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Rice crisis and Southeast Asia

Shiloh

Editor, Senior Moderator
Source: http://www.upiasiaonline.com/Economics/2008/04/16/rice_crisis_and_southeast_asia/1309/

Rice crisis and Southeast Asia
By MONG PALATINO
Column: Peripheries
Published: April 16, 2008

MANILA, Philippines, Rice is the staple food in Southeast Asia and in many parts of the world. But it is not just a food that fulfills hunger. Rice has enriched the cultures of many Asian societies.

In Thailand, asking "Have you eaten rice today?' is a way of saying "How are you?" In Vietnam it is proper to say "please eat rice" before every meal, even if the meal does not include rice. In Brunei elders remind the children to finish their meal to the last grain of rice because if not, the rice would cry.

Asians have developed a rice-flavored ice-cream, rice wine, rice cake, and rice paper. There is an annual rice festival in the Philippines. A colonial ruler of Indochina once remarked: "The Vietnamese plant rice, the Cambodians watch it grow and the Lao listen to it grow."

Indeed, rice is a precious commodity in Southeast Asia. It is not surprising that many people in the region are worried over reports that rice is getting more expensive and supplies are dwindling. Southeast Asian governments are assuring their constituents that prices will stabilize soon and there will be no shortages in the local markets.

Thailand is the world's biggest rice exporter. Other Southeast Asian nations like Cambodia, Vietnam and Myanmar are rice exporters too. On the other hand, the Philippines is the world's top rice importer.

The rice price in Indonesia is slightly lower than in the world market. An Indonesian minister asserts that the government would no longer import rice this year because with last year's rice procurement drive, Indonesia now has more than 1 million tons in stock.

In Singapore and Malaysia, consumers are buying all the rice available in the market even if authorities are assuring the public that there are ample stocks of rice in the market.

Rice is a controlled item in Brunei and Malaysia. In Brunei the price of rice has not changed, since the government is subsidizing the price. Malaysia has been giving subsidies to rice farmers for many years now. There is a proposal in Malaysia to abolish subsidies for sugar and cooking oil in order to continue supporting subsidies for staple food items such as rice and flour.

Unfortunately, the Philippine government has been encouraged by the World Bank not to give subsidies to rice farmers since according to the financial lending institution it will be counter productive.

Since the start of the global rice crisis, Cambodia has suspended rice exports as speculators continue to gamble on the increasing demand for the food staple. The government is complaining that the opposition is taking advantage of the rice situation by conducting black propaganda against the ruling party.

Cambodian leader Hun Sen reminds his constituents that the price of rice should have soared in 2000-2001 when there was a major flood in Cambodia; but the price of rice during that time was stable. Hun Sen blames "dishonest people who are instigating rumors" about a rice shortage in the market.

The Philippine government is asking its people to reduce their consumption of rice. Instead of rice, the public is requested to eat more sweet potatoes. In Malaysia the government is asked to give more support to the poultry industry and fruit and vegetable farmers. Health experts explain that reducing consumption of rice is not bad at all since rice and other grains like wheat and corn are actually worse than sugar. One bowl of cooked rice is the caloric equivalent of 10 teaspoons of sugar.

Vietnam has recently imposed a ban on rice exports to help stabilize domestic food prices. Vietnam is currently facing double-digit inflation. Bad weather also damaged part of agricultural crops in northern Vietnam early this year. Rice exports will be restricted until the month of June.

Rice bandits are scaring Thailand's countryside. In the Philippines, rice hoarders are colluding with agricultural officials to jack up rice prices. Observers believe there is no immediate fear of a rice crisis in Myanmar as most of the rice consumed in the country is produced domestically.

The global rice crisis is an opportunity to review the food security programs of Southeast Asian nations. What steps are being taken to mitigate hunger in the region? What are the reform measures which should be implemented to improve agricultural productivity?

Now is also the time to minimize or even abandon the planting of biofuels or agrofuels in Southeast Asia. Rice and food production should be prioritized.

Land conversions should be regulated to ensure availability of rice supplies. There is nothing wrong in building hotels, shopping malls, golf courses and entertainment hubs as long as the food security of nations is not compromised.

There will be an emergency meeting of Southeast Asian Ministers to discuss the rice crisis. The agenda of the caucus should be broadened to include long-term food sustainability in the region.

--

(Mong Palatino is a youth activist, regional editor for Southeast Asia of Global Voices Online, and news editor of Yehey!, a Philippine-based web portal. He can be reached at mongpalatino@gmail.com and his Web site is www.mongpalatino.motime.com. ?Copyright Mong Palatino.)
 
Re: Rice crisis and Southeast Asia

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD>200,000 tons of government rice go missing in Thailand

</TD></TR><TR><TD vAlign=top width="68%"><TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD vAlign=top width="100%" colSpan=2><TABLE cellSpacing=0 cellPadding=3 width="100%" border=0><TBODY><TR><TD class=dfont bgColor=#eeeeee>Posted : Mon, 14 Apr 2008 11:10:07 GMT</TD></TR><TR><TD class=dfont bgColor=#f5f5f5></TD></TR><TR><TD class=dfont bgColor=#fbfbfb></TD></TR><TR><TD class=dfont></TD></TR><TR><TD><TABLE cellSpacing=0 cellPadding=2 width="100%" border=0><TBODY><TR class=dfont><TD width="5%">http://feeds.earthtimes.org/earthtimes/world/asia</TD><TD width="95%">http://www.earthtimes.org/myrssfeeds.php</TD></TR></TBODY></TABLE></TD></TR><TR><TD class=dfont></TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE><TABLE cellSpacing=2 cellPadding=0 width="100%" border=0><TBODY><TR vAlign=top><TD><TABLE cellSpacing=0 cellPadding=10 align=right border=0><TBODY><TR><TD vAlign=top><SCRIPT type=text/javascript><!--google_ad_client = "pub-6607258750979944";/* 160x600, created 11/02/08 */google_ad_slot = "7546020294";google_ad_width = 160;google_ad_height = 600;//--> </SCRIPT><SCRIPT src="http://pagead2.googlesyndication.com/pagead/show_ads.js" type=text/javascript> </SCRIPT></TD></TR></TBODY></TABLE>
Bangkok - An estimated 200,000 tons of rice, worth 100 million dollars, has gone missing from national warehouses in Thailand this year as world prices of the commodity soared, state media reported Monday. The grain has disappeared from the government's rice stockpile of 2.1 million tons, kept in national warehouses as a means of curbing high prices on the local market and assuring a food supply for the poor, said Bank of Thailand (BoT) senior economist Benjamas Kotenongbua.

Benjamas told the Thai New Agency (TNA) that the "missing" rice was worth an estimated 3.2 billion baht (101.5 million dollars), and rising.

Rice prices have almost doubled this year, as artificial shortages have been created in the world market by bans on rice exports in India and Vietnam, usually two of the world's largest rice traders.

In Thailand, which is expecting a bumper rice crop this year, exporters are having trouble meeting orders recently because of domestic shortages of the grain caused by hoarding.

The government is also having trouble buying new supplies of rice for its stockpile, and holding on the stocks that are supposed to be in the warehouses, said the TNA.

The government-sponsored "mortgage programme," by which the state purchased rice at a favourable price to fill its warehouses, saw commitments of only 240,000 tons of rice in the 2007-2008 rice-growing season, compared to earlier estimates of 8 million tons, said Benjamas, who works at the central bank's Khon Kaen office.

"The major reason for the sharp drop of rice participation in the programme was the result of soaring of rice prices which persuaded farmers and middlemen not to sell rice to millers," she said.

In the first three months of this year, Thailand exported a total of 3.26 million tons of rice, almost double of exports during the same period in 2007.

But there are doubts that Thai exporters will be able to meet orders in the future as the domestic supply dries up:tiphat:
</TD></TR></TBODY></TABLE>
http://www.earthtimes.org/articles/...f-government-rice-go-missing-in-thailand.html
 
Re: Rice crisis and Southeast Asia

Asia rice price surge shows no let-up
Thai rice price jumps

Reuters
First Posted 02:55pm (Mla time) 04/17/2008
BANGKOK -- The surge in Asian rice prices showed no sign of relenting on Thursday as Thailand's benchmark grade jumped 10 percent from a week ago, heightening fears over supplies of Asia's staple food.
In a clear sign of the strain on rice supplies after major exporters began to curb exports earlier this year, a tender from the world's top importer the Philippines attracted offers to sell only about two-thirds of the amount it was seeking.
In Bangkok, Thai 100 percent B trade white rice, considered the world's benchmark, hit a record $950 per ton, free on board, in Thursday's tender, having trebled since the start of 2007, raising the prospect of millions of people, especially in impoverished Asian countries, struggling to feed themselves.
"Everybody should realize that there will no longer be any cheap rice," Chareon Laothamatas, managing director of Uthai Produce Co. Ltd., a leading exporter of premium grade fragrant rice, told Reuters.
The Philippines, where an escalating anxiety over rice supplies has become a hot political issue, received offers in its latest tender between $872.50 and $1,220 a ton, sharply higher than the just over $700 it paid in March.
Traders in Bangkok said other grades of rice from Thailand, the world's number-one exporter, were also quoted higher.
Thai 100 percent parboiled rice was sold at $960 per ton to African countries for May and June shipment, while Thai 100 percent premium grade fragrant rice was sold at $1,200 per ton to Hong Kong and US importers, traders said.
"There was strong demand for parboiled rice and also white rice, and we expected buyers to buy more," Korbsook Iamsuri, secretary-general of the Thai Rice Exporters Association told Reuters.

http://business.inquirer.net/money/topstories/view_article.php?article_id=130987
 
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