BUFPER STOCK SCHEMES TO SUPPORT PRODUCERS, INCOME IN BANGLADESH

This study demonstrates government buffer stock schemes under alternative price and behavioural assumptions to identify the impact of these schemes on household net income from paddy marketing. Both net sellers and net buyers benefit from a buffer stock scheme with either a constant mean price or a modestly increasing price over the paddy season. Nonproducing consumers also benefit slightly from these policies. Government expenditure is higher if the policy price Is fixed at a higher level, and if an attempt is made to stabilise the prize completely over the season.