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Asia facing a major rice shortage

16 Nov, 2009 03:27 PM
However you dice the numbers, growing enough rice to feed Asia’s burgeoning population presents an enormous challenge.

Rice provides 20-70 per cent of Asia’s calories. The region grows 90pc of the world’s 448 million tonnes of rice, and its 3.8 billion people in turns eats 90pc.

Until 2008, a shifting balance existed that allowed most of Asia’s billions to have adequate rice, even the poor.

But when rice prices shot up during the 2008 food crisis to historical highs, from which they still haven’t come down, many of Asia’s poor strained to afford their traditional staple.

Food riots broke out, and the unease of governments in countries long preoccupied with food security deepened as their vulnerability to economic forces outside the region was exposed.

Trends all point to that vulnerability growing.

Across most of Asia, populations are climbing. The region contributes the lion’s share of the 220,000 people now added to the world each day.

Farm land is being urbanised: somewhere between 2020-30, Asia’s populations will become equally divided between rural and urban, compared to 1950 when more than 80 per cent was rural.

Land is losing productive capacity through poor farming practices and pollution, and water resources are being dangerously depleted.

This leaves an apparently impossible sum: feeding more, from a shrinking production base.

Nor is the issue just about more rice; it is about more affordable rice.

According to IRRI calculations, the world, and Asia in particular, needs to produce 8-10 million tonnes more rice per year in order to have a sufficient quantity of rice on the market priced in the US$300 per tonne range—the price at which rice is affordable to all.

The 2008 food crisis threw a spanner in the works of that aspiration.

Subramanian, vice-president of the Asian arm of US-owned market publication The Rice Trader, said the price spike that accompanied the crisis has yet to subside, with rice prices sitting around US$150-$200/t above historical averages.

Indicative prices are currently US$550/t for Thai rice and US$450/t for Vietnamese rice, although cheaper rice in the US$350/t range can still be bought from low-quality producers like Myanmar.

Mr Subramanian said analysts are watching to see how the 2009-10 market shakes out in the wake of the monsoon failure in India and floods in The Philippines.

India may import rice for the first time in 30 years to maintain its stocks against a second crop downgrade in 2010.

However, Mr Subramanian said while the Indian situation may appear concerning, the country this year took off a record wheat crop that could effectively substitute for the rice shortfall.

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Oh damn, just when we thought that Asia would be able to provide our rice, to replace what we cannot grow because of Penny's buy up.
Posted by jerangle, 16/11/2009 4:36:40 PM, on The Land
It may not be true and correct that there is a shortage of rice supply now in the world. In fact there a big surplus of rice in Asia. Few more new rice exporting countries like Myanmar, Cambodia and Laos are exporting more rice this year with the target to ramp up to the historic high of the rice supply in the world market. The prices have been lowering badly. This is only becaude of much more rice supply than the real demand in the world market. All the farmers who are growing rice in the rice exporting countries Thailand, Vietnam, Myanamr, Cambodia, Laos are suuffering heavily because of the low price of the rice (under production cost). The hype of the shortage is untrue otherwise the prices will not dive down to such low level as what has been in the past one year. The danger will be when the farmers would give up to grow the rice because they are running with heavy loss due to the unfair and unrealistic market prices related to the production cost. It is vital that the rice price must be realistic to reflex the production cost. It will not be sustaianble if the producing countries have to suffer to produce the food for the world.
Posted by chumroen Benchavitvilai, 16/11/2009 8:58:21 PM, on Queensland Country Life
The population growth in most Asian countries is totally unsustainable. China has been successful with family planning and other Asian nations should follow suit and be forceful like the Chinese. It is stupid and irresponsible for many Asian countries to continue with high birth rates as their job markets do not create enough jobs to absorb population growth. Many from the third world emigrate to the West and reduce our standard of living in the process. Forget the lies about anthropogenic climate change, family planning is the most urgent issue facing the third world.
Posted by Nicholas Folkes, 17/11/2009 7:36:56 AM, on Stock Journal
Production shortages are definitely real in India; presently only premium grade rice can be exported to countries such as Australia. Prices have risen domestically, all the while prime rice growing land is being covered for the poorly designed urban sprawl that never seems to end. Chumroen, over production may be present in the countries you mentioned, however it is not the case everywhere e.g. India and Pakistan which export reasonable quantities of rice as well.
Posted by Andy, 17/11/2009 9:39:53 AM, on The Land
Dont worry, Rudd will ask them all to come and dine in Australia!
Posted by tigerdicky, 17/11/2009 11:54:08 AM, on The Land
I would like to state that I am totally opposed to GM being into Australia at all. Mistakes were made in Canada all those years ago and look at what happened where many people died as a result.


Posted by foxylady, 24/11/2009 2:19:05 AM, on The Land

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Rice crop near Bangkok, Thailand.
Rice crop near Bangkok, Thailand.
High-tech broadcast sowing of rice. Most Thai rice is hand- broadcast, so this blower is a big advance.
High-tech broadcast sowing of rice. Most Thai rice is hand- broadcast, so this blower is a big advance.
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