It's more than just food.

To find the intricate balance between demand and supply, rice production policies must be reviewed and changed accordingly. However, what form should the policies adopt to is far from distinct.

Rice farming, in a span of a few decades, has transformed into a highly commercialized industry. Farmers now have to compete with Multi-National Companies (MNCs), who want a piece of the pie as well. Armed with financial and technological resource, they storm into the rice industry. The presence of machines and high-yielding, high-tech equipment introduced by MNCs has placed rural farmers in marginalized positions. The farmers are unable to compete as they desperately lack the resource and finances, hence leaving them to pick up only the crumbs of the pie. Not to forget, farmers make up a substantial amount of the population in Southeast Asia!

In lieu of this serious problem, governments have tried to ensure a minimum income for farmers in the form of subsidies. High-yielding rice grains and chemicals are provided at a lower cost and machines are available for rent at affordable rates. This ensures a minimum income for farmers and aide them in improving productivity. However, critics have pointed out those subsidies in turn cushion inefficiency in farmers and conflict with the fiscal balance of the country. Giving subsidies to rice farmers could also result in other industries lobbying for the same benefits, resulting in social unrest.

For example in Thailand, the previous government set the price of rice to 30 % above the market rate. However, this drew a criticism from the former Deputy Prime Minister and Finance Minister Pridiyathorn Devakula. He criticized the previous government for implementing populist policies which resulted in widespread social problems.

He added, “…It has become a burden on government's fiscal responsibility. Rice would be pledged for the current market price.”


Commerce Minister Krirk-krai Jirapaet supported this view, saying that the high subsidy would discourage farmers from improving their productivity, thus being a burden to the state.


Yet it is unfair to reduce all subsidies, what would happen to the farmers that really need the help from the government? Previously at the mercy of loan sharks, farmers can now borrow from state-run banks at low interest. But they still have to pay for fertiliser and pesticide. If they are hit by floods or drought, farmers will plunge deeper into debt. Even with a good harvest, many farmers are still at the mercy of the middlemen, who buy from them cheaply. The above-mentioned are just basic problems. Farmers cannot rise above poverty if they cannot control the market. They need technological know-how to boost rice yields, and marketing skills to compete with global traders. What happens if farmers abandon their rice fields and look for other jobs? The country will be in grave danger if we do not help and protect our rice farmers. A large number of rural people have already left their farmland to work in factories. Why do back-breaking work on the farm when they can earn more money sewing shirts or assembling cars?Therefore it is essential that the government have a long-term plan for the future of our rice farmers. To keep them on the farms, the government must ensure that they get a good price for their produce. An insurance scheme should also help them cope with natural disasters.