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Effectiveness of Rice Procurement Program and the Determinants of the Farm Level Stocks of Rice in Bangladesh

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  • Alam, Mohammad
  • Akter, Shaheen
  • Begum, Ismat

Abstract

Domestic rice procurement program serves the dual purposes of building rice stocks for the public food grain distribution system and of providing income support to farmers. Government of Bangladesh provides a support price higher than the cost of production. However, we examine the effectiveness of rice procurement program and analyse the factors influencing farm level rice stocks, to understand the household level food security. In doing so, we use Household Income and Expenditure Survey 2010 data, historical and field survey data. We find that government stock and market price were negatively correlated with domestic procurement but the planned distribution was positive correlated with it. Results also show that annual household income including farm income increased dueii to procurement program. Moreover, stocks at the farm level vary positively with respect to own price but negatively with respect to consumer price of coarse rice.

Suggested Citation

  • Alam, Mohammad & Akter, Shaheen & Begum, Ismat, 2015. "Effectiveness of Rice Procurement Program and the Determinants of the Farm Level Stocks of Rice in Bangladesh," 2015 Conference, August 9-14, 2015, Milan, Italy 210942, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:210942
    DOI: 10.22004/ag.econ.210942
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    References listed on IDEAS

    as
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    3. Quasem, Md. Abul, 1979. "Marketing Of Aman Paddy With Special Reference To The Government Procurement Programme In Two Selected Areas Of Bangladesh," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 2(1), pages 1-24, June.
    4. Sabur, S. Abdus & Jahan, Hasneen & Reza, M. Selim, 2003. "An Evaluation Of Government Rice Procurement Programme In Selected Areas Of Bangladesh," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 26(1-2), pages 1-16, December.
    5. Dorosh, Paul A. & Farid, Naser, 2003. "Implications of quality deterioration for public foodgrain stock management and consumers in Bangladesh," MSSD discussion papers 55, International Food Policy Research Institute (IFPRI).
    6. Khan, M. Mahmud & Jamal, A. M. M., 1997. "Market based price support program: an alternative approach to large scale food procurement and distribution system," Food Policy, Elsevier, vol. 22(6), pages 475-486, December.
    7. Paul Dorosh, 2009. "Price stabilization, international trade and national cereal stocks: world price shocks and policy response in South Asia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 1(2), pages 137-149, June.
    8. Quazi Shahabuddin & M Asaduzzaman & Edward Clay & Steve Jones, 2012. "Price Support, Domestic Procurement Programme and Public Stock Management," Working Papers id:5006, eSocialSciences.
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    Keywords

    Rice procurement program; farm level stock; effectiveness; Bangladesh;
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