INTRA-ASEAN TRADE IN RICE

Abstract

Rice is the staple food of the peoples of the Association of South East Asian Nations (ASEAN). Hence, achievement of self-sufficiency in the food grain has been one of the principal objectives of economic development in the agriculture-based nations of ASEAN; not only because of the pivotal position of rice production in the economies of ASEAN, but also because national independence is closely linked with self-sufficiency in the staple food. This academic exercise attempts to give an overview of the state of rice production in ASEAN, the government policies with regard to the supply of rice and the pattern of intra-ASEAN rice trade. The means to achieve security in rice in terms of intensified production, trade cooperation and a buffer stock, for the region as a whole are also looked into. Chapter I covers the rice situation in the international arena and the importance of the grain in the trade structure of the ASEAN countries. Wherever necessary, useful statistical tables are presented for discussion. The Green Revolution with its accompanying new technology offers the prospect of self-sufficiency and of greater rural participation in national life. The potentiality of increasing food supply is there; its realization will depend on appropriate government pricing and input supply policies, and on the government assigning a higher priority to agricultural development. Rice policies and how the Green Revolution has affected production in ASE11 are covered in Chapter II. Chapter III presents an overview of the pattern of intra-ASEAN trade in rice (with Thailand being the region's main source of supply) vis-a-vis extra-regional sources. Special mention is made of China1s role as an important supplementary supplier of rice. The last chapter includes the ASEAN Preferential Trading Arrangements on rice, the ASEAN buffer stock and the issues and problems associated with it. Policy implications for a comprehensive strategy for accelerating rice production to meet demand are dealt with as well