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โครงการหนังสืออิเล็กทรอนิกส์ด้านการเกษตร เฉลิมพระเกียรติพระบาทสมเด็จพระเจ้าอยู่หัว

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Abstract

This study investigates whether the transmissions from the export-rice prices to the

domestic white-rice prices, and then to the paddy-rice prices are complete and symmetric. Prices

of 5% white-rice, 25% white rice, Hommali rice, fragrant rice, glutinous rice, and parboiled rice,

are studied. The data span from January 2015 to December 2018. The Asymmetric Error Correction

Model (AECM) is employed. The results show that 1) all paddy-rice prices, especially glutinous-

rice-paddy price, are inflexible to changes in domestic white-rice prices. Farmers do not earn

appropriate benefit when the white-rice prices increase because they have disadvantages of

negotiation power and price information to the buyers. 2) The pass-through mechanism from 5%

and 25% white-rice export prices to their corresponding domestic prices works quite well because

they are generic rice and commonly traded. Rice millers and rice exporters have similar bargaining

power, and the middlemen function efficiently in transmitting prices between them. 3)

Asymmetric transmission from the export prices to the domestic white-rice prices are found in

the Hommalti-rice and glutinous-rice markets. An increase in their domestic prices resulting from

an increase in their export prices is smaller than a decrease in their domestic price brought about

by a falling in their export prices. Buyer concentration allows the Hommali-rice and glutinous-rice

exporters to take their bargaining advantage against the rice millers. 4) An increase in export price

of parboiled rice is completely transmitted to the wholesale price since all parboiled-rice

exporters are large-scale rice millers and all of the output is exported. However, incomplete and

asymmetric price transmission is found when the export price falls. The parboiled-rice producers

will not cut the domestic wholesale price when the export price falls because of no domestic

demand for parboiled rice. Government policies should address problems of buyers’ market

power and imperfect information which potentially cause incomplete price transmission

mechanism in all rice markets; for example, encouraging farmers to assemble to enhance their

bargaining power, establishing rice trading center in rural area, publicizing information on current

situation and trend in the rice markets to all parties.