EFFECTS OF COVID-19 PANDEMIC ON RICE PRICE VARIATION AMONG CONSUMERS IN KADUNA METROPOLIS, KADUNA STATE, NIGERIA

Abstract

This study determined the effects of Covid-19 pandemic on rice price variation among Consumers in Kaduna metropolis, Kaduna State, Nigeria. A total of 183 respondents were randomly drawn from the study area. Data for the study were collected through structured questionnaire and information from KADP and RIFAN. The results of the consumption behavior shows that 32.78% consumed rice four times per week while only (4.92%) consumed once per week, whereas 34.97% consumed 7- 9kg of rice per month. Only 34.93% of the respondents spent ₦13000- ₦16000 of their expenditure on rice monthly. Majority (76.5%) preferred imported rice, and 28.5% preferred local rice. Regarding consumer’s preference point to purchase rice, 50.27% preferred buying rice at the local market and 5.46% preferred the supermarket. The result of hedonic pricing model on factors affecting rice price variation among the consumers and it is apparent that the relationship between price and attributes varies within zones. However, under physical attributes there are variables as; Impurities which were all positive and significant at 1% except for Kaduna south, this shows that the higher the impurity the higher the rice price variation among consumers. While under cooking attributes, ease of cooking which was positive in all zones and significant at 1% in Kaduna South, 10% in Chikun, and 5% in Igabi but not significant in Kaduna North. Under Eating attributes were taste which was positive and not significant in Kaduna south but negative and significant in the other 3 indicating that the higher the taste the lower the rice price variation. Other attributes where Origin was found positive and significant at 5% in Chikun but positive and significant at 1% in Kaduna south, Kaduna north and Igabi, indicating the consumers care more about the origin (local or imported) of the rice which causes high price variation. Also, the result from regression analysis on factors that causes shock buying among consumers due to covid-19. The study also revealed 86% of the factors that influences shock buying due to covid-19 were caused by the variables in the model. Emanating from the findings, it can be concluded that, there is a direct and positive relationship, between rice price variation and covid-19 pandemic. The study recommends that rice should be prioritized as a core food crop in food security programmes as it was found to be a necessity in households’ food basket.