Consumers’ willingness to pay for local rice: Empirical evidence from Central Java, Indonesia

Abstract

This study examines Indonesian consumers’ willingness to pay for local rice products as against commercial imports. We aimed to determine the consumer preference factors for local rice through a questionnaire survey and experimental auction in Surakarta and Sleman, two areas in the top rice-producing region of Central Java. The bidding price results of the three rounds of auction to determine the increasing nominal price for the local rice type, after information and tasting sessions, show the participants, as major rice consumers, confirming the highest interest in local rice, while displaying relatively less knowledge of the different rice varieties available in the markets. Most consumers evaluated both cooked and uncooked rice based on swelling and variety. The findings suggest the need to pay greater policy attention to local rice production and varieties, based on the preferences and attributes of the consumers.