IDEAS home Printed from
   My bibliography  Save this paper

Malaysian Rice Trade And Government Interventions


  • Vengedasalam, Deviga
  • Harris, Michael
  • MacAulay, T. Gordon


Malaysia’s rice sector is highly protected, with the protection justified largely by arguments for food security. The government intervenes in the rice market by providing subsidies to farmers and consumers as well as imposing high import duties. Furthermore, the rice trade is controlled through a sole importer. In this paper, the welfare effects of eliminating the major government interventions in Malaysia’s rice sector are evaluated. A modified spatial price equilibrium model that incorporates a sole importer with a fixed domestic price has been developed to measure the welfare impacts of the market distortions. Four scenarios were developed: (1) removal of the sole importer but continuation of the subsidies and existing tariffs; (2) removal of the subsidies but with the existence of the sole importer; (3) imposition of tariff and (4) free trade. Large net welfare gains and a significant reduction in government expenditures are likely if all forms of government interventions were to be eliminated and a free market allowed.

Suggested Citation

  • Vengedasalam, Deviga & Harris, Michael & MacAulay, T. Gordon, 2011. "Malaysian Rice Trade And Government Interventions," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100726, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare11:100726

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Yulian Ding & Michele M. Veeman & Wiktor L. Adamowicz, 2011. "Habit, BSE, and the Dynamics of Beef Consumption," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 59(3), pages 337-359, September.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Food Consumption/Nutrition/Food Safety;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aare11:100726. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.