Smallholder participation in premium rice markets in Bangladesh: A structural equation model for understanding production and marketing decisions

Ahmed, Md. Tanvir; Rahman, Mohammad Saidur; Demont, Matty; Islam, Islam Abu Hayat Md Saiful; Palash, Md. Salauddin; Gupta, Ishika; Veettil, Prakashan Chellattan

Smallholder participation in premium rice markets in Bangladesh: A structural equation model for understanding production and marketing decisions

Autores

Ahmed, Md. Tanvir

Rahman, Mohammad Saidur

Demont, Matty

Islam, Islam Abu Hayat Md Saiful

Palash, Md. Salauddin

Gupta, Ishika

Veettil, Prakashan Chellattan

Editor

Elsevier

Descripción

"CONTEXT: Bangladesh is one of the largest rice-producing countries in the world, with an annual production of around 39 million metric tons. Rice is the staple food of the country, and its production plays a vital role in ensuring food security and economic stability. Due to the rising demand for high-quality rice among domestic consumers, premium quality rice (PQR) production and marketing in Bangladesh have gained significance. OBJECTIVES: This study aimed to determine the influencing factors of smallholders' decision regarding PQR production, market participation, and level of market participation in selected areas of Bangladesh. METHODS: In this study, market participation is modeled as a three-stage process e.g. production, marketing, and intensity of marketing. The study used Generalized Structural Equation Model (GSEM) that simultaneously analyzes multiple outcomes and their relationships in a single model while controlling the endogeneity. RESULTS AND CONCLUSION: The GSEM model estimates that larger land size and male-headed households are more likely to engage in PQR production and marketing, reflecting resource and gendered disparities. Advisory services enhance production but have limited effects on marketing, whereas pre-harvest buyer contact and distance of selling location significantly improve market participation. Regional heterogeneity highlights location-specific constraints. SIGNIFICANCE: Smallholders' participation in premium rice markets can be increased by ensuring their access to technological knowledge, education, and market information."