Technical note: Analysis of price incentives and disincentives for rice in Kenya over the period 2005-2013
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This technical note measures, analyses and interprets price incentives for rice in Kenya over the period 2005-2013. For this purpose, yearly averages of domestic farm gate and wholesale prices are compared with reference prices calculated on the basis of the price of the commodity in the international market. The price gaps between reference prices and domestic prices along the commodity’s value chain indicate the extent to which incentives (positive gaps) or disincentives (negative gaps) were p resent at the farm gate and wholesale level. The price gaps are expressed in relative terms as a percentage of the reference price, referred to as the Nominal Rate of Protection (NRP). These key indicators are used by MAFAP to assess the effects of policy and market performance on prices.