Investigation comparative advantage of sugar beet in Kermanshah province

Sugar is important from the point of both energy source and food security for Iranian householders. The considerable part of internal consumption is imported. Sugar beet is one of the most important sources of sugar, as a raw material in the world and also in Iran. For food security and self sufficiency programs, considering comparative advantages of sugar beet cultivation is one of the most important aspects of economic planning and economic incentives of producers is important for the goals of government planning. In this study, sugar beet comparative advantage was determined by applying Domestic Resource Cost (DRC) and Social Benefit Cost ratio (SCB) criteria to data of 2004-05 farming year with two levels of exchange rates in Kermanshah provinces. The protective policies of the government were analyzed by Matrix Analysis of Policy (MAP). Based on findings of this study, Kermanshah has high comparative advantage on this crop under competitive and real price condition, but under existing condition producer receive negatives economic incentives and pay implicit tax to government.