Is Sago The Best Substitution for Rice? An Analysis of Demand for Rice in Papua

Abstract

One of several SDGs is to gain zero hunger which also means strong food security sustainability. As a strategic sector, agriculture reinforces the provision of food needs. The existence of diversification of food materials from the agricultural sector will also strengthen the food security of a country/region. Various alternative foodstuffs can prevent or avoid food crises in an area. However, another issue about what kind of staple food suits local habitants raised our awareness about the readiness stocks of rice and other local staple foods consumed daily by local society. There is no recent research about the position of this food in the ranking of staple foods. Factors that affect the elasticity of demand include prices, prices of other goods, tastes, incomes, and seasons. This paper answers whether Sago (Metroxylon saguRottb.) acts as a complement or substitution product. The issue about rice and Sago supports the hypothesis that Sago has been consumed widely for long periods but might not be enough to substitute for rice. Using SUSENAS data in 2014 and 2018, this study analyses the demand for rice and runs a regression model to answer the research question. Demand for rice is affected by its price, sago price, and income. Therefore, this study considers the current issue that Sago has a negative position in the demand equation for rice, but research is still underway to prove this. The results show that Sago is a substitute product for rice. It can be seen from the positive cross-price elasticity. Thus, food security in Papua will be better if it is supported by policies that support Sago as a substitute staple food besides its function as local food.