Market performance of rice in Banten Province: A structure-conduct-performance approach

Abstract

The presence of the modern rice milling industry affects the supply of unhusked grain and rice in Banten Province. Due to larger storage capacity, processing machinery, and efficient business processes, the industry has gained comparative and competitive advantages over other industries in the current market structure. The aim of the study is to analyse the structure, conduct, and performance of the unhusked grain and supply chain from the primary data. The findings revealed that the presence of the modern rice milling industry has short-term effects on the unhusked grain and rice supply chain and has the potential to transform the structure of the unhusked grain and rice market in the long term. This shift also impacts the roles and sustainability of the small- and medium-scale rice milling industries. In the future, market performance will be characterised by an increasing level of competition among entities to secure higher supplies of unhusked grain for processing into rice. The recommended policy changes aim to increase rice production and enhance the regional government’s role through a regional state-owned food business entity in the rice market. Furthermore, the revitalisation of smalland medium-scale rice milling industries demands government support to enhance their operational efficiency.