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An analysis of the paddy/rice value chains in Sri Lanka

Author

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  • S.M.P.Senanayake
  • S.P. Premaratne

Abstract

This paper examines whether the structure of the paddy / rice market in Sri Lanka is competitive and efficient particularly by undertaking two tracer surveys. From these surveys it was revealed that the profit margins accruing to almost all the players involved in the paddy/rice value chains of both Nadu and Samba varieties are not excessive when compared with the average bank lending rate of 15 percent. The results of the tracer surveys also show that both the Nadu and Samba paddy/ rice value chains are economically efficient. There are concerns however, about the poor quality of rice milled by most small and medium scale traditional rice mills in the country. It was also disclosed that there is no hard and fast evidence to prove the allegation that the rice millers and wholesalers exploit both the rice producers and consumers by using oligopsonic oligopolistic practices in both the producer and consumer markets such as 'cornering of the market'.

Suggested Citation

  • S.M.P.Senanayake & S.P. Premaratne, 2016. "An analysis of the paddy/rice value chains in Sri Lanka," ASARC Working Papers 2016-04, The Australian National University, Australia South Asia Research Centre.
  • Handle: RePEc:pas:asarcc:2016-04
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    File URL: https://acde.crawford.anu.edu.au/sites/default/files/publication/acde_crawford_anu_edu_au/2016-09/asarc_wp_2016-04.pdf
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    References listed on IDEAS

    as
    1. Weerahewa, Jeevika, 2006. "Rice Market Liberalization and Household Welfare in Sri Lanka: A General Equilibrium Analysis," Working Papers 24156, Canadian Agricultural Trade Policy Research Network.
    2. Weerahewa, Jeevika, 2006. "Rice Market Liberalization and Household Welfare in Sri Lanka: A General Equilibrium Analysis," Commissioned Papers 140763, Canadian Agricultural Trade Policy Research Network.
    3. Gunawardana, P.J. & Quilkey, J.J., 1993. "Determinants of Paddy Sales by Farmers on Official Market in Sri Lanka, 1953-1989," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 48(4).
    4. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
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    Cited by:

    1. Mohamed Esham & Brent Jacobs & Hewage Sunith Rohitha Rosairo & Balde Boubacar Siddighi, 2018. "Climate change and food security: a Sri Lankan perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(3), pages 1017-1036, June.
    2. W. A. M. A. N. Illankoon & Chiara Milanese & Maria Cristina Collivignarelli & Sabrina Sorlini, 2023. "Value Chain Analysis of Rice Industry by Products in a Circular Economy Context: A Review," Waste, MDPI, vol. 1(2), pages 1-37, April.

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    More about this item

    Keywords

    paddy/rice value chain; profit margins of paddy/tice; market structure; Sri Lanka;
    All these keywords.

    JEL classification:

    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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