Measuring Rice Price Volatility and Its Determinants in Tanzania: An Implication for Price Stabilization Policies

High price volatility in agricultural food markets has a greater impact not only on smallholder farmers but also can affect the incomes and purchasing power of substantial proportion Tanzanian population decrease security, especially to lower middle class. This study applies ARCH-GARCH VAR/VECM models examine dynamics factors influencing domestic rice market. The results analysis show that prices tends be low persistent over long run. is supported by estimation affecting volatility, which showed supply variables play an important role short run volatility. producing regions (large surplus areas) turned out more volatile than main consuming deficit areas). means producers are exposed much higher risk consumers. Thus, favorable marketing environment for traders farmers, transparent trade policies, reliable market information, organized infrastructure essential reduce wider economic growth.