The Pattern Identification of Rice Pricing Determination in the Local Farmer Level

Marwa, Taufiq and Bashir, Abdul and Husni Thamrin, Kemas Muhammad and Azwardi, Azwardi (2018) The Pattern Identification of Rice Pricing Determination in the Local Farmer Level. In: Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference, 7 November 2018, Palembang.

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Abstract

This study to pattern identification of rice pricing determination in the local farmer level of South Sumatera. The data used are primary data as many as 400 respondents of farm households in South Sumatra. The method used in this study is the qualitative descriptive analysis and the quantitative approach using the linear regression model with the estimation of the ordinary least square (OLS). The findings of this study indicated that the pattern of rice price setting at the sub-district level of the relative is controlled by large traders, most of whom have cooperated with milling owners in the rural level. The price formed at the sub-district level is the sum of the purchase prices at the rural level plus the profit margins agreed upon by the wholesalers at the subdistrict level with the milling owners at the rural level. We found of this study that the defined profit margins ranged from 16-36%. The model estimation result indicated that jointly the independent i.e. rice production, input cost, labor cost, and dummy variable significantly affect the rice price at the rural level. Meanwhile, partially the variables that significantly affect the rice price at the rural level are labor costs and districts dummy variable, while the rice production and input costs insignificant affect the rice price in the local farm level (rural market).

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Production Cost; Rice Prices; Rice Production; Rural Farmer
Subjects: H Social Sciences > HB Economic Theory > HB221-236 Price
H Social Sciences > HB Economic Theory > HB238-251 Competition. Production. Wealth
H Social Sciences > HB Economic Theory > HB801-843 Consumption. Demand
Divisions: Faculty of Economics > 60201-Development Economics (S1)
Depositing User: Abdul Bashir
Date Deposited: 14 Apr 2020 03:18
Last Modified: 14 Apr 2020 03:18
URI: http://repository.unsri.ac.id/id/eprint/28861

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