Modeling rice grain-type preferences in Bangladesh

Purpose: The purpose of this paper is to examine the rice consumption by rice grain types under the rising income scenario in Bangladesh. Generally, with an increase in income, households tend to consume more food items that are high-value, enriched foods and protein, such as meat and fish, by substituting for cereals. However, consumers also substitute when it comes to grain quality. For example, cereals, such as rice, are available in a range of qualities from the ordinary type (coarse-grain) to the premium type (fine grain). The authors postulate that as household incomes increase, households may consume more premium-type rice (or fine-grain rice), while overall consuming less rice or fewer carbohydrates. Design/methodology/approach: Using the Bangladesh Household Income and Expenditure Survey 2000, 2005, and 2010, and applying multivariate probit and seemingly unrelated regression estimation procedures, this study quantifies the impact of income, household demographics, and urbanization on rice consumption by rice grain types (coarse-grain, medium-grain, and fine-grain types). Findings: The results show that urban, wealthy households and, households headed by educated heads and spouses, are more likely to consume fine-grain rice than their counterparts. Originality/value: After yield, grain type is the second most important factor for farmers when considering the adoption of a new variety. The price of rice and other cereals is highly associated with the grain type. This study concludes that plant breeding programs of major cereals, such as rice and wheat, should take into account the consumer grain-type preferences when developing new varieties.