Study of comparative advantage for potato production in Iran.

Abstract

The importance of potato in Iranian diet; price fluctuation, high demand and profitability of potatoes; and effect of policy analysis on potato producers, were investigated using policy analysis matrix method in Iran for 1379-80 2000-01 farming years. The data used in the study was from libraries and FAO. Results of policy analysis matrix indicated that Iran has 0.54 comparative advantage on potato production, 0.49 nominal protection coefficient on product that indicated the indirect tax on potato production, 0.54 nominal protection coefficient on input indicating the indirect subsidy on input, and effective protection coefficient indicating that the indirect tax is more than the subsidy paid for inputs by the government. It is suggested that government policy for paying subsidy on inputs should be changed to effective system.