Consumer Demand for Rice Grain Quality and Returns to Research for Quality Improvement in Southeast Asia

Abstract Abundant world rice supply has led to renewed interest in improving grain quality of modem rice varieties. Implicit prices of grain characteristics are estimated for Thailand, Indonesia, and the Philippines. These prices are used to evaluate rice‐breeding goals and to estimate returns to research for quality improvement. Results indicate that the past focus on physical quality improvement was appropriate, and future welfare gains are possible from chemical quality improvement. Returns to quality improvement are substantial and indicate underinvestment in this type of research.