Rice markets in Madagascar in disarray : Policy options for increased efficiency and price stabilization
2006
Minten, Bart | Dorosh, Paul | Dabat, Marie-Hélène | Jenn-Treyer, Olivier | Magnay, John | Razafintsalama, Ziva
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. (Résumé d'auteur)
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