The volatile politics of rice

Friday, Oct. 14, 2011
By MICHAEL RICHARDSON
The Japan Times

SINGAPORE — A campaign promise that helped bring Thailand's Prime Minister Yingluck Shinawatra and her political party to power in July elections is roiling the global market for rice, Asia's staple food that is now eaten by nearly half the world's population.

They promised their government would alleviate poverty in the countryside and raise rural income levels by buying unmilled rice, known as paddy, from Thailand's eight million rice growers at 15,000 baht ($480) per ton — double the pre-election price.

The program to increase the minimum guaranteed price for farmers, which has just taken effect, seems tailor-made to keep more supplies at home and drive up the export price.

In anticipation, international prices for various types and grades of rice have increased by over 15 percent since July. There are fears that they will go higher still, adding to inflation pressures in Asia when governments are reluctant to raise interest rates as economic growth slows.

Rice exports resume today after two-month hiatus

Tuesday, 27 May 2008
By Neth Pheaktra
The Mekong Times

Cambodian rice will once again be exported from today after the expiry of a two-month ban (Mar 26 to May 26) introduced to help curb inflation.

Hun Sen yesterday confirmed the ban would be lifted, saying rice exports would be reviewed again at the end of December.

The premier assured that rice exports would not affect Cambodia’s food security, as the Kingdom had a 2.3 million ton rice surplus left from 2007, a figure not including dry-season rice recently harvested.

Rice exports have been authorized because of contractual obligations and because of a lack of storage facilities, Hun Sen said.

Rice exports must be authorized by the state and will not exceed 1.6 million tons, the premier continued, saying that Cambodia has exported over half a million tons of rice so far and farmers are eager to sell the rest.

“Eighty percent of farmers are happy when rice prices go up,” the premier claimed. “According to our calculations, we will not lack rice. Now [we] start to transplant seedlings and harvest will be collected afterwards. It is not harvested every five years.”

Exports would also be a help to the Philippines, a fellow Asean member facing concerns over rice shortages.

The resumption of rice exports was supported by economists.

“It’s good that government now allows rice export at this time because rice at the market is stable in price [and] the export of agro products benefits Cambodia,” said Prum Tola, an independent economic analyst.

Prum Tola said rice exports would benefit farmers, with soaring prices enabling the purchase of new agricultural tools. Agriculture currently accounts for 30 percent of the Kingdom’s gross domestic product (GDP), he noted.

Human Rights Party President Kem Sokha welcomed rice exports but warned that the government must control domestic rice prices. “The government should take proper measures to maintain food security in Cambodia and cope with rising food prices,” he said. “If we have no clear management and allow exports of rice until stocks run out, the government will [face difficulties] when the price of rice rises.”

Hun Sen said permission for all exports over 100 tons must be given by the Ministry of Commerce. Smugglers and officials engaged in graft would be punished, he vowed.