To achieve an efficient pricing system, it is also vital that information about prices in different parts of the country is freely available. DFID-funded research, has sought to gauge how grain markets have developed since liberalisation and to find out the most effective policies that could help tackle problems faced by rice and wheat traders. It was also found that rice markets are more efficient and trade more frequent during the dry season. However, depressed market conditions have lead to a decrease in rice sales and many wholesalers now lack access to formal credit facilities. Overall, the rice marketing chain was found to be dynamic and successful.
Credit is crucial to maintaining links between traders.
Shorter marketing chains have altered the pattern of credit with millers providing cash advances to farmers and farmers accepting deferred payments for grain. Lack of credit is reflected in business diversification rather than any sideways expansion by traders and wholesalers within the grain market. Wheat imports are now consumer-driven by a middle class desire for white flour. Only traders with enough cash to invest in bulk imports can satisfy such demand. All rights reserved.