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Rice Price Stabilization In Bangladesh: An Analysis Of Policy Options

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  • Dorosh, Paul A.
  • Shahabuddin, Quazi

Abstract

To meet its overall objective of ensuring food security for all households, the Government of Bangladesh undertakes several activities: it intervenes in markets to stabilize prices, targets food distribution to poor households and provides emergency relief after natural disasters. This paper provides measures of the variability of domestic and international rice prices, and examines the mix of government intervention and private sector participation in rice markets. The analysis shows that the relatively high degree of price stability achieved in the 1990s was due in large part to private sector imports that stabilized markets following major production shortfalls. Domestic rice procurement contributed relatively little to raising domestic producer prices at harvest time, involved only a small percentage of farmers, and incurred excessive costs following successful harvests because of procurement prices set far in excess of market prices.

Suggested Citation

  • Dorosh, Paul A. & Shahabuddin, Quazi, 2002. "Rice Price Stabilization In Bangladesh: An Analysis Of Policy Options," MSSD Discussion Papers 16228, CGIAR, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:ags:iffp11:16228
    DOI: 10.22004/ag.econ.16228
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    1. is not listed on IDEAS
    2. Dayal Talukder, 2014. "Agricultural Trade Liberalization and Poverty in Rural Bangladesh," Poverty & Public Policy, John Wiley & Sons, vol. 6(3), pages 282-307, September.
    3. 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.
    4. Lopamudra Banerjee, 2010. "Effects of Flood on Agricultural Productivity in Bangladesh," Oxford Development Studies, Taylor & Francis Journals, vol. 38(3), pages 339-356.
    5. Headey, Derek D. & Hoddinott, John, 2016. "Agriculture, nutrition and the green revolution in Bangladesh," Agricultural Systems, Elsevier, vol. 149(C), pages 122-131.
    6. Dayal Talukder & Love Chile, 2018. "Technological Innovation And Total Factor Productivity Growth Of Rice Production In Bangladesh In The Post-Liberalisation Era," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 6(2), pages 50-70, December.
    7. Shahabuddin, Quazi & Dorosh, Paul A., 2002. "Comparative advantage in Bangladesh crop production," MSSD discussion papers 47, International Food Policy Research Institute (IFPRI).
    8. Mohammad Jahangir Alam & Jeroen Buysse & Ismat Ara Begum & Eric J. Wailes & Guido Van Huylenbroeck, 2011. "The welfare impact of policy interventions in the foodgrain markets in Bangladesh," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 14(3), pages 215-225, September.
    9. repec:wbk:wbpubs:20537 is not listed on IDEAS
    10. Syed Abul Hasan, 2013. "The impact of a large rice price increase on welfare and poverty in Bangladesh," ASARC Working Papers 2013-11, The Australian National University, Australia South Asia Research Centre.
    11. Delgado, Christopher L. & Rosegrant, Mark W. & Wada, Nikolas & Meijer, Siet & Ahmed, Mahfuzuddin, 2002. "Fish as food: projections to 2020 under different scenarios," MSSD discussion papers 52, International Food Policy Research Institute (IFPRI).
    12. Talukder, Dayal & Chile, Love, 2014. "Characteristics of Rice Cultivation and Rural Rice Market in Bangladesh: Evidence from a Survey," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 15(2), pages 1-17.
    13. Nicholas Minot & Lisa Daniels, 2005. "Impact of global cotton markets on rural poverty in Benin," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 453-466, November.
    14. Minot, Nicholas & Hossain, Shahadat & Kabir, Razin & Dorosh, Paul A. & Rashid, Shahidur, 2024. "Assessing the impact of rice price stabilization policies in Bangladesh: Results from a stochastic spatial equilibrium model," IFPRI discussion papers 2252, International Food Policy Research Institute (IFPRI).
    15. Gulati, Ashok & Narayanan, Sudha, 2002. "Rice Trade Liberalization And Poverty," MSSD Discussion Papers 16214, CGIAR, International Food Policy Research Institute (IFPRI).
    16. Benjamin J Appel & Nathaniel C Smith, 2025. "Rainfall shocks and state repression: How rainfall shocks incentivize governments to commit human rights abuses," Conflict Management and Peace Science, Peace Science Society (International), vol. 42(5), pages 488-513, September.

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