Analysis of the Price of Rice

Oct 13, 2025 by magicalceylontours.com 145 views

Introduction

In the complex economic context of Medan, the city's rice sector plays a vital role in ensuring food security and economic stability. The government's policies and the supply of rice are crucial factors that influence the dynamics of the rice market in Medan. This study aims to analyze the simultaneous influence of exogenous and endogenous variables related to the rice sector in Medan, using a quantitative analysis approach. The research focuses on the period from 1997 to 2014, using secondary data from the Central Statistics Agency (BPS), the Medan City Food Security Agency Office, and the Medan City Disperindag.

Methodology

The research conducted is a quantitative analysis, using secondary data obtained from various sources. The data analysis is carried out using simultaneous equations through the Indirect Last Square (ILS) method. This approach allows for the analysis of the simultaneous influence of multiple variables on the rice demand and supply in Medan.

Results

The results of the study show that there is a significant relationship between the price of rice, GRDP per capita, and the population simultaneously to the demand for rice in Medan. Partially, the price of rice has a negative and significant influence on rice demand, indicating that the higher the price of rice, the lower the demand from the community. Conversely, per capita GRDP and population have a positive and significant effect on demand, indicating that increasing people's purchasing power and high population encourages increased demand for rice.

In terms of supply, the study found that the price of rice, population, and rainfall index had a simultaneous significant effect on rice supply in Medan. Here, the price of rice and the population contribute positively to the supply, which means that more population and stable prices can increase rice supply. However, the rainfall index has a negative effect on supply, showing that weather factors can hamper rice production and distribution.

Analysis of the Price of Rice

The analysis of the price of rice shows that GRDP per capita and rainfall index also have a simultaneous significant effect. Partially, these two variables have a positive and significant influence on the price of rice. This shows that the economic improvement of an area (in this case GRDP per capita) contributes to price stability, while climate factors also need to be considered because it can affect the availability of rice.

Conclusion

This research provides important insights for policy makers and business actors in dealing with the dynamics of the rice market in Medan. The existence of a significant relationship between these variables emphasizes the need for more attention to agricultural strategies and water resource management to ensure food security and economic stability in this area. In conclusion, a deeper understanding of the interaction between the economy and external factors such as weather can help create more effective policies for the agricultural sector, especially in rice production in the city of Medan.

Recommendations

Based on the findings of this study, the following recommendations are made:

The government should implement policies that promote agricultural development and improve the supply of rice in Medan.
The government should also focus on improving water resource management to ensure that rice production is not hampered by weather factors.
Business actors should consider the impact of climate change on rice production and distribution when making investment decisions.
Policy makers should consider the interaction between the economy and external factors such as weather when making decisions about agricultural policies.

Limitations

This study has several limitations that should be noted. Firstly, the study only focuses on the period from 1997 to 2014, which may not be representative of the current situation. Secondly, the study only uses secondary data, which may not be as accurate as primary data. Finally, the study only analyzes the simultaneous influence of multiple variables on the rice demand and supply in Medan, and does not consider other factors that may influence the rice market.

Future Research Directions

This study provides a foundation for future research on the dynamics of the rice market in Medan. Future research should consider the following directions:

Analyzing the impact of climate change on rice production and distribution in Medan.
Examining the role of government policies in promoting agricultural development and improving the supply of rice in Medan.
Investigating the impact of business actors on the rice market in Medan.
Considering the interaction between the economy and external factors such as weather when making decisions about agricultural policies.

Conclusion

Frequently Asked Questions

Q: What is the main objective of this study? A: The main objective of this study is to analyze the simultaneous influence of exogenous and endogenous variables related to the rice sector in Medan, using a quantitative analysis approach.

Q: What are the variables considered in this study? A: The variables considered in this study include GRDP per capita, rainfall index, rice price, population, and demand and supply of rice.

Q: What is the research methodology used in this study? A: The research methodology used in this study is a quantitative analysis, using secondary data obtained from various sources, and data analysis is carried out using simultaneous equations through the Indirect Last Square (ILS) method.

Q: What are the main findings of this study? A: The main findings of this study show that there is a significant relationship between the price of rice, GRDP per capita, and the population simultaneously to the demand for rice in Medan. Partially, the price of rice has a negative and significant influence on rice demand, while per capita GRDP and population have a positive and significant effect on demand.

Q: What are the implications of this study for policy makers and business actors? A: The implications of this study for policy makers and business actors are that they should consider the interaction between the economy and external factors such as weather when making decisions about agricultural policies. The government should also implement policies that promote agricultural development and improve the supply of rice in Medan.

Q: What are the limitations of this study? A: The limitations of this study are that it only focuses on the period from 1997 to 2014, which may not be representative of the current situation. The study also only uses secondary data, which may not be as accurate as primary data. Finally, the study only analyzes the simultaneous influence of multiple variables on the rice demand and supply in Medan, and does not consider other factors that may influence the rice market.

Q: What are the future research directions based on this study? A: The future research directions based on this study are to analyze the impact of climate change on rice production and distribution in Medan, examine the role of government policies in promoting agricultural development and improving the supply of rice in Medan, investigate the impact of business actors on the rice market in Medan, and consider the interaction between the economy and external factors such as weather when making decisions about agricultural policies.

Q: What are the recommendations based on this study? A: The recommendations based on this study are that the government should implement policies that promote agricultural development and improve the supply of rice in Medan, the government should also focus on improving water resource management to ensure that rice production is not hampered by weather factors, business actors should consider the impact of climate change on rice production and distribution when making investment decisions, and policy makers should consider the interaction between the economy and external factors such as weather when making decisions about agricultural policies.

Q: What are the implications of this study for the city of Medan? A: The implications of this study for the city of Medan are that it highlights the need for more attention to agricultural strategies and water resource management to ensure food security and economic stability in the area. The study also emphasizes the importance of considering the interaction between the economy and external factors such as weather when making decisions about agricultural policies.

Q: What are the implications of this study for the rice market in Medan? A: The implications of this study for the rice market in Medan are that it shows that the price of rice, GRDP per capita, and population have a significant influence on the demand for rice in Medan. The study also shows that the price of rice, population, and rainfall index have a significant influence on the supply of rice in Medan.