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Agrekon
Agricultural Economics Research, Policy and Practice in Southern Africa
Volume 35, 1996 - Issue 4
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Contributed papers

WELFARE EFFECTS OF REGULATION IN LESOTHO'S WHEAT MARKET / WELVAARTSEFFKTE VAN REGULERING IN LESOTHO SE KORINGMARK

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Pages 291-296 | Published online: 09 Jun 2010
 

Abstract

Present marketing of wheat in Lesotho distort and imposes a heavy tax on the Lesotho economy. It puts upward pressure on producer and consumer prices, which results in welfare losses to consumers -including the majority of rural and agricultural households who are deficit producers of this commodity. The winners from these policies are the relatively small number of surplus producers and the three industrial mills enjoying some monopoly powers. It is recommmended that the Government of Lesotho liberalize Lesotho's wheat market.

Die huidige bemarking van koring in Lesotho verwring en plaas 'n hoë belasting op die Lesotho ekonomie. Dit plaas opwaartse druk op produsente- en verbruikerspryse, wat in welvaartsverliese vir verbruikers resulteer -insluitende die meerderheid van landbouhuishoudings wat tekort produsente is van hierdie kommoditeit. Die wenners van hierdie beleid is die relatief klein aantal surplus produsente en die drie industriëe meulens wat monopolie magte het. Dit word voorgestel dat die Owerheid van Lesotho die koringmark van Lesotho moet liberaliseer.

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