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

    Russian-speaking Muslim Exiles Fear Possible Russia-Turkey Thaw

    Exiled from Russia as Islamic radicals and extremists, thousands found asylum in Turkey

    US Presidential Election Ends at Conventions for Territorial Citizens

    Citizens of US territories like Guam or Puerto Rico enjoy participation in US political process but are denied right to vote for president

    UN Syria Envoy: 'Devil Is in the Details' of Russian Aleppo Proposal

    UN uncertain about the possible humanitarian impact of Russian proposal to establish escape corridors in Aleppo

    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.
    Uganda Unveils its First Solar-powered Busi
    X
    July 28, 2016 4:16 AM
    A solar-powered bus described by its Ugandan makers as the first in Africa has made its public debut. Kiira Motors' electric bus, Kayoola, displayed recently at a stadium in Uganda's capital. From Kampala, Maurice Magorane filed this report narrated by Salem Solomon.
    Video

    Video Uganda Unveils its First Solar-powered Bus

    A solar-powered bus described by its Ugandan makers as the first in Africa has made its public debut. Kiira Motors' electric bus, Kayoola, displayed recently at a stadium in Uganda's capital. From Kampala, Maurice Magorane filed this report narrated by Salem Solomon.
    Video

    Video Silicon Valley: More Than A Place, It's a Culture

    Silicon Valley is a technology powerhouse and a place that companies such as Google, Facebook and Apple call home. It is a region in northern California that stretches from San Francisco to San Jose. But, more than that, it's known for its startup culture. VOA's Elizabeth Lee went inside one company to find out what it's like to work in a startup.
    Video

    Video Immigrant Delegate Marvels at Democratic Process

    It’s been a bitter and divisive election season – but first time Indian-American delegate Dr. Shashi Gupta headed to the Democratic National Convention with a sense of hope. VOA’s Katherine Gypson followed this immigrant with the love of U.S. politics all the way to Philadelphia.
    Video

    Video Philadelphia Uses DNC Spotlight to Profile Historic Role in Founding of United States

    The slogan of the Democratic National Convention now underway in Philadelphia is “Let’s Make History Again” which recognizes the role the city played in the foundation of the United States in the 18th century. As VOA’s Kane Farabaugh reports, local institutions are opening their doors in an effort to capitalize on the convention spotlight to draw visitors, and to offer more than just a history lesson.
    Video

    Video A Life of Fighting Back: Hillary Clinton Shatters Glass Ceiling

    Hillary Clinton made history Thursday, overcoming personal and political setbacks to become the first woman to win the presidential nomination of a major U.S. political party. If she wins in November, she will go from “first lady” to U.S. Senator from New York, to Secretary of State, to “Madam President.” Polls show Clinton is both beloved and despised. White House Correspondent Cindy Saine takes a look at the life of the woman both supporters and detractors agree is a fighter for the ages.
    Video

    Video Dutch Entrepreneurs Turn Rainwater Into Beer

    June has been recorded as one of the wettest months in more than a century in many parts of Europe. To a group of entrepreneurs in Amsterdam the rain came as a blessing, as they used the extra water to brew beer. Serginho Roosblad has more to the story.
    Video

    Video First Time Delegate’s First Day Frustrations

    With thousands of people filling the streets of Philadelphia, Pennsylvania for the 2016 Democratic National Convention, VOA’s Kane Farabaugh narrowed in on one delegate as she made her first trip to a national party convention. It was a day that was anything but routine for this United States military veteran.
    Video

    Video Commerce Thrives on US-Mexico Border

    At the Democratic Convention in Philadelphia this week, the party’s presumptive presidential nominee, Hillary Clinton, is expected to attack proposals made by her opponent, Republican presidential nominee Donald Trump, to build a wall along the U.S.-Mexico border. Last Friday, President Barack Obama hosted his Mexican counterpart, President Enrique Peña Nieto, to underscore the good relations between the two countries. VOA’s Greg Flakus reports from Tucson.
    Video

    Video Film Helps Save Ethiopian Children Thought to be Cursed

    'Omo Child' looks at effort of African man to stop killings of ‘mingi’ children
    Video

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video Recycling Lifeline for Lebanon’s Last Glassblowers

    In a small Lebanese coastal town, one family is preserving a craft that stretches back millennia. The art of glass blowing was developed by Phoenicians in the region, and the Khalifehs say they are the only ones keeping the skill alive in Lebanon. But despite teaming up with an eco-entrepreneur and receiving an unexpected boost from the country’s recent trash crisis the future remains uncertain. John Owens reports from Sarafand.
    Video

    Video Migrants Continue to Risk Lives Crossing US Border from Mexico

    In his speech Thursday before the Republican National Convention, the party’s presidential candidate, Donald Trump, reiterated his proposal to build a wall along the U.S.-Mexico border if elected. Polls show a large percentage of Americans support better control of the nation's southwestern border, but as VOA’s Greg Flakus reports from the border town of Nogales in the Mexican state of Sonora, the situation faced by people trying to cross the border is already daunting.

    Special Report

    Adrift The Invisible African Diaspora