Factors Influencing the Supply of Domestically Produced Rice in Katsina State

Abstract

This research analyzed the various factors that affect the supply of domestically produced rice in selected Local Government Areas of Katsina State. A combination of purposive and random sampling methods was utilized. Four local government areas (LGAs)—Daura, Dutsin-ma, Funtua, and Katsina—were selected deliberately based on their accessibility. Within each of these LGAs, one market was specifically chosen. The selected marketplaces included Daura Main Market in Daura LGA, Dutsin-ma Main Market in Dutsin-ma LGA, Jabiri Market in Funtua LGA, and Central Market in Katsina LGA. From a total population of 240 retailers and 120 wholesalers across the four markets, 42% of the retailers and 48% of the wholesalers were randomly selected from each of the designated marketplaces. Ultimately, 101 retailers and 58 wholesalers were randomly chosen, resulting in a total of 159 respondents. Enumerators were trained thoroughly before being assigned to each market. The sample size was determined to ensure adequate representation
from each group, facilitating effective generalization of the study's findings. The data collected were examined using regression analysis and elasticity coefficients. The supply of local rice was significantly impacted by the prices of rice, maize, sorghum, and marketing costs. An own price elasticity coefficient of 0.49 indicated that the supply of local rice is price inelastic. The cross-price elasticity coefficients for foreign rice and sorghum were 2.09 and 4.08, respectively, showing that these commodities serve as
substitutes for local rice. The study highlighted several challenges in rice marketing within the area, including insufficient credit facilities, low prices, inadequate storage facilities, and non-standardized measurement units.