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

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. Keywords: Rice procurement program, farm level stock, effectiveness, Bangladesh

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 Record created 2017-04-01, last modified 2018-01-23

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