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By Salih Mohamed

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Technologies. 3. and T h e f i g u r e s shown in T a b l e 3 d o n o t disclose t h a t t h e surplus e x t r a c t i o n f r o m t h e technologically s t a g n a n t t r a d i t i o n a l subs e c t o r h a s a limit. T h e l a c k of i n c e n t i v e a n d m o d e r n inputs p r e c i p i t a t e d e x t r a c t i o n o u t of a g r i c u l t u r e a n d h a s r e s u l t e d in a continuous d e c l i n e in a g r i c u l t u r a l o u t p u t period f r o m 1970 t o 1984. t o inadequacies of throughout t h e During t h e s a m e period a n d d u e e x p o r t surplus, earnings o u t of exports h a v e declined s u b s t a n t i a l l y d e s p i t e virtually constant e x p o r t prices.

For f t h e e x p o r t (FOB) price. A revenue maximizing p a r a s t a t a l would choose P s o a s t o maximize i t s n e t revenue. f M NR = Q (pw solve t h e following problem: By simple calculus w e g e t t h e first maximization: -26- Then t o - pf] order conditions for Multiplying both sides by 'f yields: Q Simplifying and denoting t h e revenue maximizing solution by P r , w e get: w h e r e e is t h e long run e l a s t i ~ i t yof supply with r e s p e c t t o t h e f a r m g a t e price.

During t h e period in question, price hikes in key export crops such a s oil seeds and gum a r a b i c mitigated t h e decline in c o t t o n lint prices. It follows t h a t a t early s t a g e s of economic growth, a d e q u a t e investment in agricultural technology, research and associated shifters of supply such a s irrigation, human capital and infrastructure, c a n permit resource transfers from agriculture without precipitating negative consequences on t h e sector. The Record of Surplus Transfers from Sudanese Agriculture A massive extraction of surplus from Sudanese agriculture prevailed since t h e early period of t h e Anglo-Egyptian colonial rule (1898 continued through t h e post- Independence period However, prior to 1970, the private until export the capital - 1956).

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