Groundnut policies, global trade dynamics, and the impact of trade liberalization

Groundnut products are of central economic importance to millions of smallholders in Africa, India, and Southern China. The products generate 60 percent of rural cash income and account for about 70 percent of the rural labor force in Senegal and The Gambia. Groundnut trade is heavily distorted, and this has affected the competitive position of various players in world markets. Using a partial-equilibrium, multi-market, international model, the authors analyze the trade and welfare effects of several groundnut trade liberalization scenarios compared with the recent historical baseline. They evaluate net welfare as the sum of consumers'equivalent variation, quasi-profits in farming, quasi-profits in crushing, and taxpayers'revenues and outlays implied by distortions. The authors find that trade liberalization in groundnut markets has a strong South-South dimension with policies in India, and to a lesser extent China, heavily depressing the world prices of groundnut products at the expense of smaller developing countries mainly located in Africa. Under free trade, African exporters would gain because they are net sellers of groundnut products. In India, consumers would be better off with lower consumer prices resulting from the removal of prohibitive tariffs and large imports of groundnut products. The cost of adjustment would fall on Indian farmers and crushers. In China, crush margins would improve because of the large terms of trade effects in the groundnut oil market relative to the seed market. China's groundnut product exports would expand dramatically. Net buyers of groundnut products in OECD countries would be worse off. The authors draw implications for the Doha negotiations.Food&Beverage Industry,Environmental Economics&Policies,Markets and Market Access,Crops&Crop Management Systems,Economic Theory&Research,Crops&Crop Management Systems,Environmental Economics&Policies,Food&Beverage Industry,Economic Theory&Research,Access to Markets

Does European Aflatoxin Regulation Hurt Groundnut Exporters from Africa?

We provide an ex-post econometric examination of the harmonization and tightening of the EU Maximum Residues Limit (MRL) on aflatoxins in 2002, and its impact on African exports of groundnut products. We show that the MRL set by the EU has no significant trade impact on groundnut exports from Africa across various methods of estimation. African domestic supply plays an important role in the determination of the volumes of trade and the propensity to trade. Our findings suggest that the trade potential of African groundnut exporters is more constrained by domestic supply issues rather than by limited market access.food safety; standards; aflatoxin; MRL; groundnut; Africa; EU; market access

Pre- and Post-WTO Changes in Oilseed Economy of Karnataka: A Case of Groundnut

The growth in exports, economics of production and global competitiveness of groundnut has been reported over the period of 20 years (1984-85 to 2004-05) in Karnataka by collecting data from various published sources. Techniques used for the analysis are growth functions, tabular function, nominal protection coefficient and domestic resource cost. The analysis of export trends of groundnut from 1985-86 to 2004-05 has shown that quantity of groundnut export has grown annually at a compound growth rate of 9.52 per cent, whereas the value of groundnut exported has grown at a much higher rate of 13.13 per cent. Structural changes in costs are due to changes in quantity and quality of inputs associated with the technological process and also due to their prices. Groundnut has shown competitive disadvantage during the pre-WTO period, as values of NPC and DRC are more than one. But, during the post-WTO period, the competitiveness has increased as is evident from the NPC and DRC values which turned out be less than one. The study has suggested to exploit the competitiveness of Karnataka in groundnut and other oilseed crops.International Relations/Trade,

Influence of alleycropping microclimate on the performance of groundnut (Arachis hypogaea L.) and sesame (Sesamum indicum L.) in the semi-desert region of northern Sudan

An alley cropping system was established at Hudieba Research Station (17.57’N and 33.8’ E) on a loamy sand soil of the semi-desert region of northern Sudan. The objective of this study was to investigate the influence of modified microclimate in 6-m wide alleys formed by Acacia ampliceps and Acacia stenophylla on growth and yield of groundnut. and sesame. Above-ground interactions were determined by measuring air temperature, relative humidity, wind speed, solar energy and shade length and behaviour. Groundnut and sesame were evaluated for growth and yield by laying out sample plots at southern, central and northern part of the alleys and at control plots. Due to microclimatic modifications in the alleys, the yield of both crops in the alleys significantly (p=0.01) exceeded that of the sole crop. Yield reduction at the northern alley was fully compensated by high yield increase at southern and central alleys. The yield of groundnut increased by 37.7 and 19.6 % in the A.stenophylla and A.ampliceps alleys, respectively. On the other hand, the yield of sesame increased with the stenophylla-alley (+40.3%), while it decreased with ampliceps-alley (-51.5%). The results indicated that the competition for light was the major factor contributing to the increase or reduction of growth and yield of groundnut and sesame

Groundnut Trade Liberalization: Could the South Help the South?

This paper analyzes policies affecting global groundnut-products markets. The new US groundnut policy is now a minor source of distortion in world markets where India and China stand out as the major distorters. We analyze and quantify the effects of groundnut-products trade liberalization on consumer welfare and producer income. Our analysis shows that African exporters would gain significantly from reductions in protection and subsidies in India, and to a lesser extent, China, although Chinaï¾’s exports of food-quality groundnuts would expand dramatically. Net-importing OECD countries would suffer from higher world prices. The paper draws direct implications for the Doha trade negotiations.

Labour Demand and Labour-saving Options: A Case of Groundnut Crop in India

Groundnut is a labour-intensive crop, especially for operations like sowing, weeding, harvesting, and drying. But, of-late, due to timely unavailability of labour, many farmers are not able to exercise timely operations resulting in low yield realization. The present study conducted in two major groundnut-growing states, viz. Gujarat and Andhra Pradesh, has revealed that farmers employ more human labour in weeding and harvesting operations in groundnut than in other operations. The practise of manual decortication and stripping is followed by a larger number of farmers in Andhra Pradesh than in Gujarat, indicating less mechanization in the former. For weeding, though, the human labour-use in weedicide + bullock intercultivation + hand weeding technique is almost half of that of the bullock inter-cultivation + hand weeding, only 13 per cent of the farmers practise this labour-saving technique and hence this method should be disseminated in both the regions to reduce human-labour demand. In Andhra Pradesh, for all the operations in groundnut cultivation except harvesting, the cost as well as labour-use has been reduced substantially due to use of partial/complete mechanization methods. Hence, the necessary infrastructure (labour-saving machineries) should be created at the village or block level to reduce the human-labour demand.Labour demand, Groundnut cultivation, Labour-saving techniques, Agricultural and Food Policy, J23, J21,

Groundnut viral diseases in West Africa

This paper describes groundnut viral diseases observed in West Africa. Six viruses are identified and their main properties are reported here: peanut Clump, groundnut rosette, groundnut eyespot, groundnut crinkle, tomato spotted wilt and groundnut chlorotic spotting viruses. Four other diseases are described in part: groundnut streak, groundnut mosaic, groundnut flecking and groundnut golden mosaic diseases. Some of them are economically very important such as the two strains of rosette, peanut clump and tomato spotted wilt diseases. Others are apparently of minor importance though they occur relatively frequently and show a wide distribution, such as groundnut eyespot, groundnut crinkle, groundnut streak and groundnut golden mosaic diseases. The others appear occasionally but are nevertheless described: some which are very infectious, as groundnut chlorotic spotting disease could become very important within a few years. (Résumé d'auteur

Revitalizing cultivation and strengthening the seed systems of fonio and Bambara groundnut in Mali through a community biodiversity management approach

Fonio (Digitaria exilis(Kippist)Stapf) and Bambara groundnut (Vigna subterranea(L.)Verdc.) are native crops grown at a small scale in Mali that have potential to support agricultural productivity under climate change. A community biodiversity management approach was explored in this study as a means to reinforce the cultivation of these crops by increasing farmers’ access to intraspecific diversity and developing capacities of community institutions for their management. The research involved six communities in Ségou and Sikasso regions. Multiple varieties of fonio (10–12) and Bambaragroundnut (8–12) were established indiversity fields in each site over 2 years where farmers engaged in experiential learning over the crop cycle. Significant adoption of fonio and Bambara groundnut was detected in several study sites.The precise drivers of adoption cannot be definitively determined but likely include increased seed access and awareness gained through the diversity field fora, seed fairs and community seed banks. No significant yield advantage was detected for any of the varieties in the diversity fields, which showed variable performance by site and year. The number of varieties registered and managed by community seed banks in each site increased from 1–5 varieties of each crop to 11–12 varieties following the interventions. The number of Bambara groundnut varieties cultivated in farmer as light decline in fonio diversity in some communities.The results of this study can inform efforts to strengthen seed systems and cultivation of neglected and underutilized species in Africa

THE IMPACT OF GROUNDNUT TRADE LIBERALIZATION: IMPLICATION FOR THE DOHA ROUND

We use a partial-equilibrium multi-market international model to analyze trade and agricultural policies affecting peanut/groundnut products markets. The model covers four goods (food and crush quality groundnuts, groundnut oil and cake) in 13 countries/regions including a large set of developing countries (Argentina, China, the Gambia, India, Malawi, Mexico, Nigeria, Senegal, and South Africa). Welfare is evaluated by looking at the consumer's equivalent variation, quasi-profits in farming (groundnut farming, livestock), quasi-profit in crushing, and taxpayers' revenues and outlays implied by distortions. We calibrate the model on recent historical data. We analyze several groundnut trade liberalization scenarios. The impact of the reforms is measured in deviation from the recent historical baseline. Trade liberalization in groundnut markets has a strong South-South dimension opposing two large developing countries (India and China) to smaller developing countries mainly located in Africa. Current Chinese and Indian policies substantially depress the world prices of edible groundnuts, groundnut oil and groundnut meal. Following the removal of these distortions, African exporters present in these world markets would gain because they are net sellers of the cash crops. Consumers in China and India would be better off as well with lower consumer prices resulting from the removal of high tariffs more than offsetting the higher world prices of groundnut oil. The cost of adjustment would fall on farmers in India and China who would have to shift to other crops or activities. Crushing in India would also decrease because crushing margins would deteriorate. Net buyers of groundnut products in OECD countries will be worse off. We draw implications for Doha negotiations.International Relations/Trade,