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The Granger-causality test results revealed that the causality direction is from urban area to rural area for the price of rice and from rural area to urban area for the price of maize. These results suggest that the amount of subsidy on rice imports needs to be redirected towards productivity and quality increase, to shift the consumption of rice from imported rice to domestically produced rice. For maize, policy attention should be given to the increase in productivity of domestic maize giving preference to Senegalese local maize. This effort would increase the supply of domestic maize with which the price of domestic maize in a rural market would decline. Given Granger-causality test results for maize; this would signal a downward pressure on the price of imported maize in an urban market where imported maize is mainly consumed in a livestock sector and agri-industry.

Rice and maize price competitiveness in Senegal: Market integration and price causation between Saint-Louis market and Mpal market