News / Asia

    Analysts: Regional Cooperation Needed to Manage Asia Food Supply Shocks

    A farmer harvests her damaged rice, October 20, 2010, in San Mariano township, two days after typhoon Megi (local name "Juan") barreled Isabela province and nearby provinces in northeastern Philippines
    A farmer harvests her damaged rice, October 20, 2010, in San Mariano township, two days after typhoon Megi (local name "Juan") barreled Isabela province and nearby provinces in northeastern Philippines

    Food prices are rising in Asia, and governments are taking various measures to keep them under control - from price ceilings to export restrictions. But uncoordinated government responses could exacerbate the situation.

    Droughts, floods, shortages and increased demand have driven food prices in Asia higher in recent months. And experts say prices could jump even more as one of the world’s largest wheat growers, China, suffers from a dry spell.

    As a result, some countries have taken measures to ensure their own supply. India has banned the sale of wheat overseas since 2007, and despite a bumper harvest this season, the government continues to stockpile wheat.

    Food prices at "dangerous levels"

    This week, the World Bank said food prices have hit "dangerous levels" and have pushed 44 million people into poverty. World Bank President Robert Zoellick urges governments to avoid banning exports or controlling prices, which he says would worsen the problem.

    Katsuji Matsunami, a food security specialist at the Asian Development Bank in Manila, says the world is awakening to the danger of food supply vulnerability.

    "The food supply system is vulnerable against climate extremes - droughts, floods and so on. In the last few decades, we’ve gotten enough money and all the might and knowledge, but we just simply didn’t do enough to flood-proof Asia’s vast flood plains or climate-proof small farmers from drought. We could have done that, but we didn’t do that," he said.

    Agricultural policies partly to blame

    Nagesh Kumar, chief economist of the United Nations Economics and Social Commission for Asia and the Pacific in Bangkok, says weak agricultural policies are also to blame.

    "Supply has not been keeping pace with rising demand because of neglect of agriculture in government policies over the past two decades. And so agriculture productivity has stagnated," said Kumar.

    Asia embraced the agricultural "Green Revolution" of the 1960s and 1970s. But agricultural productivity has generally diminished since then as more farm land was used for homes and factories to accommodate rising populations and industrialization.

    According to an Asia Foundation food security report last year, agriculture’s share of the economies of Southeast Asia’s major farm producers - Indonesia, Thailand, the Philippines, Vietnam and Malaysia - has dropped from 38.6 percent in 1970 to 14.5 in 2007. In China, that number fell to 11 percent in 2007 from 35 percent in 1970.

    Although the region is home to some of the world’s largest grains growers, more than 64 percent of the world’s undernourished people live here, too.

    Governments take measures

    In response to expected shortfalls, China pledged cash to farmers to irrigate wheat fields, plant wheat and corn, and treat crop disease. It also set aside $180 million for new equipment and more than $1 billion for drought alleviation.

    China also imposed price controls for some food items to shield poor consumers from inflation - which reached 4.9 percent in January.

    In Thailand, the government capped the price of cooking palm oil at $1.50 a liter, after floods sharply cut domestic production.

    Kumar, however, says that while government intervention may be needed to help the poor, measures such as price controls may spur black market activity.

    "If there is a sort of regulation, sort of monitoring along with price controls, it can be very effective, especially if prices are being driven by hoarding or speculation," said Kumar.

    Need for coordinated actions

    Individual government responses could exacerbate the situation. In early 2008, rice prices more than doubled. Cambodia, Vietnam, India and China, worried about supplies, cut rice exports. At the same time, rice-importing governments ordered large stocks in the international market, driving prices even higher.

    Matsunami says there was no real reason for rice prices to skyrocket in 2008.

    "Some experts say it was hoarding at every level… But I think more importantly there were various trade restrictive policies taken, export bans and things like that," he said.

    So far, except for India, Asian governments have not restricted exports of important commodities. Indian wheat farmers are pressing the government to allow them to sell overseas, which could help increase global supply.

    Rice prices are expected to moderate because of an ample harvest and lower demand from the region’s biggest buyer, the Philippines.

    Matsunami says having adequate market information helps prevent price volatility. For example, he says the rice trade could benefit from better communication among governments about demand and supply.

    "A major part of the rice trade being done within Southeast Asian region is among the Southeast Asian countries," he said. "Is there then a multilateral forum where rice importers and exporters sit together? They don’t have to share the greatest national secret. But can they just sit together and talk casually, ‘How do you see the outlook? How do you see your country’s rice market now?’ That kind of forum does not exist."

    Regional food banks

    Experts also push for the creation of regional food banks that nations can draw on at times of shortages as a way to prevent a sudden spike in prices.

    The 10-member Association of Southeast Asian Nations, China, South Korea and Japan have established a rice reserve but only for emergency humanitarian needs.

    The eight-member South Asian Association for Regional Cooperation has yet to make its regional food bank fully operational despite an agreement in 2007.



    You May Like

    Chechen Suspected in Istanbul Attack, but Questions Remain

    Turkish sources say North Caucasus militants involved in bombing at Ataturk airport, but name of at least one alleged attacker raises doubts

    With Johnson Out, Can a New ‘Margaret Thatcher’ Save Britain?

    Contest to replace David Cameron as Britain’s prime minister started in earnest Thursday with top candidates outlining strategy to deal with Brexit fallout

    US Finds Progress Slow Against Human Trafficking in Africa

    Africa continues to be a major source and destination for human trafficking of all kinds -- from forced labor to sexual slavery, says State Department report

    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.
    Clinton Leads Trump, But Many Voters Don't Like Eitheri
    X
    Jim Malone
    June 29, 2016 6:16 PM
    In the U.S. presidential race, most recent polls show Democrat Hillary Clinton with a steady lead over Republican Donald Trump as both presumptive party nominees prepare for their party conventions next month. Trump’s disapproval ratings have risen in some recent surveys, but Clinton also suffers from high negative ratings, suggesting both candidates have a lot of work to do to improve their images before the November election. VOA National correspondent Jim Malone has more from Washington.
    Video

    Video Clinton Leads Trump, But Many Voters Don't Like Either

    In the U.S. presidential race, most recent polls show Democrat Hillary Clinton with a steady lead over Republican Donald Trump as both presumptive party nominees prepare for their party conventions next month. Trump’s disapproval ratings have risen in some recent surveys, but Clinton also suffers from high negative ratings, suggesting both candidates have a lot of work to do to improve their images before the November election. VOA National correspondent Jim Malone has more from Washington.
    Video

    Video Slow Rebuilding Amid Boko Haram Destruction in Nigeria’s Northeast

    Military operations have chased Boko Haram out of towns and cities in Nigeria’s northeast since early last year. But it is only recently that people have begun returning to their homes in Adamawa state, near the border with Cameroon, to try to rebuild their lives. For VOA, Chris Stein traveled to the area and has this report.
    Video

    Video New US Ambassador to Somalia Faces Heavy Challenges

    The new U.S. envoy to Somalia, who was sworn into office Monday, will be the first American ambassador to that nation in 25 years. He will take up his post as Somalia faces a number of crucial issues, including insecurity, an upcoming election, and the potential closure of the Dadaab refugee camp in Kenya. VOA’s Jill Craig asked Somalis living in Kenya’s capital city Nairobi how they feel about the U.S. finally installing a new ambassador.
    Video

    Video At National Zoo, Captivating Animal Sculptures Illustrate Tragedy of Ocean Pollution

    The National Zoo in Washington, D.C., is home to about 1,800 animals, representing 300 species. But throughout the summer, visitors can also see other kinds of creatures there. They are larger-than-life animal sculptures that speak volumes about a global issue — the massive plastic pollution in our oceans. VOA's June Soh takes us to the zoo's special exhibit, called Washed Ashore: Art to Save the Sea.
    Video

    Video Baghdad Bikers Defy War with a Roar

    Baghdad is a city of contradictions. War is a constant. Explosions and kidnappings are part of daily life. But the Iraqi capital remains a thriving city, even if a little beat up. VOA's Sharon Behn reports on how some in Baghdad are defying the stereotype of a nation at war by pursuing a lifestyle known for its iconic symbols of rebellion: motorbikes, leather jackets and roaring engines.
    Video

    Video Melting Pot of Immigrants Working to Restore US Capitol Dome

    The American Iron Works company is one of the firms working to renovate the iconic U.S. Capitol Dome. The company employs immigrants of many different cultural and national backgrounds. VOA’s Arman Tarjimanyan has more.
    Video

    Video Testing Bamboo as Building Material

    For thousands of years various species of bamboo - one of the world's most versatile plants - have been used for diverse purposes ranging from food and medicine to textiles and construction. But its use on a large scale is hampered because it's not manufactured to specific standards but grown in the ground. A University of Pittsburgh professor is on track to changing that. VOA’s George Putic reports.
    Video

    Video Orphanage in Iraqi City Houses Kids Who Lost their Parents to Attacks by IS

    An orphanage in Iraqi Kurdistan has become home to scores of Yazidi children who lost their parents after Islamic State militants took over Sinjar in Iraq’s Nineveh Province in 2014. Iraqi Kurdish forces backed by the U.S. airstrikes have since recaptured Sinjar but the need for the care provided by the orphanage continues. VOA’s Kawa Omar filed this report narrated by Rob Raffaele.
    Video

    Video Re-Opening Old Wounds in a Bullet-Riddled Cultural Landmark

    A cultural landmark before Lebanon’s civil war transformed it into a nest of snipers, Beirut’s ‘Yellow House’ is once again set to play a crucial role in the city.  Built in a neo-Ottoman style in the 1920s, in September it is set to be re-opened as a ‘memory museum’ - its bullet-riddled walls and bunkered positions overlooking the city’s notorious ‘Green Line’ maintained for posterity. John Owens reports from Beirut.
    Video

    Video Brexit Resounds in US Presidential Contest

    Britain’s decision to leave the European Union is resounding in America’s presidential race. As VOA’s Michael Bowman reports, Republican presumptive nominee Donald Trump sees Britain’s move as an affirmation of his campaign’s core messages, while Democrat Hillary Clinton sees the episode as further evidence that Trump is unfit to be president.
    Video

    Video NASA Juno Spacecraft, Nearing Jupiter, to Shed Light on Gas Giant

    After a five-year journey, the spacecraft Juno is nearing its destination, the giant planet Jupiter, where it will enter orbit and start sending data back July 4th. As Mike O'Sullivan reports from Pasadena, California, the craft will pierce the veil of Jupiter's dense cloud cover to reveal its mysteries.
    Video

    Video Orlando Shooting Changes Debate on Gun Control

    It’s been nearly two weeks since the largest mass shooting ever in the United States. Despite public calls for tighter gun control laws, Congress is at an impasse. Democratic lawmakers resorted to a 1960s civil rights tactic to portray their frustration. VOA’s Carolyn Presutti explains how the Orlando, Florida shooting is changing the debate.

    Special Report

    Adrift The Invisible African Diaspora