What is the value of rice fragrance? Consumer evidence from Senegal

Abstract

Urban demand for fragrant rice is increasing rapidly in Senegal, but little is known about the value of rice fragrance and the drivers of its demand. We conducted experimental auctions in Dakar to elicit urban consumers’ willingness to upgrade from non-fragrant to fragrant rice and their willingness to pay for domestic versus imported fragrant rice, and assessed the drivers of demand for rice fragrance through a double-hurdle model. The average value of rice fragrance is estimated to be around US$ 0.12 kg-1, as suggested by the 20% price premiums consumers are willing to pay on top of the price of non-fragrant rice. These price premiums further increase to 35% for consumers who express positive buying intentions towards domestic fragrant rice. The value of rice fragrance is found to be driven by factors such as ethnicity, household size, and awareness of fragrance and local fragrant rice.