Response of rice output to price and non-price factors in Ghana

The objective of this study was to assess the magnitude and effect of various price and non-price factors on output of rough rice in Ghana for the period 1966-2009. Coefficients of the output response model were estimated through the ordinary least squares (OLS) and tested for stability and appropriate standard Gaussian properties. Output of rough rice was found to be positively and significantly driven by increases in harvested area, yield, own price and world price of rice with important indirect effects to producers. It however decreases with unit increases in the price of maize, urea fertilizer and with increasing state involvement in the rice market through nominal rate of assistance. Supply of local rice in Ghana could be improved through vigorous pursuance of intensification and area expansion and appropriate transmission of prices to farmers with least distortion.