Foreign exchange rationing, wheat markets and food security in Ethiopia

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cg.authorship.typesCGIAR single centreen_US
cg.coverage.countryEthiopiaen_US
cg.coverage.regionEastern Africaen_US
cg.coverage.regionSub-Saharan Africaen_US
cg.coverage.regionAfricaen_US
cg.creator.identifierPaul Dorosh: 0000-0001-6049-6018en_US
cg.identifier.projectIFPRI - Ethiopia Strategy Support Programen_US
cg.identifier.projectIFPRI - Development Strategy and Governance Divisionen_US
cg.number4en_US
cg.placeAddis Ababa, Ethiopiaen_US
cg.reviewStatusInternal Reviewen_US
dc.contributor.authorDorosh, Paul A.en_US
dc.contributor.authorAhmed, Hashim A.en_US
dc.date.accessioned2024-11-21T10:00:51Zen_US
dc.date.available2024-11-21T10:00:51Zen_US
dc.identifier.urihttps://hdl.handle.net/10568/162056en_US
dc.titleForeign exchange rationing, wheat markets and food security in Ethiopiaen_US
dcterms.abstractIn spite of remarkable growth in Ethiopia’s agricultural production and overall real incomes (GDP/capita) from 2004/05 to 2008/09, prices of major cereals (teff, maize, wheat and sorghum) have fluctuated sharply in both nominal and real terms. International prices of cereals also fluctuated widely, particularly between 2006 and 2008. However, the links between Ethiopia’s domestic cereal markets and the international market are by no means straightforward. Among the major staples, only wheat is imported or exported on a significant scale. And frequent changes in trade and macro-economic policies, movements in international prices and fluctuations in domestic production have at times eliminated incentives for private sector imports of wheat. From July 2005 to March 2007, private sector wheat imports were profitable and domestic wheat prices closely tracked import parity prices. Then, from April 2007 to May 2008, good domestic harvests coincided with increase international wheat prices, so private sector wheat imports were no longer profitable. Most recently, rationing of foreign exchange for imports effectively stopped private sector wheat imports beginning in about April 2008. Partial equilibrium analysis shows, however, that government imports and sales in 2008-09 effectively increased domestic supply and lowered market wheat prices. These sales at the low official price also implied that recipient households, traders and flour mills enjoyed a significant subsidy. Allowing the private sector access to foreign exchange for wheat imports or auctioning government wheat imports in domestic markets would eliminate these rents and generate additional government revenue, while having the same effect on market prices as government subsidized sales.en_US
dcterms.accessRightsOpen Accessen_US
dcterms.bibliographicCitationDorosh, Paul A.; Ahmed, Hashim. 2009. Foreign exchange rationing, wheat markets and food security in Ethiopia. ESSP II Discussion Paper 4. https://hdl.handle.net/10568/162056en_US
dcterms.extent27 p.en_US
dcterms.isPartOfESSP II Discussion Paperen_US
dcterms.issued2009-10en_US
dcterms.languageenen_US
dcterms.publisherInternational Food Policy Research Instituteen_US
dcterms.publisherEthiopian Development Research Instituteen_US
dcterms.relationhttp://ebrary.ifpri.org/cdm/ref/collection/p15738coll2/id/130945en_US
dcterms.replaceshttps://ebrary.ifpri.org/digital/collection/p15738coll2/id/130940en_US
dcterms.subjectcurrenciesen_US
dcterms.subjectfood securityen_US
dcterms.subjectagricultural productionen_US
dcterms.subjectgross national producten_US
dcterms.subjectcerealsen_US
dcterms.subjectimportsen_US
dcterms.subjectdomestic marketsen_US
dcterms.subjectequilibriumen_US
dcterms.subjectagricultureen_US
dcterms.subjectdevelopment policiesen_US
dcterms.subjectwheaten_US
dcterms.subjectmarketsen_US
dcterms.subjectglobalizationen_US
dcterms.typeWorking Paperen_US

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