The Pattern Identification of Rice Pricing Determination in the Local Farmer Level

Taufiq Marwa, Abdul Bashir, K.M. Husni Thamrin, Azwardi

2018

Abstract

This study to pattern identification of rice pricing determination in the local farmer level of South Sumatera. The data used are primary data as many as 400 respondents of farm households in South Sumatra. The method used in this study is the qualitative descriptive analysis and the quantitative approach using the linear regression model with the estimation of ordinary least square (OLS). The findings of this study indicated that the pattern of rice price setting in the sub-district level of the relative is controlled by large traders, most of whom have cooperated with milling owners in the rural level. The price formed at the sub-district level is the sum of the purchase prices at the rural level plus the profit margins agreed upon by the wholesalers at the sub-district level with the milling owners in the rural level. We found of this study that the defined profit margins ranged from 16-36%. The model estimation result indicated that jointly the independent i.e. rice production, input cost, labor cost, and dummy variable significantly affect the rice price at the rural level. Meanwhile, partially the variables that significantly affect the rice price at the rural level are labor costs and districts dummy variable (D1 and D2), while the rice production and input costs insignificant affect the rice price in the local farm level (rural market).

Paper Citation

in Harvard Style

Marwa T., Bashir A., Thamrin K. and Azwardi. (2018). The Pattern Identification of Rice Pricing Determination in the Local Farmer Level.In Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC, ISBN 978-989-758-387-2, pages 510-515. DOI: 10.5220/0008441905100515

in Bibtex Style

@conference{seabc18,
author={Taufiq Marwa and Abdul Bashir and K.M. Husni Thamrin and Azwardi},
title={The Pattern Identification of Rice Pricing Determination in the Local Farmer Level},
booktitle={Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC,},
year={2018},
pages={510-515},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0008441905100515},
isbn={978-989-758-387-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC,
TI - The Pattern Identification of Rice Pricing Determination in the Local Farmer Level
SN - 978-989-758-387-2
AU - Marwa T.
AU - Bashir A.
AU - Thamrin K.
AU - Azwardi.
PY - 2018
SP - 510
EP - 515
DO - 10.5220/0008441905100515