Trade subsidies, export bans and price stabilization: Lessons of Bangladesh–India rice trade in the 2000s

Paul Dorosh () and Shahidur Rashid

Food Policy, 2013, vol. 41, issue C, 103-111

Abstract: During the world food price crisis of 2007–08, rice importing countries suffered through a sharp increase in international rice prices and disruptions in supply as several rice exporters restricted trade to mitigate their domestic price increases. Perhaps no country was more affected by these disruptions than Bangladesh. Our analysis shows that prior to the 2007 crisis, when Bangladesh imported an average of nearly 1 million tons of rice per year from India, domestic wholesale prices of rice in Bangladesh were co-integrated with import parity prices of subsidized Below Poverty Line (BPL) rice. When in mid-2007, India sharply curtailed exports, rice prices surged in Bangladesh.

Keywords: Price stabilization; International trade; Rice policy; Bangladesh; South Asia (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfpoli:v:41:y:2013:i:c:p:103-111

DOI: 10.1016/j.foodpol.2013.05.001

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