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Asian Journal of Agriculture and Development (AJAD) - Call for papers!

Assessment of Consumer Preferences and Price-Quality Relationship in Urban and Rural Rice Markets, Shwe-bo District, Myanmar

(Myanmar), Master of Science in Agricultural Economics (University of the Philippines Los Baños)

Thesis Abstract:

The study aimed to determine the physical quality characteristics of rice that consumers in urban and rural markets prefer, and the effects of these quality attributes on the price of rice.

Results of the study revealed that average per capita consumption of rice and the average percentage of rice expenditure on total food were higher in the rural market than in the urban market. The estimated regression results on the socio-economic characteristics affecting the quantity of rice purchased showed that age, household size, and occupation had a significant positive effect while location had a significant negative effect on the quantity of rice purchased. In the case of buying behavior, majority of the consumers preferred monthly buying. Among the six rice varieties in the two markets, Ayar Min (AYM) variety was the most preferred by the consumers since it had slender shape and very low percentage of broken and its price was affordable to majority of the consumers.

A linear form of the hedonic price model was used to estimate the effect of physical quality attributes of rice on its price by using OLS method. The physical characteristics which were considered important determinants of rice price were whiteness, percentage of broken grain, shape, chalkiness, and taste. The results confirmed the hypothesis that whiteness, slender shape, and taste had a significant positive effect and percentage broken and chalkiness had a significant negative effect on the price of rice.

The study recommended the following for rice quality improvement: 1) improve milling and post-harvest technology for better quality of rice, 2) undertake strategic breeding program, 3) develop a workable grading system for rice, and 4) provide proper labeling and packaging of rice.