Enhancing Production of Quality Rice in Ethiopia: Dis/incentives for Rice Processors

Abstract

In order to reduce the import burden and contribute towards the country’s development plan through import substitution, it is critical to focus on increasing rice production and improving the quality of milled rice. Rice processors in Ethiopia play an important role in the rice sector, not only as service providers but also as buyers and sellers of rice. In general, however, there is a general disincentive for farmers to produce good quality paddy, and for processors to produce good quality milled rice. This brief examines the main disincentives and outlines key measures that need to be put in place to address these challenges.