Formulation of Rice Strategy
Strategic choices on rice trade policy
Ramesh Sharma
FAO Regional Office, Bangkok
28-29 November 2013
Objective
To identify and discuss some strategic
choices on rice trade policy for various subgroups of countries, e.g. importers and
exporters, small and large.
Sub-categories of countries for trade policy
analysis
Importers
 Japan, Korea Rep., Chinese Taipei
 Indonesia, Malaysia, Philippines
 Bangladesh, Sri Lanka
Exporters
 Pakistan, Thailand, Cambodia
 Vietnam
 India
And, China
India – exports of basmati and non-basmati rice
(2000-2012, million tonnes)
India - Basmati rice export (million tons)
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2000 - 2001
7.0
India - Non-basmati rice export (million
tons)
6.0
5.0
4.0
3.0
2.0
1.0
2003 - 2004
2007 - 2008
2010 - 2011
0.0
2000 - 2001
2003 - 2004
2007 - 2008
2010 - 2011
Main conclusions
 Rice trade policy strictly follows domestic rice policy,
not the other way around
 This implies - trade policy choices/options remain
constrained until domestic policy/goal changes (as in
EU’s CAP since 1992)
 The outlook for rice trade policy is to remain highly
regulated (some changes likely in Japan, Korea Rep)
 Relatively bigger choice to liberalize for small traders
and exporters (and aromatic rice), and vice versa
 RTAs in Asia continue with rice in sensitive list
 Also, no move in WTO towards negotiating rules that
enhance trust in rice markets (e.g. X restriction)
Considerations for strategic choices
• To continue with highly regulated trade policy
• Or to follow a path of more rules-based, predictable
trade policy (e.g. on export - tax, variable tax, MEP
and not quotas and bans)
• ditto on the import side
• But fully recognizing the downsides of heavy
regulation (inefficiencies, undermining private
investment in supply chains, undermining trust in
world rice market)
• The economics of these choices are well known, and
should be said in the Rice Strategy paper