Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 17 ISSUE 3
Written by Ni Nyoman Reni SUASIH, I. Nyoman Mahaendra YASA

Rice is Indonesian’s staple food and indicator of food sovereignty. Farmers could be a price maker, but rice farmers are poor. This indicates that the problem exists on post harvest rice distribution channels. It is important to analyse the rice distribution system to formulate the government policies. The purpose of this paper is to know the distribution system and margin share of post harvest rice in Indonesia. Also, to know the determinant factors of farmers bargaining power in the post harvest rice distribution process. Data analyse use descriptive analysis (elasticity of price transmission) and literature review. The supporting data used are data from agriculture statistics of Indonesia. The results show that the market faced by all rice distribution market players is the imperfect or uncompetitive actor, i.e. there is monopoly and oligopoly power in the distribution system, and the prevailing distribution system is not efficient yet. There are internal and external factors that influence the bargaining power of rice farmers. The post harvest rice distribution chain needs to be shortened to make it more efficient. To improve the bargaining position of farmers from a monopsony condition is to establish a farmers institution.

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