1. In search of food security: Addressing opacity and price volatility in ASEAN's rice sector
- Author:
- Sally Trethewie
- Publication Date:
- 03-2012
- Content Type:
- Policy Brief
- Institution:
- Centre for Non-Traditional Security Studies (NTS)
- Abstract:
- Given that volatility in rice prices is expected to continue, governments in Southeast Asia should consider policy measures to address the factors that impact price formation and stability. The non- transparent nature of the way rice is traded in Southeast Asia is contrary to the free-trade rationale of ASEAN agricultural trade policy and food security frameworks. The underlying dynamic of opacity (of information) is the reason for policy decisions that contribute to instability in rice price formation. In particular, limited information on the availability of rice and composition of trade deals results in misinformed purchasing behaviour, particularly during price shocks. The lack of transparency perpetuates distrust in the regional rice market, leading countries to disengage from the market and instead pursue economically inefficient self- sufficiency strategies.
- Topic:
- Security, Agriculture, International Trade and Finance, Markets, and Food
- Political Geography:
- Southeast Asia