Welfare impact of asymmetric price transmission on rice consumers in Bangladesh

Rahman, Mohammad Chhiddikur; Pede, Valerien O.; Balié, Jean

doi:10.1111/rode.12882

Cited by 5 publications

(1 citation statement)

References 44 publications

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“…In wheat and flour market, short run price asymmetry was found while in long run the adjustment is different [30]. Welfare impact of asymmetric rice price transmission in Bangladesh market was also assessed [31]. Similar price transmission in both short and long run is also observed for edible oil market [32].…”

Section: Introductionmentioning

confidence: 90%

Spatial price transmission in the onion markets of Bangladesh: An application of NARDL approach

et al. 2023

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As the price of local onions is greatly impacted by the price of imported onions at these two levels of the supply chain, the goal of this study was to ascertain whether onion prices in Bangladesh are transmitted asymmetrically at the wholesale and retail levels. To analyze asymmetry, the study employed the nonlinear autoregressive distributed lag (NARDL) model in the short and long run using monthly time series data from January 2006 to December 2020. The NARDL model captures the effects of both positive and negative shocks in the short as well as in the long run. The empirical results from the NARDL indicate that the wholesale price of local onion shares a short-run relationship with the wholesale price of imported onion while the local retail price of onion shares a long-run relationship with the imported retail price of onion. In addition, the short-run impact of local wholesale and imported wholesale prices is asymmetric. Long-run evidence supports the existence of an asymmetric effect between the local and imported retail onion prices. Using the Pairwise Granger causality test, we examined the causal relationships between wholesale and retail prices. The direction of the casual relationship indicates that the wholesale and retail prices of imported onions lead to the wholesale and retail prices of local onions. A clear understanding of the onion market, how prices move between market actors, and its role in determining market price interaction could be gained by analyzing the asymmetric relationship between the local and imported onion prices. As a result, significant policy recommendations could be made to control the onion price in Bangladesh.

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Section: Introductionmentioning

confidence: 90%

Spatial price transmission in the onion markets of Bangladesh: An application of NARDL approach

et al. 2023

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Use of time series Sentinel-1 and Sentinel-2 image for rice crop inventory in parts of Bangladesh

et al. 2023

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Tracking Varietal Authentication of Rice Brands in Bangladesh: Analyzing the Path from Farm to Market

Rahman,

Rahaman,

Sarkar

et al. 2024

Agric Res

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Market traders have recently deceived consumers about the quality and fair price of rice in Bangladesh, causing serious health concerns and unintended financial losses for consumers. Therefore, this study explores the availability, market share and concentration, and traces the varietal origin of popular rice brands on the market. Primary data were collected through an intensive survey with rice farmers, paddy and rice traders, and millers. Herfindahl-Hirschman Index (HHI) was used to estimate the market share and concentration of available rice brands. We employed a snowball sampling technique and completed 30 different supply chains as case studies to get the varietal sources of different rice brands. Results show that "BR28" was the most popular rice brand contributing about 40% of available rice in the Upazila level market, followed by "Miniket" (17.7%), "Swarna" (14.5%), "BR29" (12.1%), and "Pajam" (6.1%). Whereas, in the city markets, the contribution of "Miniket" was the highest (33.5%), followed by "BR28" (19.4%), Zira (19.2%), "Nazir" (8.5%), and "Katari" (5.2%). The traders and consumers did not confirm any specific variety against the available popular rice brands in the markets. We have explored the varietal origin by tracking the supply flow and found that the brand name "Miniket" was given by millers to each and every kind of rice that falls under the medium-slender type grain category. The market traders concentrated on producing the top 4-5 rice brands without exercising competition. Producing rice brands by over-polishing and receiving returns from by-products is indeed a double-edged benefit for the millers. Whereas, the consumers are paying more for the finer polished rice without considering the nutritional value. Therefore, strong market regulations, notably on rice milling and branding, should be enforced to protect against adverse health concerns and financial losses, and also for ensuring food and nutrition security in Bangladesh.

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Welfare impact of asymmetric price transmission on rice consumers in Bangladesh

Cited by 5 publications

References 44 publications

Spatial price transmission in the onion markets of Bangladesh: An application of NARDL approach

Spatial price transmission in the onion markets of Bangladesh: An application of NARDL approach

Use of time series Sentinel-1 and Sentinel-2 image for rice crop inventory in parts of Bangladesh

Tracking Varietal Authentication of Rice Brands in Bangladesh: Analyzing the Path from Farm to Market

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