient (NPC) on tradable outputs and input, respectively, indicates implicit tax or subsidies on the commodity under study. The Effective Protection Coefficient (EPC) combines the two NPC’s to assess the overall effect of implicit tax and subsidy through both output and input markets. An NPC < 1 indicates an implicit tax on production (subsidy in the case of an input), and an NPC > 1 indicates an implicit subsidy on production (tax in the case of an input). The result showed that Nominal protection coefficient on tradable outputs (NPCOs) were less than unity indicating that the catfish value chain industry in the study area was undervalued by ₦0.8/kg. This suggests that the catfish value chain industry was not protected by policy and that more particularly, it was subjected to substantial output taxation. Also, the Nominal protection coefficient on tradable inputs (NPCIs) were less than unity which showed that government support or subsidy maybe reducing tradable inputs cost for the catfish value chain industry by ₦0.8/kg. The Effective Protection Coefficients (EPCs) were equally less than unity in the study area and faced taxation of ₦0.8/kg on value added resulting from employing domestic factors of production. This indicated that value addition processes in the catfish value chain industry were not protected through policy intervention and that they faced a net tax of 0.92%.
Keywords: Agricultural Policies, Catfish Value Chain, Policy Analysis Matrix
