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Zambia - Agricultural pricing and parastatal performance study (English)

This study addresses allocative efficiency in pricing and improved marketing efficiency in two parastatal marketing institutions (NAMBOARD and LINTCO) and a corporate marketing company [ROP (1975) Ltd.]. In the longer run, these efficiencies can be sustained only by terminating and administering pricing systems and monopolistic market structures enjoyed by parastatals/cooperatives, by improved subsector planning and continuing macroeconomic reform, particularly exchange rates. In particular, to obtain more efficient resource allocation in agriculture and provide improved production incentives to farmers, a pricing methodology based on provincial parity prices is proposed. A set of theoretical provincial prices for maize self-sufficiency is derived to illustrate the costs/benefits of self-sufficiency. Marketing structure reform should focus on multi-channel marketing, implemented by private, cooperative and parastatal marketing institutions, and be phased with subsidy elimination. Government intervention in parastatal marketing organizations should be minimal. Roles for NAMBOARD in the foodgrain sector, LINTCO in the cotton subsector, and ROP in the oilseed subsector are proposed.




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Zambia - Agricultural pricing and parastatal performance study (English). Washington, D.C. : World Bank Group.