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Sustainability of rice in the global food system - IRRI books

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Table 4. Intensity <strong>of</strong> labor use and importance <strong>of</strong> <strong>the</strong> labor market <strong>in</strong> <strong>rice</strong> cultivation <strong>in</strong> selected<br />

Asian countries.<br />

Labor use (d ha -1 ) Hired labor (%) Wage<br />

Reference<br />

rate<br />

Country year Wet Dry Wet Dry ( US$ d -1 )<br />

season season season season<br />

Ch<strong>in</strong>a<br />

India<br />

Punjab<br />

West Bengal<br />

Bangladesh<br />

Vietnam<br />

Indonesia<br />

Thailand<br />

Philipp<strong>in</strong>es<br />

Japan<br />

1991<br />

1987–88<br />

1984–85<br />

1991<br />

1992<br />

1988<br />

1992–93<br />

1991<br />

1993<br />

311<br />

101<br />

148<br />

145<br />

89<br />

135<br />

67<br />

60<br />

58<br />

311<br />

n.a. a<br />

n.a.<br />

170<br />

48<br />

126<br />

105<br />

68<br />

–<br />

nil<br />

69<br />

58<br />

55<br />

38<br />

34<br />

72<br />

51<br />

1<br />

nil<br />

n.a.<br />

n.a.<br />

45<br />

58<br />

65<br />

58<br />

67<br />

–<br />

0.55<br />

1.15<br />

0.85<br />

1.39<br />

0.77<br />

n.a.<br />

2.51<br />

2.28<br />

91.00<br />

a n.a. = <strong>in</strong>formation not available.<br />

Source: <strong>IRRI</strong> 1995.<br />

Adjustments <strong>in</strong> <strong>the</strong> distribution <strong>of</strong> production factors through <strong>the</strong> operation <strong>of</strong> <strong>the</strong><br />

land, labor, and tenancy markets have had a positive effect on <strong>in</strong>come distribution,<br />

which, to some extent, counterbalanced <strong>the</strong> unequal distribution <strong>of</strong> <strong>in</strong>come from <strong>the</strong><br />

differential adoption <strong>of</strong> technology across regions and eco<strong>system</strong>s (David and Otsuka<br />

1 994).<br />

Economic and political l<strong>in</strong>kages<br />

In Asia, economic development and <strong>in</strong>dustrial growth are closely l<strong>in</strong>ked to a susta<strong>in</strong>able<br />

supply <strong>of</strong> <strong>rice</strong> at low and stable p<strong>rice</strong>s. If <strong>food</strong> p<strong>rice</strong>s <strong>in</strong>crease, organized urban<br />

labor groups put pressure on employers to raise wages to ma<strong>in</strong>ta<strong>in</strong> <strong>the</strong>ir liv<strong>in</strong>g standards.<br />

The consequent <strong>in</strong>crease <strong>in</strong> nom<strong>in</strong>al wage rates reduces <strong>in</strong>dustrial pr<strong>of</strong>its, hampers<br />

capital accumulation, and raises <strong>the</strong> cost <strong>of</strong> <strong>in</strong>dustrial products. These cost <strong>in</strong>creases<br />

affect competitive strength <strong>in</strong> <strong>the</strong> world market. The first sign <strong>of</strong> civil unrest<br />

is <strong>of</strong>ten traced to ris<strong>in</strong>g <strong>rice</strong> p<strong>rice</strong>s, which aggravate <strong>the</strong> <strong>food</strong> <strong>in</strong>security <strong>of</strong> <strong>the</strong> grow<strong>in</strong>g<br />

ranks <strong>of</strong> urban workers and <strong>the</strong> rural landless, who spend 50–70% <strong>of</strong> <strong>the</strong>ir total<br />

<strong>in</strong>come on staple <strong>food</strong>.<br />

The o<strong>the</strong>r factor that encourages government <strong>in</strong>tervention <strong>in</strong> <strong>the</strong> <strong>rice</strong> market is<br />

<strong>the</strong> year-to-year large fluctuations <strong>in</strong> <strong>the</strong> domestic production <strong>of</strong> <strong>rice</strong> and <strong>the</strong> result<strong>in</strong>g<br />

<strong>in</strong>stability <strong>in</strong> p<strong>rice</strong>s. In <strong>the</strong> ra<strong>in</strong>fed areas <strong>in</strong> South and Sou<strong>the</strong>ast Asia, <strong>the</strong> size <strong>of</strong> <strong>the</strong><br />

<strong>rice</strong> harvest depends more on <strong>the</strong> vagaries <strong>of</strong> <strong>the</strong> monsoon than on farmers’ <strong>in</strong>put<br />

allocation decisions based on market conditions. Even <strong>in</strong> regions with a reliable irrigation<br />

<strong>in</strong>frastructure, production is <strong>of</strong>ten affected by excessive ra<strong>in</strong>s, cloud cover,<br />

strong w<strong>in</strong>ds and typhoons, cold <strong>in</strong>jury, and <strong>in</strong>sect and disease pressure that also depends<br />

on climatic variations. Therefore, p<strong>rice</strong>s are <strong>of</strong>ten determ<strong>in</strong>ed by <strong>the</strong> exogenous<br />

change <strong>in</strong> supply, ra<strong>the</strong>r than by changes <strong>in</strong> supply from variations <strong>in</strong> <strong>in</strong>putoutput<br />

p<strong>rice</strong>s (see next page). An important political objective <strong>in</strong> most <strong>rice</strong>-grow<strong>in</strong>g<br />

24 Hossa<strong>in</strong>

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