scholarly journals NET CONSUMER OF RICE AND POVERTY IN INDONESIA: SIMULATION USING EQUIVALENT VARIATION

2017 ◽  
Vol 16 (2) ◽  
Author(s):  
Wiena Maulidia Respati ◽  
Witra Ghaitsa Gafara ◽  
Ridho Al Izzati

<div class="WordSection1"><p>Indonesia’s domestic rice price has experienced a significantly increase when the global price of corps commodity decline. An increase in rice price from 2012 to 2015 had reached 30%. The most acute occurred on the first quarter of 2014 until the last quarter of 2015 that overtake 17%. Increase in domestic rice price will affect mostly to consumer welfare in Indonesia, because as we know, rice is one of the staple food for Indonesian people whom has inelastic demand.</p><p>This paper uses National Socio-economics Survey (SUSENAS) year 2012 and 2014. We revisit McCulloch (2008) and used SUSENAS 2004 to calculate amount of agricultural household in Indonesia. The result of the author’s calculation there was a diminution from 46% in 2004 to 37% in 2012 on the amount of agricultural households in Indonesia. From the total of agricultural household, 19% are the rice-farming households. Surprisingly, 90% of Indonesia’s households are the net consumer whom bought the rice from the market. The result shows that 15% of the total net consumers are the rice-farming households and 10% of net consumers are poor households. This means that if there is an increasing in the price of rice, automatically this household will get influenced include the rice farmers who in fact is also as the rice producers.</p><p>The authors conduct simulation to see the effect of the increase in the rice price towards consumptions that ultimately will alter poverty incidence. Simulation that has been performed uses equivalent variation method to calculate a changing on household consumption as the result of an increase in the rice prices. The result from the simulation of a increase in rice price shows that households in every quantile is affected, ceteris paribus. Authors also including <em>Raskin </em>as compensated consumption when there is an increase in rice prices. These findings suggest that, rice price should be stabilized in order to maintain the society’s welfare and government should establish pro-poor policy especially for food security to prevent the increasing of poverty incidence.</p><p> </p><p> </p><p>Keywords: rice price, poverty, rice farmer, equivalent variation</p><p>JEL Code: I32, Q18</p></div>

2019 ◽  
Vol 17 (1) ◽  
pp. 39
Author(s):  
NFN Saptana ◽  
Erma Suryani ◽  
Emmy Darmawati

<p>Rice supply chain from producers to consumers in Central Java Province is relatively extensive and it affects rice price establishment. This study aimed to assess rice production performance, dried paddy (GKG) conversion rate into rice, rice supply chain, dynamics of rice prices among seasons and markets, and rice price establishment. This research was conducted in 2018 in rice producing centers in Central Java, namely Sragen, Klaten and Demak Regencies. This province had a rice production surplus and it was marketed mostly to West Java and Jakarta provinces. Conversion rate from paddy to rice varies between 60-65% or an average of 62.74% depending on varieties grown, drying process, and harvesting machine condition. In general, there are six to seven actors in the rice supply chain. During the main harvest in rainy season, paddy and rice prices usually dropped due to abundant supply. However, during the harvest in rain season in 2017/2018, paddy and rice prices remained high. This case indicated that paddy and rice prices establishment were more determined by supply side. It can be concluded that shorten the rice supply chain will increase paddy price at farm level and reduce rice price at consumer level. To shorten the rice supply chain effectively, it is recommended that rice milling process to be done at the milling industry.</p><p> </p><p>Abstrak</p><p>Rantai pasok beras di Jawa Tengah dari tingkat produsen hingga konsumen masih cukup panjang. Kondisi ini berpengaruh pada pembentukan harga beras. Tujuan penelitian adalah untuk mengkaji kinerja produksi padi, besaran rendemen gabah kering giling (GKG) menjadi beras, kinerja rantai pasok gabah dan beras, dinamika harga beras antar musim dan pasar, dan pembentukan harga beras pada setiap tingkatan pelaku rantai pasok beras. Penelitian dilakukan tahun 2018 di lokasi sentra produksi padi Provinsi Jawa Tengah yaitu Kabupaten Sragen, Klaten, dan Demak. Hasil kajian menunjukkan provinsi ini menghasilkan surplus beras yang dipasarkan terutama ke Jawa Barat dan Jakarta. Tingkat rendemen GKG menjadi beras bervariasi antara 60-65% atau rata-rata 62,74% tergantung varietas, proses pengeringan, dan kondisi mesin panen. Rantai pasok beras cukup panjang, sebanyak enam sampai tujuh pelaku. Sesuai pola yang umum dikenal, pada musim panen raya pada musim hujan (MH) harga gabah dan beras turun, namun pada musim panen raya MH 2017/2018 harga pangan ini tetap tinggi. Hal ini disebabkan pembentukan harga gabah dan beras lebih ditentukan oleh aspek pasokan dibandingkan aspek permintaan. Dari hasil penelitian ini disimpulkan pemangkasan rantai pasok gabah dan beras dari petani produsen ke konsumen dapat meningkatkan harga gabah di tingkat petani dan menurunkan harga beras di tingkat konsumen. Agar upaya pemotongan rantai pasok berjalan efektif, maka penggilingan gabah menjadi beras sebaiknya dilakukan di industri penggilingan padi.</p>


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Le Khuong Ninh

PurposeThis paper investigates the impact of education on output of rice farming households in Vietnam.Design/methodology/approachGiven the literature review, this paper specifies three empirical models (i.e. linear constant coefficient model, partially nonlinear model and linear varied coefficient model) with variables that well describe the mechanism through which education affects output. The data were collected from 901 rice farming households randomly selected out of ten provinces and city in the Mekong River Delta (MRD) of Vietnam. The models are estimated using ordinary least squares (OLS) and Robinson's (1988) double residual estimators.FindingsEstimates of the empirical models show that seed, fertilizer, labor and farm size have significant impacts on output of rice farming households while pesticide and herbicide do not. Education is also found to have a positive effect on output of rice farming households because it helps them better manage farms of larger size via combining various inputs in a more desirable way.Originality/valueThis paper confirms the positive impact of education on agricultural output, which implies that policies aiming to provide better education to rural people will greatly enhance their income as well as trigger long-term economic and agricultural growth.


2018 ◽  
Vol 5 (2) ◽  
pp. 105-110
Author(s):  
Neneng Kartika Rini ◽  
Venita Sofiani

Black Rice is a local commodity which apparently was not found in the Ciemas area of Sukabumi Regency alone, in several Districts in Sukabumi Regency, namely in the Districts of Waluran, Cidolog, and Kabandungan. Black rice from the nutritional content and benefits is no less significant. Black Rice prices are higher than white rice or consumption rice. Every Black Rice farmer still has problems in carrying out the postharvest handling process. This is the case with Chain Management (SCM) or supplies chain management by farmers; farmers also do this with different patterns. The income of lowland rice farmers is uncertain. Because the benefits of black rice and farmers' income fluctuate every year, it is necessary to check postharvest handling and to know and analyze how efficient workflows are to accelerate supply chain management, black rice reaches consumers and makes more enormous profits. Rather than spending money on black rice entrepreneurs. The results show that the postharvest handling process and the SCM pattern affect the income of farmers in Waluran, Ciemas, Surade, Cidolog, and Kabandungan, Sukabumi Regency.


Author(s):  
Tran Gia Pham

For a more comprehensive look at the life of rice farmers in the context of environmental change, research on the change of the living standards of rice farming households in the period of 2005-2014 is done. In this study, social survey is utilized with sample size of 46 rice farming households in 6 districts in An Giang province (7-8 households/district on average) with the tool for data collection and analyzing having been the chart of selfevaluation of rice farmers on their living standards in the last 10 years. The study results showed that rice farming livelihood improves the life of farmers. However, if considered it during a long time, the living standard of the majority of rice farming households did not increase. Rice production is a kind of livelihood related to risks caused by negative change of the natural environment and the rice market's volatility. To adapt with the change of environment and to maintain the living standard, the rice farmers have implemented such solutions as livelihood diversification, plant transformation, increase of the cultivated areas and of investment in education for their children. Together with the goal of ensuring food security and enhancing rice exports, it is necessary to ensure profit, living standards of rice farmers, to strengthen their resources adapting to climate change, and to link the production with the market and international integration.


2021 ◽  
Vol 14 (2) ◽  
pp. 140
Author(s):  
Agung Andiojaya

Policies to maintain rice prices are a sensitive policy in Indonesia so that the government controls the rice price tightly in every level of the rice market. To make sure it runs well, the government needs to take into account the magnitude, direction, and speed of transmission of the rice price changes. When these three things can be monitored and controlled well, the success rate of controlling prices is in hand. This study investigates the direction and speed of transmission of changes in grain prices at the farm level to changes in rice prices at various levels of trade. The empirical results utilizing Granger Causality Test and VAR indicate that changes in the price of grain at the farm level significantly cause changes in rice prices at the milling and wholesale levels in a unidirectional way. Meanwhile, there is a piece of additional information where changes in the retail price of rice significantly cause changes in the price of grain at the farm level rather than vice versa. By implementing the IRFs method reveal the transmission’s duration of price change takes place in the short term and long term. Considering these findings, the policy of stabilizing rice prices at the mill and wholesale levels should be implemented immediately when the price of farmers' grain begins to change.


Author(s):  
Alice Joan G. Ferrer ◽  
Le Ha Thanh ◽  
Nguyen Tuan Kiet ◽  
Pham Hong Chuong ◽  
Vu Thu Trang ◽  
...  

2018 ◽  
Vol 1 (1) ◽  
Author(s):  
Jhon Wardie ◽  
Tri Yuliana Eka Sintha

The research aims to analyse the level of sustainability and the level of household income in the farming of rice on the peatland. The research location was determined by purposive sampling in Terusan Karya Village, Bataguh District, Kapuas Regency. The simple random sampling method was taken on 50 farmer household served as respondent. The data were collected in the form of primary and secondary data. To achieve the first research objective, it was conducted by an analysis of sustainability indicators of farming using Likert Scale system. The index of farming sustainability includes biophysical and socio-economic aspects in the rice farming on peatland. Meanwhile, to achieve the purpose of the second research, it was operated by using a simple tabulation to measure the level of farmer household income. The result of the analysis showed that farming sustainability of rice in the peatland found index by 76.10%, which means that the level of farming sustainability is a good category or highly sustainable. The result of the analysis of farm household income was 16.9 million rupiahs, which means that the farm household income has been categorized as good.  Keywords: sustainability index, peatland, income, rice, farmer householdJEL Classification: D10, Q01, Q12


2020 ◽  
Vol 2 (1) ◽  
pp. 71-100
Author(s):  
M. Zainul Abidin ◽  
Patria Yoga A.

The purpose of this paper is to examine the customs duty to support rice productivity in the ASEAN Member States (AMS). This study uses a qualitative method. The results showed that the customs duty had supported rice productivity in AMS. The rice productivity in AMS has been improved supported by the competitiveness of domestic rice products and and supports the welfare of rice producers. Custom duties or imposition of rice tariffs protect the competitiveness of domestic rice, and maintain domestic rice price stability and encourage producer surpluses. Producer surpluses support motivation in rice farming, and support consistent increases in rice production. AMS that imposes tariffs on rice, namely: Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Thailand and Vietnam. The imposition of customs duties in ASEAN is based on ad valorem tariffs. AMS that imposes relatively high tariffs on rice are Malaysia and the Philippines.  


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