Head Rice Recovery, Comparative Advantage, and International Competitiveness of BRRI dhan50 Aromatic Rice in Bangladesh: Evidence from Policy Analysis Matrix

Abstract

This study evaluates the comparative advantage and export potential of BRRI dhan50, a modern aromatic rice variety in Bangladesh, using the Policy Analysis Matrix (PAM) framework. It addresses a key empirical paradox in the rice economy, where conventional financial indicators suggest limited profitability, while efficiency-based measures reveal positive economic returns at both private and social prices. Primary data were collected from 160 randomly selected farmers in Jashore district during the 2021-22 Boro season. The results indicate that at a 56% head rice recovery (HRR), achievable through modern rubber huller milling, BRRI dhan50 demonstrates strong financial performance and a clear comparative advantage under both import and export parity conditions. However, when HRR declines to 52%, reflecting conventional milling practices, the variety retains comparative advantage only under import parity, while export competitiveness is lost, underscoring the critical role of post-harvest processing efficiency in determining international competitiveness. Sensitivity analysis further confirms that export competitiveness is highly vulnerable to reductions in milling efficiency, with DRC exceeding unity at lower HRR levels. Policy indicators (NPC = 2.38; EPC = 2.86) reveal substantial price distortions and policy-induced protection, while a positive Profitability Coefficient (PC = 5.12) indicates net transfers in favor of producers. Overall, BRRI dhan50 exhibits strong potential as a value-added aromatic rice for import substitution and conditional export competitiveness, contingent on improved milling performance and institutional support. The findings emphasize that enhancing head rice recovery, strengthening post-harvest management, and improving quality assurance systems are essential for sustaining export competitiveness. Long-term competitiveness will depend on investments in modern processing infrastructure, value-chain development, research and development, export diversification, logistics efficiency, and national branding strategies for Bangladeshi aromatic rice in global markets.

Bangladesh Rice J.29(2): 71-89, 2025