Comparative paddy pricing systems in ASEAN
1987
Chew, T.A. | Arshad, F.M. (University of Agriculture, Serdang (Malaysia). Dept. of Agricultural Economics)
Paddy is the input in the paddy/rice processing system that transforms the input through form, space and time into the final product, rice, for ultimate consumption. Where government intervention in the paddy/rice processing system occurs, especially through the setting up of statutory bodies that compete with the private sector in the purchasing and processing of paddy, the government paddy procurement system would have profound effects on the entire paddy/rice industry. This paper focuses on the different paddy procurement policies adopted by government agencies in ASEAN. This is essentially a paddy pricing problem, i.e., how price paddy loads with different moisture content levels. The basic idea is to convert paddy at various moisture levels into standard paddy equivalents where the standard is paddy at 14% MC (wet basis) with no (minimal) impurities. However, the practical problems in implementing such an idea can be difficult. In this paper, the different paddy moisture deduction rates in the ASEAN countries are compared. The derivation of an appropriate moisture deduction rate for Malaysia is also discussed. Some brief discussions on related economic issues complete the paper.
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