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Demand Scenario of Miniket Rice in Bangladesh

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Submitted By rahulsaadat
Words 404
Pages 2
Demand is one of the most important forces that make market economics work. Modern microeconomics is about demand.
We intended to estimate the actual demand for Miniket rice to identify the reasons behind the stability in the Miniket rice market. Research shows us that the availability of rice is higher than the requirement of rice over the years. Rice is usually divided into three categories, i.e. coarse, medium and fine to identify the demand pattern of each category. Miniket is in the fine category. The demand of fine category in 2011 was 54 lakh metric tons. By analyzing rice yield data of the last 40 (1971-72 to 2010-11) years, it is found that rice production rate is continuously increasing over the year. In 1971-72, the average rice yield was 1.05 metric ton per hectare, while in 2010-11, it was 2.85 metric ton per hectare. So the demand of rice is also increasing at the estimated rate. It is known from the rice traders that Miniket rice which are being sold at present in Bangladesh is generally of fine quality. Department of Agricultural Marketing (DAM) has also taken this reality into cognizance in their daily and weekly price reporting. Since 2003, DAM is also reporting wholesale price of Miniketrice in Dhaka city markets. Matrix ranking shows that Miniket is the number one rice because of its high yield and high market price.
Research shows us that Miniket has a high demand in market. Middle class family used to buy Miniket rice. Sometimes lower class even higher class family buys it because of its availability, taste, reasonable price. The demand is constantly rising. The demand of Miniket rice changes a little seasonally. The demand of Miniket rice is very much high at the start of the season (March-April).Even the demand is high at the end of the season though the price gets higher than the starting of the season. In the middle of the seasons Miniket always have the most demand picture in rice market. At that point people used to buy more because they have a belief that the price is going to high at the end of the season. The quantity demanded of Miniket rice never falls in the rice market. For this brand the quantity demanded is positively related to the price. When the price of Miniket rises, the quantity demanded also rises.

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