Hybrid rice in Cambodia

Tuesday, October 25, 2011

Major focus internationally remains Thailand's bet on continued price rises for rice produce. And all skeptics may well be left stranded, especially as flooding will at least ensure higher prices in the short term.

The Bangkok Post (15-10-2011) already commented on how the government is expecting 6-7 million tonnes less production.

Other countries in Southeast Asia have similar tidings.

Cambodia already has a response, releasing state controlled stocks of lower grade rice. This lead to lower prices though the wisdom of such releases is questionable, as Cambodia's stockpile will not last long, whereas the contribution to the nation of not releasing the stock piles may well have better returns in the light of increasing rice prices.

With all the political hoopla on Thailand's mortgage scheme, an article in the New Mandala (16-10-2011) comes as a welcome balanced approach. It emphasizes the expectations concerning corruption (the need to learn from lessons in the past) and the realism that such a scheme will only work if prices rise, which at least for the foreseeable future seems to be the case.

Marketwatch.com adds that Cambodia, Laos and Burma expect to profit from the same mortgage scheme, at least in the short term as the rice harvest will head to Thailand with higher prices ensured.
'There is a large price differential between Thai and Cambodian rice, even though the quality is similar and many traders are now trying to bring in rice from across the border, said Christophe Cousin, managing director, Prasert and Sons, a Pathumthani-based international rice brokerage in Thailand. It is usual for around 1.0 million tons of Cambodian rice to be transported across the Thai border every year for more remunerative export prices, and now with the government offering even better rates, the trans-border movement will at least double in volume, said Chookiat Ophaswongse, former president of Thai Rice Exporters Association'.
Interestingly, it also highlights that not only will neighbours piggyback on the scheme but that last years harvests may will end up mortgaged as well ...

Summary

Policy makers highlight the possible consequences of the closing of the gap between production and consumption of rice. Their answer to this, is to increase production, which could be best achieved by growing hybrid rice. They point to the achievements that China has managed to achieve.

However it is not obvious that increasing production by raising the yield frontier is the best solution, as economic issues lie at the heart of the slowing production growth of rice.

The major international rice research institute (IRRI) has however decided that hybrid rice is the best way and is actively building up cooperation with private interests as they are not only interesting partner but also the most efficient organization to pursue this.

Opposition to hybrid rice growing focuses on this corporisation and possible future consequences of leaving the playing field to private interests rather than public interests.

Little experience with growing hybrid rice has taken place in Cambodia with inconclusive results. Nonetheless there should be ample scope to produce hybrid rice under current dry season conditions.

However despite the relevance of increased yields for land-less and land-poor farmers of Cambodia, there is little scope that hybrid rice growing will become a major tool to alleviate poverty in Cambodia as the price of seed is too high and the government is not expected to be able set up a transparent system of subsidies.

Hybrid rice in Cambodia

Tuesday, October 25, 2011

Summary

Announcing growing hybrid rice

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