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Rice markets in Madagascar in disarray

Author

Listed:
  • Marie Hélène Dabat

    (URP SCRID - Systèmes de culture et rizicultures durables - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - Université d'Antananarivo - FOFIFA - Centre National de Recherche Appliquée au Développement Rural - CGIAR - Consultative Group on International Agricultural Research [CGIAR] - AfricaRice - Africa Rice Center [Côte d'Ivoire] - CGIAR - Consultative Group on International Agricultural Research [CGIAR], Cirad-CA - Département des Cultures Annuelles - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement)

  • Bart Minten
  • Paul Dorosh
  • Olivier Jenn-Treyer
  • John Magnay
  • Ziva Razafintsalama

Abstract

Faced with a production shortfall in early 2004 and a sharp rise in the price of imported rice due to a depreciation of the Malagasy franc and a spike in international rice prices, Madagascar attempted to stabilize domestic rice prices through public tenders for rice imports and subsidized sales at official prices. This paper discusses the 2004 rice crisis, chronicling the events that triggered the crisis and the subsequent interventions by the government, and analyzes the impacts of the policies adopted and steps taken to spur development of the domestic rice market. Using a partial equilibrium model, the paper also quantifies the overall costs and benefits of a change in import duties for various household groups, and compares this intervention to a policy of targeted food transfers or security stocks. as well as other options for price stabilization, including a reduction in import duties and a security stock policy.

Suggested Citation

  • Marie Hélène Dabat & Bart Minten & Paul Dorosh & Olivier Jenn-Treyer & John Magnay & Ziva Razafintsalama, 2006. "Rice markets in Madagascar in disarray," Post-Print hal-03049969, HAL.
    • Handle: RePEc:hal:journl:hal-03049969
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    Citations

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    Cited by:

    1. Ralandison, Tsilavo & Arimoto, Yutaka & Kono, Hisaki & Sakurai, Takeshi & Takahashi, Kazushi, 2018. "Rice flows across regions in Madagascar," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 13(1), March.
    2. David-Benz, Hélène & Andriandralambo, Norontsoa & Soanjara, Helgina & Chimirri, Chiara & Rahelizatovo, Noro & Rivolala, Bezaka, 2016. "Improving access to market information: a driver of change in marketing strategies for small producers?," 149th Seminar, October 27-28, 2016, Rennes, France 245073, European Association of Agricultural Economists.
    3. World Bank, 2008. "Regional Trade in Food Staples : Prospects for Stimulating Agricultural Growth and Moderation Food Security Crises in Eastern and Southern Africa," World Bank Publications - Reports 7829, The World Bank Group.
    4. Dorosh, Paul A. & Dradri, Simon & Haggblade, Steven, 2009. "Regional trade, government policy and food security: Recent evidence from Zambia," Food Policy, Elsevier, vol. 34(4), pages 350-366, August.
    5. Mohammad Hasan Mobarok & Wyatt Thompson & Theodoros Skevas, 2021. "COVID-19 and Policy Impacts on the Bangladesh Rice Market and Food Security," Sustainability, MDPI, vol. 13(11), pages 1-18, May.
    6. Haggblade, Steven & Nielson, Hunter & Govereh, Jones & Dorosh, Paul A., 2008. "Potential Consequences of Intra-Regional Trade in Short-Term Food Security Crises in Southeastern Africa," Food Security Collaborative Working Papers 55376, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. World Bank, 2009. "Niger : Food Security and Safety Nets," World Bank Publications - Reports 18550, The World Bank Group.
    8. Paul Dorosh, 2008. "Food Price Stabilisation And Food Security: International Experience," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 44(1), pages 93-114.
    9. David Stifel & Tiaray Razafimanantena & Faly Rakotomanana, 2014. "Utility-Consistent Poverty in Madagascar, 2001-10: Snapshots in the Presence of Multiple Economy-Wide Shocks," WIDER Working Paper Series wp-2014-122, World Institute for Development Economic Research (UNU-WIDER).
    10. Aker, Jenny C. & Ninno, Carlo del & Dorosh, Paul A. & Mulder-Sibanda, Menno & Razmara, Setareh, 2009. "Niger - Food security and safety nets," Social Protection Discussion Papers and Notes 91576, The World Bank.
    11. Govereh, Jones & Haggblade, Steven & Nielson, Hunter & Tschirley, David L., 2008. "Maize Market Sheds in Eastern and Southern Africa. Report 1," Food Security Collaborative Working Papers 55374, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    12. Stifel, David & Razafimanantena,Tiaray & Rakotomanana, Faly, 2014. "Utility-Consistent Poverty in Madagascar, 2001-10: Snapshots in the presence of multiple economy-wide shocks," WIDER Working Paper Series 122, World Institute for Development Economic Research (UNU-WIDER).
    13. Margaret Grosh & Carlo del Ninno & Emil Tesliuc & Azedine Ouerghi, 2008. "For Protection and Promotion : The Design and Implementation of Effective Safety Nets," World Bank Publications - Books, The World Bank Group, number 6582.

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