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Rice Price Crisis: Causes, Impacts, and Solutions

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  • 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.
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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
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    References listed on IDEAS

    as
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    Cited by:

    1. 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.
    2. Fatima, Hira & Ahmed, Mumtaz, 2019. "Testing for Exuberance Behavior in Agricultural Commodities of Pakistan," MPRA Paper 95304, University Library of Munich, Germany.
    3. 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.
    4. 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).

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