Thai Household's Rice Consumption and Its Demand Elasticity

This paper analyses expenditure and price elasticities of demand for rice consumption in Thai households. The elasticities were measured from cross-sectional data of a socio-economic survey conducted in 2002. The average rice consumption in Thai households was 101 kg/person/year. The overall expenditure elasticity of demand was positive but very inelastic. Households in urban centres had lower expenditure elasticity than those in the villages. Households in the highest 25 per cent of the income rank had a negative response to the expenditure variable for quantity rice demand but those households had a positive response for quality rice demand. Price elasticity was negative and inelastic. Households in urban areas are more sensitive to the rice price increase than those in the suburbs and villages. The results reflect the quality concern over rice consumption in Thai household consumption driven by the country's rapid economic growth and urbanization. A strategic policy for rice in Thailand should more focus on development of high-quality rice.