By Rajendra Rampersaud
The present rice shortage is currently creating havoc with the global economy after years of unfair treatment to rice farmers. Despite the fact that less than seven per cent of total rice production is traded in the world market, rice remained a sensitive political substance in the commodity market. A combination of production subsidies, tariffs, and non tariff barriers that distorted rice production, distribution and consumption in the past have led to this present situation. This article looks at the growing unfulfilled demand for rice that is unprecedented since the Second World War as hunger and rising poverty sit at the heart of millions of people. The analysis concludes that even though the present world rice shortage presents a threat, Guyana has a unique opportunity to increase both output and export of rice.
The world economy is today suffering from a shortage of rice considered one of the staple diets for the world population. The World Bank considered rice as one of the most important food grains accounting for over 20 per cent of global calories. World stock of rice is now at its lowest level with production intercepted by a combination of weather, exodus of farmers and price related problems. Based on FAOSTATS the rising rice prices began in late December 2006 as it moved from US$305 to US$376 by the end of 2007. However, even steeper increases were recorded in the first quarter of this year; the Economist (05-17-08) stated that since January the price of rice increased by 141 percent. Further, for last week alone Reuters reported that the price jumped by 5% in Thailand taking prices to $1000, almost triple the level at the start of the year. Policy makers have been responding with very rigid policies such as banning and limiting the export of rice. With the current global food shortage, this policy is very short term. While the benefits of the famous Green Revolution of the 60s are fully exhausted new policies to stimulate output have to be put in place to deal with this untenable situation.
