Rice in Asia: is it becoming an inferior good?

Empirical results using time-series and cross-sectional data indicate that rice in Asia is becoming an inferior good. Income elasticities declined and in some cases became negative between 1961 and 1985 in most of the fourteen Asian countries studied. Accordingly, domestic demand for rice is not likely to grow as rapidly as it has in the past and there is a potential for excess supplies of rice to develop, putting downward pressure on prices. While governments in Asian countries may need to adjust their rice policies in the future, world suppliers may need to develop new markets. -from Authors