Spatial Pricing Efficiency of Rice Marketing In North Central Zone, Nigeria

Abstract

collection involved the use of primary and secondary data and a multi-stage random sampling procedure was used to select 200 rice marketers. The analytical techniques involved the use of descriptive statistics, the model of spatial price relationship, coefficient of variation, correlation analyses as well as Ordinary Least Square (OLS) regression model. The results on spatial pricing efficiency revealed that consumers were void of exploitative behavior of middlemen in most of the markets. There was also low variability but high and significant correlation between most of the market pairs. In addition, there were significant differences in the mean wholesale prices of rice between all the urban-rural market pairs while the regression result on the determinants of rice prices showed the estimated R2 for Kwara and Niger States of 98.3% and 42%, respectively and finally, high cost of transportation fare posed the greatest challenge to rice marketing in the study area. Based on these results, it is recommended that local government authorities should assist in the provision of more market outlets in the area so as to increase competition within the markets.