News / Asia

    Floods Leave Southeast Asia More Vulnerable to Food Price Shocks

    Farmers in Indonesia sitting in front of processed rice that is ready to be sold. Economists say rice farmers living below the poverty line could be the most vulnerable to the impact of floods in Southeast Asia.
    Farmers in Indonesia sitting in front of processed rice that is ready to be sold. Economists say rice farmers living below the poverty line could be the most vulnerable to the impact of floods in Southeast Asia.
    Yong Nie

    Massive flooding in Thailand and elsewhere has destroyed large parcels of rice farmland, opening the possibility of higher rice prices and leaving Southeast Asia at greater risk of a food price shock.

    Heavy rains and massive flooding have destroyed crop land in Thailand, Cambodia, Vietnam and the Philippines.

    The United Nations says it is closely monitoring the potential for “serious food shortages” in several parts of Southeast Asia after floods affected agricultural activities and aid deliveries.

    Rice farmers in Cambodia tend to their crops. Some 12% of the country's paddy fields are believed to have been destroyed due to the flooding in Southeast Asia.
    Rice farmers in Cambodia tend to their crops. Some 12% of the country's paddy fields are believed to have been destroyed due to the flooding in Southeast Asia.

    The U.N. Food and Agriculture Organization's (FAO) Global Information and Early Warning System, in a report released on Oct 21, says although no precise figures are available, continuous rain and flooding is estimated to have damaged at least 1.6 million hectares of standing crop in Thailand, representing more than 12 percent of total national cropped area. Another 12 percent of the total area under paddy in Cambodia is also believed to have been damaged.

    About six percent of rice farmland is damaged in the Philippines, while in Vietnam it is reported that as much as 7.5 percent of the farmland is destroyed.

    Yang Razali Kassim, a senior fellow and analyst at the S. Rajaratnam School of International Studies of Nanyang Technological University in Singapore, says food security in Southeast Asia will certainly be affected by the floods in the region.

    “The scale of the floods is unprecedented, and therefore, the threat on regional food security is also unprecedented. Rice supplies to the region is bound to be affected, adding to the pressure on food prices that have already seen rises in recent times due to shortages caused by erratic weather,” he said.

    Before the floods, said to be Thailand’s worst in the last 50 years, the Bangkok government forecast rice production to stand at 25.8 million tons. But, the government predicts it may lose some six million tons of rough-rice from flooding. Analysts say Thailand, which accounts for 30 percent of global rice exports, has already lost three million tons of rice due to floods.

    The price of rice is hovering at about $650 per ton currently, but rice traders are expecting the price to increase to $750 per ton, inching closer to its record-high level of $1,000 per ton in 2008.

    However, many Asian countries control rice prices via government subsidies, making it unlikely that price hikes will hit most consumers in the near term.

    Kamal Malhotra, U.N. Resident Representative for Malaysia, Singapore and Brunei Darussalam, said rice farmers living below the poverty line are among the most vulnerable to the impact of the floods, as they are likely to have the least bargaining power, least resources to organize themselves collectively and are more likely to sit at the lowest end of the production chain.

    “Whether price increase[s] will result in income increase[s] for the majority of those involved in rice production varies, subject to how the production chain is structured and the relative bargaining powers between farmers, distributors and retailers,” he said.

    Malhotra said that while floods and other climatic conditions may cause price increases, the current prices of rice and other food commodities are also partly cost-pushed due to a fuel price hike and also the ongoing policy to replace food crops with cash crops.

    “Without reversing some of these policies, food prices will be extremely volatile to short-term ‘shocks’ such as floods, subsequently affecting food security,” he said.

    He added that shortages in food supplies are exacerbated by the possibility of panic-driven protectionism that may also push up prices.

    In 2008, a global food price shock mainly driven by rising oil prices caused political and social unrest in several poor and developed countries. A World Bank report released on February 15 said continuously rising food prices have pushed another 44 million people into extreme poverty and exposed them more to hunger.

    The floods that hit Southeast Asia have not only destroyed crops and livestock, but also claimed hundreds of lives and displaced thousands of people.

    You May Like

    Video Rubio Looks to Surge in New Hampshire

    Republican presidential candidate has moved into second place in several recent surveys and appears to be gaining ground on longtime frontrunner Donald Trump

    UN Calls for Global Ban on Female Genital Mutilation

    Recent UNICEF report finds at least 200 million girls and women alive today have undergone female genital mutilation in 30 countries

    UN Pilots New Peace Approach in CAR

    Approach launched in northern town of Kaga Bandoro, where former combatants of mainly Muslim Seleka armed group and Christian and animist anti-Balaka movement are being paid to do community work

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    German Artists to Memorialize Refugees With Life Jacket Exhibiti
    X
    Hamada Elsaram
    February 05, 2016 4:30 PM
    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video German Artists to Memorialize Refugees With Life Jacket Exhibit

    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video E-readers Help Ease Africa's Book Shortage

    Millions of people in Africa can't read, and there's a chronic shortage of books. A non-profit organization called Worldreader is trying to help change all that one e-reader at a time. VOA’s Deborah Block tells us about a girls' school in Nairobi, Kenya where Worldreader is making a difference.
    Video

    Video Genius Lets World Share Its Knowledge

    Inspired by crowdsourcing companies like Wikipedia, Genius allows anyone to edit anything on the web, using its web annotation tool
    Video

    Video Former Drug CEO Martin Shkreli Angers US Lawmakers

    A former U.S. pharmaceutical business executive has angered lawmakers by refusing to explain why he raised the price of a life-saving pill by 5,000 percent. Martin Shkreli was removed from a congressional hearing on Thursday after citing his Fifth Amendment right to stay silent. Zlatica Hoke has more.
    Video

    Video Super Bowl TV Commercials are Super Business for Advertisers

    The Super Bowl, the championship clash between the two top teams in American Football, is the most-watched sporting event of the year, and advertisers are lining up and paying big bucks to get their commercials on the air. In fact, the TV commercials during the Super Bowl have become one of the most anticipated and popular features of the event. VOA's Brian Allen has a sneak peek of what you can expect to see when the big game goes to commercial break, and the real entertainment begins.
    Video

    Video In Philippines, Mixed Feelings About Greater US Military Presence

    In the Philippines, some who will be directly affected by a recent Supreme Court decision clearing the way for more United States troop visits are having mixed reactions.  The increased rotations come at a time when the Philippines is trying to build up its military in the face of growing maritime assertiveness from China.  From Bahile, Palawan on the coast of the South China Sea, Simone Orendain has this story.
    Video

    Video Microcephaly's Connection to Zika: Guilty Until Proven Innocent

    The Zika virus rarely causes problems for the people who get it, but it seems to be having a devastating impact on babies whose mothers are infected with Zika. VOA's Carol Pearson has more.
    Video

    Video Solar Innovation Provides Cheap, Clean Energy to Kenya Residents

    In Kenya, a company called M-Kopa Solar is providing clean energy to more than 300,000 homes across East Africa by allowing customers to "pay-as-you-go" via their cell phones. As Lenny Ruvaga reports from Kangemi, customers pay a small deposit for a solar unit and then pay less than a dollar a day to get clean energy to light up their homes or businesses.
    Video

    Video Stunning Artworks Attract Record Crowds, Thanks to Social Media

    A new exhibit at the oldest art museum in America is shattering attendance records. Thousands of visitors are lining up to see nine giant works of art that have gotten a much-deserved shot of viral marketing. The 150-year-old Smithsonian American Art Museum has never had a response quite like this. VOA's Julie Taboh reports.
    Video

    Video Apprenticeships Put Americans on Path Back to Work

    Trying to get more people into the U.S. workforce, the Obama administration last year announced $175 million in grants towards apprenticeship programs. VOA White House correspondent Aru Pande went inside one training center outside of Washington that has gained national recognition for helping put people on the path to employment.
    Video

    Video New Material May Reduce Concussion Effects

    As the 2016 National Football League season reaches its summit at the Super Bowl this coming Sunday (2/7), scientists are trying to learn how to more effectively protect football players from dangerous and damaging concussions. Researchers at Cardiff and Cambridge Universities say their origami-based material may solve the problem. VOA’s George Putic reports.
    Video

    Video Saudi Arabian Women's Sports Chip Away at Stereotypes

    Saudi Arabian female athletes say that sports are on the front line of busting traditions that quash women’s voices, both locally and internationally. In their hometown of Jeddah, a group of basketball players say that by connecting sports to health issues, they are encouraging women and girls to get out of their homes and participate in public life. VOA’s Heather Murdock reports.
    Video

    Video A Year Later, Fortunes Mixed for Syrians Forging New Lives in Berlin

    In April of last year, VOA followed the progress of six young Syrian refugees -- four brothers and their two friends -- as they made their way from Libya to Italy by boat, and eventually to Germany. Reporter Henry Ridgwell caught up with the refugees again in Berlin, as they struggle to forge new lives amid the turmoil of Europe's refugee crisis.
    Video

    Video Zika Virus May be Hard to Stop

    With the Zika virus spreading rapidly, the World Health Organization Monday declared Zika a global health emergency. As Alberto Pimienta reports, for many governments and experts, the worst is yet to come.