Price and Non-Price Factors in Development of Rice Cultivation: Case Studies From Southern India and Mekong-Delta Vietnam

Abstract

The high rice prices of 2023 have highlighted the need for increasing rice productivity. But improving productivity, especially in low-performing rice-producing regions, should also improve incomes for the numerous smallholder cultivators. This article examines what we can learn from the experience of high-performing rice-growing regions, which have both high rice yields and incomes. We focus on two best-performing villages from Kerala, southern India and Mekong Delta, Vietnam. Using a detailed case study approach combining farm budget analysis, counterfactual simulations using agricultural household models, and qualitative insights, our analysis shows the contribution of price support, irrigation, and agricultural research in these two regions to the current situation. While price support was the prominent factor in Keralaʼs village, irrigation and extending the cropping intensity was important for farm incomes in the Mekong Delta village. This comparative analysis demonstrates the need for an ongoing evaluation of price and non-price factors and supplementing farm incomes through specific interventions for developing low-performing rice-producing regions.