Bhutanese consumer perception towards import and domestic rice was analyzed from a survey using market price and 11 different characteristics of rice. The paper, in addition developed a hedonic model of import and domestic rice consumed in Bhutan. The paper using Ordinary Least Squares (OLS) empirically finds that there exist some relationship between price paid by consumers and
the characteristics of the rice. The study finds that Bhutanese prefer paying a premium for whiteness, less foreign materials, less broken
rice and stickiness for imported rice while reddish color of local rice and cohesion are significant determinants while purchasing domestic rice. Of interest is the fact that consumers derive satisfaction from the goods characteristics which has both positive and negative implicit prices. Finally, the paper gives insights into some of the
future potential works to be carried in order to find consumer’s preference in case of branded rice.