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

    Post-White House, Obamas to Rent Washington Mansion

    Nine-bedroom home is 3 kilometers from Oval Office, near capital's Embassy Row; rent estimated at around $22,000 a month

    Red Planet? Not so much!

    New research suggest that Mars is in a warm period between cyclical ice ages, and that during Ice Age Maximum over 500,000 years ago, the red planet was decidedly ice, and much whiter to the naked eye.

    Taj Mahal Battles New Threat from Insects

    Swarms of insects are proliferating in the heavily contaminated waters of the Yamuna River, which flows behind the 17th century monument

    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.
    Vietnamese-American Youth Optimistic About Obama's Visit to Vietnami
    X
    Elizabeth Lee
    May 22, 2016 6:04 AM
    U.S. President Barack Obama's visit to Vietnam later this month comes at a time when Vietnam is seeking stronger ties with the United States. Many Vietnamese Americans, especially the younger generation, are optimistic Obama’s trip will help further reconciliation between the two former foes. Elizabeth Lee has more from the community called "Little Saigon" located south of Los Angeles.
    Video

    Video Vietnamese-American Youth Optimistic About Obama's Visit to Vietnam

    U.S. President Barack Obama's visit to Vietnam later this month comes at a time when Vietnam is seeking stronger ties with the United States. Many Vietnamese Americans, especially the younger generation, are optimistic Obama’s trip will help further reconciliation between the two former foes. Elizabeth Lee has more from the community called "Little Saigon" located south of Los Angeles.
    Video

    Video First-generation, Afghan-American Student Sets Sights on Basketball Glory

    Their parents are immigrants to the United States. They are kids who live between two worlds -- their parents' homeland and the U.S. For many of them, they feel most "American" at school. It can be tricky balancing both worlds. In this report, produced by Beth Mendelson, Arash Arabasadi tells us about one Afghan-American student who seems to be coping -- one shot at a time.
    Video

    Video Newest US Citizens, Writing the Next Great Chapter

    While universities across the United States honor their newest graduates this Friday, many immigrants in downtown Manhattan are celebrating, too. One hundred of them, representing 31 countries across four continents, graduated as U.S. citizens, joining the ranks of 680,000 others every year in New York and cities around the country.
    Video

    Video Vietnam Sees Strong Economic Growth Despite Incomplete Reforms

    Vietnam has transformed its communist economy to become one of the world's fastest-growing nations. While the reforms are incomplete, multinational corporations see a profitable future in Vietnam and have made major investments -- as VOA's Jim Randle reports.
    Video

    Video Qatar Denies World Cup Corruption

    The head of Qatar’s organizing committee for the 2022 World Cup insists his country's bid to host the soccer tournament was completely clean, despite the corruption scandals that have rocked the sport’s governing body, FIFA. Hassan Al-Thawadi also said new laws would offer protection to migrants working on World Cup construction projects. VOA's Henry Ridgwell reports.
    Video

    Video Infrastructure Funding Puts Cambodia on Front Line of International Politics

    When leaders of the world’s seven most developed economies meet in Japan next week, demands for infrastructure investment world wide will be high on the agenda. Japanese Prime Minister Shinzo Abe’s push for “quality infrastructure investment” throughout Asia has been widely viewed as a counter to the rise of Chinese investment flooding into region.
    Video

    Video Democrats Fear Party Unity a Casualty in Clinton-Sanders Battle

    Democratic presidential front-runner Hillary Clinton claimed a narrow victory in Tuesday's Kentucky primary even as rival Bernie Sanders won in Oregon. Tensions between the two campaigns are rising, prompting fears that the party will have a difficult time unifying to face the presumptive Republican nominee, Donald Trump. VOA national correspondent Jim Malone has more from Washington.
    Video

    Video Portrait of a Transgender Marriage: Husband and Wife Navigate New Roles

    As controversy continues in North Carolina over the use of public bathrooms by transgender individuals, personal struggles with gender identity that were once secret are now coming to light. VOA’s Tina Trinh explored the ramifications for one couple as part of trans.formation, a series of stories on transgender issues.
    Video

    Video Amerikan Hero Flips Stereotype of Middle Eastern Character

    An Iranian American comedian is hoping to connect with American audiences through a film that inverts some of Hollywood's stereotypes about Middle Eastern characters. Sama Dizayee reports.
    Video

    Video Budding Young Inventors Tackle City's Problems with 3-D Printing

    Every city has problems, and local officials and politicians are often frustrated by their inability to solve them. But surprising solutions can come from unexpected places. Students in Baltimore. Maryland, took up the challenge to solve problems they identified in their city, and came up with projects and products to make a difference. VOA's June Soh has more on a digital fabrication competition primarily focused on 3-D design and printing. Carol Pearson narrates.

    Special Report

    Adrift The Invisible African Diaspora