Determinants of supply and demand of rice market rice in Iran

Subject Areas : Agricultural Economics Research

A. Shahabadi ¹ (استادیار دانشکده اقتصاد و علوم اجتماعی دانشگاه بوعلی سینا همدان)
M. Esmaeilbeigi ² (کارشناس ارشد علوم اقتصادی دانشگاه آزاد اسلامی اراک)

Received: 2015-12-17 Accepted : 2015-12-17 Published : 2012-03-20

Keywords: Iran, Rice, Supply and Demand, Partial Adjustment Model Nerlove, Market Regulation,

Abstract :

Rice as one of the most important consumer items Iranian households and in providing food security of the community plays an important role. Thus, the government in order to market regulation and price control, each year some parts of limited resources allocated to foreign countries to import rice. So, the aim of this study was to investigate the determinants of supply and demand of rice in Iran during the period 1981-2007. In order to estimate the supply and demand of rice in the form of model of Nerlove partial adjustment and dependent of rice demand. According to estimates, the supply response of farmers against price changes are very small and price increase will not have significant effect on the supply of this product, and interventionist government policies (import) in the market; this product has had a negative impact on farmer's production incentives. Also, in the basis of results, the Possible to increase production through increased acreage is almost neutralized; therefore, the increase in production should be focused on increasing yield per hectare. The results also confirm this is to estimate the demand function, People in their consumer behavior pay less attention to the price And decisions to consume more of this product is affected by individual income. Also, factors such as population, people's consumption habits and consumption patterns of individuals involved in the import. Therefore, the increased emphasis on performance per hectare and reform of consumer pattern of rice can also help the country save foreign exchange to food security  

References:

1. Aziza, J. (2006). Economic evaluation of marketing strategies of

rice in Gilan Province, Journal of Agricultural Sciences, 12(4),

715-729. (In Persian)

2. Bafandee Iman Doost, S. (1993). Beet production in the Khorasan

province and its economic estimates. Master's Thesis. Faculty of

Humanities, Tarbiyat Modares University. (in Persian)

3. Emadzadeh M. and Daliri Chvlaby H. (2007). The comparative

advantage of production and import of rice in Iran. Quarterly

Economic Reviews, 4(3), 23-44. (in Persian)

4. Fahimifar, J. (1992). Economic analysis of rice in the world and

in Iran's position on this product. Master' s Thesis. Faculty of

Economics, Tehran University. (in Persian)

5. Fakhrayi, A. and Noroozi F. (2007). Error correction model of

demand for different types of imported rice and local rice in Iran.

Quarterly Iranian Economic Research, 9(30), 119-135. (in

Persian)

6. Ghane, A. (2002). Factors affecting rice consumption in Iran.

Master's Thesis. Faculty of Management. Islamic Azad

University, Arak Branch. (in Persian)

7. Ghaderi, Kh. Torkamani J. (2003).Estimating OF Rice supply and

demand functions are estimated for the period 1379-1345 (with

static and convergence tests). The Fourth Iranian Agricultural

Economics Conference, Karaj, 21 March. (in Persian)

8. Ghosh, N. and Neogi, C. (1995). Supply Response of Food Grain

and Policy Actions: A model with Rational Expectation

Hypothesis. Indian Journal of Agricultural Economics, 50, 135-

152.

9. Gilanpoor, O. (1999). The Necessity of Systematic Attitude of

policy-making system in the rice economy. First Seminar of

Development of Gilan Province. Rasht, Iran. (in Persian)

10. Gilanpoor, O. and Yazdani, S. (1997). Effects of trade

liberalization on the rice economy of Iran. Journal of Agricultural

Sciences of Iran, 28(2), 19-29. (In Persian)

11. Kofi Ocran, M. and Biekpe, N. (2008). Agricultural commodity

supply response in Ghana. Journal of Economic Studies, 35(3),

224 – 235. 

12. Komeyjani, A., Nouri, K., Moghadesi, R. and Gilanpoor, O.

(2000). The analysis on the relationship between agricultural

products and trade policies, currency and estimated demand and

supply functions and selection of imported agricultural products,

Journal of Commerce Researches, 6(24), 1-25. (in Persian)

13. Molua, E. (2010). Risponse of Rice Yields in Cameroon: Some

Implication for Agricultural Price Policy. Libyan Agriculture

Research Center Journal International, 1(3), 182-194.

14. Muchapondwa, E. (2009). Supply Response of Zimbabwean

Agriculture: 1970-1999. Journal of Afjare, Parm 3(1), 28-42.

15. Najafi, B. (2000). Investigating of Government policies in the

field of rice: issues and approaches. Journal of Agricultural

Economics and Development, 8(31),7-29. (in Persian)

16. Nerlove, M. (1956). Estimates of the elasticities of supply of

selected agricultural commodities. Journal of Farm Economics,

38(2), 496- 509.

17. https://www.msu.edu/course/aec/845/READINGS/Nerlove1956.p

df

18. Nouri, K. (2006). Disturbing effect on the rice market supply,

demand and imports in Iran. Quarterly Research and

Construction, 19(73), 17-25. (In Persian)

19. Parmeh, Z. and Gilanpoor, O. (2009). Investigating of market

regulation policies of rice in Iran and comparison with selected

countries and provide solutions to improve market regulation.

Journal of Commerce Studies, 7(38), 32-49.(in Persian)

20. Parmeh, Z., Gilanpoor, O., Khaledi, K., Jeyran, A. and Piruz, E.

2010. The rice market. The Institute of Trade Studies & Research,

Tehran. (in Persian)

21. www.aaec.ttu.edu/Papers/Theses_Dis.00-06.php

22. Rahji, M.A.Y. and Adewumi, M.O. (2008). Market supply

response and demand for local rice in Nigeria: Implications for

self–sufficiency policy. Journal of Centeral European Agriclture,

9(3), 567-575.

23. Renteria, B.S. (2003). An econometric analysis of the future

Indian food supply and demand. A Thesis in Agricultural and

Applied Econonomics. Texas University.

24. www.aaec.ttu.edu/Papers/Theses_Dis.00-06.php

25. Sadeghi Tkasy, F. (2000). Rice economy of Iran. Master,s

Thesis. Faculty Economics and Political Science, Martyr Beheshti

University. (in Persian)

26. Salassi, M.E. (1995). The responsiveness of U. S rice acreage to

price and production costs. Journal of Agriculture Applied

Economics, 27(2), 386-399.

27. Thanh Danh, V. (2007). The role of prices in stimulating

Vietnamese rice economy. CAS Discussion paper No 52.

28. www.ctu.edu.vn/.../papers/Danh-CAS52

Role%20of%20rice%20pricing%20policy%20in%20VN.pdf

29. Zubaidi Baharumshah, A. (1991). A model for the rice and wheat

economy in Malaysia: An empirical assessment of alternative

specifications. Journal of Pertanika, 14(3), 383-391.