High-Level Summary Technical Assistance Reports

Kiribati: Agricultural Subsidies for Copra: Improving Efficiency and Equity and Balancing Trade-offs

November 21, 2024

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International Monetary Fund. Fiscal Affairs Dept. "Kiribati: Agricultural Subsidies for Copra: Improving Efficiency and Equity and Balancing Trade-offs", High-Level Summary Technical Assistance Reports 2024, 042 (2024), accessed December 25, 2024, https://doi.org/10.5089/9798400291937.029

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Summary

This technical assistance mission assessed Kiribati’s agricultural output price scheme that subsidizes the production of copra (dried coconut). The mission estimates that subsidies in 2023 amounted to 7.8 percent of GDP. The scheme’s technical and allocative inefficiencies, incidence in rural areas, and high fiscal cost, could be mitigated in the short- and medium term, by scaling back the subsidies, replacing them in part with cash transfers and public goods provision in the outer islands, securing fiscal savings in the process, and introducing competitive elements in the copra value chain.

Subject: Agricultural sector, Commodities, Consumption, Economic sectors, Expenditure, Export prices, Government subsidies, National accounts, Prices

Keywords: Agricultural sector, Agriculture, Consumption, Copra value chain, Efficiency, Equity, Expenditure, Export prices, Farmgate price, Government subsidies, IMF activity, Kiribati, Public goods provision, Subsidy, Subsidy scheme, Value chain concern

Publication Details

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