The cost of rice fortification is determined by the structure, capacity and scale of the rice industry and fortified rice market, the complexity of the fortified rice supply chain, and the regulatory environment. The production of fortified kernels is the most significant cost factor in the production of fortified rice. The cost of the fortificant mix as part of the total cost of the fortified rice is nearly negligible. Appropriate planning for kernel production should anticipate needs as the program expands, while avoiding market distortions caused by a limited number of fortified kernel sources. Optimization of the supply chain and fortified kernel production capacity is essential to enh nce the cost-effectiveness of rice fortification. When rice fortification is scaled up, production reaches
economies of scale, and costs are driven down. Calculating a universal cost figure for rice fortification is not possible due to the multitude of contextual variables which influence its cost. Experience from a limited number of large-scale rice fortification programs, as well as trial and pilot studies, demonstrates that the percentage retail price increase for fortified rice ranges from 1% to 10%.
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