Determinants of Sugarcane Price and Revenue in Sokoto Metropolis, Sokoto State, Nigeria

Aims: The study was carried out to determine the price and revenue of sugarcane in Sokoto metropolis.

Study Design: Purposive sampling technique was used to select.

Ramin Kura market because of the high concentration of sugarcane seller in the market. That was followed by systematic sampling of 50 respondents.

Place and Duration of Study: Sample for the study was obtained at Ramin Kura market in Sokoto metropolis between February 2012 and December 2012.

Methodology: From the list of the sugarcane sellers (comprising 252 registered members) collected from the association of sugarcane sellers at Ramin Kura market, systemic sampling was used to select one respondent out of every five interval giving a total of 50 sugarcane marketers that were used for the study. Data collection was done using a structured questionnaire. Data analysis was done using Multiple regression.

Results: The study revealed that while the coefficient of quantity demanded (0.456) had significant positive effect on the price of sugarcane, distance from source (-1.182) and handling cost (-0.570) had significant negative effects on the price of sugarcane. However, length of stem, tax and storage cost did not have any significant effect on the price of sugarcane at the Ramin Kura market. The study also showed that quantity sold (0.719), transportation cost (1.11) and storage cost (0.138) had significant effect on the total revenue obtained by the sugarcane sellers.

Conclusion: Based on the results, it was concluded that quantity demanded, distance from source and handling costs were the main determinanats of sugarcane price in Sokoto metropolis. Also, quantity sold, transportation cost and storage cost were the main determinant of sugarcane revenue in the metropolis