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If agricultural markets do not work well in sub-Saharan Africa, it will be inconceivable to increase crop yields, as this requires the increased application of purchased inputs and the marketing of increased output. This study therefore investigates whether and to what extent rice markets function in Uganda, where rice is a new crop. We found that the number of rice millers has increased in response to the increase in rice production. As the number of rice millers and traders has increased, the price differentials of milled rice across wide areas have come to depend on transportation costs, which indicates the more efficient functioning of local rice markets.


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