Analysis of factors affecting retail prices of rice in North Sumatera

Abstract

This study aims to determine the factors that affect the retail price of rice and its effect on retail rice prices in North Sumatra. The model useful to get the function of the retail price of rice by using annual data from 1986 to 2015. The results of the study we found that rice consumption per capita, quantity of rice import and Bulog rice stock have negative effect on retail price of rice, in contrast the international rice price and the rice production. Rice consumption per capita and quantity of rice import do not significantly affect retail price of rice, while the international rice price, Bulog rice stock and rice production significantly affect retail price of rice respectively at the alpha level of 5 and 1 percent. Rice production is a the greatest influence on the formation of retail price of rice by the estimated coefficient of 1.040.