Comparative demand analysis for rice in Edo, delta and Lagos states of Nigeria

Abstract

The study examined the comparative demand analysis for rice types in Edo, Delta and Lagos states of Nigeria. A multi-stage sampling procedure, involving four stages, was used to select eight hundred and twelve (812) households. Data collected were analysed using both descriptive and inferential statistics. The results of the descriptive statistics showed that the expenditure share of rice was highest in urban Edo (0.25), followed by urban Delta (0.23) and least in urban Lagos (0.22). The quantity consumed was highest in urban Lagos (32.5Kg), followed by urban Delta (29.3Kg) and closely followed by urban Edo (28.4Kg). Higher consumption of rice was by the male-headed households in urban Delta, Lagos and Edo in particular. The result of the inferential statistics showed that urban Edo had the least subsistent level (0.015) while rural Delta had the highest (0.135) for every N1 price of rice and N1 income of a rice-consuming household. The contribution of the effect of the price of rice on the budget share of rice in the study area was highest in rural Edo (12.1%) and urban Edo (13.9%). Edo state is also remarkable as the rice budget share of households decreased by 12.8% and 15.2 % in rural and urban centres of the state respectively for aone percent increase in the price of rice in the urban centre of the study area unlike the increased contribution of rural Lagos (10.0%) and rural Delta (15.7%).

Keywords: Expenditure, income rice demand, urban and rural centres, Southwest Nigeria.