RURAL-URBAN DIFFERNTIALS IN PRICES OF AGRICULTURAL COMMODITIES IN NASARAWA STATE, NIGERIA

The paper deals with rural-urban differentials in prices of agricultural commodities in Nasarawa state, Nigeria. It highlighted some determinants of rural-urban differentials in prices of agricultural goods in the state. Two-stage dummy variable regression models were used to measure the levels of inequality between rural areas and urban areas. It was found that the mean price of agricultural commodities in the urban centers is greater than that of the rural areas. The paper observes that inadequate demand in the rural areas and excess demand in the urban centers are some of the factors which have accounted for the differences. Other factors include inadequate infrastructural facilities in the rural areas, inadequate income earning opportunities in the rural and over population in the urban centers. Thus, it is recommended that government should provide modern storage facilities to encourage farmers to store their farm produce to guarantee price stability.