(Bangkok, 12th) The energy and fertilizer crisis triggered by conflict in the Middle East is threatening Asia's most important staple—rice. With soaring fuel and fertilizer prices, tens of millions of small farmers in Southeast Asia are facing the dilemma that they 'can't afford to plant or harvest.'
Experts warn that if shipping through the Strait of Hormuz continues to be obstructed, Asia and even the world could face a rice shortage as soon as the second half of this year.
Tractors, irrigation pumps, and rice planters all require diesel fuel, and farming relies on fertilizer. These inputs have become unaffordable for many Southeast Asian farmers. In Thailand, some rice paddies are being left to waste in the fields because farmers cannot afford the high cost of harvest.
Davenport, founder of Cambodian rice producer BRM Agro, pointed out that about three-quarters of Cambodia’s population lives in rural areas, and agriculture being severely affected has deeply unsettled farmers. About 10% of local farmers said that if they cannot secure guaranteed-price purchasing, they will forgo planting this season.
Rice is the staple food for more than half of the world’s population and a major source of livelihood for rural communities in regions where agriculture makes up a significant portion of economic activity. Farmers now not only face doubled or tripled input costs, but must also endure the long-standing pressure of low rice prices.
The Philippines is one of the world's largest rice importers as well as a major rice producer. Montemayor, national manager of the Federation of Free Farmers Cooperatives of the Philippines, said that this year, Philippine rice output may decrease by at least 10%. Based on an estimated total output of 20.3 million tons, this means a reduction of about 2 million tons, and the impact will become apparent during the next harvest season in September or October.
In Vietnam’s Mekong Delta, skyrocketing production costs have made rice farming barely profitable, prompting some farmers to consider reducing the number of planting seasons from three per year to two.
According to Malaysian media, the Malaysian Rice Farmers Association called on the government last Friday (April 10) to take urgent measures to include rice farmers in the subsidized diesel control system, or to come up with new plans to relieve the cost pressure brought by rising diesel prices. Otherwise, rice farmers may be forced to suspend cultivation this season, impacting the country's food supply.
Association president Abdullah stated that diesel prices continue to climb and rice farmers, not included in the subsidy scheme, can only buy diesel at market price, causing planting and harvesting costs to rise by 35% to 52%. If fertilizer and pesticide costs are added, the total increase may reach as high as 65%. Although the government has provided subsidies for rice farming and harvesting, it is still insufficient to offset the recent spike in diesel costs.
The impact caused by the Middle East conflict will persist, and farmers are seeking innovative ways to reduce reliance on imported fertilizers and fuel. Some are switching from rice to corn, as corn requires less water and does not need diesel-powered irrigation equipment.
BRM Agro is also accelerating its plan to expand production of bio-organic fertilizers and is searching for suppliers of electric tractors and solar water pumps to reduce dependence on fossil fuels.
Singapore and Cambodia signed a memorandum of cooperation last Friday to establish a government-to-government rice purchasing and selling mechanism to ensure that, when needed, Cambodia will export rice to Singapore under agreed terms.
Tractors, irrigation pumps, and rice planters all require diesel fuel, and farming relies on fertilizer. These inputs have become unaffordable for many Southeast Asian farmers. In Thailand, some rice paddies are being left to waste in the fields because farmers cannot afford the high cost of harvest.
Davenport, founder of Cambodian rice producer BRM Agro, pointed out that about three-quarters of Cambodia’s population lives in rural areas, and agriculture being severely affected has deeply unsettled farmers. About 10% of local farmers said that if they cannot secure guaranteed-price purchasing, they will forgo planting this season.
Rice is the staple food for more than half of the world’s population and a major source of livelihood for rural communities in regions where agriculture makes up a significant portion of economic activity. Farmers now not only face doubled or tripled input costs, but must also endure the long-standing pressure of low rice prices.
The Philippines is one of the world's largest rice importers as well as a major rice producer. Montemayor, national manager of the Federation of Free Farmers Cooperatives of the Philippines, said that this year, Philippine rice output may decrease by at least 10%. Based on an estimated total output of 20.3 million tons, this means a reduction of about 2 million tons, and the impact will become apparent during the next harvest season in September or October.
In Vietnam’s Mekong Delta, skyrocketing production costs have made rice farming barely profitable, prompting some farmers to consider reducing the number of planting seasons from three per year to two.
According to Malaysian media, the Malaysian Rice Farmers Association called on the government last Friday (April 10) to take urgent measures to include rice farmers in the subsidized diesel control system, or to come up with new plans to relieve the cost pressure brought by rising diesel prices. Otherwise, rice farmers may be forced to suspend cultivation this season, impacting the country's food supply.
Association president Abdullah stated that diesel prices continue to climb and rice farmers, not included in the subsidy scheme, can only buy diesel at market price, causing planting and harvesting costs to rise by 35% to 52%. If fertilizer and pesticide costs are added, the total increase may reach as high as 65%. Although the government has provided subsidies for rice farming and harvesting, it is still insufficient to offset the recent spike in diesel costs.
The impact caused by the Middle East conflict will persist, and farmers are seeking innovative ways to reduce reliance on imported fertilizers and fuel. Some are switching from rice to corn, as corn requires less water and does not need diesel-powered irrigation equipment.
BRM Agro is also accelerating its plan to expand production of bio-organic fertilizers and is searching for suppliers of electric tractors and solar water pumps to reduce dependence on fossil fuels.
Singapore and Cambodia signed a memorandum of cooperation last Friday to establish a government-to-government rice purchasing and selling mechanism to ensure that, when needed, Cambodia will export rice to Singapore under agreed terms.