Advantages and disadvantages for Bangladesh if it participates in an International Buffer Stocks Programme (IBSP) for raw jute. In principle, either the producer or the consumer may gain from price stabilization. It is argued that the concrete outcome depends upon the way the demand and supply...

Using an econometric model of the Bangladesh jute sector for controlled policy experiments, the author investigates the effects of a buffer stocks-supported price stabilization scheme on this sector. Empirical probability distribution of buffer stocks size under alternative price stabilization...