Indian Journal of Economics and Development
  • Year: 2017
  • Volume: 13
  • Issue: 3

Sorghum Output Supply Response to Price and Non Price Factors in Nigeria

1Katsina State Local Government Service Commission, Katsina, Nigeria

2Department of Agricultural Economics, PJTSAU, Rajendranagar, Hyderabad, India

3School of Agribusiness Management, PJTSAU, Rajendranagar, Hyderabad, India

*Corresponding author's email: safiyanuumarmaiadua@gmail.com

JEL Codes: O13, Q11, C22, Q18

Abstract

The study estimated the supply response of sorghum crop in Nigeria with a view to determine to what extent the pricing policy and non price factors stimulates production and recommend a path way in meeting the challenges of attaining the country's food self sufficiency. Using the ARDL Bounds test approach to co integration and error correction model, time series data covering a period of 56 years (1960–61 to 2015–16) were obtained and subjected to unit root test, co integration test and elasticities estimation. The findings revealed that Bounds test result rejected the null hypothesis of no co integration between sorghum out, real price of sorghum, sorghum area, millet price, cowpea area and credit to food crops indicating a long run relationship. The long run results revealed that producers respond positively to own price and area while credit supply had negative influence on sorghum output. Stakeholders along the sorghum value chain must ensure sustainable pricing policy through creation of commodity board, sufficient credit to farmers and investment in research for improved high yielding sorghum varieties.

Keywords

Bounds test, price, sorghum, supply response time series