ABSTRACT
Aceh, a special region of Indonesia is known as the "rice granary" of the Western gate to Indonesia. The region is predominantly an agricultural and exports oriented economy with the majority of the population living in rural areas where rice cultivation predominates. The annual rate of increase of rice production is above the annual rate of population growth.The increased rice production and variations in production both spatial and temporal have created a number of marketing problems. Rice marketing systems need to be developed and expanded to:(a) link markets and rice producers through equalization and distribution,(b) encourage efficient rice trade activity and recruit entrepreneurial talents, (c) serve a connective function,(d) provide outlets for increased rice production,3 and (e) limit rice price variation.Effective rice marketing systems are, therefore, necessary for economic development of agricultural societies Their development make possible regional economic integration and full utilization of whatever assets and productive capacities a region already possesses.The agricultural development plan of Indonesia is directed toward increasing production and production efficiency. For one thing, an increase in agricultural productivity depends on the improved efficiency and effectiveness of current marketing systems in different regions. In spite of broad similarities in the traditional marketing system, there are differences between regions due to a multiplicity of social, geographical, environmental, economic and political factors.The present development plan of Indonesia emphasizes the socio-economic as well as physical aspects and sectoral approaches at the macro level. Micro studies on regional level aim at finding similarities and differences strongly needed to support and improve the existing plan. This regional analysis of agricultural development emphasizing rice marketing in Aceh is meant to be a stimulus to improve the existing marketing systems. Improvement of marketing systems may have significant effects on production, distribution, consumer prices and adoption of improved production methods.