Analyzing the Competitiveness of the Locally Grown Rice within Rice Sector in Niger

Abstract

Niger agricultural sector has experienced changes in the production system and in the economic environment both at national and international level. It has faced cereals price distortions engendered by the recent fiscal policies reforms. Rice production is encouraged by agricultural policies, which invest significant resources with a view to increasing production to meet growing demand. However, local rice production covers only 16.66% of national needs. To fill this gap, large quantities of rice are imported at significant cost and sold at varying prices. In this context, this paper aim to analyze the competitiveness of local rice sector. The Political Analysis Matrix has been used as method to analyze the performance indicators and the differences between economic and financial prices. It also allow to simulate and predict the impact of price system variations on production, farmers' incomes, and society. To do this, data were collected through questionnaires with 1110 rice producers and focus group with relevant stakeholders in the irrigated perimeters along the river Niger. Data were used to determine the financial and economic rice prices exploited in order to calculate policy analysis indicator. The results showed that all cropping systems are characterized by a Domestic Resource Cost less than one (1). Systems have comparative advantages in economy open to international competition. All Nominal Protection Coefficient are greater than one (1). Systems are above the economic realities of the international scale. Production factors are heavily subsidized. In addition, all systems have an Effective Protection Coefficient greater than one (1). Product prices are overvalued. There is income transfer from the social to the private. It’s more interesting to buy rice than to produce local rice under current conditions. It will be interesting to produce local rice when the price of imported rice has been increased by 15%.