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Policy distortions in the segmented rice market:

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  • Rakotoarisoa, Manitra A.
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    Abstract

    "High production and export subsidies in developed countries and high protection in both developed and developing countries have distorted rice trade. This study estimates the impact of rice policy distortions on developing countries' rice production and trade potential. Because rice markets are highly segmented, major rice types are differentiated to estimate the impact of current and likely policy reforms. Analysis in long-grain, high-quality rice focuses on rice import and export markets in Latin America and shows that reduction of direct and implicit export subsidies in the US will benefit regional suppliers such as Argentina and Uruguay. Analysis of Indonesia's import market of ordinary long-grain rice, where protection is high, reveals that tariff hikes in this large importing country are in part a response to increased support from the exporting side. Level of domestic stocks also determines tariff movements. In the short/medium grain rice market, this study focuses on the highly supported and protected rice market in Japan and find that only aggressive rates of increase in import tariff-rate quota and reduction in production subsidies would have significant impact on import volume and price. Prices and trade would also be affected by a reduction of the high over-quota tariff." from Authors' Abstract

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    Bibliographic Info

    Paper provided by International Food Policy Research Institute (IFPRI) in its series MTID discussion papers with number 94.

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    Date of creation: 2006
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    Handle: RePEc:fpr:mtiddp:94

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    Keywords: exports; subsidies; Rice trade; Rice markets; tariffs; Imports;

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    1. Gail L. Cramer & James M. Hansen & Eric J. Wailes, 1999. "Impact of Rice Tariffication on Japan and the World Rice Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1149-1156.
    2. John C. Beghin & Jean-Christophe Bureau & Sung Joon Park, 2003. "Food Security and Agricultural Protection in South Korea," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 618-632.
    3. Minot, Nicholas & Goletti, Francesco, 2000. "Rice market liberalization and poverty in Viet Nam:," Research reports 114, International Food Policy Research Institute (IFPRI).
    4. Kyle Bagwell & Robert W. Staiger, 1988. "A Theory of Managed Trade," NBER Working Papers 2756, National Bureau of Economic Research, Inc.
    5. Nguyen, Hoa & Grote, Ulrike, 2004. "Agricultural policies in Vietnam," MTID discussion papers 79, International Food Policy Research Institute (IFPRI).
    6. Peter G. Warr, 2001. "Welfare Effects of an Export Tax: Thailand's Rice Premium," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 903-920.
    7. Daniel A. Sumner & Frank H. Buck & Hyunok Lee, 2000. "Assessing the Effects of the WTO Agreement on Rice Markets: What can We Learn from the First Five Years?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 709-717.
    8. Goldstein, Morris & Khan, Mohsin S, 1978. "The Supply and Demand for Exports: A Simultaneous Approach," The Review of Economics and Statistics, MIT Press, vol. 60(2), pages 275-86, May.
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