In addition to geographic concentration of exports and the thinness of markets dis- cussed above, another important structural characteristic of the global rice market is substantial market segmentation by rice type and quality. Rice trade occurs for rough rice, brown rice (husked or cargo), milled rice, and brokens. In addition, trade flows of parboiled rice (both brown and milled) and fragrant rice add additional complexity. Finally, rice trade is also differentiated by grain length (long, medium, and short), cooking quality (stickiness), and milling quality (percent brokens). This complex level of market segmentation makes price discovery costly and amplifies price movements as substitution in demand for rice type and quality tends to be inelastic with respect to prices (Wailes 2002).