This NPR story from this morning did a good job of discussing the nuanced situation for rice farmers in Vietnam; they get higher prices per unit of output, but poor yields have meant less output, and then as consumers they also face higher food prices.Exports from rice-producing countries, such as India and China, have been limited to assure adequate supplies at home. This makes the problem only worse for importing countries. Also, if prices in large rice-producing countries like China and India don't rise because of the export controls what incentives do farmers in these places have to expand production?
Saturday, 12 April 2008
Rice in Asia
Lynne Kiesling at Knowledge Problem notes that The price of rice in Vietnam is high. Kiesling explains that this is in line with the prices of most commodities worldwide. There is growing demand across Asia because of economic growth and there have been poor yields recently and thus rice prices are rising. Kiesling goes on to say