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{"id":45557,"date":"2023-02-16T12:04:03","date_gmt":"2023-02-16T12:04:03","guid":{"rendered":"https:\/\/graduateprojects.com.ng\/?p=45557"},"modified":"2023-02-16T12:04:03","modified_gmt":"2023-02-16T12:04:03","slug":"determination-of-the-integration-of-rice-markets-in-enugu-state-nigeria-4","status":"publish","type":"post","link":"https:\/\/easyprojectmaterials.com\/determination-of-the-integration-of-rice-markets-in-enugu-state-nigeria-4\/","title":{"rendered":"DETERMINATION OF THE INTEGRATION OF RICE MARKETS IN ENUGU STATE, NIGERIA<\/strong>"},"content":{"rendered":"\n

ATTENTION:<\/strong><\/p>\n\n\n\n

BEFORE YOU READ THE ABSTRACT OR CHAPTER ONE OF THE PROJECT TOPICS BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!<\/strong><\/p>\n\n\n\n

INFORMATION:<\/strong><\/p>\n\n\n\n

YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL PROJECT COST N5,000 ONLY. THE FULL INFORMATION ON HOW TO PAY AND GET THE COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR<\/strong><\/p>\n\n\n\n

YOU CAN CALL: 08068231953, 08168759420<\/strong><\/p>\n\n\n\n

WHATSAPP US ON: 08168759420<\/strong><\/p>\n\n\n\n

DETERMINATION OF THE INTEGRATION OF RICE MARKETS IN ENUGU STATE, NIGERIA<\/strong><\/p>\n\n\n\n

TABLE OF CONTENTS<\/p>\n\n\n\n

Title Page\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 i<\/p>\n\n\n\n

Certification Page\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 ii<\/p>\n\n\n\n

Dedication\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- iii<\/p>\n\n\n\n

Acknowledgement\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- iv<\/p>\n\n\n\n

Table of Contents\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 v<\/p>\n\n\n\n

List of tables\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 viii<\/p>\n\n\n\n

Abstract\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014 ix<\/p>\n\n\n\n

CHAPTER ONE: INTRODUCTION<\/p>\n\n\n\n

Background Information\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 1<\/p>\n\n\n\n

Problem Statement\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 4<\/p>\n\n\n\n

Objectives of the Study\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014 6<\/p>\n\n\n\n

Research Hypotheses\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014 6<\/p>\n\n\n\n

Justification of the Study\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- 6<\/p>\n\n\n\n

CHAPTER TWO: LITERATURE REVIEW<\/p>\n\n\n\n

Concept of Agricultural Marketing\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014 8<\/p>\n\n\n\n

Concept of Market Integration\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- 9<\/p>\n\n\n\n

Relevance of Market Integration\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- 11<\/p>\n\n\n\n

Marketing Channel\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 13<\/p>\n\n\n\n

Market Structure\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- 15<\/p>\n\n\n\n

Consumption, Demand and Supply of Rice in Nigeria\u2014\u2014\u2014\u2013 16<\/p>\n\n\n\n

Determinants of Market Integration\u2014\u2014\u2014\u2014\u2014\u2014- 18<\/p>\n\n\n\n

Market Infrastructure\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- 19<\/p>\n\n\n\n

Government Policy\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- 20<\/p>\n\n\n\n

Dissimilarities in Production\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- 20<\/p>\n\n\n\n

Supply Shocks \u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- 21 <\/p>\n\n\n\n

Empirical Studies: Review of Related Studies\u2014\u2014\u2014\u2014\u2014\u2014\u2014 21<\/p>\n\n\n\n

Theoretical Framework\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 24<\/p>\n\n\n\n

Analytical Framework\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 26<\/p>\n\n\n\n

Co-integration Analysis\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014 27<\/p>\n\n\n\n

Multiple Regression Analysis\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 29<\/p>\n\n\n\n

CHAPTER THREE: METHODOLOGY<\/p>\n\n\n\n

Study Area\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- 31<\/p>\n\n\n\n

Sampling Procedure\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- 32<\/p>\n\n\n\n

Data Collection\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014 32<\/p>\n\n\n\n

Data Analysis\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 33<\/p>\n\n\n\n

Model Specification\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- 33<\/p>\n\n\n\n

Unit Root Tests\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014 33<\/p>\n\n\n\n

Co-Integration Equation\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- 34<\/p>\n\n\n\n

The Error Correction Model Equation\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014 35<\/p>\n\n\n\n

Market Integration Model\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- 35<\/p>\n\n\n\n

CHAPTER FOUR: RESULTS AND CONCLUSION<\/p>\n\n\n\n

Socio-Economic Characteristics of the Respondents\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014<\/p>\n\n\n\n

Age of the Respondents\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014 35<\/p>\n\n\n\n

Gender \u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 38<\/p>\n\n\n\n

Marital status\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 38<\/p>\n\n\n\n

Household Size of Respondents\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 39<\/p>\n\n\n\n

Educational Attainment\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014 40<\/p>\n\n\n\n

Marketing Experience\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 41 37<\/p>\n\n\n\n

Marketing Channels and Structure\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 41<\/p>\n\n\n\n

Marketing Channels\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 41<\/p>\n\n\n\n

Market Structure\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- 42<\/p>\n\n\n\n

Market Information\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014 42<\/p>\n\n\n\n

Source of the Product (rice)\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014 44<\/p>\n\n\n\n

Measures of Rice for Sale \u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 44<\/p>\n\n\n\n

 Determinants of Choice of Rice \u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 44<\/p>\n\n\n\n

Fixing of Price\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 46<\/p>\n\n\n\n

Transportation\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- 47<\/p>\n\n\n\n

Co-integration Analysis Result\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014 49<\/p>\n\n\n\n

Unit Root Test Result\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- 49<\/p>\n\n\n\n

Co-integration Result\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014 50<\/p>\n\n\n\n

Error Correction Model Result\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014- 51<\/p>\n\n\n\n

Market Integration Function Result\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 52<\/p>\n\n\n\n

Test of Hypotheses\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 55<\/p>\n\n\n\n

Problems Encountered by the Rice Traders\u2014\u2014\u2014\u2014\u2014\u2014\u2014 55<\/p>\n\n\n\n

CHAPTER FIVE: SUMMARY, RECOMMENDATIONS AND CONCLUSION<\/p>\n\n\n\n

Summary\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014 58<\/p>\n\n\n\n

Recommendations\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014 61<\/p>\n\n\n\n

Conclusion\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 62<\/p>\n\n\n\n

REFERENCES\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 63<\/p>\n\n\n\n

APPENDIX\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 69<\/p>\n\n\n\n

LIST OF TABLES<\/p>\n\n\n\n

Table                                                                                                                          Page<\/p>\n\n\n\n

Distribution of the traders according to age\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u201343<\/p>\n\n\n\n

Distribution of respondents according to gender\u2014\u2014\u2014\u2014- 38<\/p>\n\n\n\n

Distribution of respondents according to marital status\u2014\u2014 38<\/p>\n\n\n\n

Distribution of rice traders according to household size\u2014\u201439<\/p>\n\n\n\n

Distribution of the respondents according to their educational attainment\u2014\u2013 40 <\/p>\n\n\n\n

Distribution of rice traders according to their year of experience-41                                                                                                <\/p>\n\n\n\n

Distribution of the respondents according to sources of market information\u2014 43<\/p>\n\n\n\n

Distribution of rice traders according to determinants of choice\u2014\u2014\u2014\u2014\u2014 45<\/p>\n\n\n\n

Distribution of rice traders based on price fixing mechanism-46<\/p>\n\n\n\n

Distribution of rice traders according to the average distance<\/p>\n\n\n\n

travelled to procure rice\u2014\u2014\u2014\u2013 47<\/p>\n\n\n\n

Distribution of rice traders according to their assessment of the roads \u2014\u2014\u2013 48<\/p>\n\n\n\n

Unit Root Test Result\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 49<\/p>\n\n\n\n

Johansen\u2019s Co-integration Test Results\u2014\u2014\u2014\u2014\u2014\u2014- 50<\/p>\n\n\n\n

Regression Results of the eight independent variables related to level of market integration\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 52<\/p>\n\n\n\n

Distribution of rice traders according to the  problems encountered\u2013 -56<\/p>\n\n\n\n

ABSTRACT<\/p>\n\n\n\n

This study was designed to determine the integration of rice markets in Enugu state.  Factors considered include: socio-economic characteristics, existing market structure and channels, integration of rice markets, structural factors that affect the integration of rice markets and the problems affecting rice traders in the state. Forty wholesalers and forty retailers were selected for the study. Primary data and secondary data were collected and analyzed using descriptive statistics, co-integration analysis and market integration function. The results showed that majority of the rice traders were between 30 and 49 years with low educational status and marketing experience ranging from 6 to 10 years.  Unit Root Test showed that the variables were stationary at first differencing and were integrated of the order zero, 1(0).  Rice markets in the study area were integrated but the integration level was low. The Error Correction Model had a coefficient of -0.0061872 which was significant at 1% level and was negative. The Market Integration Function had R2 (Coefficient of Determination) of  0.78 showing that the independent variables explained about 78% of the variations in the prices of rice in the rural and urban rice markets. Transportation cost, toll fee, processing cost and storage cost significantly affected the level of market integration. The greatest problems encountered by the rice traders were inadequate finance, (100%), high transportation cost\/bad roads and poor quality of local rice compared to foreign rice. To improve the level of market integration; transportation, processing, storage, communication and credits facilities should be provided.<\/p>\n\n\n\n

CHAPTER ONE<\/p>\n\n\n\n

INTRODUCTION<\/p>\n\n\n\n

Background Information<\/p>\n\n\n\n

Rice is the second largest produced cereal in the world, after wheat. About half of the world population depends on rice for their staple food. In the 1960s, the world rice production averaged at 264MT and over the years it increased to 596MT during 2001-2005 (Reddy, 2006).<\/p>\n\n\n\n

In Nigeria, although rice has been a traditional food, it was only recently it assumed a prominent role in the diet of the majority of Nigerians, following a structural shift in the consumption of traditional coarse grains. According to Akande and Akpokodje (2003), the demand for traditional cereals such as millet and sorghum has fallen by 12kg per capita, and their share in cereals used as food has decreased from 61% in the early 1970s to 49% in the early 90s. In contrast, the share of rice in cereals has grown from 15% to 26% over the same period. In addition, the per capita rice consumption has risen from 18kg in 1980s to 22kg from 1995 to 2000 (Ogundele and Okoruwa, 2006). Two major factors appear to be responsible for this structural shift. These include population growth and urbanization, of which the later appears to be more important factor. To the urbanites, the major edge of rice over other traditional cereals is its relative ease of preparation thereby reducing the task of food preparation and fitting more easily into the urban lifestyles of rich and poor alike. Rice indeed is no longer a luxury food in Nigeria but has become a major source of calories for the urban poor. Stylized facts from several states in Nigeria demonstrate that rice availability and rice prices become a major welfare determinant for the poorest segments of the country\u2019s consumers who also are least food secure (Akande and Akpokodje, 2003). From this perspective, rice marketing assumes an important place.<\/p>\n\n\n\n

Rice marketing is the performance of all business activities in the flow of paddy and milled rice, from the point of initial rice production until they are in the hands of the ultimate consumers at the right time, in the right place and as convenient as possible, at a profit margin so as to keep the farmer in his farming operations (Iheme, 1996). The marketing of local rice in Nigeria involves four stages with a change of product ownership occurring between each pair of stages (Aderibigbe, 1997). The first stage is production through harvesting. Stage two concerns movement from the farms to processing centers while stage three involves moving the milled rice from processing area to urban consumption centers. The fourth stage encompasses wholesaling and retailing in the urban centers.<\/p>\n\n\n\n

The marketing of any commodity is a specialized technique and demands proper organization. In case of agriculture and particularly rice products, the marketing aspect is even more important and demands a proper organization considering the increasing demand for the product (Ikeme, 1990). Efficient marketing system creates and activates new demand by improving and transforming production and by seeking and stimulating customer\u2019s links. It guides farmers to production opportunities and encourages innovation and improvement in response to demand and price (Kohl and Downey, 1972).<\/p>\n\n\n\n

According to Olukosi and Isitor (1990), it is within the marketing system that price allocation of resources, income distribution and capital formation are determined. This is to say that prices are key signals in the resource allocation process that take place through markets. A guaranteed market for farmers\u2019 produce is a ready invitation to produce more. The marketing arrangement in a community must ensure that what was produced was sold or stored. Kohl and Uhl (1972) suggested that product should not even be produced at all unless it has a market. Marketing therefore begins with production on the farm.<\/p>\n\n\n\n

Over the years, greater percentage of rice output in Nigeria has been from the rural small holder farmers. It has been observed that Nigeria was virtually self-sufficient in rice enterprise up to the 1970s (WARDA, 2004). The self-sufficiency ratio fluctuated between 96.3% and 99.8% between 1963 and 1975. However, since 1976, the ratio has dropped drastically to 41.46% in 1978 following sharp increase in the quantities of rice imported. The major reason for the decline in self-sufficiency  is the dramatic increase in aggregate per capita income following the oil boom, urbanization and changes in consumption patterns and the effects of government food importation policies which aimed at increasing the availability of food at reasonable prices under the National Supply Company (WARDA, 1981).<\/p>\n\n\n\n

Market integration refers to a situation in which prices of a commodity in separated markets move together, thereby offering smooth transmission of price signals and information (Reddy, 2006; Intodia, 2005). The study of market integration is important in determining the co-movements of prices and the transmission of price signals and information across spatially separated markets (Samuelson, 1952; Takayama and Judge, 1964). Baulch (1997) noted that the issue of market integration lies at the heart of many contemporary debates concerning market liberalization, price policy and parastatal reforms in developing countries. Without spatial price integration of market, price signals will not be transmitted from food deficit to food surplus areas; prices will be more volatile; agricultural producers will fail to specialize according to long-term comparative advantage, and the gains from trade will not be realized. However, government\u2019s intervention in the pricing and marketing of food and poor marketing infrastructure may impair the role of market mechanism in price transmission between surplus and deficit areas.<\/p>\n\n\n\n

1.2       Problem Statement<\/p>\n\n\n\n

            Despite obviously abundant human and natural resources, Nigeria is still unable to feed her citizens. The projected national demand for rice in the country is put at 4.64 million metric tonnes annually, while the current rate of consumption is put at 2.3 million metric tonnes. Current local production of the commodity is a meager 525,000 metric tonnes per annum. It follows that the country will have to import the shortfall which  is projected to cost $267 million (Ashaka, 2008). Nigeria is the world\u2019s second largest rice importer after Singapore (Ola, 2008). The federal government spent about N80 billion for   the importation of 500,000 metric tonnes of rice from Thailand and other parts of the world in 2008 (Ashaka  2008). This situation which has continued to drain the country\u2019s foreign exchange, has also led to the decrease in the domestic production of rice and over-dependence on rice importation.<\/p>\n\n\n\n

            Central to the issue of inefficiency in the supply of rice is the problem of inefficiency of agricultural marketing system. Inadequate marketing of agricultural produce has been a major problem limiting agricultural expansion (Care, 2004). Rice farmers and domestic traders are constrained by a number of factors such as high transportation cost; poor market infrastructure and inefficient price information transmission channel. Problems associated with the commodity itself include quality differentials and low caliber of production techniques. Also, the wide gap between rural and urban prices weakens the farmers\u2019 morale thereby reducing productivity and in some cases leads to complete stoppage of production (Care, 2004).<\/p>\n\n\n\n

            It therefore appears that rice farmers are not getting maximum return from the resources committed to the enterprise; thus the need for this study. Rice farmers do not receive a fair price for their product. This discourages them from producing and expanding their rice enterprise. Rice is cheap in food-surplus areas (rural areas) where rice is produced; and it is expensive in food-deficit areas (urban areas) where the middlemen enjoy the profit at the expense of farmers (Okon and Egbon, 2005).<\/p>\n\n\n\n

            Production and marketing constitute a continuum; and lack of development in one retards progress in the other. To increase food production there is need to develop a more efficient marketing system with information so that prices in one market can be transmitted to other markets thus synchronizing price.<\/p>\n\n\n\n

            Studies on market integration in agricultural commodities include those conducted by Chirwa (2000). Jha, et al (2005), and Reddy (2006). By far the most important study relevant to this research is the one by Chirwa (2000). Apart from estimating the spatial integration of maize and rice markets in Malawi, he went further to identify the structural determinants of market integration. This research proposal intends to investigate the situation in the Nigerian market setting. In addition, it intends to identify the socio economic circumstances and problems of rice traders in the area which Chirwa\u2019s study did not cover.<\/p>\n\n\n\n

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