Agri Plain Talk

The volatile rice market

By ZAC B. SARIAN
November 26, 2010, 5:54pm

 MANILA, Philippines – Listening to the speakers at the recent International Rice Congress in Hanoi, Vietnam, convinced us that the pesky rice problem will stay with us for a long time. There are many reasons advanced by the speakers.

The global rice market remains precarious because there are only about 30 million tons available for trading which is considered very thin. The problem is when the exporting country unilaterally declares a moratorium on exports after certain negative developments in production. This makes the importing countries like the Philippines jittery, especially when there is an upcoming election. That’s what happened during the rice crisis in 2008. The Philippines imported more than what was necessary, and at a very high price at that. Remember the aging rice stocks that were rotting in bodegas discovered soon after the Aquino administration took over the government?

Oftentimes, the supply and demand for rice is the result of political decisions, said one of the speakers. The reality, he said, is that there is no functional mechanism that governs the global rice market.

One speaker bewailed the little investments that governments are investing in the rice industry. The allocation for research and development (R&D) is too minuscule.

One of the speakers observed that despite the enormous advances in science and technology, he is worried because extreme poverty persists in the rice growing areas in Southeast Asia.

More research is needed not only in improving the genetic of rice plants. One very promising technology reported at the IRC is improving the root system of rice through the inoculation of beneficial microorganisms in the soil. This is improving the biota of the soil. Inoculating the rice seeds with fungus results in more roots that are also longer which enable the plants to absorb more nutrients and at the same time withstand stress (like drought) better. This can significantly improve yields and at the same time reduce the use of expensive chemical fertilizers.

Multinational companies like Syngenta are also contributing to the development of crop protection products that don’t only protect the plants from pests and diseases but also improve the root systems of rice plants. As a result, the plants produce more tillers and consequently higher yields. One fungicide called Anvil, for instance, does not only control fungal diseases, it also makes the leaves greener, resulting in moe efficient photosynthesis.

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