Agricultural value chains in a fragile state: The case of rice in Myanmar

dc.creatorMyanmar Agriculture Policy Support Activity
dc.date2022-02-28
dc.date2024-04-12T13:37:00Z
dc.date2024-04-12T13:37:00Z
dc.date.accessioned2026-06-27T15:31:19Z
dc.descriptionNearly one-quarter of the global population lives in fragile states. Yet, despite the enormous importance of these areas for reducing global poverty and food insecurity, there is relatively little research examining how agricultural value chains, crucial for assuring food security, respond and adapt to such contexts. This paper analyzes Myanmar’s rice value chain–its most important staple crop and largest value chain–during the economic collapse and political instability caused by a military coup in early 2021. It relies on unique data collected with a large sample of rice retailers and millers before and after the coup. Despite many challenges in the rice value chain after the coup, such as banking and transport, rice processing and trade continued, assuring availability of rice in most retail markets and illustrating the resilience of the value chain to a major shock. While processing margins were mostly stable, an increased distribution margin (between rice millers and retailers) led to 11 percent higher average retail prices after the coup, implying welfare costs of almost USD 500 million. Using a market-pair regression method, we find that localized violence near sellers and buyers, distances traveled, and distance of vendors from international borders are associated with significantly increased rice price dispersion between rice retailers and mills. Despite the amalgam of problems to address in such settings, prioritizing the easing of transport restrictions, stabilizing fuel prices, and facilitating safe spatial arbitrage of food products would likely help prevent further food price inflation, assure higher farm prices, and improve welfare.
dc.formatapplication/pdf
dc.identifierhttps://hdl.handle.net/10568/140978
dc.identifier.urihttp://hdl.handle.net/123456789/106792
dc.languageen
dc.publisherInternational Food Policy Research Institute
dc.relationhttps://doi.org/10.1016/j.worlddev.2023.106244
dc.rightsOpen Access
dc.sourceMyanmar Agriculture Policy Support Activity (MAPSA). 2022. Agricultural value chains in a fragile state: The case of rice in Myanmar. Myanmar SSP Working Paper 15. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.135054.
dc.subjectvalue chains
dc.subjectmodels
dc.subjectshock
dc.subjectcovid-19
dc.subjectpolitical aspects
dc.subjectrice
dc.subjectmarkets
dc.subjectfood prices
dc.subjectpoverty
dc.subjectprices
dc.subjectresilience
dc.subjectagricultural trade
dc.titleAgricultural value chains in a fragile state: The case of rice in Myanmar
dc.typeWorking Paper

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