Understanding the Premium Value of Tradition: Why are Consumers Willing to Pay More for Traditional Rice?

Traditional rice refers to indigenous rice varieties cultivated for generations, which are adapted to local climatic conditions. This study examines consumers’ willingness to pay (WTP) more for traditional rice and its value-added products in Tamil Nadu using primary data from 642 respondents and an Ordered Logit Model. Results indicate that income (β = 0.211, 95% CI [0.091, 0.331]), urban residence (β = 0.626, 95% CI [0.295, 0.957]), knowledge (β = 0.455, CI [0.265, 0.645]), education (β = 0.227, 95% CI [0.121, 0.333]), and consumption frequency (β = 0.287, 95% CI [0.165, 0.409]) significantly influenced willingness to pay more for traditional rice and value added products. Sensory attributes such as taste and texture, along with health benefits, positively influence purchasing decisions. In contrast, age and gender were not statistically significant. Marginal effects indicate that income and knowledge strongly drive higher WTP, especially among high-income groups, highlighting the role of consumer awareness and economic capacity in premium food choices. The model explains 16.6% of the variance in WTP (pseudo-R2 = 0.166).