The characteristics of rice markets and trade in Afghanistan: A survey of the major commercial rice markets

This paper explores the characteristics and working of Afghan rice markets, including rice imports from the overseas suppliers using primary data collected through a survey of the major provincial rice markets. Descriptive statistics, compound annual growth rates, Herfindahl-Hirschman Index and a double-log linear model are employed in the data analysis. The results underline several notable features of the rice markets in the country. Kabul rice market is leading the remaining markets in the majority of selected indicators. The surplus and deficit markets of local rice appear to be segregated as the availability and trade of local rice is largely concentrated in the markets closer to major rice producing provinces. As compared to imported rice, local rice may be price competitive but not quality competitive. Moreover, the domestic value chain of paddy-rice is very short at present. Moderate to strong market concentration along with the influence of big traders may exist in the major provincial rice markets. The demand of traders for rice imports may be explained by their cumulative experiences in the rice business, purchasing power of imported rice and transfer costs, among others.