How much water does rice need? - adron.sr

SPECIAL REPORTLast October’s World Rice Commerce conference heralded a coming together of oftendisparate sections of the rice industry—Rice Today reportsby V. SubramanianWorld Rice Commerce 2008:price volatility set to continuepricevolatility” was theconclusion at the“Sustained7th World RiceCommerce 2008 Conferenceheld in Chiang Mai, Thailand,on 20-22 October.Addressing businessconcerns facing the riceindustry, the event broughttogether representativesfrom export giants Thailand,Vietnam, India, Pakistan,and the United States,who joined key marketparticipants (including theNational Food Authority ofthe Philippines and PerumBulog of Indonesia) and apanel of experts representingthe world’s most prominenttraders. Participants analyzed theskyrocketing market prices witnessedup to May 2008 and the slide downsince, and tried to glimpse the future.Stability was key as participantsrecognized sustainable supply,growing demand, and a stable priceas the foundations necessary tobuild a rice industry that can ablyovercome food security concerns andoffer an affordable staple for some ofthe world’s poorest people. However,current record crops in SoutheastAsia, India, and China conspired witha seemingly elastic demand (that is,demand decreases as price increases)to lower prices and raise concernsabout long-term stability of supply.In short, if prices continue to bouncearound as they have for the past yearor so, future plantings are likely toexpand and contract accordingly.Commenting on the eventsleading up to the May highs inLIEN DAI of the VietnamFood Association (left)with V. Subramanian.THE RICE TRADERfood price and the downwardtrend since, Apiradi Tandtraporn,director general, Departmentof Foreign Trade at Thailand’sMinistry of Commerce, describedthe situation as a wakeup call. “It isthe cumulative effect of long-termtrends in supply and demand andnot any sudden effect,” she said.In an environment of fallingprices, keynote speaker Ms. Apiradivoiced her fears for food securityas falling prices threatened to curbfuture plantings. She revealed thepressures facing policymakers(managing Thailand’s rice retentionprogram, for example) in achievingconsistent supply and availabilityof rice, as well as a genuinecommitment to develop Thailandas the “rice bowl to the world.”“Rice is produced by poorcountries and consumed bypoor people; let’s help solve thedilemma,” said Ms. Apiradi,emphasizing the need forstability and a price thatalso takes into accountfarmers’ living conditions.Food security andmaintaining productionMulyo Siddik of the East AsiaEmergency Rice Reservehighlighted the challengesin maintaining production(such as its susceptibilityto weather and otheruncontrollable factors), withproduction failure resultingin consequences reachingbeyond food security tonational security. A longtermstrategy was seen asvital in supporting pricestabilization, encouraging production,and enhancing yield. Dr. Mulyosaid that this must be combinedwith long-term reserves to preventunnecessary price volatility andconsequent production responses.Reluctance from buyers expectingeven lower prices unveiled a majorflaw in the balance between the needsat destination (demand) markets andat origins (exporters). This imbalancethreatens to disrupt supply and addto the already daunting long-termchallenge facing policymakers andresearch organizations in deliveringsufficient rice to the world.Solutions for the long runAchim Dobermann, deputydirector general for research atthe International Rice ResearchInstitute, revealed that, “A 50%increase in rice prices may throw30–100 million people in Asia backRice Today January-March 2009 11