Inequality and social welfare status of paddy rice processors in Nigeria’s Jigawa State

Abstract

This research empirically determined the social welfare status as well as factors causing income disparity among paddy rice processors in Jigawa State of Nigeria using a cross-sectional survey data obtained through a well-structured questionnaire coupled with interview schedule from a total of 200 processors (67 millers and 133 par-boilers) meticulously selected using a multi-stage sampling technique. Besides, the collected data were analyzed using both descriptive and inferential statistics. Empirically, it was established that income disparity across the target categories was low; however, market-wise, the market structure of the par-boilers and millers in the supply value chain was perfect and oligopolistic markets respectively. Nevertheless, based on the overall, the market structure of the processors in the supply value chain exhibited the characteristics of a perfect market. Furthermore, it was inferred that income disparity owes majorly to decline labour productivity across the target categories while poor social network and complacency attitude towards innovative marketing tools as a causal factor of income disparity are only common to the par-boilers. Moreover, it was established that macro-polices viz. food inflation and tax reforms negatively affected social welfare of the processors. Therefore, the study advice policy makers to provide social safety nets and adopt realistic economic barometers in order to ensure the sustainability of the rice supply value chain in the study area.