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D-import-parity-price Dictionary

Import parity price

The cost of bringing a product into the country, which sets a ceiling on local prices

All termsIntroduced in Module 7Open the Toolkit
An open dictionary on a farm office desk
Plain meaning
The cost of bringing a product into the country, which sets a ceiling on local prices
How to use it
In a deficit market, expect local prices to sit close to import parity. Price the venture's output against it.
South African benchmark
South African grain prices rise toward import parity in deficit years, as with wheat (Article 5).
Country notes
Botswana and Namibia, as grain importers, price close to South African import parity.
Go and read
C7
Calculate it
T-M1-05 Market Price Comparator
Library sources
LIB-A013, LIB-A076
See also
Export parity price, SAFEX
Local price band between export parity floor and import parity ceilingImport and export parityImport parity: world price + freight + duty = ceilingExport parity: world price - freight = floorLocal price moves between the two
Import parity price, shown as a diagram.

Introduced in C7 Trade and Policy.