Resilience Analysis of the Premium Quality Rice Market System in Bangladesh

Abstract

This study evaluates the structure, dynamics, and resilience of the Premium Quality Rice (PQR) market system in Bangladesh using the Market Systems Resilience Assessment (MSRA) framework developed by USAID. The PQR market includes various actors—farmers, paddy traders, millers, wholesalers, retailers, and consumers—engaged in the production, processing, and distribution of fine-grain, high-value rice varieties. Despite declining per capita rice consumption in Bangladesh, demand for PQR is increasing due to rising incomes, urbanization, and changing consumer preferences. Primary data were collected through two rounds of surveys: one involving 1440 rice farmers and another involving over 2000 market actors and consumers across key PQR-producing districts. Conducted during the COVID-19 pandemic, the surveys allowed examination of the market system’s adaptive response to economic shocks. Resilience was assessed across eight domains categorized into structural (connectivity, diversity, power dynamics, and rule of law) and behavioral (cooperation, competition, decision-making, and business strategy) components. Findings show moderate resilience overall, with strong performance in competition and cooperation, but weaknesses in connectivity, diversity, and strategic decision-making. While the PQR market benefits from competitive structures and profitable incentives for producers, challenges such as fragmented linkages and unequal power distribution hinder its full potential. This study underscores the importance of building adaptive, inclusive, and efficient value chains to enhance the resilience of agri-food systems. Periodic reevaluation of resilience metrics is recommended to track progress over time and guide market-oriented policy and development interventions.