Handbool<. on Rice Policy for Asia Annette Tobias, Imelda Molina, Harold Glenn Valera, KhondolRice Policy for Asia

Annette Tobias, Imelda Molina, Harold Glenn Valera, Khondoker Abdul Mottaleb, and Samarendu Mohanty

2012 The International Rice Research Institute (IRRI) was established in 1960 by the Ford and Rockefeller Foundations with the help and approval of the Government of the Philippines. Today, IRRI is one of the 15 nonprofit international research centers supported by the Consultative Group on International Agricultural Research (www.cgiar.org). IRRI receives support from the following CGIAR members: Asian Development Bank, Australia, Bangladesh, Canada, China, European Commission (EC), Food and Agriculture Organization (FAO), France, Germany, India, In- ternational Fund for Agricultural Development (IFAD), Iran, Japan, Korea, Norway, Philippines, Portugal, Rockefeller Foundation, Sweden, Switzerland, Syngenta Foundation for Sustainable Agriculture, Thailand, Turkey, UK, USA, and the World Bank. In 2009, IRRI also received support from 5 PRIME, Bayer CropScience, Bill & Melinda Gates Foundation, Bio- versity International, Care International, Challenge Programs (Generation, HarvestPlus, and Water & Food), Eiselen Foundation, FOSS, Gatsby Foundation, Global Crop Diversity Trust, Grand Challenges in Global Health project, In- ternational Atomic Energy Association (IAEA), International Fertilizer Industry Association (IFA), International Plant Nutrition Institute (IPNI), International Potash institute (IPI), International Fund for Agricultural Research (IFAR), Kellogg Foundation, Malaysian Agricultural Research and Development Institute (MARDI), Nunhems B.V., Pioneer Overseas Corporation, Plan International Vietnam, and World Vision, among others. The responsibility for this publication rests solely with the International Rice Research Institute.

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Suggested citation: Tobias A, Molina I, Valera HG, Mottaleb KA, Mohanty S. 2012. Handbook on rice policy for Asia. Los Baños (Philippines): International Rice Research Institute. 47 p.

Editing: Bill Hardy Cover design: Sherri Maigne Meseses Page makeup and composition: Ariel Paelmo Figures and illustrations: Ariel Paelmo

ISBN 978-971-22-0285-8 Contents

South Asia ...... 2 Bangladesh ...... 2 India ...... 4 Nepal ...... 8 Pakistan ...... 9 Sri Lanka ...... 10

East Asia ...... 11 China ...... 11 Hong Kong ...... 13 Japan ...... 13 South Korea ...... 15 Taiwan ...... 18

Southeast Asia ...... 20 Brunei Darussalam ...... 20 Cambodia ...... 21 Indonesia ...... 22 Lao PDR ...... 23 Malaysia ...... 23 Myanmar ...... 25 The Philippines ...... 26 Singapore ...... 29 Thailand ...... 30 Vietnam ...... 32 Summary ...... 33 Concluding remarks ...... 36 References ...... 37 Additional information sources ...... 40

Handbook on Rice Policy for Asia

gricultural policies in Asia hand, besides implementing policies are historically pervasive, to enhance domestic production by especially those pertaining providing incentives to farmers, also to rice—a staple for half provide a price subsidy on rice to make of the global population it affordable to poorer consumers. Aand a source of livelihood for nearly a Governments often adopt highly billion people. Because of its strategic crafted programs designed to raise and political importance, the rice the income of farmers by enhancing sector has been subject to a number rice production. This includes the of policy interventions. The objective use of price floors, subsidized loans, of this handbook is to explain the payments to encourage fallow area, current policy structure in the major etc. The policies related to production, rice-producing and rice-consuming consumption, and stock of rice can countries in Asia. Many Asian countries be broadly categorized as domestic have revamped their efforts in recent policies since any change in these years to achieve rice self-sufficiency policies mainly affects the behavior of and stabilize domestic prices through local producers or consumers. stronger policy interventions. To In this handbook, rice policies insulate the domestic market from pursued by the major rice-producing global uncertainty, a majority of Asian and rice-consuming countries in Asia countries control the movement of are compiled. This handbook clearly rice in and out of the country through demonstrates that a number of major a variety of trade measures, including rice-exporting countries adopted some state trading and quantitative trade measures to create a buffer domestic restrictions. A few rice-exporting rice market, such as imposing an export countries set minimum export prices ban for a short period and setting to ensure availability of rice for their minimum export prices to ensure an domestic consumers by controlling available rice supply in the domestic exports and in some cases countries market (India and Vietnam). In contrast, even temporarily banned rice exports. major rice-importing countries lifted the On the domestic front, many large rice- tariff on imported rice without giving growing countries have increased the any special treatment to domestic minimum support price for farmers producers to ensure an available rice and introduced many short-term policy supply in the domestic market (Nepal measures to subsidize inputs such as and Bangladesh). fertilizer, seed, electricity, and fuel to This handbook is organized as expand domestic rice production. Net follows. The next section presents the rice-importing countries, on the other rice policies pursued by the South

Handbook on rice policy for Asia 1 Asian countries Bangladesh, India, subsidy assistance (exchange Nepal, Pakistan, and Sri Lanka. The rate: BDT 69.52 = US$1). third section explains the rice policies ■ The Bangladeshi government pursued by the eastern Asian countries introduced an Input Distribution China, Hong Kong, Vietnam, South Card to 9 million small and Korea, Japan, Taiwan, Lao PDR, marginal farmers in 2010. These Cambodia, and Myanmar, and the cards are used to obtain cash fourth section covers the rice policies subsidies for electricity and pursued by the Southeast Asian fuel for irrigation, purchasing countries Thailand, Indonesia, Malaysia, fertilizer at government-fixed Singapore, Brunei Darussalam, and prices, and other forms of the Philippines. The fifth section offers government support (Hussain concluding remarks and summary 2011). Marginal farmers (with matrices of the rice policies of the major rice area ranging from 0.02 to producing and consuming countries in 0.19 ha) and small farmers (with Asia. rice area ranging from 0.20 to 1.0 ha) receive a subsidy of $11.51 whereas medium farmers South Asia (with rice area ranging from 1.01 to 3.03 ha) get $14.40 (Parvin Almost 40% of the world’s harvested 2010). rice areas are in South Asia (Gumma et ■ The government has attempted al 2010). Among South Asian countries, to stabilize prices through open India and Pakistan are net rice market sale (OMS) since 2004. exporters, whereas Bangladesh, Nepal, OMS was established when and Sri Lanka are net rice importers. the cost of food in Bangladesh began to increase sharply as a Bangladesh result of global price hikes. Bangladesh is the biggest rice importer ■ Originally, OMS allowed people in South Asia (Javier 2011). In the to buy rice at BDT 24 instead mid-1980s, Bangladesh was the fourth- of BDT 40 in 2,500 centers largest rice producer in the world, but in district towns across the it has lower productivity than Malaysia country, benefiting only those and Indonesia. It imports rice mainly with easy access to the towns. to control domestic prices. In 2010, More villagers in remote areas Bangladesh imported a total of 0.087 were left struggling to feed their million tons of rice (GOB 2010). Below families so it was extended to are the major policies in Bangladesh, the upazilas or subdistricts. followed by a summary of rice policies Rice prices ranged from $0.39 implemented (Table 1). to $0.63 per kilogram depending ■ Subsidy support for producers on grain quality. Each union- is provided on different level1 dealer is allowed to sell agricultural inputs to increase 1.5 tons of OMS rice. Union- agricultural productivity. level dealers in the southeastern Subsidies are mainly given to part of Bangladesh such as keep the price of production Chittagong and Bandarban can inputs within the purchasing sell up to 2 tons of rice. capacity of producers. In 2010,

BDT 49,500 million (US$712 1The lowest administrative tier in the Bangladeshi local million) was disbursed for government system.

2 Handbook on rice policy for Asia ■ The government manages administered the food for work public food distribution to program, wherein wages and protect the poor from rising labor requirements were set to food prices. Since January 2011, discourage the nonpoor from a total of 1.03 million tons of participating and workers are food grain had been distributed paid 3.5 kilograms of rice or through subsidized cash sales wheat for every day of work. and the food subsidy program ■ During the boro season in that provides food resources 2010, a cash subsidy was given to women, who receive 10 directly to farmers who were kilograms of rice per month in irrigating their crop land with a periods of hardship. Other forms diesel pump set. of food subsidy assist women ■ As of October 2011, government by providing 30 kilograms of food grain procurement from rice or wheat per month. The the domestic market was supplementary Fair Price Card 800,260 tons of paddy at $0.41 program was launched to per kilogram. provide eligible households with ■ Since May 2008, Bangladesh up to 20 kg of food grains. Under has had a ban on rice exports. the program, rice is to be sold at ■ The government has allowed $313 per ton. the duty-free import of rice (i.e., ■ The Ministry of Food and imports exempted from import Disaster Management also tax) since 2008.

Table 1 . Rice sector policies in Bangladesh, 2011 .

Policy Description of policy Consumption policy Food subsidy for rice price increase Under OMS, individuals can purchase a maximum of 5 kg of rice per month at a subsidized price of $0.34 per kg. The food subsidy program also provides women with 10 kg of rice per month. Eligible households receive up to 20 kg of food grains under the Supplementary Fair Price Card program. Food for work Wages and labor requirements were set to discourage the nonpoor from participating and workers are paid 3.5 kg of rice or wheat for every day of work. Production subsidy Fuel subsidy Cash is given directly to farmers irrigating their crop land with a diesel pump. Fertilizer subsidy Provision of free fertilizers in order to boost aus (upland/dry) crop production by 200,000 tons. Price support 800,260 tons of paddy had been procured by the government. The boro paddy procurement price is $409/ton. Export policy Export ban Implemented since May 2008 to stabilize domestic prices and control supply and will last until June 2012. Import policy Import duty The government has allowed the duty-free import of rice since 2008.

Handbook on rice policy for Asia 3 India are purchased, wherein surplus India has always been South Asia’s stock is exported. The agency largest rice producer, accounting for buys paddy rice directly from 68% of the region’s production in 2009. farmers and maintains huge India is a large producer and exporter rice stocks at all times. These of rice. As a large rice producer, India is stocks are then subsidized by the home of rice with low-quality grain the government and distributed and fragrant basmati rice. The major across the country to the poorer markets for rice with low-quality grain population. The stocks are are Indonesia, Bangladesh, and Nigeria. transported throughout India For basmati rice, the major markets are and issued to state governments the Middle Eastern countries such as at the rates declared by the Saudi Arabia, Kuwait, and the United central government of India for Arab Emirates (UAE), and the European further distribution under the Union (EU). Targeted Public Distribution India’s main policy goal focused System (TPDS) for consumption on attaining food self-sufficiency while by ration-card holders. ensuring a fair price for farmers and a ■ The TPDS, a revamped stable price for consumers. Below are PDS, with focus on the poor, the major policies in India, followed by requires the states to formulate a summary table of the rice policies and implement infallible implemented (Table 2). arrangements for identification ■ Through open market of the poor for delivery of food operations, 1 million tons of rice grains and their distribution in are approved to be sold at INR a transparent and accountable 15.86 per kilogram ($314 per manner at Fair Price Shops metric ton). (FPS). Rice and other staple ■ The “Extending the Green grains are sold through a Revolution to Eastern India” network of FPS located across program was renewed for a the country. FCI distributes second season, with an INR 4 the rice to FPS throughout the billion ($79 million) allocation, country. The difference between to boost rice production in the purchase price and the seven eastern states. sales price, along with internal ■ Through the Food Corporation costs, is reimbursed by the of India (FCI), the government central government of India implements price policy in the form of a food subsidy. through procurement and The government also creates a public distribution operations. minimum support price (MSP) The agency buys wheat, rough to create a rice price floor for rice, and milled rice for which rice farmers. The rice farmers minimum support prices then choose to either sell to have been announced well commercial buyers or sell to the before the commencement state entities. of the rabi (winter planted, ■ Under the MSP, the spring harvested) and kharif procurement price is (fall/early winter harvested) predetermined and the Central seasons. Only average- Issues Price (CIP) represents quality food grains previously the price at which food grains specified by the government are issued under the TPDS.

4 Handbook on rice policy for Asia ■ Under the TPDS, CIPs are including rice and wheat, from for different segments of local farmers to supply to the beneficiaries, namely: Above poor at below-market rates. Poverty Line (APL), Below ■ Irrigation and electricity are Poverty Line (BPL), and supplied directly to farmers Antyadoya Anna Yojana (AAY). at prices below production Eligible families belonging to costs. Machinery subsidies BPL receive 35 kilograms of rice are carried out under the rice subsidy per month at $44 per activities of the National Food ton. For families under APL, they Security Mission. The subsidy are eligible for 15 kilograms of rate for pump sets, seed drills, rice subsidy per month at $176 rotavators, knapsack sprayers, per ton. Under AAY, category power weeders, and rice card holders are eligible for 35 transplanters is 50%. Power kilograms of rice subsidy per tillers are distributed at 25% month at $93 per ton. Under subsidy subject to a maximum AAY, the poorest of the poor are of $989. This scheme was given the option to buy food at implemented with an allocation even more subsidized prices of $6.5 million. (Svedberg 2010). ■ In April 2010, a new fertilizer ■ Rice is classified into two subsidy scheme was categories for government implemented. A nutrient-based procurement operations: subsidy (NBS) scheme was common (length to breadth implemented in which farmers ratio less than 2.5) and grade are given incentives to use a A (length to breadth ratio more better mix of nutrients. The than 2.5) (Singh 2011). NBS is based on a scheme ■ The MSP for common paddy that fixes a subsidy on nutrient varieties was $214 per ton nitrogen (N), phosphorus (P), and for Grade A varieties was potassium (K), and sulfur (S) $220 per ton as of 23 February contents for 2010-11. There 2011. The MSP is based on is also an additional per ton the cost of production and on subsidy on fertilizers carrying the recommendations of the other secondary nutrients and Commission for Agricultural micronutrients approved by the Costs and Prices (CACP). Fertilizer Control Order (FCO) of ■ The government subsidizes India. agricultural inputs in an ■ The NBS regime was attempt to keep farm costs implemented and took effect in low and increase production, April 2010. The whole fertilizer thereby lowering the price industry receives a subsidy for consumers (Grossman based on certification of sale and Carlson 2011). Numerous by the state government/ subsidies ranging from food to statutory auditors while the fertilizer, irrigation, electricity, implementation and distribution seeds, and machinery are also of the fertilizer are monitored available. The food subsidy through the online Web- covers compensation to state- based Fertilizer Monitoring run procurement firms such as System. Currently, 120 million the FCI for buying staple grains, farmers rely on a fertilizer

Handbook on rice policy for Asia 5 subsidy implemented by the India is likely to extend the zero government. However, starting import duty regime for another in 2012, the government will year on price inflation concerns stop its 34-year-old system of (Singh 2011). providing fertilizer subsidies. As ■ The Indian government imposed a plan, a cash-transfer system a total ban on nonbasmati will be implemented wherein rice exports in October 2008 the subsidy will be deposited but lifted it following protests directly into the bank accounts from exporters. In April 2011, of farmers. the three-year-old rice ban was ■ Since 2005-06, India’s Ministry partially lifted. Exports of Ponni of Agriculture has been Samba and Matta basmati implementing the Production varieties, subject to a capacity of and Distribution of Quality 25,000 tons each, and shipments Seeds Scheme with the target of Sona Masuri, with a capacity of ensuring timely availability of of 1,000,000 tons, have been quality seeds of various crops at permitted. In September 2011, affordable prices. the export ban on nonbasmati ■ Under the National Food rice was removed. However, Security Mission Scheme, rice exports will be allowed only farmers are provided with a from the Custom Electronic subsidy of INR 1,000 per quintal2 Date Interface (EDI) ports to or 50% of the cost, whichever effectively monitor exports. is less, for certified hybrid rice Exports of rice were initially seed: INR 2,000 per quintal or allowed for privately held stocks 50% of seed cost, whichever but it was later on decided that is less, for certified hybrid rice government parastatals under seed distribution: INR 5 per existing food aid programs kilogram or 50% of the cost, and bilateral trade agreements whichever is less, for seed specifically between the distribution of certified high- government of India and the yielding varieties; and full cost government of Maldives be of seed minikits of high-yielding permitted (Singh 2011). Part of varieties. the reason for the export ban ■ Assistance is also provided for was to control the escalating the production and distribution domestic prices of rice. of hybrid rice. A production ■ For the popular and fragrant subsidy of INR 20 per kilogram basmati rice, the minimum and a distribution subsidy of export price (MEP) is currently INR 25 per kilogram are given to $900 per ton but this rice could various beneficiaries. be traded at as high as $1,200 ■ On the trading side, per ton; for nonbasmati rice, commitments on rice import the MEP was $400 per ton as of tariffs under the Uruguay Round 9 November 2011; and the MEP Agreements Act (URAA) for for 25% broken rice was $370– India are bound at 0% since 380 per ton as of 21 December 2009 up until the first quarter of 2011. For Sona Masuri, Ponni 2012. The central government of Samba, and Matta rice varieties, the MEP was $600 per ton as of 2A unit of weight equal to 100 kilograms. 13 August 2011.

6 Handbook on rice policy for Asia Table 2 . Rice sector policies in India, 2011 .

Policy Description Stock policy Public stocks Approval of one million metric tons of rice to be sold through open market operations. Production policy Minimum support price The minimum support price of common paddy is $0.21 per kilo- gram, and $0.22 per kilogram for grade A paddy. Irrigation and electricity subsidy Irrigation and electricity are supplied directly to farmers at prices below production costs. Consumption is unmetered for many agri- cultural users and is based on the horsepower rating of the water pump. Machinery subsidy Provision of a 50% subsidy for pump sets, seed drills, rotavators, knapsack sprayers, power weeders and rice transplanters. Power tillers are distributed at a 25% subsidy, subject to a maximum of INR 45,000. Fertilizer subsidy Also called NBS. This subsidy was implemented to give farmers incentives to use a better mix of nutrients and is based on the scheme that fixes a subsidy on nutrient nitrogen (N), phosphorus (P), potassium (K), and sulfur (S) contents. Seed subsidy Production of hybrid rice seed amounting to a subsidy of INR 2,000 per quintal or 50% of the cost. Consumer policy Food subsidy for rice price Under the TPDS scheme, BPL families are eligible for 35 kilograms increase of rice subsidy every month at $0.04 per kilogram; while 15 kg of monthly rice subsidy are allotted at $0.18 per kilogram for APL families; AAY category card holders are eligible for 35 kilograms of rice subsidy every month at $0.09 per kilogram. Export policy State trading Rice is sold to importing countries through state-to-state agencies. Minimum export price The MEPs are $900–1,200 per ton for basmati rice; $400 per ton for nonbasmati rice (9 November 2011); $370–380 per ton for 25% broken rice (21 December 2011); and $600 per ton for Sona Masuri, Ponni Samba, and Matta rice varieties (13 August 2011). Export ban The export ban was lifted in September 2011 for premium non- basmati rice (Sona Masuri, Ponni Samba, and Matta varieties). Private-sector companies can export 2 million tons from own stocks through an OGL. The government will monitor the flow of ship- ments and review export decisions once the 2 million tons of rice exports mark is reached. Import policy Tariff Although there has not been any import of rice, the government of India is likely to extend the zero import duty regime for another year because of price inflation concerns.

Handbook on rice policy for Asia 7 ■ Export of nonbasmati rice is in hilly areas and 4 hectares in done by private traders from wetland or terai regions. privately held stocks on a purely ■ The Nepal Food Corporation, a commercial basis. However, government-owned corporation, prior registration of all export buys rice and distributes it contracts is done by the to food-deficit areas in the Directorate General of Foreign country. As of March 2011, Trade (DGFT) on a first-come, the government price support first-served basis. Rice is freely of rice was NPR 30.50 per exportable under an Open kilogram. General License (OGL) (as of ■ The Nepalese government October 2011). As per the terms allocated NPR 2.75 billion (NPR of reference of the World Trade 2.5 billion for around 200,000 Organization (WTO) agreement, tons of chemical fertilizer and India has to put most of the NPR 250 million for organic items under an OGL, which fertilizers) for fertilizer subsidy means that these items can in 2011. This subsidy aimed at be freely traded. The decision providing aid for farmers facing to lift exports was triggered by a rising cost of production. an increasing grain output and ■ The Nepal Food Corporation the need for freeing up storage provides subsidized rice to the space ahead of the kharif people, who are given a coupon marketing season beginning in to purchase a fixed quantity October 2011. of rice. This subsidy is NPR 10 per kilogram for Japanese Nepal rice and NPR 5 per kilogram Nepal has been a net rice importer for Sona Masuri rice. A sack for the last two decades, importing of Japanese rice (30 kg) costs mainly from India despite the recent NPR 625 and a sack of Sona export bans by India. The country’s Masuri (50 kg) costs NPR 1,520. government policies and interventions The government is providing in agricultural markets were geared a subsidy of NPR 300 per sack toward the supply of adequate food for Japanese rice and NPR 250 grain through importation. Below are per sack for Sona Masuri rice the major policies in Nepal, followed by (Sapkota 2011). a summary of rice policies implemented ■ Trade of products between (Table 3). Nepal and India is free of ■ Fertilizer policy intervention customs duty and quantitative in Nepal started in 1973 but a restrictions. subsidy was introduced a year after alongside a transport subsidy. ■ Currently, Nepal’s Ministry of Agriculture and Cooperatives provides support in chemical fertilizers targeting only small and marginal farmers. Subsidized fertilizers are provided for farmers with landholdings of 0.75 hectare

8 Handbook on rice policy for Asia Table 3 . Rice sector polices in Nepal, 2011 .

Policy Description of policy Production policy Price support As of March 2011, the guaranteed price of rice was $0.42 per kilo- gram at an exchange rate of NPR 73.43 = US$1. Input subsidy Subsidized fertilizers are provided for farmers with landholdings of 0.75 hectare (hilly area) up to 4 hectares (wetland or terai). Consumer policy Food subsidy for rice price increase The government provides a subsidy of NPR 300 per sack for Japa- nese rice and NPR 250 per sack for Sona Masuri rice. Import policy Import tariff Duty-free State trading The Nepal Food Corporation buys rice in the international market and is also in charge of the distribution of rice to food-deficit ar- eas in the country.

Pakistan motor-pump sets with more Pakistan is the world’s fifth-largest energy-efficient motor pumps. rice exporter (FAO 2011). Rice is the The program offers a 50% third-largest crop in Pakistan after subsidy to farmers to replace wheat and cotton. Though rice is not a their pump sets. The TWEIP is staple food in Pakistan, it is the second- one of six activities under the highest export earner in the country U.S. Signature Energy Program after textiles. Pakistan and India are that Secretary of State Hillary known for producing and exporting Clinton announced in October basmati rice. Pakistan produces 67% 2009 to help alleviate Pakistan’s of the global basmati rice and India severe power-supply shortfall. produces 33%. In 2010, rice export ■ Back in 2001, the government earnings totaled $22 million. The U.S. merged the Rice Export is the major buyer of basmati rice from Corporation of Pakistan (RECP) Pakistan (Raza 2011). Basmati rice is with the Trading Corporation also exported to other West Asian and of Pakistan (TCP). Since then, European nations. The major basmati government intervention in the rice export markets for Pakistan are rice market has been minimal. UAE, Saudi Arabia, UK, Yemen, Qatar, ■ The government intervened Bahrain, Kuwait, Malaysia, and the in the rice market in 2009 U.S. Below are the major policies in when prices plummeted Pakistan, followed by a summary of rice as a result of a bumper policies implemented (Table 4). harvest. The government ■ Through the Tube Well started procurement from Efficiency Improvement farmers through the Pakistan Program (TWEIP), the Pakistani Agriculture Storage and government aims to reduce Supplies Corporation (PASSCO) peak electricity demand of and TCP. highly subsidized agricultural ■ In the domestic market, TCP is customers. The TWEIP will responsible for price support replace up to 11,000 highly implementation offered by the inefficient irrigation tube-well government.

Handbook on rice policy for Asia 9 Table 4 . Rice sector polices in Pakistan, 2011 .

Policy Description of policy Producer policy Irrigation subsidy TWEIP offers a 50% subsidy to farmers to replace their pump sets. Price subsidy Aside from rice procurement and sales abroad, the government also procures rice domestically from farmers through PASSCO and TCP. Export policy Minimum export price The MEP for 5% broken rice is $445–450 per ton on 21 December 2011.

■ Rice trading is completely kilogram) for Samba paddy and liberalized in Pakistan and RP 28 per kilogram ($0.25 per well managed by the private kilogram) for Nadu paddy. sector. Exporters invested in ■ A budget of $299 million was rice-processing equipment allocated for rehabilitation to improve the quality of work, including restoration of rice. Similarly, private-sector irrigation networks and canals investment in milling improved damaged by recurring floods in the quality of rice available for 2011. exports, thus enhancing the ■ Rice farmers receive free competitiveness of Pakistan’s irrigation water and a subsidy rice in the world market. for up to 95% of the fertilizer ■ The MEP for 5% broken rice cost. was $445–450 per ton as of 21 ■ Sri Lanka keeps a base import December 2011. duty of RP 20 per kilogram with a 5% Port and Airport Levy (PAL) Sri Lanka and a 2% National Building Tax Sri Lanka was once a food-deficit (NBT). This rate is adjusted nation importing rice, but this situation depending on the amount of has changed significantly in recent domestic production. years as the country achieved near ■ Sri Lanka exports rice self-sufficiency in rice in 2005. In particularly to UAE, Australia, spite of this, Sri Lanka still imports and Canada. In 2011, Sri Lankan rice mainly from Pakistan. The Sri rice exports were set at 10,000 Lankan government has policies tons. aimed at creating self-sufficiency in rice production and encouraging rice consumption. Below are the major policies in Sri Lanka, followed by a summary of rice policies implemented (Table 5). ■ The Sri Lankan government maintains a price floor for producers through the Paddy Marketing Board in the event market prices fall below a certain level. The purchase price of the Paddy Marketing Board is RP 30 per kilogram ($0.27 per

10 Handbook on rice policy for Asia Table 5 . Rice sector polices in Sri Lanka, 2011 .

Policy Description of policy Production policy Price support The Paddy Marketing Board procures 75,000 tons of Yala paddy at $0.27 per kilogram and Samba paddy and Nadu paddy at $0.25 per kilogram. Irrigation and fertilizer subsidy Rice farmers receive free irrigation water. Fertilizers are subsidized up to 95% of the total fertilizer cost. Import policy Import tariff The rice import tariff is $0.18 per kilogram.

and remove taxes on agriculture. These East Asia agricultural taxes include cooperative economic entities, enterprises, units, A majority of the countries in East Asia peasants, and other individuals who import almost exclusively medium-/ are engaged in agricultural production short-grain rice (USDA 2009). Among and receive agricultural income the East Asian countries, China is the within China. For 2011, the budgetary only net exporter, though in recent allocation to the agricultural sector years South Korea exported milled rice was CNY 988 billion ($155 million), with to Australia and the U.S. China also 15% allotted to finance direct payment imports some rice, particularly the to grain producers and subsidies on fragrant variety called Hom Mali from the purchase of agricultural supplies, Thailand. This is consumed in high-end improved seed varieties, tools, and farm hotels or restaurants located in well-off machinery (FAO 2011). Below are the coastal cities. Japan, Hong Kong, and major policies in China, followed by a Taiwan are net rice importers. Japan summary of rice policies implemented is the steadiest rice buyer, annually (Table 6). importing 682,000 tons on a milled-rice ■ By 2015, single-cropping basis. rice production systems in northeastern provinces and China mid and lower areas of the China is the largest producer and Yangtze River should be fully consumer of rice in the world. As mechanized. A target of 45% is an important exporter of low-quality set for mechanized planting and long-grain and medium-grain rice 85% for mechanized harvesting. to countries such as Côte d’Ivoire, ■ To ensure that annual grain Indonesia, Cuba, Russia, Japan, production is at least 540 million South Korea, and North Korea, it is tons by 2015, the target is to necessary to ensure a stable supply of preserve arable land of 121 rice domestically. Recently, due to the million hectares. sharp increase in domestic demand, ■ To encourage production, the the Chinese government has taken on Chinese government introduced domestic price-stabilizing policies. The a machinery subsidy, which is Chinese government imposes trade monetary assistance granted by restrictions primarily aimed at raising the government to a farmer for farmers’ income while ensuring food buying agricultural machinery. supply for its growing population. Since ■ Farmers are offered a 30% 2004, China has begun to subsidize discount on agricultural

Handbook on rice policy for Asia 11 machinery purchased, with a to low quality. COFCO manages maximum subsidy ranging from the country’s rice exports and $7,720 to $30,879. has a monopoly on rice imports ■ Farmers growing superior rice as well. The trading companies varieties receive subsidies are granted 50% of the rice ranging from $22 to $33 per permits. hectare. The Agriculture and ■ When China joined the WTO in Cooperatives Ministry has 2001, part of its commitment been assigned to set a suitable was to lower the tariff rate of paddy price based on capital 65% for rice imports. To ensure cost and a suitable return for the protection of domestic farmers and to quickly complete rice producers, the Chinese the registration of farmers government implemented the joining the rice price guarantee grain tariff rate quota (TRQ) program. for rice in 1996, which set ■ The government-set price a 5.3 million tons quota for support for paddy for early both private traders and state indica and japonica varieties is enterprises, each having a 50% $311 per ton and $390 per ton. allocation. This price support program ■ The TRQ is a policy measure applies to only 13 major grain- designed to protect a producing provinces in China: domestically produced Heilongjiang, Jilin, Liaoning, commodity from competitive Inner Mongolia, Shandong, imports using two policy Hebei, Henan, Anhui, Jiangsu, measures: quotas and tariffs. Shanxi, Hunan, Hubei, and In a TRQ, the quota component Jiangxi. These provinces works with a specified tariff rate produce about 80% of China’s for a certain degree of import total grain supplies. In addition, protection. Imports entering a few other provinces not during a specific time period included in the price support under the quota portion of a program also set a floor price TRQ are usually subject to a to encourage and sustain local lower, or sometimes zero, tariff grain production (Lagos and rate. On the other hand, imports Jiang 2011). above the quota’s quantitative ■ The price support for paddy for limit face a much higher tariff intermediate and late indica rate. varieties is $326 per ton. ■ In exporting rice, only two state monopoly trading companies are given a license to export rice, the China Grain Reserves Corporation (Sinograin) and China National Cereals, Oils, and Foodstuffs Import and Export Corporation (COFCO). Sinograin exports rice and beans. COFCO handles the major cereal trade. China usually exports rice of medium

12 Handbook on rice policy for Asia Table 6 . Rice sector policies in China, 2011 .

Policy Description Production policy Machinery subsidy Provision of 30% discount on agricultural machinery purchased, with a maximum subsidy ranging from $7,720 to $30,879. Input subsidy Farmers growing superior rice varieties receive subsidies from $22 to $33 per hect- are. Price support The price support for paddy for early indica varieties is $0.31 per kilogram, $0.33 per kilogram for intermediate-late indica varieties, and $0.39 per kilogram for japonica varieties. Export policy State trading State-owned companies will be granted 50% of the rice-trading permits. Tariff rate quota The grain tariff rate quota for rice is 5.3 million tons and the private share and state enterprise share are 50% each. The TRQ within TRQ is 1% and TRQ out of TRQ is 65%.

Hong Kong payments, and rice diversion programs. Rice is a major staple in Hong Kong. A production quota is a target set by The Hong Kong government operates a the government or an organization for Rice Control Scheme to ensure a stable the production of a good and it can be supply of rice and to keep a buffer stock applied to an individual worker, firm, for consumption and for periods of industry, or country. Quotas can be set shortages. All rice for local consumption high to encourage production or can is imported mainly from Thailand be used to limit production to control and Vietnam. Hong Kong is a major the supply of goods. This type of policy importer of Hom Mali fragrant rice from aims to restrict the supply in order to Thailand. Only registered stockholders maintain a certain price level. On the may import rice to Hong Kong for local other hand, deficiency payments are consumption. Importers need to register direct government payments made to with the office of the Director General of farmers who participated in commodity Trade and Industry. The application for a programs. Deficiency payment rates rice import license should clearly state are based on the difference between whether the license form will be used the legislatively set target price and for local consumption or for importation the lower national average market and then later re-export. In 2010, Hong price during a specified time. The total Kong purchased 200,000 tons of rice payment is equal to the payment rate worth $200 million from Thailand multiplied by a farm’s eligible payment and 15,000 tons of fragrant rice from area and the program payment yield Vietnam. established for the particular farm. To revitalize the agricultural sector, Japan younger segments of the population are Japan has a lengthy record of serious encouraged to take up farming activities protectionism in its rice sector (Moody through incentives. The average farm 2011). For decades, Japan pursued the size is also to be raised from the current goal of food self-sufficiency by using national average of 2 hectares to 20–30 a number of commodity programs hectares in flatlands and 10–20 hectares such as a producers’ quota, income in hills and mountainous terrains (FAO stabilization policies, deficiency 2011). Currently, Japan is 40% food

Handbook on rice policy for Asia 13 self-sufficient on a caloric basis. One are programmed exclusively of the principal goals in Japan’s Food, for government stocks. The Agriculture, and Rural Areas Basic Plan government, through the State is to raise Japan’s self-sufficiency in Trading Enterprises (STEs), food production to 50% by 2020. Below chooses the bids that have the are the major rice policies in Japan, biggest difference between the followed by a summary of rice policies purchase and sales price and implemented (Table 7). awards them the requested ■ The tariff for rice imports is import volume, provided other 778% (Yamasita 2010). Rice criteria are met. The STE then imported outside of the retains the difference between minimum access framework of the prices as a markup. The 257 tons is charged by paying Japanese government saves tariffs. 200,000 metric tons of rice ■ A new basic law on Food, for a food aid program. MAFF Agriculture, and Rural Areas releases these stocks solely that emphasized increasing the for nontable rice users in the food self-sufficiency ratio was industrial food-processing or enacted. This is through an feed sector and for re-export as income stabilization program food aid. The emergency stock with a combination of a fixed of rice of MAFF is targeted at 1 payment and variable payment million metric tons a year. MAFF for households that plant rice, has the exclusive right to import wheat, barley, and soybean. rice, wheat, and barley within ■ Through the Food Action the TRQ. Nippon Policy, the Japanese ■ The government imports government aims at increasing minimum-access rice in two its food self-sufficiency rate by ways: (1) open tender and (2) promoting home-grown produce the SBS tender system. In an and raising awareness among open tender, the government people. decides on the importer, ■ The Japanese government volume of imports, types of agreed to allow minimum rice, etc., most of which are market access to exporting long-grain types for processing countries at the Uruguay use. Meanwhile, the SBS Round in 1993, buying only tender system tends to focus 682,000 metric tons of rice in a on short-grain types meant year (Fukuda 2011). Minimum for staple foods because it is market access is the allowable jointly conducted by designated tradable goods that can enter importers and registered a country. The Staple Food wholesalers, and concentrates Department of the Ministry on imports controlled by of Agriculture, Forestry, and businesses. Fisheries (MAFF) administers ■ The New Food, Agriculture, imports of rice within the TRQ and Rural Areas Basic Plan through periodic ordinary was developed in March minimum access (OMA) tenders 2010 to bring a major change and through simultaneous buy- to agricultural policy and sell (SBS) tenders. Imports of restructure a set of policies U.S. rice under the OMA tenders that can swiftly renew and

14 Handbook on rice policy for Asia Table 7 . Rice sector policies in Japan, 2011 .

Policy Description of policy Production policy Direct income support Also known as the Income Compensation System for Farmers, this policy pro- vides subsidies to support farmers whose main agricultural products are rice, oats, or soybeans. Import policy Tariff rate quota Minimum market access is 682,000 tons a year. The Staple Food Department of the MAFF manages imports of rice within the TRQ through periodic OMA tenders and through SBS tenders. Import tariff Imposes a 778% tariff on rice imports. State trading The Food Department within Japan’s MAFF has the exclusive right to import rice within the TRQ.

revitalize food and communities South Korea (Japan Ministry of Agriculture, Similar to Japan, the South Korean rice Forestry, and Fisheries 2010). sector is highly protected. South Korea This plan sets 50% as the target protected its rice sector with an import for the food self-sufficiency ban until 1995, upon an agreement ratio on a supplied calorie with a minimum access commitment basis and 70% on a production in the Uruguay Round Agreement. In output basis to be achieved 2010, South Korea exported 1,252 tons in 2020. This plan adopts of milled rice to Australia, Hong Kong, measures for the sustainable Haiti, and South Africa (Chiou-Mey development of agriculture such 2011). Below are the major rice policies as an income compensation in South Korea, followed by a summary system for farmers. This of rice policies implemented (Table 8). policy provides government ■ During the first quarter of 2011, subsidies to support farmers rice prices rose sharply in South whose main agricultural Korea. To control this, the South products are rice and other Korean government decided cereals at a level depending to release 150,000 tons of rice on certain production targets reserves in the market. that are decided by prefectural ■ The Korean government also and city governments and purchases rice to control the municipalities based on a food domestic price. Under the self-sufficiency target rate. The Public Rice Stockholding subsidies are calculated based Program (PRSP), the on the difference between the government purchases nationwide average production domestic paddy during harvest cost and the nationwide average season, October to December, retail price. Every farmer and sells it during the participating in this scheme was nonharvest season at prevailing given a basic subsidy at a rate domestic prices. This is also of 1 million yen per hectare. known as the Public Storage System for Emergencies (PSSE). ■ For price support, the government sets a target price

Handbook on rice policy for Asia 15 and compensates rice farmers Favored Nation (MFN) quota for the difference between the allocation. Out of this, 13,025 target price and the market tons came from United States, price of the year in the form of 23,080 tons came from China, fixed and variable payments. and 13,619 tons came from The government pays rice Thailand. farmers a fixed amount every ■ Under the Country-Specific year, regardless of the market Quota (CSQ), a total of 196,198 price. The variable portion tons of milled rice were allowed covers a payment equal to 85% to enter the country, with 50,076 of the difference between the tons from the U.S., 116,158 tons target price and the market from China, and 29,963 tons price, minus the fixed payment. from Thailand. Australia failed The government paid rice to fulfill the CSQ allocation due farmers an average price of to a bad crop situation. $1.54 per kilogram based on ■ The rice import quota is set to grade. grow by about 20,000 tons per ■ The National Agricultural year to 408,700 tons by 2020. Cooperative Federation (NACF) An import quota is a type of on behalf of the government protectionist trade restriction purchased 86,000 metric tons that sets a physical limit on the at the government purchasing quantity of a good that can be price to stabilize farm-gate imported into a country in a prices during the harvest period. given period of time. Aside from domestic rice ■ Aside from MMA commitments, procurement, the Korea Agro- South Korea also has several Fishery Trade Corporation, the global quota allocations, which government’s state trading arm, are generally limited to different manages the purchase and sale kinds of brown rice and short, of imported rice. It sells table medium, and long varieties. rice shipments through a public ■ The price and distribution of auction system. rice used to be controlled by ■ South Korea imports rice as part the government under the Food of its WTO Minimum Market Stuff Control Act but, in 1995, Access (MMA) rice agreement. the same law was abolished Import volumes will increase and replaced with the Act for according to the predefined Stabilization of Supply-Demand MMA schedule until the end of and Prices of Staple Food 2014. By 2014, rice imports are (Staple Foods Law). This new expected to double and cover law enabled rice producers 8% of domestic consumption. (farmers) to sell rice directly to After 2014, rice imports will be consumers. subject to a tariff equivalent ■ The government subsidizes (Choi and Smith 2011). domestic rice production ■ Under the MMA, milled rice through two types of direct imports of 347,658 metric payments, an area payment, tons were allowed to enter which is based on eligible the country for 2011. Of this paddy land that was registered amount, 151,460 metric tons from 1998 to 2000, and a price of milled rice went to the Most support payment. Total support

16 Handbook on rice policy for Asia payments were nearly $1.19 ■ The government controls billion in 2010. imports and segregates them ■ The Rice Reduction Program from the domestic rice market. of the government encourages Imported rice is mainly used rice farmers to plant other crops for processing. The combined from 2011 to 2013. policies of production support ■ Eligible farmers who cultivate and import restrictions led to alternative crops in their paddy retail prices for rice well above fields receive an area direct the international levels. The payment of $608 per hectare. Ministry of Food, Agriculture, Those eligible for payment Forestry, and Fisheries (MIFAFF) are farmers, farming union sells the processing rice to corporations, agricultural end-users throughout the year. corporations, or anyone MIFAFF exclusively controls producing rice on a minimum rice imports for use by food of 0.1 hectare of farmland processors. The 2010 MMA between 1 January 1998 and 31 shipments were to be sold until December 2000. November 2011. ■ The government also provides ■ Most Korean rice farmers prefer support of $2,600 per hectare for planting high-yielding varieties farmers cultivating alternative because of government direct crops in their rice paddy fields payment programs designed to in addition to the area direct support rice farmers’ income. payment.

Table 8 . Rice sector policies in South Korea, 2011 .

Policy Description Stock policy Public stocks Starting in March 2011, 150,000 tons of rice were released from govern- ment reserves to control increases in domestic prices. Production policy Price support The government supports farmers through the direct purchase of do- mestic milled rice under the PSSE. The government paid rice farmers an average price of $1.54 per kilogram based on grade. Direct income support Eligible farmers receive an area direct payment of $608 per hectare. Farmers not participating in the rice reduction program receive sup- port of $2,600 per hectare.

Area limit The rice reduction plan will continue until 2012, with paddy plantings cut by 40,000 hectares. The government aims to reduce rice production by 200,000 tons annually. Import policy Minimum access commitment South Korea allowed rice imports of only 347,658 tons for 2011. The rice import quota is set to grow by about 20,000 tons per year to 408,700 tons by 2020. State trading The Korea Agro-Fishery Trade Corporation manages the purchase and sale of imported rice. Rice shipments are sold through the public auc- tion system.

Handbook on rice policy for Asia 17 Taiwan ■ In case of an unexpected local Although rice self-sufficiency in Taiwan price increase, a stock of 10,000 surpasses 90%, rice is still considered metric tons of rice will be one of the politically sensitive crops released. in the country. Taiwan is one of the ■ To control excessive rice nations that has the highest protection. production, the government However, upon WTO membership in runs a set-aside program for 2002, policy reforms were enacted. farmland under which large Taiwan first opened its domestic rice quantities of farmland lie market to foreign countries in 1995. fallow. Rice farmers are paid The major rice policies of Taiwan are as NT$41,000–45,000 per hectare follows, with a summary shown in Table per cropping season. 9. ■ Around 220,000 hectares of ■ The Taiwanese government set-aside paddy rice fields are raised price support for paddy now allowed to grow feed corn to help farmers cope with rising and remain eligible to receive a prices of inputs such as fuel and direct payment up to NT$45,000 fertilizer. An increase of NT$3 per hectare for fallow land per kilogram from NT$20.60 to (Chiou-Mey 2011). A campaign NT$26 per kilogram for the three is under way to promote greater government rice-purchasing consumption of rice-based programs, Guaranteed Purchase products with the aim of lifting Program, Guidance Purchase per capita rice consumption Program, and Surplus Purchase from 48.5 kilograms in 2011 to Program, was implemented. In 50 kilograms in 2013 and to 51 response to this, domestic rice kilograms in 2014. prices of milled japonica rice ■ The government adopted the rose to NT$33.76 per kilogram rice paddy and upland field from NT$33.09 per kilogram use adjustment program upon and retail prices increased to membership in the WTO. NT$38.34 per kilogram from This program is basically NT$33.75 per kilogram (as of an extension of the previous July 2011). paddy field diversion and set- ■ Sales under these three aside program. All farmers programs are limited to participating in the rice price certain quantities per hectare. guarantee purchase program If farmers were to sell the in the base years of 1994- maximum per-hectare quantity 96 are eligible to register allowed under the Guaranteed for the new program. Upon Purchase Program and approval, the farmers will Guidance Purchase Program, receive a direct payment up to sales would equal almost half NT$41,000−45,000 per hectare of production. The eligible per cropping season. The only amount for purchase is 1,200 kg requirement is to fallow their per hectare under the Guidance land and plant green manure Purchase Program, 2,000 kg crops. So, after deducting per hectare for the Guaranteed NT$5,000 for plowing and Purchase Program, and 3,000 buying seeds for green manure kg per hectare for the Surplus crops, the net earnings for each Purchase Program. hectare are NT$36,000, which

18 Handbook on rice policy for Asia is slightly more than that of per kilogram for processed-rice planting rice (NT$30,000) or products. The out-quota tariff sugarcane (NT$25,000) (Chang rate is used for imports above 2009). the concessionary access level. ■ Since 2002, upon accession to Following the implementation the WTO, Taiwan has allowed of a TRQ on rice, the Taiwanese rice imports for the first time government adopted the by implementing price support, rice paddy and upland field direct payments, and a TRQ. use adjustment program. All Under the Minimum Access farmers whose paddy fields commitment, Taiwan imported were included in the rice price 4% of total consumption guarantee purchase program (Min-Hsien and Blandford in the base years of 1994-96 are 2011). Price support is the eligible to register for this new minimum price for a product program. established by the Taiwanese ■ The Yilan County government government and this is carried appropriated NT$3.855 million out by payments to producers for the fertilizer subsidy in the circumstance that the program that ran from 1 October market price falls below the to 30 November 2011. Farmers specified minimum price. Direct purchasing fertilizers directly payments are made straight to from farmers’ associations rice farmers, without sending across Yilan County have them through an intermediary been fully subsidized for the or a third party. The Taiwanese price increase. Some 85% of government implemented a the subsidy was collectively rice paddy and upland field use shouldered by the Council of adjustment program to control Agriculture and Taiwan Fertilizer excessive supply. Co., Ltd., while the remaining ■ The annual import of 94,068 15% was shouldered by the Yilan tons of brown rice will replenish County government. the public stock. With the price ■ Taiwan adjusted some support for domestic price fluctuations in domestic rice and the procurement system prices by imposing a rice for imported rice, the public export control set at 30,000 stock is enough for 3 months of tons from November 2010 to rice consumption. The public June 2011. Taiwan rice export stock is periodically released control measures are adjusted to the military, prisons, and in accordance with any schools, and for brewing and fluctuations in domestic rice consumption. prices or public rice reserves, as ■ The Country-Specific Quotas well as any unfavorable factors, for Centralized Imported Rice such as drought, flooding, are purchased by the Council’s typhoon damage, or Agriculture and Food Agency. world food price fluctuations. ■ The in-quota tariff for rice is ■ Since the June 2007 agreement zero and the out-quota tariff with members of the WTO, is NT$45 per kilogram. Out- including the United States, quota tariff rates are NT$45 per Taiwan set an annual TRQ for kilogram for rice and NT$49 rice of 144,720 tons on a brown

Handbook on rice policy for Asia 19 Table 9 . Rice sector policies in Taiwan, 2011 .

Policy Description of policy Stock policy Public stocks Release of 10,000 tons of rice will be to control unexpected local price in- creases. Production policy Price support Guidance Purchasing Program: NT$22 per kilogram for indica and NT$23 per kilogram for japonica. Guaranteed Purchasing Program: NT$25 per kilogram for indica and NT$26 per kilogram for japonica. Surplus Purchasing Program: NT$20.60 per kilogram for indica and NT$21.60 per kilogram for japonica. Set-aside program Rice farmers are paid NT$41,000–45,000 per hectare per cropping season. Fertilizer subsidy Yilan County farmers purchasing from farmers’ associations have been fully subsidized for the price difference brought about by the rising cost of fertil- izer. Export policy Export ban Imposed rice export volume controls set at 30,000 tons from November 2010 to 30 June 2011. Import policy Minimum access volume The government limits the import of rice. Every year, only 144,720 tons of brown rice can be imported. In-quota tariff The in-quota tariff for rice is zero. Out-quota tariff Out-quota tariff rates are NT$45 per kilogram for rice grain and NT$49 per kilogram for rice-processed products. Tariff rate quota The TRQ is 144,720 tons, of which 50,652 tons were to be imported annually by the Taiwanese private sector and 94,068 tons were taken by Taiwanese authorities as country-specific quotas to the United States, Australia, Thai- land, and Egypt.

rice basis (126,000 tons milled Southeast Asia equivalent). Of this amount, 50,652 tons were to be imported The Southeast Asian region comprises annually by the Taiwanese two of the world’s largest rice exporters, private sector and 94,068 tons Thailand and Vietnam. In 2010, Thailand were taken by Taiwanese had a 30% market share in global rice authorities as country-specific trade, followed by Vietnam at 22%. quotas to the United States Thailand exported 9.03 million tons of (64,634 tons), Australia (18,634 rice in the same year, amounting to $176 tons), Thailand (8,300 tons), and million. Egypt (2,500 tons). Brunei Darussalam Brunei aspires to increase its self- sufficiency by 60% in 2015 to reduce its reliance on rice imports. The country’s Department of Agriculture hoped to achieve short-term self-sufficiency by 20% in 2010 through the use of high- yielding varieties, opening new farming

20 Handbook on rice policy for Asia areas, upgrading farm infrastructure, achieve 1 million tons of milled rice and retraining the Department of exports by 2015. In Asia, Cambodia has Agriculture and local farmers as well. been exporting rough rice and milled The mid-term plan is to increase local rice to Thailand and Vietnam for more rice production to 60% self-sufficiency than two decades as well as to China, by 2015. The mid-term plan of action New Zealand, and Africa and America. has three aspects: upgrading farm Cambodia used to be a planned infrastructure, planting annual double- economy before joining the Association cropping HYV rice on all farms, and of Southeast Asian Nations (ASEAN) in upgrading technology and human 1999 and the World Trade Organization resource capacity. in 2004. When Cambodia became a Importation of rice in Brunei member of the WTO, the country took requires import permits that are advantage of access to international issued by the Information Technology markets. Imported rice from Cambodia and State Store Department of the is now subject to zero import duty for Ministry of Finance. Rice importation ASEAN trading partners. The major is restricted to maintain security of the importers of Cambodian rice are domestic supply and for price stability. European countries such as France, There are no state trading enterprises Poland, Russia, Sweden, and the in the country such that importation is Netherlands. Below are the major rice directly by the government through the policies followed by the Cambodian Information Technology and State Store government, with a summary shown in Department of the Ministry of Finance. Table 10. The Department imports rice directly ■ To boost rice exports to a million through the BruSiam Food Alliance, tons by 2015, the Cambodian which is a joint venture between the government launched a Brunei and Thailand governments. guarantee of 50% of commercial bank lending to rice producers. Cambodia Borrowers still need to repay In the 1960s, Cambodia was a rice- loans, but the government exporting country. Because of civil would cover 50% of defaulters’ war for more than two decades, rice payments. This policy aims to production in Cambodia declined encourage all commercial banks drastically. Currently, Cambodia aspires to provide loans to be used for to be Asia’s “rice basket” and a major expanding paddy production milled rice-exporting country in the and rice exports. world. The country has set a target to

Table 10 . Rice sector policies in Cambodia, 2011 .

Policy Description of policy Production policy Input subsidy The government guarantees 50% of commercial bank lending to rice producers. Allocation of $310 million to improve rice irrigation systems. Import policy State trading GTC manages the national rice reserve through domestic sales and procurement abroad. Import tariff An import tax was not imposed on rice imported from Cambodia effective until 31 December 2011. Cambodia has zero import duty on rice for ASEAN trading partners.

Handbook on rice policy for Asia 21 ■ Eleven state trading ■ The Indonesian government set organizations are engaged in a production target of 10 million import and export activities for tons of annual rice surplus for rice. The Green Trade Company 2015. Rice procurement by the (GTC), established in 1988, government for 2011 is set at 3.5 is a merger of three former million tons, wherein 2 million state-owned companies: the tons of stocks will be held by Cambodian Food Company, Bulog, Indonesia’s national Material and Equipment logistics agency. Company, and Agricultural ■ Indonesian farmers receive Product Company. GTC fertilizer subsidies but these are manages Cambodia’s national limited only to those managing reserve of rice through sales less than 0.5 hectare of land. and purchases at market These farmers receive 40% of prices. Since July 2001, GTC the total amount of subsidy. has not engaged in rice export ■ To ensure that prices are activities and has focused only stabilized, Bulog maintains on domestic rice trade and grain stocks for the government distribution. by selling stocks when rice ■ Cambodia is also engaged in a prices are too high or buying bilateral agreement through a from farmers when prices drop rice joint venture specializing below specific levels. Similarly, in rice processing and export food subsidies worth IDR that has been reached between 15.3 trillion ($1.4 billion) are Cambodian and Vietnamese implemented to compensate for companies. The Cambodia- the increase in the price of rice. Vietnam Foods Company Bulog procures 7% of the rice (Cavifoods) is a joint venture production in the country and between the Investment and sells this at a subsidized rate. Development Company of ■ Bulog is also in charge Cambodia (IDCC), Vietnam’s of carrying out domestic Southern Food Corporation purchases of rough rice and (Vinafood II), and Cambodia’s milled rice with a price support Green Trade Company. at $0.59 per kilogram and $0.39 per kilogram for rice and dry Indonesia paddy, respectively (Slette Next to India, Indonesia is also a large and Meylinah 2011). Bulog is rice-producing and -consuming nation. also in charge of distributing It has been importing rice for decades subsidized rice for poor and as production has not grown enough vulnerable people and retaining to meet increasing demand. However, and managing the national rice imports slowly declined in early 2000 reserve stock. due to a rice import ban. Hence, most ■ The government reserve stock of the policies implemented were will also be used for the rice for aimed at achieving self-sufficiency by the poor (Raskin) program. In enhancing rice production. On average, 2011, Bulog distributed a total Indonesia imports 0.8 million tons a year of 3.15 million tons of Raskin (Matsunami 2011). Below are the major rice to 17.5 million poor families. rice policies implemented in Indonesia, Each family receives 15 kg of followed by a summary table (Table 11). rice every month equivalent to

22 Handbook on rice policy for Asia Table 11 . Rice sector policies in Indonesia, 2011 .

Policy Description of policy Production policy Fertilizer subsidy Farmers managing less than 0.5 ha of land receive only 40% of the subsidy. The total amount of organic fertilizer subsidy allocation is 835,000 tons (IDR 584,500 million). Price support $0.59 per kilogram for rice; $0.39 per kilogram for dry paddy. Food subsidy for rice price increase Bulog sells subsidized rice to poor families at $0.177 per kilogram. The market price for medium rice is $0.813 per kilogram.

Import policy State trading Bulog purchases grain for price stabilization, delivers rice to the poor via the Raskin program, and manages food stocks. Tariff The import duty on rice is $50 per ton.

a price of $33.84 per kilogram. contract farming, using advance In the Raskin program, payments and distribution of the government targeted seeds and fertilizer to farmers. distributing 2.9 million tons of ■ Glutinous rice (sticky rice) is rice for 17.5 million targeted the most popular variety grown impoverished households in and consumed in Lao PDR. 2011. The food subsidy bill is The major market for glutinous worth $1.4 billion to compensate rice is Thailand, and it is traded for rice price increases. informally due to mutual ■ The import duty for rice is $0.05 agreements between the two per kilogram. governments. Though Lao PDR is known to produce sticky rice, Lao PDR it still imports long-grain rice, Lao PDR is another major rice-growing particularly from its three major country in Southeast Asia. In 2000, Lao trading partners, Thailand, PDR achieved self-sufficiency in rice China, and Vietnam. production. Though sufficient in rice ■ A temporary rice export ban was production in many years, rice import imposed from November 2010 requirements in 2011 were estimated at until February 2011 in response 38,000 tons (FAO 2011). Below are the to a price spike due to excessive major policies implemented in Lao PDR. foreign demand. ■ Since the period of the volatile global rice market, the State Malaysia Food Enterprise (SFE) of Lao Malaysia is also a rice importer in the PDR has been a major player Southeast Asian region. This country is in the rice marketing system about 63% self-sufficient and it imports by procuring rice during the rice to compensate domestic production harvest and selling rice stocks (Hoh 2011). The total productivity of during periods of shortage. The rice is as low as 3 tons per hectare and SFE functions as a profit-making Malaysia produces a total output of organization by procuring 20,000 only 65% of the total demand for rice to 25,000 tons of rice yearly. This consumption in the country. It aims procurement influences market to attain 70% food self-sufficiency by prices as it engages farmers in implementing a new food security policy

Handbook on rice policy for Asia 23 that seeks to ensure the availability, local farmers and millers to accessibility, and affordability of rice ensure a continuous supply of for the general population. This new rice at affordable prices and plan, called the National Agro-Food acceptable quality. The agency Policy 2011−2020, was launched as is involved in the procurement a four-pronged strategy to boost the and processing of local nation’s food self-sufficiency, raise paddy, importing foreign rice, product value addition, reinforce supply warehousing, distributing, and chains, and increase technical capacity. marketing of rice in Malaysia. A total of RM 1.1 billion ($350 million) BERNAS currently controls 50% was allocated in 2012 for agricultural of the rice sold in Malaysia. development (FAO 2011). Below are Among BERNAS’s social the major rice policies implemented in obligations is to manage and Malaysia, followed by a summary table keep the national stockpile (Table 12) at 292,000 tons as a matter of ■ SUBUR is a rice subsidy national security for sustained program for poor people and consumption for 45 days. families in Malaysia, including BERNAS also keeps 100,000 to the two Malaysian states of 150,000 tons of trading stock at Sabah and Sarawak. Under all times, disburses government this program, food vouchers subsidies to deserving farmers, are provided to eligible people and manages Bumipitra Miller’s and families based on a scheme in which paddy brought predefined income chart. Each by BERNAS is processed for family is given a maximum of free. 3 vouchers depending on the ■ BERNAS buys paddy at a number of people in the family. minimum support price of To be eligible for the SUBUR $249.52 per ton when there is no rice subsidy program, monthly demand, when paddy has low income should be lower than quality, or when no millers want $500 for the urban area and to buy it (as of 25 August 2011). $333.56 for the rural area. Under ■ The price support for paddy rice SUBUR, rice farmers receive a was RM 65 per 100 kilograms as subsidy of $0.83 per kilogram of 6 April 2011. of paddy delivered to a licensed ■ Rice farmers received a subsidy mill or drying facility. of RM 25 per 100 kilograms of ■ Rice in Malaysia is a highly paddy delivered to a licensed sensitive good under the mill or drying facility as of 6 ASEAN Free Trade Area (AFTA) April 2011. agreement as it is excluded from the Common Effective Preferential Tariff Agreement (CEPT). In 2011, the tariff rate of rice imported in Malaysia was 20% until its complete removal in 2015. ■ Rice importation in Malaysia is operated by Padiberas Nasional (BERNAS), a state agency that buys paddy from

24 Handbook on rice policy for Asia Table 12 . Rice sector policies in Malaysia, 2011 .

Policy Description of policy Production policy Minimum support price BERNAS buys paddy at a minimum support price of $246.42 per ton. Machinery subsidy Rice farmers receive a subsidy of RM 25 per 100 kilograms of paddy delivered to a licensed mill or drying facility. Consumer policy Food subsidy for rice price increase The SUBUR program, a voucher system, gives a rice subsidy for poor people and families based on a predefined income chart.

Import policy Import duty The tariff rate of rice imported into Malaysia is 20% until com- plete removal in 2015. State trading BERNAS is entrusted by the government in the procurement and processing of local paddy, importing foreign rice, warehousing, distributing, and marketing rice in Malaysia.

Myanmar monopoly with responsibility Myanmar was the dominant rice- taken over by Myanmar exporting country during the pre– Agricultural Produce Trading World War II period and was known (MAPT). as the “Rice Bowl of Asia” in the ■ In 2003, the rice ration system 1960s. After the war, production was and paddy procurement damaged severely, affecting its export system were finally abolished. performance. Soon after, Thailand The government tried to keep rapidly emerged as the dominant the domestic rice price by world rice exporter while Myanmar’s maintaining a monopoly on all position slowly declined because rice exporting. The government of comprehensive state control. also resorted to intervention Nevertheless, Myanmar is still one of the private sector in the of the largest exporters in Southeast rice market. The private rice Asia. From 2010 up to March 2011, marketing sector was able Myanmar exported a total of 570,000 to achieve self-sustaining tons. The major importers are West development. In 2011, both Africa, Bangladesh, Malaysia, and the state and private trading Singapore. Below are the major rice companies were exporting policies implemented in Myanmar, with rice. Myanmar produces an a summary presented in Table 13. average of 10 million tons of ■ When Myanmar became a rice every year, exporting from member of the WTO in 1989, the 500,000 tons to 1 million tons. market was liberalized for all Private exporters are required other crops except rice exports. to apply for a license from Marketing of rice remained the government’s Ministry of under state control. The rice Commerce. ration system and paddy ■ Myanmar suspended rice procurement system were exports to increase the domestic maintained while rice exporting supply of rice and control remained a government increasing prices in the country.

Handbook on rice policy for Asia 25 Table 13 . Rice sector policies in Myanmar, 2011 .

Policy Description of policy Production policy Input subsidy Private companies are encouraged by the government to provide microfinance for rice farmers to buy rice seeds and agricultural inputs. Credit subsidy The program provides MMK 135,908 per hectare for the Mandalay region. Export policy Export ban Rice exports were temporarily restricted from February to May 2011 to regulate the domestic supply and keep local prices under control. Export permit Myanmar’s rice exporters have to apply to the government’s Ministry of Com- merce for rice export permits. Export tax Rice export taxes declined from 8% to 5% but were subsequently lifted for a 6-month period, but a 2% income tax still applies. Import policy Import tariff There is zero duty on rice imports going from Myanmar to India.

The rice export ban started in The Philippines the last week of February and The Philippines is the largest rice ended on 30 April 2011. importer in the world. Although rice is a ■ In 2010, the Myanmar main staple in the country, it is a highly government set up the national political commodity. The Philippine Myanmar Rice Industry rice sector has always been the center Association (MRIA), a merger of government agricultural policies. of three associations, the Rice The focal points of the policies revolve and Paddy Traders’ Association, around promoting food self-sufficiency, the Rice Millers’ Association, providing high income to rice farmers and the Paddy Producers’ while making prices affordable to the Association. The MRIA was consuming public. Rice farming in the created to develop strategies Philippines has always been small-scale to increase Myanmar’s rice compared to Thailand. production capacity. The Philippines became self- ■ For the Mandalay region in sufficient in rice in the 1970s and was a Myanmar, a credit program rice exporter to neighboring countries that provides MMK 135,908 per such as Indonesia, China, and Burma hectare is available for poor- (Myanmar). However, with population income farmers, with an interest rapidly increasing and limited land rate of 2.5% per month, with the resources to produce the total rice full amount due after 8 months. requirement, the country slowly turned into a net rice importer. Being the largest rice importer in the world, rice imports totaled 1.8 million tons in 2010, with sources mostly coming from Vietnam and Thailand. As part of the Food Self-Sufficiency Roadmap 2011- 2016, the Philippine government aimed to increase food self-sufficiency by

26 Handbook on rice policy for Asia raising paddy production to 22.5 million (Northern Mindanao) through tons by 2016. Below are the major the provision of certified seeds policies implemented by the Philippine at a 50:50 subsidy. Farmers in government, followed by a summary irrigated and rainfed lowland (Table 14). areas with yield below 3.8 ■ The National Food Authority tons per ha as certified by the (NFA) buys paddy rice with 14% Municipal Agricultural Officers moisture content for PhP 17 and City Agriculturists are ($0.36) per kilogram, but offers entitled to the subsidy. a lower price for deliveries ■ A budget allocation of PhP 16 with higher moisture levels not billion ($369 million) for the Rice exceeding 24% (Corpuz 2011). Mechanization Program aimed ■ In line with the self-sufficiency to provide farm machinery objectives of the government, and boost drying and milling most of the strategies capacity through 2016. The DA implemented were to raise was to release PhP 1 billion in production by using hybrid rice 2011 for the purchase of 4,000 varieties. Rice seed subsidy units of various postharvest schemes for farmers were machinery. By 2016, the implemented to acquire high- program aims to procure and yielding varieties. To encourage distribute 7,000 postharvest farmers to use hybrid rice seeds, units and 90,000 units of on- the government shouldered half farm machinery. of the cost, pegged at PhP 60 ■ Farmer associations, per kilogram. This program will organizations, and cooperatives last until 2013. will also be given a chance to ■ Under the Rapid Seed Supply own their own farm machinery Financing Program (RaSSFiP) through a financing scheme in Phase II, which aimed to which 70% of the cost will be increase paddy production shouldered by the government. in rainfed and irrigated ■ The Department of Social areas, certified seeds are Welfare and Development made available to farmers at (DSWD) provided rice subsidies subsidized cost. The seeds were to 678,621 small-scale farmers distributed together with liquid and fishermen from Regions I fertilizers for the first cropping to XII, and the National Capital season, 16 September 2010 to 15 Region (NCR), CARAGA, March 2011. Cordillera Administrative ■ The Department of Agriculture Region (CAR), and Autonomous also extends the RaSSFiP to Region in Muslim Mindanao help rice farmers by providing (ARMM) have undertaken Cash- good-quality seed, especially for-Training and Cash-for-Work to farmers affected by drought, (CFT/W). floods, and pest infestation. ■ The DSWD also implemented The program’s target is to a temporary work scheme by increase paddy production of hiring farmers and fisherfolk to marginalized farmers in rainfed work in government projects. and irrigated areas in Regions Farmers were given a choice V (Bicol), VI (Western Visayas), to either obtain NFA rice or VIII (Eastern Visayas), and X be employed temporarily in

Handbook on rice policy for Asia 27 government infrastructure of particular commodities that projects for 14 days a month. can be imported or exported The beneficiaries of the during a specified time period, temporary work scheme worked usually measured by volume but on agricultural projects such sometimes by value. The quota as farm-to-market roads and can be applied on a selective irrigation facilities. basis, with varying limits set ■ Under the rice subsidy program, according to the country of the beneficiaries undertook origin or destination, or on a a Cash-for-Training program quantitative global basis that in which they were trained specifies only the total limit on disaster management and and thus tends to benefit more mitigation, including family and efficient suppliers. community preparedness. The ■ Since June 2005, the Philippines training program was held for 4 also opened a minimum days, after which they undertook import access quota of 350,000 the Cash-for-Work program for tons at 40% tariff rate. This 7 days, performing community minimum access quota will be service such as cleaning of implemented until 2015. The canals and drainages and repair minimum access quota refers of roads and other structures. to the volume of a specific The beneficiaries received their agricultural product that is payment upon completion of allowed to be imported with a their CFT/W activities based on lower tariff as committed by the the prevailing regional wage Philippines to the WTO under rate in their respective areas. the Uruguay Round Final Act. ■ The National Food Authority, a ■ The QR is enforced through the state agency, imports 35% of the NFA. This is done through the import allocation at duty-free “buy high, sell low” policy that rates, and the private sector guarantees that more farmers imports 65%. The total import will plant rice because of the allocation for NFA is 860,000 high farm-gate prices to enable tons of rice, wherein 660,000 them to gain higher returns. tons are allocated to the private Likewise, retail prices will also sector. Private traders will be affordable to consumers bid for the so-called “service while rice is delivered quickly charge” that has a minimum to calamity-stricken areas. This floor price of PhP 2 per also allows NFA to maintain kilogram. Each importer will be a food-security reserve, with allowed to bid for a maximum of rice stocks kept at 15 days of 20,000 tons. consumption. Under the WTO ■ The Philippines also commitment, private companies negotiated for the retention of will be allowed to bid for a a quantitative restriction (QR) maximum of 20,000 tons. The from 1994 to 2012 in exchange minimum access quota refers for lower tariff rates on some to the minimum volume of farm agricultural products, as well as produce that will be allowed increased minimum access for to enter into the Philippines at rice. QRs are explicit limits, or reduced tariffs. quotas, on the physical amounts

28 Handbook on rice policy for Asia Table 14 . Rice sector policies in the Philippines, 2011 .

Policy Description of policy Production policy Price support The state-owned NFA buys paddy from farmers at $0.36 per kilo- gram. Input subsidy The government shoulders half of the cost of the HYVs, pegged at PhP 60 per kilogram. This program will last until 2013. Through RaSSFiP, rice farmers are provided with good-quality seed, especially those affected by drought, floods, and pest infes- tation. The target is to increase paddy production of marginalized farmers in rainfed and irrigated areas in Regions V, VI, VIII, and X through the provision of certified seeds at a 50:50 subsidy. Consumer policy Food subsidy for rice price increase The DSWD provided rice subsidies to small-scale farmers and fishermen but they will have to undertake Cash-for-Training and Cash-for-Work. The DSWD also implemented a temporary work scheme for farmers and fisherfolk to work in government projects. Farmers were given a choice to either obtain NFA rice or be em- ployed temporarily in government infrastructure projects for 14 days a month. Import policy State trading The NFA imports 35% of the import allocation while 65% goes to the private sector. Import duty A duty-free import quota is allocated for the private sector subject to a minimum fee of PhP 100 per 50-kg bag ($46 per ton). Quantitative restrictions Importation of rice in the country is subject to a 40% tariff and duty-free importation is limited to a concessionary amount of only 350,000 tons. Minimum access volume The Philippines’ minimum access volume for rice is 350,000 tons annually at reduced tariffs equal to 40%.

Singapore rice, basmati rice, parboiled Rice is a controlled good in Singapore. rice, and ponni rice. Stockpile To import, export, or carry out wholesale license holders must participate dealings of rice, a license is required in the Rice Stockpile Scheme. from the Ministry of Trade and Industry. The nonstockpile license is for This license can be obtained from the import of glutinous rice, the International Enterprise (IE) brown rice, red rice, cargo Singapore, a statutory board under the rice, and wild rice. Stockpile supervision of the Ministry of Trade and licenses ensure that importers Industry. Below are the major policies stockpile minimum quantities implemented by the Singaporean (50 tons) of certain types of government, with a summary in Table rice. Ordinary licenses are for 15. other varieties and these are ■ Singapore has five types of rice issued automatically. The re- licenses: a stockpile license, export license is for the import a nonstockpile license, an of rice for re-export only. The import for re-export license, a manufacturer license is for manufacturer license, and a the import of 100% broken wholesale license. The stockpile white rice for manufacturing license is for the import of white purposes. Wholesale license

Handbook on rice policy for Asia 29 Table 15 . Rice sector policies in Singapore, 2011 .

Policy Description of policy Import policy Import license Imports of rice are subject to nonautomatic licenses issued by International Enterprise (IE) Singapore. All rice varieties are controlled under the Price Control Act. Imports of rice are regulated for food security and price stability reasons. Public stocks Stockpiled rice is released into the market when there are shortages in the market.

holders are not permitted to Thailand import rice. This license is Thailand is today’s largest exporter for merchants to carry out of rice in the world. Despite being wholesale dealings in all types only fifth in the world’s total land area of rice within Singapore. devoted to rice production, Thailand is ■ Imports of rice are subject to the top among rice-exporting nations nonautomatic licenses issued in both value and volume, wherein by IE Singapore. rice exports are mainly long-grain and ■ All rice varieties are controlled jasmine rice. Rice policies in Thailand under the Price Control Act. have always been geared toward Imports of rice are regulated for domestic production and improving food security and price stability production for trade. Intensive reasons. promotion of high-yielding varieties is ■ Stockpiled rice is released now a priority in Thailand. Below are the into the market when there major rice policies implemented by the are shortages in the market. government of Thailand, followed by a The decision to release rice summary (Table 16). stocks is made by the relevant ■ In case of shortages, 100,000 government agency such tons of rice will be released from as IE Singapore, Ministry government stocks. of Trade and Industry, ■ A price pledging program was Agri-Food and Veterinary reinstated with a budget of Authority of Singapore, and/ THB 435 billion ($14 billion). or the Department of Statistics Producers were permitted to Singapore, when applicable, pledge unlimited volumes of in consultation with rice 2011-12 main-crop paddy under importers to assess the market the program, which was to run requirements. All white rice is from October 2011 to February classified as stockpile grade 2012. In other parts of the and the costs of stockpiling country, particularly in southern are shouldered by consumers provinces, the program will in Singapore. The stockpile go from 1 February 2012 until currently constitutes 10–15% of July 2012. This new policy is the total rice imported annually. different from the existing price support program. Basically, under this scheme, farmers do their own trade and collect from the government the difference between their actual selling price and the price the

30 Handbook on rice policy for Asia government fixed at THB 10,000 at the previous (higher) prices. per ton. Farmers can sell rice This arrangement serves to directly to the government at encourage agents or dealers to THB 15,000. The government order goods in large quantities, stores the purchased rice in without worrying about any silos and sells the stock itself at loss from a subsequent drop in any time. Also, the government prices. will issue credit cards to ■ The price pledging scheme is to farmers to use the money they run between October 2011 and earn from selling rice to the February 2012 with prices set at government. Farmers can use THB 13,800–15,000 ($446–484) these credit cards to buy inputs per ton for white rice, THB such as fertilizer, pesticide, and 15,000–16,000 ($434–517) per machinery and tools. As the ton for glutinous rice or Pathum card issuer, the government Thani rice; THB 18,000 ($581 per will collect repayment for these ton) for provincial fragrant rice; items from the earnings farmers and THB 20,000 ($646 per ton) receive from the government for Hom Mali rice. under the price support scheme. ■ To be eligible for the price The program is extended to guarantee/support, Thai cover 2011-12 secondary paddy farmers had to harvest the crop crops harvested as of March between September 2010 and 2012. June 2011 in the southern part ■ A price pledging program is of the country and between a form of arrangement under August 2010 and May 2011 in which a manufacturer or other parts of the country. The supplier assures refunding the objective of the program was to difference to an agent/dealer if help stabilize domestic prices prices go down while the agent of paddy during the harvest or dealer still has goods bought season.

Table 16 . Rice sector policies in Thailand, 2011 .

Policy Description of policy Stock policy Public stocks Around 100,000 tons of rice will be released from government stocks at market prices to relieve shortages due to floods. Traders and millers possessing 15 tons of rice or more are required to report stockpiles to the government in order to prevent unlawful pledging of stocks. Production policy Price support THB 13,800–15,000 ($446–484) per ton for white rice; THB 15,000–16,000 ($484– 517 per ton) for glutinous rice; THB 16,000 ($517 per ton) for long-grain glutinous or Pathum Thani rice; THB 18,000 ($581 per ton) for provincial fragrant rice; and THB 20,000 ($646 per ton) for Hom Mali rice. Fertilizer subsidy Subsidized fertilizers are available to rice farmers, for which they receive a di- rect subsidy of $49.97 per ton. Cultivation limits Rice cultivation will be restricted to two crops per year. Export policy Minimum export price MEPs are $1,060 per ton for jasmine rice, $550−560 per ton for 5% broken rice, $535−545 per ton for 25% broken rice, and $555−565 per ton for parboiled rice.

Handbook on rice policy for Asia 31 ■ Also under the government’s exports. The major rice importers from crop price insurance program, Vietnam are the Philippines, Indonesia, subsidized fertilizers are and Malaysia. Rice exports are mainly available to rice farmers in medium and long grain with moderate which they receive a direct to intermediate quality commanding subsidy of $49.97 per ton. a lower export price than in Thailand. However, the farmers are Below are the major policies required to register with the implemented in Vietnam, followed by a Bank for Agriculture and summary (Table 17). Agricultural Cooperatives ■ Government intervention is (BAAC) to enable them to join limited in the domestic market the program. Farmers can either and a majority of rice exports in buy fertilizers on a cash basis the country are made through or borrow from the BAAC at 7% state-owned trading enterprises annual interest. (50% share), particularly by ■ In April 2011, the Thai the Vietnam Food Association government restricted rice (VFA). cultivation to two crops per year. ■ The minimum export price ■ To prevent unlawful pledging for 5% broken was $465−475 of volumes, traders and millers per ton and $425−435 per ton possessing 15 tons of rice or for 25% broken rice as of 21 more are required to report December 2011. stockpiles to the government. ■ Since most of the rice grown ■ The MEP for jasmine rice is in Vietnam is purely for export, $1,060 per ton, for 5% broken local rice consumption is it is $550–560 per ton, for 25% sourced mainly from imports. broken it is $535–545 per ton, Vietnamese farmers have paddy and for parboiled rice it is $555– rice investments in Cambodia 565 per ton. for additional rice production, which is used mostly for local Vietnam consumption in Vietnam. Twenty-five years ago, food insecurity ■ To support domestic prices, was the main problem in Vietnam. Since Vietnamese exporters stocked the adoption of an economic reform 1 million tons of milled rice called Doi moi, Vietnam has been without government support but slowly emerging as one of the largest in the form of low-interest loans. rice exporters. Vietnam now ranks as ■ In February 2011, VFA bought the second-largest exporter of rice in 1 million tons of rice from the world, exporting 6.73 million tons, farmers to keep the price of the highest ever rice export volume in rice stable and also to prevent its history, bringing an export value of rice importers from haggling $3.23 billion into the country (Tran and for prices too low during the Vigil 2011). Following Doi moi, Vietnam harvest season. The minimum pursued an intensification policy in rice purchase price for paddy with the objective of raising yield and rice was equivalent to $0.24 quality. Since then, in 1997, Vietnam per kilogram (VND 5,000 per became one the largest rice exporters. kilogram) (as of 6 May 2011). Rice policies in Vietnam are a ■ Import quotas have an import balance between maintaining domestic duty of 0% for rice and paddy of food security and promoting rice all kinds coming from Lao PDR.

32 Handbook on rice policy for Asia Table 17 . Rice sector policies in Vietnam, 2011 .

Policy Description of policy Consumption policy Price support The price support for paddy is VND 5,000 per kilogram ($0.24 per kilogram). Production policy Public stocks To keep the price of rice stable, VFA bought 1 million tons of rice from farmers to prevent rice importers from haggling during the harvest season. Export policy Minimum export price The MEPs are $465–475 per ton for 5% broken rice and $425–435 per ton for 25% broken rice. State trading VFA is the country’s state-owned enterprise. It does processing and trading of food and agricultural products, especially rice.

Summary produce more but also help in raising farmers’ income. Subsidies also make Table 18 presents a summary of the rice rice prices cheaper through expanded policies in the rice-producing regions in production, mainly through expansion Asia. Asian countries have similarities of area. as well as dissimilarities as far as In Asia, both net rice-exporting policy implementation is concerned. In and -importing countries pervasively general, food security is a main concern pursued a price support policy, mainly in all the countries. As a result, trade to protect the interests of farmers. and domestic policies are largely the Figure 1 presents the extent of rough same; they all aim at providing high rice price support to farmers pursued income to rice farmers while making by the major rice-producing and prices reasonable to the public. Among -consuming countries in Asia. The the Asian countries, India has the most figure demonstrates that Taiwan is trade policies implemented. Measures the largest price-supporting country can be categorized under trade support that guarantees at minimum $0.91 through import and export controls, per kilogram of paddy to farmers. stock policy, production subsidy through The second- and third-largest price- price support and input subsidy, direct supporting countries are Thailand and income payments, and consumption Bangladesh, with minimum guaranteed subsidies. prices at $0.48 and $0.41 per kilogram A majority of the Asian economies of rice, respectively. Indonesia and the procure through state-owned Philippines are the fourth-largest price- enterprises (SOEs), particularly India, supporting countries that guarantee Pakistan, Nepal, China, Japan, South $0.39 per kilogram of rice to farmers. Korea, Vietnam, Cambodia, Indonesia, Other countries such as China, Sri Lao PDR, Malaysia, and the Philippines. Lanka, and Malaysia also guarantee Generally, the SOEs have substantial minimum prices for paddy at $0.31 and control in procurement in order to $0.25 per kilogram, respectively. The stabilize domestic prices and control lowest guaranteed minimum price of foreign trade. $0.21 per kilogram is in India. India, Among all regions in Asia, India Vietnam, and Thailand implement has been providing the most subsidies a guaranteed minimum price to to rice farmers. These subsidies not encourage production to enhance their only provide an incentive for farmers to exports to the world market, whereas

Handbook on rice policy for Asia 33 Table 18 . Rice policies for rice-producing countries in Asia, 2011 .

South Asia East Asia Southeast Asia Brunei Policy tool Bangla- Sri Paki- Hong South Cam- Indone- Lao Malay- Singa- Philip- Thai- Viet- India Nepal China Japan Taiwan Darus- Myanmar desh Lanka stan Kong Korea bodia sia PDR sia pore pines land nam salam Trade policy Minimum export price (per ton) √ √ √ √ Minimum import access commitment √ √ √ √ Quantitative restrictions √ Import tariffs √ √ √ √ √ √ √ Tariff rate quota √ √ √ √ Export ban/export license √ √ √ √ Export tax √ Import license √ √ √ State trading √ √ √ √ √ √ √ √ √ √ √ √

Public stocks √ √ √ √ √ √

Production policy √ √ Cultivation limits √ Set-aside program/area limit × × Price support ($ per kg) 0.41 0.21 0.42 0.25 0.31 1.54a 0.91 0.39 0.25 0.39 0.48 0.24 Input subsidy √ √ √ √ √ √ √ √ √ √ Machinery × × × × Seed × × × × Irrigation × × × × Fuel × × Fertilizer × × × × × × ×

Direct income support √ √ √

Consumption policy √ √ √ √ √ Food-for-Work × × Food subsidy for rice price increase × × × × aPrice support for South Korea is for milled rice.

34 Handbook on rice policy for Asia Table 18 . Rice policies for rice-producing countries in Asia, 2011 .

South Asia East Asia Southeast Asia Brunei Policy tool Bangla- Sri Paki- Hong South Cam- Indone- Lao Malay- Singa- Philip- Thai- Viet- India Nepal China Japan Taiwan Darus- Myanmar desh Lanka stan Kong Korea bodia sia PDR sia pore pines land nam salam Trade policy Minimum export price (per ton) √ √ √ √ Minimum import access commitment √ √ √ √ Quantitative restrictions √ Import tariffs √ √ √ √ √ √ √ Tariff rate quota √ √ √ √ Export ban/export license √ √ √ √ Export tax √ Import license √ √ √ State trading √ √ √ √ √ √ √ √ √ √ √ √

Public stocks √ √ √ √ √ √

Production policy √ √ Cultivation limits √ Set-aside program/area limit × × Price support ($ per kg) 0.41 0.21 0.42 0.25 0.31 1.54a 0.91 0.39 0.25 0.39 0.48 0.24 Input subsidy √ √ √ √ √ √ √ √ √ √ Machinery × × × × Seed × × × × Irrigation × × × × Fuel × × Fertilizer × × × × × × ×

Direct income support √ √ √

Consumption policy √ √ √ √ √ Food-for-Work × × Food subsidy for rice price increase × × × × aPrice support for South Korea is for milled rice.

Handbook on rice policy for Asia 35 Price (US$/kg)

1.00 0.91 0.90 0.80 0.70 0.60 0.50 0.48 0.41 0.42 0.39 0.39 0.40 0.31 0.30 0.25 0.24 0.25 0.21 0.20 0.10 0 India China Nepal Taiwan Vietnam Thailand Malaysia Sri Lanka Indonesia Philippines Bangladesh Country Fig . 1 . Price support for paddy in Asian countries, 2011 .

Fig . 2 . Minimum export price for minimum prices are set on the basis 5% broken rice, Asia, 2011 . of grain quality and destinations at Price (US$/ton) the same time. It is interesting to mention here that, although Pakistan 600 555 mainly exports to Middle Eastern 500 440 450 430 countries, India and China mainly 400 export to African and Asian countries. 300 Myanmar, on the other hand, is the largest supplier to North Korea and the 200 U.S. It is noteworthy to point out that 100 a substantial amount of intercountry trade among the major rice-exporting 0 countries also takes place. For example,

India Thailand and Vietnam import a

Vietnam substantial amount of basmati rice from Thailand Pakistan Country Pakistan (UN COMTRADE 2011).

Bangladesh, Malaysia, and Indonesia use this intervention to increase Concluding remarks production and ensure an available supply of rice in the domestic market. This handbook summarizes the After the world food crisis, current policy structure in the major a number of major rice-exporting rice-producing and rice-consuming countries in Asia set a minimum export countries in Asia. Asian developing price mainly for two reasons: (1) to countries are the dominant players in control the free flow of trade and (2) to the world rice trade, accounting for 31 ensure an available supply of rice in the million tons of total global rice trade domestic market (USITC 2009). Figure 2 in 2010. Four Asian giants—Thailand, presents the minimum prices per ton set Vietnam, China, and India—are the by the major rice-producing countries. largest rice exporters in the world; It shows that Thailand and Pakistan set altogether, they comprise about three- their minimum export prices at $555 quarters of world trade. This handbook and $450 per ton, respectively. Basically, demonstrates that, as rice is a vital

36 Handbook on rice policy for Asia commodity in many countries in the measures to create a buffer domestic world, it is subjected to a wide range of rice market, such as imposing an export government controls and interventions. ban for a short period and setting To insulate the domestic market from minimum export prices to ensure an global uncertainty, a majority of Asian available rice supply in the domestic countries control movement of rice market (India and Vietnam). In contrast, in and out of the country through a the major rice-importing countries lifted variety of trade measures, including the tariff on imported rice without giving state trading and quantitative trade any special treatment to domestic restrictions. A few rice-exporting producers to ensure an available rice countries set minimum export prices to supply in the domestic market (Nepal ensure the availability of rice for their and Bangladesh). domestic consumers by controlling Closer regional and global exports, and, in some cases, countries cooperation among countries to even temporarily ban rice exports. build up mutual trust under bilateral On the domestic front, many large and multilateral agreements is thus growing countries have increased the essential to mitigate the problem. minimum support price for farmers International agencies, particularly and introduced many short-term policy the WTO, can thus play a major role in measures to subsidize inputs such as building trust among the major rice- fertilizers, seeds, electricity, and fuel to producing and -consuming countries in expand domestic rice production. Net the world. rice-importing countries, on the other hand, aside from implementing policies to enhance domestic production by References providing incentives to farmers, also provide a price subsidy on rice to make Chang Ching-Cheng. 2009. The impact of it affordable to poorer consumers. trade liberalization on Taiwan’s rice Governments often adopt highly sector. International conference on crafted programs designed to raise rice market opening and tariffication the income of farmers by enhancing in East Asia. Korea University, Seoul, rice production. This includes the Korea, 12-15 February 2009. use of price floors, subsidized loans, Choi Jung-Sup, Summer, D.A. 2000. payments to encourage fallow area, Opening markets while maintaining etc. The policies related to production, protection: tariff rate quotas in consumption, and stock of rice can Korea and Japan. Agricultural and be broadly categorized as domestic Resource Economics Review 29(1):91- policies since any change in these 102. http://ageconsearch.umn.edu/ policies mainly affects the behavior of bitstream/31338/1/29010091.pdf. local producers or consumers. Accessed 31 October 2011. For continuous economic growth, Food and Agriculture Organization (FAO). governments in developing Asia should 2011. Food outlook. November 2011. pursue policies that promote open trade Food and Agriculture Organization (FAO). and investment. This handbook reveals November 2011. Rice market monitor. that almost all countries strongly Volume IV. Issue no. 4. www.fao.org/ intervene in the market to attain food docrep/014/am945e/am945e00.pdf. self-sufficiency while ensuring a fair Accessed 27 December 2011. price for farmers and stable prices for consumers. Generally, the major rice- exporting countries adopted some

Handbook on rice policy for Asia 37 Food and Agriculture Organization of Matsunami K. 2011. Asia’s food security the United Nations Special Report. challenges—a view from Asian FAO/WFP Crop and food security Development Bank. IRRI Seminar, 12 assessment mission to Lao People’s May 2011. International Rice Research Democratic Republic. www.fao.org/ Institute, Los Baños, Philippines. docrep/013/al976e/al976e00.htm. Min-Hsien Yang, Blandford D. 2011. Asian Accessed 22 September 2011. rice policies and WTO commitments Food and Agriculture Organization (FAO). on domestic support under existing 2011. Pakistan: GIEWS country brief. and proposed Doha round provisions. 21 December 2011. www.reliefweb. Selected paper prepared for int/sites/reliefweb.int/files/resources/ presentation at the Agricultural & PAK_0.pdf. Accessed 10 October 2011. Applied Economics Association’s 2011 Food and Agriculture Organization AAEA & NAREA Joint Annual Meeting, (FAO). 2011. FAO, WFP (2011-3) Lao Pittsburgh, Pennsylvania, 24-26 July PDR—Special report on crop and 2011. http://ageconsearch.umn. food security assessment mission edu/bitstream/103665/2/Yang_and_ (CFSAM). http://foodsecuritylink.net/ Blandford.pdf. Accessed 22 September laopdr/index.php?option=com_remosi 2011. tory&Itemid=13&func=fileinfo&id=96. Ministry of Agriculture, Forestry and Accessed 24 September 2011. Fisheries. 2009. Special topic: a big Government of Bangladesh (GOB). 2010. change to a new agriculture policy. Bangladesh economic review 2010. www.maff.go.jp/e/annual_report/2009/ Dhaka: Ministry of Finance, Finance pdf/e_topic.pdf. Accessed 1 October Division. 2011. Grossman N, Carlson D. 2011. Agricultural Moody S. n.d. Rice trade policy overview. policy in India: the role of input www.japan-101.com/government/ subsidies. www.usitc.gov/ rice_trade_policy.htm. Accessed 15 publications/332/executive_briefings/ October 2011. EBOT_IndiaAgSubidies.pdf. Accessed Parvin J. n.d. Agricultural input assistance 15 November 2011. card: direct input subsidy Gumma MK, Nelson A, Thenkabail PS, disbursement. www.unnayan.org/ Singh AN, Garcia C, Maunahan A, reports/agri-input-credit.pdf. Accessed Villano L. 2010. Mapping rice areas 20 December 2011. in South Asia. Rice Today, July- Sapkota C. The demand for subsidized rice September, 2010:42-43. http://beta.irri. in Nepal. http://community.eidis. org/news/images/stories/ricetoday/9-3/ org/5a30e903. Accessed 8 November Map.pdf. Accessed 27 September 2011. 2011. Japan Ministry of Agriculture, Forestry Svedberg P. 2010. India alternative schemes. and Fisheries. 2010. Summary of www.isid.ac.in/~pu/conference/ the basic plan for food, agriculture dec_10_conf/Papers/PeterSvedberg. and rural areas. www.maff.go.jp/e/ doc. Accessed 10 November 2011. maffud/2010/729.html. Accessed 1 United Nations Commodity Trade Statistics October 2011. Database (UN COMTRADE). 2011. Javier LA. 2011. Rice imports by Bangladesh http://unstats.un.org/unsd/default.htm. to double on ‘panic-buying.’ www. Accessed 11 October 2011. bloomberg.com/news/2011-01-27/rice- imports-by-bangladesh-to-double-on- panic-buying-prices-hasan-says.html. Accessed 9 November 2011.

38 Handbook on rice policy for Asia USDA Foreign Agricultural Service (FAS). USDA Foreign Agricultural Service (FAS). 2011. Taiwan grain and feed annual: 2011. Indonesia grain and feed wheat, corn, and milled rice situation annual. GAIN Report No. 1110. and outlook. GAIN Report no. TW1100. http://gain.fas.usda.gov/Recent%20 http://gain.fas.usda.gov/Recent%20 GAIN%20Publications%20/Grain%20 GAIN%20Publications/Grain%20 and%20Feed%20Annual_Jakarta_ and%20Feed%20Annual_Taipei_ Indonesia_4-14-2011.pdf. Accessed 15 Taiwan_5-3-2011.pdf. Accessed 3 October 2011. October 2011. USDA Foreign Agricultural Service (FAS). USDA Foreign Agricultural Service 2011. India grain and feed annual. (FAS). 2011. Philippine grains GAIN Report No. IN1117. http://gain. situation and outlook. GAIN Report. fas.usda.gov/Recent%20GAIN%20 http://static.globaltrade.net/files/ Publications%20/Grain%20and%20 pdf/20110406114757596.pdf. Accessed Feed%20Annual_New%20Delhi_ 1 July 2011. India_2-23-2011.pdf. Accessed 10 USDA Foreign Agricultural Service (FAS). October 2011. 2011. Bangladesh grain and feed USDA Economic Research Service. 2009. annual. GAIN Report No. BG1105. Rice: Market Outlook. www.ers.usda. http://gain.fas.usda.gov/Recent%20 gov/briefing/rice/2008baseline.htm. GAIN%20Publications/Grain%20 Accessed 21 September 2011. and%20Feed%20Update_Dhaka_ USDA GAIN Report. 2011. Japan grain Bangladesh_8-5-2011.pdf. Accessed 9 and feed annual. GAIN REPORT No. November 2011. JA1006 http://gain.fas.usda.gov/ USDA Foreign Agricultural Service (FAS). Recent%20GAIN%20Publications/ 2011. China grain and feed annual. Grain%20and%20Feed%20Annual_ GAIN Report No. CH11014. http://gain. Tokyo_Japan_3-10-2011.pdf. Accessed fas.usda.gov/Recent%20GAIN%20 26 September 2011. Publications%20/Grain%20and%20 Yamasita K. 2010. Free trade is the way to Feed%20Annual_Beijing_China%20 achieve Japan’s national food security. -%20Peoples%20Republic%20of_3-8- Tokyo: Research Institute of Economy, 2011.pdf. Accessed 1 April 2011. Trade and Industry (RIETI). www. USDA Foreign Agricultural Service (FAS). rieti.go.jp/en/papers/contribution/ 2011. Vietnam grain and feed yamashita/65.html. Accessed 17 annual. GAIN Report No. VM1034. August 2011. http://static.globaltrade.net/files/ pdf/20110511231552444.pdf. Accessed Additional information sources 10 October 2011. Bangladesh USDA Foreign Agricultural Service (FAS). Food and Agriculture Organization (FAO). 2011. Pakistan grain and feed annual. 2011. Rice market monitor, July 2011. GAIN report. http://gain.fas.usda.gov/ Vol. XIV, Issue No. 3. www.fao.org/ Recent%20GAIN%20Publications%20/ docrep/014/am721e/am721e00.pdf. Grain%20and%20Feed%20Annual_ Accessed 25 September 2011. Islamabad_Pakistan_3-15-2011.pdf. Government of Bangladesh, Ministry of Accessed 22 November 2011. Finance, 2010. Chapter 7. Agriculture. www.mof.gov.bd/en/budget/11_12/ber/ en/Chapter-7%20_Eng-2010_.pdf?phpM yAdmin=XRGktGpDJ7v31TJLuZ5xtAQ mRx9. Accessed 19 December 2011.

Handbook on rice policy for Asia 39 The Daily News. 23 October 2004. Bonaglia F, Goldstein A. 2003. “Background Bangladesh launches open market note on Private sector development sale of rice to keep prices stable. www. and trade capacity building in the Lao dailynews.lk/2004/10/23/wor02.html. People’s Democratic Republic”. www. Accessed 1 October 2011. oecd.org/dataoecd/2/26/20631091.pdf. World Bank. 2011. Bangladesh economic Accessed 3 October 2011. update. http://siteresources. FAO GIEWS. n.d. Country Policy Monitoring. worldbank.org/BANGLADESHEXTN/ www.fao.org/giews/countrybrief/ Resources/295759-1271081222839/ policy_detail.jsp?code=PAK. Accessed WBBangladeshbriefApril282011.pdf. 1 March 2011. Accessed 16 May 2011. Reuters News. 2011. Vietnam to stockpile 1 World Food Programme (WFP). 2011. million tons of rice from July 1. www. Bangladesh food security monitoring forexyard.com/en/news/Vietnam-to- bulletin. Issue no. 6, July-September stockpile-1-mln-T-rice-from-July-2011- 2011. http://reliefweb.int/sites/ 06-13T052200Z-UPDATE-2. Accessed 3 reliefweb.int/files/resources/ October 2011. Full%20Report_365.pdf. Accessed 27 UN ESCAP. 2011. Traders’ manual for least December 2011. developed countries: Cambodia. www.unescap.org/tid/publication/ Brunei t&ipub2320_part2.pdf. Accessed 21 Anonymous. 2008. Towards self-sufficiency July 2011. in rice production. www.agriculture. World Trade Organization (WTO). 2011. What gov.bn/DOA2009/pdf%20Publication/ Cambodia has promised. www.wto. English%20Version.pdf. Accessed 21 org/english/thewto_e/acc_e/factsheet_ September 2011. cambodge_e.htm. Accessed 26 July Anonymous. n.d. Trade policies and 2011. practices by measure. www.wto.org/ english/tratop_e/tpr_e/s196-03_e.doc. China Accessed 21 September 2011. Asia Trade Hub. 2011. China tax system. www.asiatradehub.com/china/ Cambodia tax13asp. Accessed 11 November 2011. AgroCambodia. 2011. Cambodia can export Blas J. 2011. Farm subsidies cropped to high quality, and huge quantity rice to 30-year low. The Financial Times. other countries. http://agrocambodia. www.ft.com/intl/cms/s/0/c653ad22- wordpress.com/2011/06/17/cambodia- e46d-11e0-844d-00144feabdc0. rice-export-2011-cambodia-can-export- html#axzz1d6ElZ9Ey. Accessed 11 high-quality-and-huge-quantity-rice-to- November 2011. other-countries. Accessed 3 October China Daily. 2011. China to spend more 2011. money for subsidies to boost AgroCambodia. 2011. Vietnamese agriculture. www.chinadaily.com.cn/ rice exporters face challenges business/2011-04/07/content_12287075. from foreigners in Cambodia. htm. Accessed 11 November 2011. http://agrocambodia.wordpress. Food and Agriculture Organization (FAO). com/2011/08/15/vietnamese-rice- 2011. Rice Market Monitor. April exporter-face-challenges-from- 2011 Vol. XIV. Issue 2. www.fao.org/ foreigners-in-cambodia/#more-495. docrep/014/am491e/am491e00.pdf. Accessed 3 October 2011. Accessed 27 July 2011.

40 Handbook on rice policy for Asia Lan Xinzhen. 2011. Securing grain. Beijing The Government of Hong Kong Special Review No. 9, 3 March 2011. www. Administrative Region. 2011. Import bjreview.com.cn/quotes/txt/2011-03/02/ and Export. Trade and Industry content_336144_2.htm. Accessed 10 Department. http://www.tid.gov.hk/ March 2011. english/import_export/nontextiles/ People’s Republic of China, Ministry of nt_rice/nt_rice.html. Accessed 28 Agriculture. 2009. Interim measures December 2011. for the administration of import tariff quotas of agricultural products. http:// India english.agri.gov.cn/ga/plar/200906/ Anand G. 2010. Green revolution in India t20090622_1062_1.htm. Accessed 1 wilts as subsidies backfire. http:// September 2011. online.wsj.com/article/SB100014240 Poole J. 2011. Rice supplies tightening in 52748703615904575052921612723844. China may increase imports, bolster html. Accessed 28 March 2011. inflation. Bloomberg News. www. Basmati rice. www.agricommodityprices. bloomberg.com/news/2011-06-30/ com/basmati_rice.php. Accessed 8 rice-supplies-tightening-in-china-may- October 2011. increase-imports-bolster-inflation.html. Daily News. n.d. India lowers minimum Accessed 1 July 2011. exports price for premium nonbasmati USDA Foreign Agricultural Service (FAS). rice. http://oryza.com/pdf/12830.html. 2010. China grain and feed annual. Accessed 1 September 2011. GAIN Report No. CH10008. http://gain. Food Corporation of India. n.d. Brief note fas.usda.gov/Recent%20GAIN%20 on PDS and other welfare schemes. Publications%20/Grain%20and%20 http://fciweb.nic.in/articles/view/271. Feed%20Annual_Beijing_China%20 Accessed 10 November 2011. -%20Peoples%20Republic%20of%20_3- Government of India. 2010. Foreign trade 1-2010.pdf. Accessed 1 April 2011. policy. Ministry of Commerce and Xinhua. 2011. China allocates more money Industry, Department of Commerce. for subsidies to boost farm production: http://dgft.gov.in/exim/2000/policy/ MOF. http://english.people.com. ftp-plcontentE-1011.pdf. Accessed 10 cn/90001/90776/90883/7343383.htm. November 2011. Accessed 21 February 2012. Government of Goa, India. n.d. Expression of interest for implementation and Hong Kong commissioning of a smart card based MCOT. 2011. Hong Kong remains major system for public distribution system. importer of Hom Mali fragrant rice. http://goagrahak.nic.in/eoi_csca.pdf. http://www.mcot.net/cfcustom/ Accessed 8 October 2011. cache_page/172495.htm. Accessed 21 Jagannathan P. 2011. Open general license February 2012. exports notifications likely to be The Government of Hong Kong Special out next weekend. The economic Administrative Region. 2011. Exporting times. http://articles.economictimes. to Hong Kong. Hong Kong Economic indiatimes.com/2011-09-09/ and Trade Office. http://www. news/30135685_1_rice-and-wheat-free- hketolondon.gov.hk/invest/expo.htm. exports-individual-exporters. Accessed Accessed 28 December 2011. 8 October 2011.

Handbook on rice policy for Asia 41 Seeralan. 2011. Government lifts export ban GoJ (Government of Japan). 2010. On the on certain rice, onion varieties. GS new growth strategy: blue print for Current Affairs. http://gscurrentaffairs. revitalizing Japan, Tokyo: cabinet com/9062/govt-lifts-export-ban-on- division. www.kantei.go.jp/foreign/kan/ certain-rice-onion-varieties/. Accessed topics/sinseichou01_e.pdf. Accessed 1 10 November 2011. October 2011. Times of India. 2011. Excellent article on GoJ (Government of Japan). 2010. A big fertilizer subsidy in India. http:// change to a new agriculture policy. rainwaterharvesting.wordpress. Tokyo: Ministry of Agriculture, Forestry com/2011/05/27/excellent-article-on- and Fisheries. www.maff.go.jp/e/ fertilizer-subsidy-in-India/. Accessed 8 annual_report/2009/pdf/e_topic.pdf. October 2011. Accessed 1 October 2011. USDA Foreign Agricultural Service (FAS). Japan External Trade Organization (JETRO). 2011. India grain and feed voluntary 2011. Guidebook for export to Japan update. GAIN Report No. IN119. http:// (food articles). www.jetro.go.jp/en/ gain.fas.usda.gov/Recent%20GAIN%20 reports/market/pdf/guidebook_ food_ Publications%20/Grain%20and%20 health_foods_dietary_supplem. Pdf. Feed%20Voluntary%20Update%20 Accessed 1 September 2011. -%20October%202011_New%20 Oryza. 2010. Japan rice stockpiles on an Delhi_India_10-4-2011.pdf. Accessed 10 upswing. http://oryza.com/Asia- November 2011. Pacific/japan-market/japan-rice- stockpiles-on-an-upswing. Accessed 8 Indonesia March 2011. Bulog. n.d. Procurement at a glance. www. Oryza. 2011. Will Japan open its market to bulog.co.id/sekilasada_v2.php. more rice imports? http://oryza.com/ Accessed 1 March 2011. Rice-News/13550.html. Accessed 10 Jakarta Globe. 2010. Indonesia to suspend December 2011. duty for Bulog’s rice imports. www. Wikipedia. 2011. Nõgyõsha kobetsu shotoku thejakartaglobe.com/bisindonesia/ hoshõ seido. http://en.wikipedia. indonesia-to-suspend-duty-for-bulogs- org/wiki/N%C5%8Dgy%C5%8Dsha_ rice-imports/409677. Accessed 1 March kobetsu_shotoku_hosh%C5%8D_seido. 2011. Accessed 1 October 2011. Jakarta Post. n.d. Bulog expect rice prices to fall 10%. www.thejakartapost.com/ Lao PDR news/2011/04/07bulog-expects-rice- International Monetary Fund. 2011.IMF prices-fall-10.html. Accessed 20 April Country Report No. 11/257. www.imf. 2011. org/external/pubs/ft/scr/2011/cr11257. pdf. Accessed 24 September 2011. Japan World Food Programme. n.d. Food Markets. Agriculture and Agri-food Canada. Japan www.foodsecurityatlas.org/lao/ Agriculture Policy Review. www4.agr. country/availability/food-markets. gc.ca/AAFC-AAC/display-afficher. Accessed 24 September 2011. do?id=1225586815566&lang=eng. Accessed 1 September 2011. Malaysia Food self-sufficiency under 40% for 1st time Maybank IB Research. 2011. Rice + since ’06. http://e.nikkei.com/e/fr/tnks/ dividends = staple + stable. http:// Nni2011811D11EE489.htm. Accessed maybank.xinhua08.com/yjbg/201108/ 30 September 2011. P020110825403526661156.pdf. Accessed 10 September 2011.

42 Handbook on rice policy for Asia Ministry of Agriculture and Agro-based Shin A, Kyaw PW. 2011. Mandalay Industry. n.d. Rice subsidy program for government launches low-interest poor (fertile). http://www.moa.gov.my/ farm loan program. Myanmar Times. web/guest/penerangan. Accessed 17 www.mmtimes.com/2011/news/580/ February 2011. news58006.html. Accessed 14 October USDA FAS. 2011. Malaysia grain and feed 2011. annual. GAIN Report No. MY 1003. http://static.globaltrade.net/files/ Nepal pdf/20110406115103794.pdf. Accessed Bhandari B. 2011. Cheaper Indian 10 September 2011. paddy draws Nepali traders. www. WTO (World Trade Organization). n.d. ekantipur.com/2011/10/10/headlines/ Trade policies by sector–Trade Policy Cheaper-Indian-paddy-draws-Nepali- Review. WT/TPR/S/225. www.wto.org/ traders/341964. Accessed 21 November english/tratop_e/tpr_e/s225-04_e.doc. 2011. Accessed 10 September 2011. FAO Food Security Information for Decision Making. 2011. Price monitoring and Myanmar analysis country brief. www.fao.org/ Anonymous. n.d. How far is Burma from docrep/014/am565e/am565e00.pdf. Myanmar? www.laohamutuk.org/ Accessed 8 November 2011. solidarity/konf/Burma.pdf. Accessed 15 December 2011. Pakistan Mizzima. 2011. Burmese rice bound for Anonymous. n.d. Basmati Rice. www. North Korea. www.mizzima.com/ agricommodityprices.com/basmati_ business/5746-burmese-rice-bound- rice.php. Accessed 22 November 2011. for-north-korea.html. Accessed 24 Anonymous. n.d. Pakistan—Discover September 2011 the potential. www.ajsoftpk.com/ Myanmar Business Network. 2011. Myanmar info/about_Pakistan. Accessed 22 lifts ban on rice exports, prices November 2011. expected to fall. MBN, 16 May 2011. Anonymous. n.d. Rice Exporters Association www.myanmar-business.org/2011/05/ of Pakistan. www.pakistan.com/ myanmar-lifts-ban-on-rice-exports. english/agri.overview/rice.exporters. html. Accessed 24 June 2011. shtml. Accessed 28 September 2011. Oo TH. 2011. Farmers demand more than Anonymous. n.d. Subsidy on imported urea cheap loans. Myanmar Times. www. paid by government of Pakistan. http:// mmtimes.com/2011/business/588/ paknewspoint.blogspot.com/2011/08/ biz58801.html. Accessed 10 November subsidy-on-imported-urea-paid-by. 2011. html. Accessed 23 September 2011. Oryza. 2011. India: Manidco to import 30,000 Government of Pakistan. 2011. Trading MT from Myanmar. http://oryza. Corporation of Pakistan (Pvt.) Limited com/print/12156.html. Accessed 10 Ministry of Commerce. www.tcp.gov. November 2011. pk/FAQs.aspx. Accessed 22 November Oryza. 2011. Myanmar export ban temporary 2011. say experts. http://oryza.com/ Oryza. 2011. Pakistan aims to export 4.5 Asia-Pacific/Myanmar-Export-Ban- million tons of rice. http://oryza.com/ Temporary-Say-Experts.html. Accessed Rice-News/12637.html. Accessed 1 24 June 2011. December 2011. Oryza. 2011. Myanmar supplies Africa with cheap rice. http://oryza.com/ Rice-News/12856.html. Accessed 10 November 2011.

Handbook on rice policy for Asia 43 Pakistan Agriculture Research Council Campos O. V. 2011. Extension of rice import (PARC). n.d. National Coordinated quota sought. Manila Standard Today. Rice Programme. www.parc.gov. www.manilastandardtoday.com/ pk/narc/RiceProg/Pages/intro.html. insideBusiness.htm?f=2011/march/28/ Accessed 8 December 2011. business4.isx&d=2011/march/28. PKeconomists. 2011. Rains caused minor Accessed 1 July 2011. damage to rice, sugarcane crops. Campos O. V. 2011. Rice mechanization http://pkeconomists.com/rains-cause- OKd. Manila Standard Today. minor-damage-to-rice-sugarcane- www.manilastandardtoday.com/ crops. Accessed 22 November 2011. insideBusiness.htm?f=2011/june/29/ Razaq A. 2011, July. Energy-efficient motor business1.isx&d=2011/june/29. pumps to replace 11,000 tubewells: Accessed 1 July 2011. PO USAID. Business Recorder. www. Flores H. 2011. 2M farmers to get brecorder.com/fuel-a-energy/single/630 rice subsidy. Philippines Star, /193:pakistan/1216977:energy-efficient- May 2011. www.philstar.com/ motor-pumps-to-replace-11000- ArticlePrinterFriendly.aspx?articled=6 tubewells-pousaid/?date=2011-07-29. 83313&publicationSubCategoryId=63. Accessed 28 September 2011. Accessed 1 July 2011. Razaq A. 2011. Higher input cost behind Republic of the Philippines, Department of poor performance of agriculture sector. Agriculture (DA). 2011. DA affirms no Business Recorder. www.brecorder. rice subsidy stand. www.da.gov.ph/n_ com/agricluture-a-allied/single/624 sub.php?pass=News_events/2011/ /183:pakistan/1241947:higher-input- feb/feb18_2011b.html. Accessed 1 July cost-behind-poor-performance-of- 2011. agriculture-sector/?date=2011-10-14. Yap C. 2011. Philippines sets tender to buy Accessed 28 September 2011. 600,000 tons rice to meet domestic WTO Trade Policy Review of Pakistan. demand. Intel Asia News Online. 2008. Opening Statement by Mr. http://64.64.19.250/news/article/ S. A. Mannoo, Federal Minister regional/111318879.shtml. Accessed 1 for Commerce and Trade. www. July 2011. wto-pakistan.org/documents/tpr/ opening_statement.doc. Accessed 23 Singapore September 2011. Australian Government, Department of Foreign Affair and Trade. n.d. Philippines Singapore country brief. www.dfat.gov. Aguiba M. 2011, 15 February. DA to restore au/geo/singapore/singapore_country_ rice seed subsidy scheme. www. brief.html. Accessed 23 September cocafm.gov.ph/2011/da-to-restore-rice- 2011. seed-subsidy-scheme. Accessed 1 July Organization for Economic Co-operation and 2011. Development (OECD). n.d. Glossary Anonymous. 2011. DA promotes rice of Statistical Terms. http://stats.oecd. mechanization to attain rice org/glossary/detail.asp?ID=1369. sufficiency. www.radyonatin.com/ Accessed 23 September 2011. story.php?storyid=1169. Accessed 11 Ruma P. 2011. Singapore’s olam November 2011. wins Bangladesh rice import tender. www.reuters.com/ article/2011/03/08/bangladesh-tender- idUSSGE72702O20110308. Accessed 23 September 2011.

44 Handbook on rice policy for Asia South Korea Chang HH, de Gorter H. 2004. Tariff rate USDA. FAS. 2011. Republic of Korea grain import quotas, domestic market and feed annual. GAIN Report no structure and agricultural support KS 1211. http://gain.fas.usda.gov/ program – the case of Taiwanese Recent%20GAIN%20Publications/ rice import. Selected paper prepared Grain%20and%20Feed%20Annual_ for presentation at the Western Seoul_Korea%20-%20Republic%20 Agricultural Economics Association of_5-6-2011.pdf. Accessed 26 Annual Meeting, Honolulu, Hawaii, 30 September 2011. June-2 July 2004. http://ageconsearch. USDA FAS. 2011. Republic of Korea grain umn.edu/bitstream/36274/1/sp04ch01. and feed annual. GAIN Report no. pdf. Accessed 1 June 2011. KS1144. http://static.globaltrade. Huang S. 2001. USDA Economic Research net/files/pdf/20111127142825891.pdf. Service. Taiwan’s rice import market Accessed 5 December 2011. to open with WTO accession. www.ers. WTO (World Trade Organization). 2008. usda.gov/briefing/rice/SpecialArticle/ Stable growth that continued reform Taiwanrice.pdf. Accessed 1 June 2011. can help to maintain. Trade Policy Review: Korea, Republic of. www.wto. Thailand org/english/tratop_e/tpr_e/tp304_e. FLAR. 2011. Thailand—government to spend htm. Accessed 5 December 2011. B5 bn on rice. Latin American Fund for Irrigated Rice Web site. www.flar. Sri Lanka org/index.php/es/news/1334-thailand- USDA FAS. 2011. Sri Lanka grain and feed government-to-spend-b5bn-on-rice. annual. GAIN Report No. CE1101. Accessed 15 July 2011. http://static.globaltrade.net/files/ Kamphaengphet Export 2011. Rice exports to pdf/20110404131713434.pdf. Accessed get a boost this year, 8 January 2011. 27 September 2011. www.ke-rice.com/index.php?lay=show &ac=article&Id=538768554&Ntype=2. Taiwan Accessed 21 February 2011. Agriculture and Food Agency, policies and The Crop Site. 2011. Fertilizer subsidy measures. n.d. Taiwan. www.afa.gov. and price increase approved. www. tw/content_en.asp?a=2&pcatid=1& thecropsite.com/news/8227/fertiliser- ycatid=1&lcatid=484. Accessed 14 subsidy-and-price-increase-approved. November 2011. Accessed 15 July 2011. Bonarriva J, Koscielski M, Wilson E. 2009. Theparat C, Arunmas P. 2011. Fertilizer Export controls: an overview of their subsidy approved. Bangkok Post use, economic effects, and treatment Business. www.bangkokpost.com/ in the global trading system. Office business/economics/235750/fertiliser- of Industries: US International Trade subsidy-approved. Accessed 15 July Commission, Washington, DC, USA. 2011. www.usitc.gov/publications/332/ USDA FAS. 2011. Thailand grain and feed working_papers/ID-23.pdf. Accessed 3 annual 2011. GAIN Report No. TH1035. November 2011. http://gain.fas.usda.gov/Recent%20 GAIN%20GAIN%20Publications/ Grain%20and%20Feed%20Annual_ Bangkok_Thailand_3-22-2011.pdf. Accessed 15 July 2011.

Handbook on rice policy for Asia 45 Vietnam ASEAN. 2011. 11th AMAF plus three countries conclude agreement on rice. www.asean.org/26651.htm. Accessed 10 November 2011. Vietnam Food Association. 2011. Principles and missions. www.vietfood.org.vn/en/ default.aspx?c=79. Accessed 20 March 2011. Vietnam Logistic News. n.d. Rice export price falls further. http://en.baomoi. com/Info/Rice-export-price-falls- further/5/122886.epi. Accessed 15 July 2011.

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