why is white rice cheaper than brown rice if it’s the processed form of latter?
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1. A practical factor: White rice has been stripped of the bran and germ of the rice seed. The bran and germ of the rice seed both contain oils which can oxidize and go rancid over time. This means that white rice can be stored for years longer than brown rice without going bad, and it can be stored under less strictly controlled conditions. This makes white rice easier to work with. This in turn reduces the costs of storage, and reduces losses from spoilage.
2. An economic factor: Commodities cost “whatever the market will bear”. People are willing to pay more for brown rice and expect it to cost more. Brown rice is assumed to be healthier and “more natural” than white rice, and this gives it positive associations in the minds of some consumers. Brown rice is thought of as “better for you”, and so people expect it to be sold at a premium for being a better product. Sellers are more than happy to sell it for a premium, because that increases their profit margins on a product that already costs more to handle.
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