Market System Analysis: Rice - Cox's Bazar (Bangladesh)

2022

English

21 p.

WFPVCA015

This market system analysis provides in-depth information about the supply chain and market of rice in Cox’s Bazar district of Bangladesh to WFP’s operations in this area. Bangladesh is among the largest producers of rice worldwide, with WFP distribution activities accounting for only 0.5% of the market share. Given this small market share, WFP’s distribution of rice has no impact on the market supply. While the market price of rice is stable and production costs are low, market competition means that profit returns for producers are low and only sale in high quantity covers the cost of production. WFP procures BR29 rice, but alternative varieties would be priced more competitively. Given that transport is a significant cost, local procurement should be favoured, with local supply capacity adequate to meet 50% of WFP’s needs. Based on this, the report recommends WFP to procure directly from millers to reduce costs at the wholesale stage, change price setting mechanisms and increase flexibility of rice variety to reduce food assistance operational costs.

MSA

VCA 015

English

DOC-126417