Price parities of chosen inputs and basic agricultural products in Serbia

Abstract

In this paper, the authors are examining the price parity between chosen inputs (mineral fertilizer and fuel) and basic agricultural products (wheat, maize, sunflower, sugar beat and soybean) in the Republic of Serbia. They are indicating that prices of inputs grow faster than prices of agricultural products. This leads to disbalance in parities, harming the basic agricultural products. There are significant deviations comparing to optimally defined parities. Consequences of price parities disbalance are visible in decline of accumulative and reproduction ability of primary agricultural production. Shown disbalance is manifested in insufficient accumulation and absence of investments in, before all, agricultural mechanization. .

Keywords

• price parity
• fertilizer
• fuel
• agricultural products
• Republic of Serbia