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The quiet revolution in agrifood value chains in Asia: The case of increasing quality in rice markets in Bangladesh

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  • Minten, Bart
  • Murshid, K.A.S.
  • Reardon, Thomas

Abstract

In Bangladesh—one of the poorest countries in Asia, where rice accounts for almost 70 percent of consumers' caloric intake—the share of the less expensive, low-quality coarse rice is shown to be rapidly decreasing in rice markets and the quality premium for the best-quality rice has been consistently on the rise in the last decades. It thus seems that the role of rice as only a cheap staple food is being redefined. The off-farm share in the final consumer price increases from 27 percent to 35 percent to 48 percent for low-, medium-, and high-quality rice, respectively, and the increasing demand for higher quality is thus seemingly associated with a more important off-farm food sector—in particular, milling, retailing, and branding—as well as a transformed milling industry. We further find that the labor rewards for and the technical efficiency of growing different rice qualities are not significantly different, and farmers do not benefit directly from consumers' increased willingness to pay for higher rice quality.

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 1141.

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Date of creation: 2011
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Handle: RePEc:fpr:ifprid:1141

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Keywords: Markets; milling; Quality; rice; value chains;

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References

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  1. Johan F.M. Swinnen & Anneleen Vandeplas, 2010. "Market power and rents in global supply chains," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 109-120, November.
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  3. Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2007. "Impact of contract farming on income: Linking small farmers, packers, and supermarket in China," IFPRI discussion papers 742, International Food Policy Research Institute (IFPRI).
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  5. Unnevehr, Laurian J., 2000. "Food safety issues and fresh food product exports from LDCs," Agricultural Economics, Blackwell, vol. 23(3), pages 231-240, September.
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  7. Laurian J. Unnevehr, 2007. "Food safety as a global public good," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 149-158, December.
  8. David Orden & Donna Roberts, 2007. "Food regulation and trade under the WTO: ten years in perspective," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 103-118, December.
  9. Birthal, Pratap S. & Joshi, P. K. & Gulati, Ashok, 2005. "Vertical coordination in high-value commodities," MTID discussion papers 85, International Food Policy Research Institute (IFPRI).
  10. Kelvin Balcombe & Iain Fraser & Mizanur Rahman & Laurence Smith, 2007. "Examining the technical efficiency of rice producers in Bangladesh," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(1), pages 1-16.
  11. Spielman, David J. & Pandya-Lorch, Rajul, 2009. "Millions fed: Proven successes in agricultural development," IFPRI books, International Food Policy Research Institute (IFPRI), number Millions Fed Book: 2009.
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Cited by:
  1. McFall, William & Magnan, Nicholas & Spielman, David J., 2013. "Hybrid Rice as a Pro-Poor Technology? Evidence from Bangladesh," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150150, Agricultural and Applied Economics Association.

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