Analyze of Domestic Price Incentives for Rice Production in MALI

Abstract

In Mali, rice is the subject of particular attention in terms of public policies. The authorities encourage its production to provide income for producers, for domestic consumption and for a net exporting country. However, local rice remains highly competitive with imported rice.In addition, food insecurity across the country is a major developmental issue that threatens health, productivity and often the survival of the population. This study helps overcome developmental problems due to food insecurity, which necessarily begins with an accurate assessment of the factors that influence the production of staple foods, namely rice. Therefore, the main aim of this study is to analyze the factors influencing rice production in the country and to examine more closely the relationship between rice production and rice sold on the domestic market. The study used a linear logarithmic model with the amount of rice produced as a dependent variable and the price of domestic rice, imported rice, and rice import price.The results show that domestic rice is more expensive than imported rice per ton, supporting the argument that rice imports undermine domestic rice production as a viable income-generating activity. The self-sufficiency rate is 93%, with strong imports from Asia, especially from Thailand, and hardly any exports. However, in order to control price and still increase rice production, the government should be able to purchase the rice from the farmers and then sell them to private retailers to put projects in place for reduce barriers to the transmission of prices between international and domestic prices along the marketing routes: Development of the road network (feeder roads) markets and reduction of illegal controls, in particular.

Keywords: Rice production; Domestic prices for rice; Food security; Incentives; MALI.