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Abstract

This paper analyses rice traders’ behaviour pattern in general, and their stocking decisions in particular, based on information collected through a field survey in and around Dhaka city. It was observed that traders’ (both wholesalers and retailers ) stocking decisions were influenced by prices expected in the future, but the time frame of such expectation was confined to one week. Among the set of factors specifically related to operation of Public Food Distribution System, it was observed that most of the traders both in the wholesaler sad retailer groups, considered open market sale (OMS) of foodgrains by the Government as an important factor influencing their stocking decisions. This, therefore, underscores the need to devise appropriate measues in arresting price hike during the lean season, for greater involvement of private grain dealers in the public foodgrain distribution system.

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