The impacts of reforming agricultural policy support on cereal prices: a CGE modeling approach

Purpose This paper investigates the effects of total abolition all forms agricultural subsidies to producers and border tariffs on prices staple cereals. Design/methodology/approach The authors use GTAP global economy-wide model focus 27 countries 8 regions. database that is used contains information budgetary transfers market price support such as domestic support, tariffs, export subsidies, quotas exports or imports other measures. Findings removal estimated significantly increase wheat cereal grains in Japan, paddy rice Malaysia Indonesia, processed Indonesia Brazil India. When are removed, projected fall several countries, but decline more pronounced for Kenya South Korea staples Nepal. Research limitations/implications alternative scenarios sectors elimination purely speculative analysis ignores important political economy considerations food policy reforms. Practical implications findings from this study point importance implementing additional measures mitigate possible negative effect repurposing agriculture ensure security welfare those categories buyers who heavily depend their livelihoods. Social study’s confirm would impact directly by making less affordable poorest indirectly decreasing available household budget presumably nutritious groups. Consequently, it expected these increases could make segments world population poorer, particularly net-food due a real income. Originality/value assess removing comprehensive way, given recent net zero emissions Sustainable Development Goals include healthy foods. also consider counter tariff reduction this, which price-reducing.