An evaluation of the Malaysian padi and rice market structure conduct and performance


Citation

Fatimah Mohamad Arshad, . An evaluation of the Malaysian padi and rice market structure conduct and performance. pp. 164-177. ISSN 0126-6128

Abstract

It has always been alleged that the padi market is monopoly-monopsonistic in structure including the traders to behave collusively and unethically thus reaping excessively high profit margins. However the market in reality is competitive but the existence of credit-tie has defied the benefits of a competitive market from being passed on to the farmers. The instability of the rice market and the pressure of the fixed minimum support and ceiling prices forced the traders to indulge in various malpractices to maintain their profit margin. Though on the whole the profit made by the traders is reasonable the evidence of unethical behaviour suggests that the profit earned is higher than it should be under a fair marketing practice.


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Abstract

It has always been alleged that the padi market is monopoly-monopsonistic in structure including the traders to behave collusively and unethically thus reaping excessively high profit margins. However the market in reality is competitive but the existence of credit-tie has defied the benefits of a competitive market from being passed on to the farmers. The instability of the rice market and the pressure of the fixed minimum support and ceiling prices forced the traders to indulge in various malpractices to maintain their profit margin. Though on the whole the profit made by the traders is reasonable the evidence of unethical behaviour suggests that the profit earned is higher than it should be under a fair marketing practice.

Additional Metadata

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Item Type: Article
AGROVOC Term: Paddy
AGROVOC Term: Rice
AGROVOC Term: Market analysis
AGROVOC Term: Farmers
AGROVOC Term: Profit
AGROVOC Term: Marketing techniques
AGROVOC Term: Competitive marketing
Geographical Term: Malaysia
Depositing User: Ms. Suzila Mohamad Kasim
Last Modified: 28 Apr 2025 00:26
URI: http://webagris.upm.edu.my/id/eprint/22860

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