Socio-economic factors influencing foreign rice consumption in Ikwuano and Umuahia north local governmentareas of Abia State.

Abstract

The study examined the socio-economic factors influencing foreign rice consumption in Ikwuano and Umuahia North local government Areas of Abia state. A total of 93 rice consumers were selected across the two local government areas using the simple random technique. Data, which comprised information on the socio- economic characteristic and other quantitative variables of interest, were collected using a well-structured questionnaire administered to the consumers. The socio-economic characteristics were analyzed using descriptive statistic such as percentages and frequencies. The ordinary least square (OLS) model of multiple regression technique was used to analyze the consumption functions of rice consumers. From the results obtained, it was revealed that the price of commodity (X ), price of substitute (X ), Household size (X ) frequency of consumption (X ), and educational status(X ) were significant and positively related to foreign rice consumption in the study area. The economic implication is that foreign rice has become an essential commodity whose demand is not easily decreased by the decrease or rise in its price or price of its substitute, household size and its frequency of consumption in study area. The government should therefore regulate importation of the foreign rice commodity and on the other hand increase investment on agriculture so as to boost and accelerate indigenous production of local rice which can match the imported ones in quality and standard. Government should create enabling environment to attract foreign rice producing companies in Thailand, China, e.t.c. to enter into partnership with Federal, State, Local governments as well as organized private sector for production of same high quality rice in Nigeria. Keywords: Socio-Economics, Foreign Rice, Consumption.