Nevertheless, the real price of rice declined about 2.7 percent annually. This decline in the rice price, on the face of a stagnant supply and increasing incomes, aroused suspicion whether income distribution has twisted against the poor who have a higher marginal propensity to consume rice compared to the rich. The analysis shows that, of a total demand depressing effect of 15.6 percent, urbanization accounts for 4 percentage points, cross-price effects for 7 percentage points, and worsening income distribution accounts, residually, for 4.6 percentage points. These findings are based on plausible values of demand and supply parameters which warrant fresh evaluation in the context of rapid structural change in the economy of Bangladesh. Download full-text discussion paper .
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