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Market Concentration of Branded Rice in Kerala

Author

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  • Shahana, K. S.
  • Ushadevi, K. N.

Abstract

In Kerala rice is a staple diet. As per the information from Kalady Rice Millers’ Consortium, 40 per cent of the consumers in Kerala prefer branded rice, and out of this Kerala absorbs only 16 per cent, the rest of the branded rice is from outside states like Andhra Pradesh, Tamil Nadu and West Bengal. This study investigates the market concentration of Kerala’s branded rice market, focusing on the dominance of a few key players and its market share, pricing power, and concentration. The analysis employs four-firm concentration ratio, the Herfindahl-Hirschman Index (HHI), Gini coefficient and the Lorenz curve to reveal an oligopolistic structure, where a small number of firms control a substantial portion of the market. Major players like Pavizham, Keerthi Nirmal, Periyar, Kottaram, and Jayabharath, alongside the Kalady Rice Miller’s Consortium, play a crucial role in shaping the branded rice market in Kerala. The study involved a survey conducted between November 2023 and June 2024, with a random sample of 10 non-exporters, 5 exporters, and one co-operative rice mill, selected from the 46 branded rice manufacturers in the state, predominantly from Ernakulam and Palakkad districts. The findings of the study highlighted that the branded rice market in Kerala had an oligopolistic behaviour. This research fills a gap in understanding the distribution of market power in Kerala’s rice industry and offers suggestions for fostering greater competition and inclusivity in the market.

Suggested Citation

  • Shahana, K. S. & Ushadevi, K. N., 2024. "Market Concentration of Branded Rice in Kerala," Asian Journal of Agricultural Extension, Economics & Sociology, Asian Journal of Agricultural Extension, Economics & Sociology, vol. 42(11), pages 1-9.
    • Handle: RePEc:ags:ajaees:368125
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    File URL: https://ageconsearch.umn.edu/record/368125/files/Shahana42112024AJAEES125989.pdf
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    References listed on IDEAS

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