Pasovska, Silvana (2018) INTERNAL PARITY OF PRICES BETWEEN THE RAW TOBACCO GRADES. Tobacco, 68 (01-06). pp. 83-87. ISSN 0494-3244

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structure of individual producers. Depending on crop prices, the farmers plan and direct their activities toward one or several cultivars that will guarantee the highest income. This relationship is called parity ratio of the prices of agricultural crops. According to this quality, farmers make decision to which agricultural structure they will direct their economy. In practice, it is about parity between two and more crops due to differences in their prices, also referred as disparity. Disparity is an indicator to which crop and to which extent will the farmers direct their activities. This is also valid for tobacco crop in terms of its market price compared to other cultures. Beside this, there is also internal parity. In tobacco, it is the parity between different tobacco types and varieties as well as different grades within the variety. In determining and creating the prices of tobacco, internal parity should be carefully considered because it affects the need to increase or decrease the quality of tobacco depending on market demand. In the first case, parity between different types and varieties of tobacco can lead to increase of tobacco production, which can result in possible market surplus of one tobacco type and lack of another. In the second case - internal parity of grades within certain variety has a significant role in stimulating and maintaining the quality of tobacco, taking care not to cause high approximation (equalization) of quality between tobacco grades. Parity and internal parity will be discussed and analysed in this paper.

Item Type: Article
Subjects: Scientific Fields (Frascati) > Agricultural Sciences > Agriculture, forestry and fisheries
Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions: Scientific Tobacco Institute
Depositing User: Prof. d-r. Silvana Pasoska
Date Deposited: 22 Jan 2023 09:37
Last Modified: 22 Jan 2023 09:37

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