Estimation of Hidden Demand and Its Impact on the World Rice Market

Abstract

The purpose of this study is estimating hidden demand of rice in the world rice market. This study estimates the hidden demand of rice from depth of the food deficit, food intake ratio of rice, population and other factors. As a result of the estimation, the global hidden demand of rice is estimated at 12,860 thousand tons in 2011/13 and accounted for 2.8% of global rice consumption in 2011/13. As a result of the model simulation, the world hidden demand for rice could have raised the international rice price by 12.8% on the world rice market in 2011/13 and by 18.5% from 2014 to 2020.