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RICE FACTSGlobal rice crisis hurts South Asia’s poorby Samarendu Mohanty, Valerien Pede, and Alison ZeiglerWe all know what happened tothe rice market in late 2007and early 2008. Within 6months, global rice pricesrose by more than 300%, reaching anunprecedented figure of US$1,000 perton. Soon afterward, prices retracted; but,unfortunately, they stabilized at a levelmuch higher than what it was before thecrisis began in October 2007. For example,the price of 5% broken Thai rice has beenhovering between $500 and $600 for thepast year and a half compared with thelow $300 range during the 2-year periodprior to the crisis (Fig. 1). Higher worldprices have also been reflected in therise of domestic retail prices in majorrice-consuming countries across Asiaand Africa in the past 2 years. Rice retailprices in December 2009 across majorretail markets in Asia, except the Hubeimarket in China, were around 40% higherthan what they were before the crisis (Fig.2). The situation in Africa during thesame 2-year period was even worse, asthe retail price increased by 40–80% inmost countries, except in Somalia, whereit exceeded 100%. Still, this has happeneddespite measures taken by countriesglobally to insulate domestic markets fromworld market instability.The case of South AsiaMajor rice-consuming countries inSouth Asia such as India and Bangladeshhad also taken measures at the onsetof the global rice crisis to protecttheir domestic markets. Despite suchmeasures, domestic rice retail prices inthese two countries’ major markets (Fig.3) have increased significantly since thebeginning of the crisis.In the case of India, high food priceinflation in rice, sugar, and lentils has,in recent months, become a regularfront-page news story in leading Indiannewspapers. Rice prices in major retailmarkets have been rising steadily sincethe start of 2008 and current prices aremore than 50% higher than 2 years ago.In Bangladesh, rice prices rose andfell in late 2007 and 2008, following thetrends in the global market, but pricesFig. 1. Price of 5% broken Thai rice (March 1998 to January 2010). Source of raw data: The Pinksheet, World Bank.US$/ton (FOB)140120100806040200BangkokKarachiNew DelhiAsiaHanoiPhilippinesMyanmarHubeiAfricaPlaceFig. 2. Change in rice retail prices (December 2009 vs two years earlier). Data source: FAO Rice Monitor (12-2009).have started to rise again in the last 6months. According to an article in the 15February 2010 issue of Star Business, aBangladeshi newspaper, rice prices haveincreased by as much as 37% since thebeginning of the current fiscal year (1July 2009).In order to assess first-hand howpeople in farming communities copewith rising rice prices, we conducteda short survey in parts of India andBangladesh during our recent trip to theSouth Asia in February 2010.AccraKinshasaMogadishuKigaliKampalaLilongweMaputoA snapshot of IndiaOur first stop was the district of Kushinagarin eastern Uttar Pradesh. Wevisited a few villages to conduct afocus group discussion and pretest ourvillage survey questionnaire as part ofthe Cereal Systems Initiative for SouthAsia (CSISA) project funded by the Bill& Melinda Gates Foundation. We tookthis opportunity to interview variousfarmers, including marginal farmers andlandless laborers, regarding the impactsof the rice price hike. The questionnaire44 Rice Today April-June 2010