Optimal Pattern for Allocation of Subsidies to Agricultural Sector, Consumers and Producers: Application of Interval Analytic Hierarchy Process

This study aims to find effective indices for optimization of subsidies to producers and consumers of selected agricultural products. To achieve this objective multiple attribute decision making models and viewpoints of experts were used. Selected consumer products were wheat, meat, rice, sugar and loaf sugar, oil and milk and selected inputs were chemical fertilizer, pesticides, medicine, credit, machinery, insurance, and energy. As there were uncertainties, in experimental and verbal judgments usually, interval logic used to overcome this problem. Therefore, in this study Interval Analytic Hierarchy Process (IAHP) was used. The results of study showed that prevailing division of subsidies between consumers and producer was not optimal and the optimum shares of producer and consumer subsidy should be 86.56% and 13.44%, respectively which means 59.61 percent increase of subsidy to producers in agricultural sector.