Preference for parboiled rice: empirical evidence from Sri Lanka

Purpose - Understanding parboiled rice consumption trends by households is important because parboiled rice provides economic benefits as well as health benefits compared to non-parboiled ordinary milled rice. Thus, the objective of this study is to examine the patterns and determinants of parboiled rice consumption by Sri Lankan households. Design/methodology/approach - This study uses the Household Income and Expenditure Survey (HIES) data compiled by the Department of Census and Statistics (DCS) of Sri Lanka in 2002, 2006/2007 and 2012/2013. This paper analyses the parboiled rice consumption behaviour of households using information from 56,000 households. Specifically, present paper estimates the determinants of parboiled rice consumption within two-part model econometric framework controlling for demand side factors as well as location and time fixed-effects. Findings - Despite its nutritional and health benefits, results show that the likelihood of consuming parboiled rice has decreased over the years. There are significant ethnic and regional differences of consuming parboiled rice supporting the claim of heterogeneous distribution of rice consumption patterns even within the same country. Research limitations/implications - Use of repeated cross-sectional data due to lack of panel data and missing data on several districts due to security concerns are limitations of the study. Originality/value - To our knowledge, this is the first study for Sri Lanka that examines parboiled rice consumption behaviour using nationwide data for last 2 decade.