IDEAS home Printed from https://ideas.repec.org/a/ags/phajad/199086.html
   My bibliography  Save this article

Rice Price Crisis: Causes, Impacts, and Solutions

Author

Listed:
  • Rosegrant, Mark W.
  • Bhandari, Humnath
  • Pandey, Sushil
  • Sulser, Timothy

Abstract

A rapid increase in food grain prices in the first half of 2008 has diverted global attention to the food crisis. Rice, the staple food of millions of Asia’s poor, is not only an economic good but also a political commodity. The price of rice escalated in May due to a number of shortand long-term factors, with the export price exceeding USD 1000 per ton. Keeping the price of rice low, thus making the commodity affordable to the poor, is critically important in reducing poverty. Poor households spend a substantial portion of their incomes on rice; an increase in rice price is equivalent to a reduction in their real incomes. This paper analyzes the factors that have contributed to the rapid rise in rice price and assesses the impact of price upsurge on poverty. A scenario analysis on rice prices was conducted through projection of long-term demand and supply of rice. The final section of the paper includes short- and long-term solutions to the price crisis.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Rosegrant, Mark W. & Bhandari, Humnath & Pandey, Sushil & Sulser, Timothy, 2010. "Rice Price Crisis: Causes, Impacts, and Solutions," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 7(2), pages 1-15, December.
    • Handle: RePEc:ags:phajad:199086
    DOI: 10.22004/ag.econ.199086
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/199086/files/AJAD_2010_7_2_1Pandey.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.199086?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. von Braun, Joachim, 2008. "Rising food prices: What should be done? [In Chinese]," Policy briefs 1 CH, International Food Policy Research Institute (IFPRI).
    2. Dawe, David, 2008. "Have recent increases in international cereal prices been transmitted to domestic economies? The experience in seven large Asian countries," ESA Working Papers 37087, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    3. Rosegrant, Mark W. & Agcaoili-Sombilla, Mercedita C. & Perez, Nicostrato D., 1995. "Global food projections to 2020: implications for investment," 2020 vision discussion papers 5, International Food Policy Research Institute (IFPRI).
    4. repec:bla:eurcho:v:7:y:2008:i:specialissuecap:p:30-35 is not listed on IDEAS
    5. von Braun, Joachim, 2008. "Rising food prices: What should be done?," Policy briefs 1, International Food Policy Research Institute (IFPRI).
    6. Ivanic, Maros & Martin, Will, 2008. "Implications of higher global food prices for poverty in low-income countries," Policy Research Working Paper Series 4594, The World Bank.
    7. David Dawe, 2008. "Have Recent Increases in International Cereal Prices Been Transmitted to Domestic Economies? The experience in seven large Asian countries," Working Papers 08-03, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    8. Dawe, D., 2002. "The changing structure of the world rice market, 1950-2000," Food Policy, Elsevier, vol. 27(4), pages 355-370, August.
    9. Unknown, 2008. "Institute of Agricultural Economics," Economics of Agriculture, Institute of Agricultural Economics, vol. 55(3).
    10. Pandey, Sushil & Pal, Suresh, 2007. "Are less-favored environments over-invested? The case of rice research in India," Food Policy, Elsevier, vol. 32(5-6), pages 606-623.
    11. Maros Ivanic & Will Martin, 2008. "Implications of higher global food prices for poverty in low‐income countries1," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 405-416, November.
    12. Shenggen Fan & Peter Hazell, 2001. "Returns to Public Investments in the Less-Favored Areas of India and China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1217-1222.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fazleen, Abdul & Stephan, Von Cramon, 2015. "The Policy Analysis Matrix of Profitability and Competitiveness of Rice Farming in Malaysia," 2015 Conference, August 9-14, 2015, Milan, Italy 210872, International Association of Agricultural Economists.
    2. Fatima, Hira & Ahmed, Mumtaz, 2019. "Testing for Exuberance Behavior in Agricultural Commodities of Pakistan," MPRA Paper 95304, University Library of Munich, Germany.
    3. Arouna, Aminou & Fatognon, Irene Akoko & Saito, Kazuki & Futakuchi, Koichi, 2021. "Moving toward rice self-sufficiency in sub-Saharan Africa by 2030: Lessons learned from 10 years of the Coalition for African Rice Development," World Development Perspectives, Elsevier, vol. 21(C).
    4. Bairagi, Subir K. & Durand-Morat, Alvaro, 2021. "The Impacts of Droughts and Floods on the Global Rice Market," 2021 Annual Meeting, August 1-3, Austin, Texas 313859, Agricultural and Applied Economics Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Derek Headey & Shenggen Fan, 2008. "Anatomy of a crisis: the causes and consequences of surging food prices," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 375-391, November.
    2. Ivanic, Maros & Martin, Will & Zaman, Hassan, 2012. "Estimating the Short-Run Poverty Impacts of the 2010–11 Surge in Food Prices," World Development, Elsevier, vol. 40(11), pages 2302-2317.
    3. Kumar, Neha & Quisumbing, Agnes R., 2011. "Gendered impacts of the 2007-08 food price crisis: Evidence using panel data from rural Ethiopia," IFPRI discussion papers 1093, International Food Policy Research Institute (IFPRI).
    4. Bekkers, Eddy & Brockmeier, Martina & Francois, Joseph & Yang, Fan, 2013. "Pass-Through, Food Prices and Food Security," Conference papers 332396, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Dethier, Jean-Jacques & Effenberger, Alexandra, 2012. "Agriculture and development: A brief review of the literature," Economic Systems, Elsevier, vol. 36(2), pages 175-205.
    6. Nora Lustig, 2009. "Coping with Rising Food Prices: Policy Dilemmas in the Developing World," Working Papers 0907, Tulane University, Department of Economics.
    7. Bekkers, Eddy & Brockmeier, Martina & Francois, Joseph & Yang, Fan, 2017. "Local Food Prices and International Price Transmission," World Development, Elsevier, vol. 96(C), pages 216-230.
    8. Craig Sugden, 2009. "Responding to High Commodity Prices," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 23(1), pages 79-105, May.
    9. Headey, Derek, 2011. "Was the global food crisis really a crisis?: Simulations versus self-reporting," IFPRI discussion papers 1087, International Food Policy Research Institute (IFPRI).
    10. Maes, Kenneth C. & Hadley, Craig & Tesfaye, Fikru & Shifferaw, Selamawit, 2010. "Food insecurity and mental health: Surprising trends among community health volunteers in Addis Ababa, Ethiopia during the 2008 food crisis," Social Science & Medicine, Elsevier, vol. 70(9), pages 1450-1457, May.
    11. Matthias Kalkuhl & Lukas Kornher & Marta Kozicka & Pierre Boulanger & Maximo Torero, 2013. "Conceptual framework on price volatility and its impact on food and nutrition security in the short term," FOODSECURE Working papers 15, LEI Wageningen UR.
    12. Benson, Todd & Minot, Nicholas & Pender, John & Robles, Miguel & von Braun, Joachim, 2008. "Global food crises: Monitoring and assessing impact to inform policy responses," Food policy reports 19, International Food Policy Research Institute (IFPRI).
    13. Kym Anderson & Will Martin, 2009. "Distortions to Agricultural Incentives in Asia," World Bank Publications - Books, The World Bank Group, number 2611.
    14. Derek Headey & Sangeetha Malaiyandi & Shenggen Fan, 2010. "Navigating the perfect storm: reflections on the food, energy, and financial crises," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 217-228, November.
    15. Delphine Boutin, 2011. "D’une crise à l’autre : Mesurer l’impact des prix alimentaires sur la pauvreté," Larefi Working Papers 1106, Larefi, Université Bordeaux 4.
    16. Bingxin Yu & Shenggen Fan, 2011. "Rice production response in Cambodia," Agricultural Economics, International Association of Agricultural Economists, vol. 42(3), pages 437-450, May.
    17. Joe Dewbre & Céline Giner & Wyatt Thompson & Martin Von Lampe, 2008. "High food commodity prices: will they stay? who will pay?," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 393-403, November.
    18. de Brauw, Alan, 2011. "Migration and child development during the food price crisis in El Salvador," Food Policy, Elsevier, vol. 36(1), pages 28-40, February.
    19. Abbott, Philip C. & Hurt, Christopher & Tyner, Wallace E., 2008. "What's Driving Food Prices?," Issue Reports 37951, Farm Foundation.
    20. Delphine Boutin, 2011. "D’une crise à l’autre : Mesurer l’impact des prix alimentaires sur la pauvreté," Larefi Working Papers 201106, Larefi, Université Bordeaux 4.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:phajad:199086. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/searcph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.