Determinants of supply and demand of rice market rice in Iran

Authors

• A. Shahabadi
• M. Esmaeilbeigi

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
 

Keywords

• Iran
• Supply and Demand
• Partial Adjustment Model Nerlove
• Rice
• Market Regulation

20.1001.1.20086407.1391.4.13.8.8

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