This paper analyzes the current functioning of the Malagasy rice sector by using
the "quality" approach. Aiming to explain agribusiness difficulties in the current context of
the rice sector, it emphasizes a close link between rice quality perceptions by the various
stakeholders and current characteristics of rice trade. We use Harrison White‟s New
Economic Sociology market theory (White, 2002) to qualitatively analyze stakeholders‟
practices in the rice sector. We find that agribusiness development is disturbed by existing
tension between two types of quality conventions - domestic and merchant - in paddy rice
exchanges between rural households and rice traders. Recommendations to public authorities
for agribusiness success in the Malagasy rice sector are twofold: (i) First, paddy rice
exchanges should occupy a crucial role in rice policy, while these are currently neglected in
favour of milled rice exchanges. (ii) Second, a clear compensation system based on paddy rice
quality criteria should be defined to increase the commercialized share of total rice
production