Economic and environmental benefits of certified rice seed (Oryza sativa) on the northern coast and northern jungle of Peru

Abstract

Rice (Oryza sativa) stands as a grain nourishing over half of the global populace, ranking as the third most cultivated grain worldwide, following corn and wheat. In Peru, 70 thousand producers sow rice across 417 thousand hectares, yielding 3,4 million tons, with a national average yield of 8,21 tons per hectare. This production focalizes along the northern coast and northern jungle, encompassing 39,58%, covering 50% of the total agricultural rice acreage. Hence, the aim was to assess the economic and environmental benefits of expanding the usage of certified rice seed in Peru’s northern coast and northern jungle. The methodology incorporates secondary information to apply the partial budget model, economic surplus change, and variation in the environmental impact coefficient (EIQ). Findings indicate that the hypothetical adoption of certified rice seed could engender an 81,57% increase in profitability for producers, alongside an updated net social benefit of S/ 8,455 million. Furthermore, the environmental impact would also be favorable, as the EIQ of rice production would decrease by 26,06%. Consequently, it is recommended to investigate the impact of certified seed on other crucial crops for the Peruvian economy.