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Samaru Journal Of Agricultural Education

Year: 2017|   Volume No: 7|   ISSN: 0794 – 7860|   Page No: 13


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Title:  ANALYSIS OF FOOD COMMODITY EXPENDITURE: A COMPARISON BETWEEN INDIA AND NIGERIA

1M. A. ISAH, 2 S. SABEH, 3 S. SADIQ AND 1 S.A. MAKAMA 

1NATIONAL AGRICULTURAL EXTENSION AND RESEARCH LIAISON SERVICES, ABU-ZARIA 2DEPARTMENT OF ECONOMICS, USMANU DAN FODIYO UNIVERSITY, SOKOTO. 3DEPARTMENT OF AGRICULTURAL ECONOMICS, FUT, MINNA 

ABSTRACT

Food commodity expenditures and estimation of expenditure elasticities of demand for different food commodity groups in India and Nigeria were analyzed. Secondary data on food commodity expenditure for various years were sourced from relevant data collating agencies for both countries. The six Engel functional models were employed for expenditure elasticity frequency and percentage were used to analyse the share of food expenditure between the two countries. Result revealed that double- log and linear engel functions were the best for India while double- log, log-log inverse and inverse engel functions fit best for Nigeria. The expenditure elasticity of demand for all commodities was less than 1 in India, except for meat and fish, beverages and fruits. This implies that, the later food categories are considered as superior commodities in India. In contrast, the expenditure elasticity of demand for all commodities was less than 1 except for milk and milk products in Nigeria. The percentage of per capita expenditure decreased for cereals and substitutes, edible oil, milk, milk products and sugar; and increased for pulses, fruits, vegetables, meat and fish and beverages in India. Furthermore, there was an increasing share in expenditure towards cereals, eggs, sugar and honey, root and tuber, fish and sea food amidst a declining share for vegetables, oil and fat, pulses and legumes, meat and poultry in Nigeria. The study concludes that expenditure on food commodity is relatively stable in India compared to Nigeria. It is therefore suggested that policy makers especially in Nigeria need to establish a commodity price control mechanism and invest more to support the entire production, processing and marketing of agricultural produce in both countries.

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