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Analysis of the Demand for Rice in Kaduna State, Nigeria

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  • Oyinbo, O.
  • Omolehin, R. A.
  • Abdulsalam, Z.
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    Abstract

    The kernel of this study was to ascertain the determinants of rice consumption and the compensated as well as the uncompensated demand for rice in Kaduna State using household consumption data obtained from a sample of 310 households through the instrumentality of a structured questionnaire. LA-AIDS model was employed to analyse the data and the result of the data analysis showed that the price of rice, price of beans, price of maize, price of yam, food expenditure, age of household head, household income and number of household income earners were all significant in influencing the households demand for rice. The estimated compensated (-0.7921) and uncompensated(-0.8887) own price elasticities of rice indicated that rice was price inelastic and the estimated expenditure(0.69) elasticity of rice indicated that rice is not a luxury in the households food basket but a necessity. From the findings of the study, it is recommended that efforts at increasing supply of local rice should be intensified as this will reduce the prices of local rice brands and invariably enhance demand for local rice by households as rice was estimated to be own-price inelastic and also, rice should be prioritized as a core food crop in food security programmes as it was found to be a necessity in households food basket.

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    File URL: http://purl.umn.edu/157584
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    Bibliographic Info

    Article provided by Czech University of Life Sciences Prague, Faculty of Economics and Management in its journal AGRIS on-line Papers in Economics and Informatics.

    Volume (Year): 5 (2013)
    Issue (Month): 3 (September)
    Pages:

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    Handle: RePEc:ags:aolpei:157584

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    Postal: Kamycka 129, 165 21 Praha 6 - Suchdol
    Web page: http://online.agris.cz/
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    Related research

    Keywords: Consumption; Demand; Rice; LA-AIDS Model; Kaduna State; Consumer/Household Economics; GA; IN;

    References

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    1. Wyatt Thompson, 2004. "Using Elasticities from an Almost Ideal Demand System? Watch Out for Group Expenditure!," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 1108-1116.
    2. Ngui, Dianah & Mutua, John & Osiolo, Hellen & Aligula, Eric, 2011. "Household energy demand in Kenya: An application of the linear approximate almost ideal demand system (LA-AIDS)," Energy Policy, Elsevier, vol. 39(11), pages 7084-7094.
    3. James L. Seale & Mary A. Marchant & Alberto Basso, 2003. "Imports versus Domestic Production: A Demand System Analysis of the U.S. Red Wine Market," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 187-202.
    4. Goksel Armagan & Cuma Akbay, 2008. "An econometric analysis of urban households' animal products consumption in Turkey," Applied Economics, Taylor & Francis Journals, vol. 40(15), pages 2029-2036.
    5. Guta, Dawit Diriba, 2012. "Application of an almost ideal demand system (AIDS) to Ethiopian rural residential energy use: Panel data evidence," Energy Policy, Elsevier, vol. 50(C), pages 528-539.
    6. Nguezet, Paul Martin Dontsop & Diagne, Aliou & Okoruwa, Victor Olusegun & Ojehomon, Vivian, 0. "Impact of Improved Rice Technology (NERICA varieties) on Income and Poverty among Rice Farming Households in Nigeria: A Local Average Treatment Effect (LATE) Approach," Quarterly Journal of International Agriculture, Humboldt-Universit├Ąt zu Berlin, vol. 50.
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