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All Journal International Journal of Supply Chain Management
Aryo Cokrowitianto
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Decision Sciences, Operations Research & Management Engineering Environmental Science Industrial & Manufacturing Engineering Transportation

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Do Poor Paddy Farmers Benefit from Increasing Rice Prices? Yogi Makbul; Nandan Limakrisna; Sudrajati Ratnaningtyas; Aryo Cokrowitianto
International Journal of Supply Chain Management Vol 10, No 2 (2021): International Journal of Supply Chain Management (IJSCM)
Publisher : International Journal of Supply Chain Management

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Abstract

A policy of high rice prices can increase paddy farm incomes but also cause a rise in rice expenditures for farm households. Such a policy is needed to stimulate production but can harm rice consumers, especially poor families. We surveyed 284 paddy farmers in Gantar Sub-District, Indramayu Regency, Indonesia to analyze the impact of increasing rice prices on farmers’ net incomes, including poor paddy farmers. We found that a price increase benefits farmer if the price transmission elasticity is more than 0.2 for non-poor paddy farmers or 0.6 for poor paddy farmers. A high rice price policy can benefit paddy farmers if there is good price transmission in the market. Good transmission requires a strong rice market efficiency channel.
Co-Authors Nandan Limakrisna Sudrajati Ratnaningtyas Yogi Makbul