Rice markets in Madagascar in disarray

Marie Hélène Dabat (), Bart Minten, Paul Dorosh, Olivier Jenn-Treyer, John Magnay and Ziva Razafintsalama
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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

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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.

Date: 2006
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Citations: View citations in EconPapers (15)

Published in Bart Minten; Paul Dorosh. World Bank, 76 p., 2006

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03049969

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