assignment

Thailand’s Increased Export of Rice During COVID19 Pandemic

During this COVID 19 Pandemic, one of the impacts this virus has had on food systems

globally is an increase in the price of rice which hasn’t reached such high numbers for seven years (Tanakasempipat, 2020). Although the top three global exporters of rice are India, then Thailand, then Vietnam, Thailand has had to carry the burden of being the largest exporter of rice due to a decrease in export both in India and Vietnam due to the virus (Tan, 2020). However, these spikes in rice prices is not only due to the effects of the virus but has been slowly climbing due to internal challenges that the countries agriculture system is facing (Tan, 2020). Overall, Thai rice is in high demand due to external global pressure but is somewhat challenged by obstacles within Thailand.

External Pressure

Due to the coronavirus pandemic, there is increased pressure on the top three exporters of

rice to meet the increased demand while following safety and regulations. However, the increased price in rice globally is directly impacted by India and Vietnam decreasing their exports (Tan, 2020). According to Tan, India is in need of migrant workers to maintain its fields, but many have left the fields due to the COVID19 outbreak (2020). Also, the country is not taking new export deals (Tan, 2020). Furthermore, India is currently in a nationwide lockdown, restricting certain operations essential to the production and transport of rice in India (Nguyen, 2020). On the other hand, Vietnam is stocking up to feed its own people and is somewhat highly regulating its exports; the results of Vietnam’s actions may perhaps be a 10-15 percent decrease in rice available for the global rice market (Nguyen, 2020). Regarding the importing of rice, Hong Kong is dependent on Thai rice that is still being exported for its people (Nguyen, 2020). Also, the Philippines is the greatest importer of rice globally; thus, it is highly dependent on rice exports from other countries to feed its people (Tanakasempipat, 2020).

Internal Pressure

Although there are global impacts on Thailand’s increase in rice prices, there are also

local impacts that are causing this rise in prices. For instance, due to recent drought last year in Thailand, the price of rise made prices already slightly higher since last year (Tan, 2020). However, the COVID 19 outbreak is pressuring people in Thailand to buy more rice so that there is a higher demand; The result is that rice prices are up domestically in Thailand not just globally (Nguyen, 2020). According to Tanakasempipat, price rise due to Thai exporters expecting more sales globally since again, its competitors have significantly decreased their export of rice (2020). Though there is enough supply of rice in the country of Thailand to feed its people, the field labor has decreased significantly because Cambodian migrant workers have left (Tan, 2020). This has caused a strain on the agriculture of Thailand’s rice.

Conclusion

Although the impact of India and Vietnam reducing its exports have resulted in increased

global rice prices and increased demand for rice from Thailand, there are other consequences to this closed-door policy that Thailand must also consider before enacting the same policies. As Samarendu Mohanty, an expert in food security matters and the Asia regional director for the Peru-based International Potato Center, says, “One cannot blame countries for ensuring their domestic food security during this trying time, but countries need to be extra careful in taking unnecessary policy measures that could create panic in the market. Countries should be aware that enough grains exist in warehouses to feed the world for more than four months. But these grains are of no use if countries resort to trade restrictions” (Mohanty qtd. in Tan, 2020). In other words, Thailand, must be cautious that it not be too hasty to shut its doors to global export of rice because countries like the Philippines will face food security issues. Also, Thailand, seems to currently have enough rice to feeds its own people and should continue exporting its rice to other parts of the world. However, there should be policies and actions taken to keep workers safe in the rice fields and across the whole system of rice exporting so that people in other countries can get the rice that they need without expensing the health of the laborers in Thailand and other rice exporting countries.

References

Nguyen, S. (2020). Coronavirus: Vietnam stockpiles rice as outbreak spreads and food security

concerns grow. This Week in Asia. https://www.scmp.com/week-asia/economics/article/3077272/coronavirus-vietnam-stockpiles-rice-outbreak-spreads-and-food

Tanakasempipat, P. (2020). Thai rice prices hit 7-year high on anticipated sales as coronavirus

troubles rivals-exporters. Reuters. https://www.reuters.com/article/thailand-rice/thai-rice-prices-hit-7-year-high-on-anticipated-sales-as-coronavirus-troubles-rivals-exporters-idUSL4N2BQ2F8?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosmarkets&stream=business

Tan, H. (2020). Rice prices surge to 7-year high as coronavirus sparks stockpiling. CNBC.com.

https://www.cnbc.com/2020/04/08/rice-prices-surge-to-7-year-high-as-coronavirus-sparks-stockpiling.html