SPATIAL ANALYSIS OF PADDY RICE PRICE VARIABILITY IN DASS AND TAFAWA BALEWA LGAS OF BAUCHI STATE, NIGERIA

Abstract

The study was conducted on the spatial analysis of paddy rice (Oryza sativa) price variability in Dass and Tafawa Balewa LGAs of Bauchi State, Nigeria. Data were collected using questionnaires administered to 120 respondents sampled through random sampling technique. Secondary data were also collected from BSADP Bauchi on monthly prices of paddy rice. Data were analyzed using descriptive statistics (mean, frequency, ranking and likert scale), pearson product correlation, T-test and ratio to moving average model. It was revealed that the leading causes of spatial rice price variability were spatial variation in supply, high cost of transportation and inadequate market information. There was existence of price integration or perfect price transmission between and among the urban and rural markets during the period of study. The magnitude of paddy rice price variability in the rural markets were higher, and the t-test shows that there was a significant (P < 0.05) difference in price of paddy rice between rural and urban markets. Spatial variation in supply, bad road condition, seasonal variation in supply, inadequate contact with extension agents and low capital outlay were the major constraints militating against paddy rice marketing in the study area. Therefore, it is recommended that Rural feeder roads should be constructed by government, NGOs or individuals to enable easy movement of produce as well as all year round production/supply of rice should be encouraged through provision of fund and inputs by relevant stakeholders to farmers for dry season farming in order to curtail the problem of price variation due to seasonality in production.