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Some Studies had been conducted on the determinants of rice supply to the market by rice producers in the study area ten years ago. But, there might be existed socio-economic dynamism that further study is needed. Additionally, the recent studies indicated that determinants of rice market participation need further investigation in the study area. This investigation has recommended from the context that rice production is increasing. Therefore, this study was conducted to identify determinants of rice market participation decision and the quantity of rice marketed by rice producers in Fogera district. To achieve these objectives both primary and secondary data were collected in 2018/2019 farming season. The model specification test against tobit and heckman two stage indicated that the cragg’s double hurdle model is appropriate for this study. Hence, descriptive statistics and double hurdle econometric model were used to analyse the data of 212 sample rice producers. From the sample rice producers, 78.3% were market participants and the remaining 21.7% were non participants. The results of the study indicated that market distance was significantly and negatively influencing the probability of rice market participation, while credit use, production and market information were significantly and positively influencing the probability of rice market participaton. Where as, education level, credit use, production, labor and rice land size were significantly and positively influencing the quantity of rice marketed supply. The finding of this study emphasis the importance of socio economic, institutional and market factors related to yield enhancing rice technologies, use of credit and having access to market information. Therefore, development interventions could focuss on improving such socio economic, institutional and market determinants to make farmers’ rice market participation wider.
Key words: Cragg, marketed supply, quantity |
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