High Rice Prices no WIndfall for Many Asian Farmers

Lamanda Reid/ April 22, 2008/ 9:45 a.m./poverty and inequality
The article High Rice Prices no Windfall for Many Asian Farmers was written by Thomas Fuller and published on April 15, 2008 in the International Herald Tribune. This article summarizes the struggle rice farmers are going through, despite the rising rice prices globally. Pomchan Luanguanna is a rice farmer who only produces enough rice to feed his family and extended family. Due to high gas, fertilizer, and pesticide prices, farmers can’t afford the tools that are needed to farm. Many rice producers are considered net rice buyers, this means they produce less than their actual needs. Rising rice prices in Asia can be compared to rising gas prices in the United States. Both can cause prices of all other products to soar. The rising prices are causing panic throughout Asia. Currently in the Philippines, the world’s largest rice importer, it is illegal to hoard rice. Citizens can be charged with economic sabotage, this could possibly carry a life sentence. Soaring rice prices are due to a shortage of land for rice farming. Several other problems have also caused high rice prices such as panic, typhoons, and flooding. Thailand is the world’s largest rice exporter. Commercial farmers who have access to irrigation along with millers and packers are profiting from the high prices. Net rice farmers are unable to make a profit because they are unable to store the rice. Unlike net farmers millers and packers are able to store the rice and sell when there is a shortage of rice at a higher price.
Like many products high prices aren’t affecting the wealthy and middle class, the poor are suffering. If prices go up any higher the Asian poor will be unable to afford rice. Once again the poor are suffering and they are facing an inequality due to their socioeconomic class.