Stakeholders discussing agricultural policy issues emerging from MAFAP findings in Mozambique
The value chain analyses presented (rice, maize, cotton and cashew nut) highlight how market inefficiencies and policy measures adopted by the government impact the structure of price incentives for different agents in the chain. In some cases, policy measures have been ineffective. For example, the minimum price policy that aims to incentivize cotton production did not ensure remunerative prices for famers in all years from 2005 to 2013. Rice farmers were also implicitly taxed in the same period despite the rice import tax imposed to protect domestic production.
The roundtable debate stressed the need for a more in-depth investigation into the driving factors behind value chain distortions and inefficiencies, especially with regard to food staples, such as rice, maize and chicken. Furthermore, the importance of ensuring adequate and consistent flow of investments in agriculture has been recognized, especially in light of the fact that expenditure in support of the sector declined between 2009 and 2013, with food crops receiving limited specific investment compared to export commodities.
Sector institutions and MEF will review the studies in order to identify priority policy constrains to be further investigated, in particular through ex-ante, cost-benefit analysis tools. While the first phase of MAFAP focused on developing local capacities to monitor and analyse the effects of agricultural policies, the next phase of activities foresees increased support to articulate, assess and bring forward policy reform options for the development of the national agricultural sector.