Agricultural and Biological Research

Analysis of rice prices and market integration: Case study of Nigeria (2016-2022)

Kafayat Yemisi Belewu, Esther Olanipekun, Elizabeth Adewale*, Opeyemi Ayinde

The main objective of this study is to examine the analysis of rice prices and market integration in Nigeria. The study used Trend analysis to highlight the trend in the price of rice and also show the pattern in which rice price flows in Nigeria. This study employed a monthly panel data for of a period of 7 years gotten from the National Bureau of Statistics (NBS). The theoretical framework adopted was the price theory. In order to achieve the objectives of the study, correlation analysis was used to explain the degree of market integration between different spatial rice markets, regression analysis was used to explain the structural factors which ted to inhibit or enhance the integration of rice markets in Nigeria and co-integration technique used to identify the factors that affects the changes of rice prices in spatial rice markets. The price of rice fluctuated in its sharp rise and fall in the half period of study implying a high level of instability in the general price level of rice in Nigeria. The price of rice has its highest point in October 2022 and its lowest point in January 2016. Based on the findings from the data analyzed, inflation, price substitute and imported price of rice are found to be a significant policy that has influence the price of rice in Nigeria. Whereas, CPI-Food, exchange rate, rainfall (MM), are also some significant determinant of rice price in Nigeria. Thus, a reduction in inflation and price of imported rice should be adopted by the government so as to improve rice prices and market integration and also to improve the standard of living of people.