Local governments should consider policies that can maintain the stability of rice prices

Oct 13, 2025 by magicalceylontours.com 77 views

Factors Affecting Rice Demand in Medan City: A Case Study of Mabar Village, Medan Deli District, North Sumatra Province

Introduction

Medan City, the capital of North Sumatra Province, is one of the largest cities in Indonesia, with a population of over 2.5 million people. The city's economy is driven by various industries, including agriculture, manufacturing, and services. Rice is a staple food in Medan, and its demand is influenced by various factors, including demographic growth, consumer income, and rice prices. This study aims to analyze the factors affecting rice demand in Medan City, particularly in Mabar Village, Medan Deli District.

Background

Rice is a crucial crop in Indonesia, and its demand is influenced by various factors, including demographic growth, consumer income, and rice prices. The demand for rice in Medan City has been increasing consistently over the years, driven by the growing population and increasing consumer income. However, the factors affecting rice demand in Medan City are not well understood, and there is a need for a comprehensive study to identify the key factors influencing rice demand.

Methodology

This study used a combination of primary and secondary data to analyze the factors affecting rice demand in Medan City. The primary data were collected through a survey of 500 households in Mabar Village, Medan Deli District, while the secondary data were obtained from various sources, including government reports and academic studies. The data were analyzed using multiple linear regression and SPSS to measure demand elasticity.

Results

The results of the study showed that the demand for rice in Medan City has increased consistently over the years. The three main variables that affect the demand for rice are the number of dependents in the family, the price of rice, and consumer income. Together, these three variables have a significant impact on rice demand. However, when viewed separately, only the number of dependents in the family and consumer income are significant, while the price of rice does not have a significant impact.

Elasticity Analysis

The elasticity analysis showed that the number of dependents in the family has an elasticity of 0.918, indicating that the demand for rice is inelastic and positive. This means that the demand for rice will increase along with the increase in the number of family members. The price of rice has an elasticity of -0.403, indicating that the demand for rice is inelastic, and changes in prices do not significantly affect the amount of rice requested. Finally, consumer income has an elasticity of 0.261, indicating that rice is a normal good, and when consumer income increases, rice demand will also increase.

Additional Analysis

The additional analysis showed that the consumption patterns related to the habits of the people in the region are an important factor affecting rice demand. The growth of the population in Mabar Village can contribute to increasing rice demand. The more dependents in the family, the greater the need for rice as a source of staple food. This shows that demographic growth will have direct implications for rice consumption in the community.

In the context of rice prices, although not significant in its influence, we cannot deny that the fluctuations in rice prices can affect consumers' choices in choosing other types of food, especially in unstable economic conditions. If the price of rice experiences a surge, consumers may turn to a cheaper alternative, even though the preference for rice remains.

Consumer income that has a positive effect shows that rice remains a basic need that is inseparable from the pattern of household expenditure. In this case, it is important for local governments to consider policies that can maintain the stability of rice prices so that people are still able to access it, especially for families with low income.

Conclusion

In conclusion, this study provides a comprehensive analysis of the factors affecting rice demand in Medan City, particularly in Mabar Village, Medan Deli District. The study shows that the demand for rice is influenced by various factors, including demographic growth, consumer income, and rice prices. The elasticity analysis shows that the demand for rice is inelastic and positive, indicating that the demand for rice will increase along with the increase in the number of family members. The study also highlights the importance of maintaining the stability of rice prices to ensure that people are still able to access it, especially for families with low income.

Recommendations

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

Local governments should consider policies that can maintain the stability of rice prices to ensure that people are still able to access it, especially for families with low income.
The growth of the population in Mabar Village should be taken into account when planning for rice production and distribution in the area.
Consumer education programs should be implemented to raise awareness about the importance of rice as a staple food and the need to maintain a stable rice supply.
Research should be conducted to identify other factors that affect rice demand in Medan City, particularly in Mabar Village, to provide a more comprehensive understanding of the factors influencing rice demand.

Limitations

This study has several limitations that should be noted. Firstly, the study only analyzed the factors affecting rice demand in Mabar Village, Medan Deli District, and may not be generalizable to other areas in Medan City. Secondly, the study only used a combination of primary and secondary data, and may not have captured all the factors influencing rice demand. Finally, the study only analyzed the demand for rice in Medan City and may not have considered the supply side of the market.

Future Research Directions

Future research should focus on identifying other factors that affect rice demand in Medan City, particularly in Mabar Village. Additionally, research should be conducted to analyze the supply side of the market and identify the factors that affect rice production and distribution in the area. Finally, research should be conducted to identify the impact of rice demand on the local economy and the community.

References

Jufri, M. J. (2020). Factors Affecting Rice Demand in Medan City: A Case Study of Mabar Village, Medan Deli District, North Sumatra Province. Unpublished undergraduate thesis, Universitas Sumatera Utara.
Iskandarini, I. (2019). The Impact of Rice Prices on Consumer Behavior in Medan City. Journal of Agricultural Economics, 20(2), 1-12.
Sulistiyanti, S. (2018). The Role of Consumer Income in Determining Rice Demand in Medan City. Journal of Food Economics, 10(1), 1-10.

Appendices

Appendix A: Survey Questionnaire

Appendix B: Data Analysis

Appendix C: Results of the Study

Appendix D: Conclusion and Recommendations
Frequently Asked Questions (FAQs) about Factors Affecting Rice Demand in Medan City

Introduction

In our previous article, we discussed the factors affecting rice demand in Medan City, particularly in Mabar Village, Medan Deli District. In this article, we will answer some of the frequently asked questions (FAQs) about the study.

Q1: What is the main objective of the study?

A1: The main objective of the study is to analyze the factors affecting rice demand in Medan City, particularly in Mabar Village, Medan Deli District.

Q2: What are the key factors that affect rice demand in Medan City?

A2: The key factors that affect rice demand in Medan City are the number of dependents in the family, the price of rice, and consumer income.

Q3: What is the elasticity of demand for rice in Medan City?

A3: The elasticity of demand for rice in Medan City is inelastic and positive, indicating that the demand for rice will increase along with the increase in the number of family members.

Q4: How does the price of rice affect demand in Medan City?

A4: The price of rice has an elasticity of -0.403, indicating that the demand for rice is inelastic, and changes in prices do not significantly affect the amount of rice requested.

Q5: What is the role of consumer income in determining rice demand in Medan City?

A5: Consumer income has a positive effect on rice demand in Medan City, indicating that rice remains a basic need that is inseparable from the pattern of household expenditure.

Q6: What are the implications of the study for local governments?

A6: The study highlights the importance of maintaining the stability of rice prices to ensure that people are still able to access it, especially for families with low income.

Q7: What are the limitations of the study?

A7: The study has several limitations, including the fact that it only analyzed the factors affecting rice demand in Mabar Village, Medan Deli District, and may not be generalizable to other areas in Medan City.

Q8: What are the future research directions?

A8: Future research should focus on identifying other factors that affect rice demand in Medan City, particularly in Mabar Village, and analyzing the supply side of the market.

Q9: What are the implications of the study for the local economy and community?

A9: The study highlights the importance of maintaining a stable rice supply to ensure that people are still able to access it, especially for families with low income.

Q10: What are the recommendations of the study?

A10: The study recommends that local governments consider policies that can maintain the stability of rice prices, and that consumer education programs be implemented to raise awareness about the importance of rice as a staple food.

Conclusion

In conclusion, the study provides a comprehensive analysis of the factors affecting rice demand in Medan City, particularly in Mabar Village, Medan Deli District. The study highlights the importance of maintaining a stable rice supply to ensure that people are still able to access it, especially for families with low income.