Laos to join regional rice reserve
Laos to join regional rice reserve
The Lao National Assembly has given the green light for the Lao government to join hands with Asean and its three dialogue partners to establish a rice reserve as part of regional efforts to ensure food security in South East Asia.
The assembly's Standing Committee members last week considered and ratified the Asean Plus Three Rice Reserve Agreement, giving the go ahead for the Lao government to cooperate with the regional community in the establishment of the rice reserve.
Asean, China, Japan and South Korea reached agreement on the regional rice reserve at the end of last year, aiming to ensure the long-term food security and livelihoods of the people in the region as envisioned by the Asean heads of government at the 14th Asean Summit in 2009.
The agreement is also of significance because Asean Plus Three countries are both major consumers and producers of rice. Around two-thirds of the world's rice is produced in Asean Plus Three countries and more than half of the world's rice exports comes from this region. Thus, rice is an important factor in addressing food security in the region.
According to a UN report, food prices throughout the world have seen about a six percent increase compared to the previous year. Meanwhile the current drought in the USA has seen production of sweet corn and other crops fall considerably, which will pose challenges for world food supplies in the near future.
Trade officials said that it was Lao government policy to establish a rice reserve, aiming to ensure food security after experiencing rice price volatility over the past few years.
The government has stockpiled larger amounts of rice so as it can release the rice onto the market when demand for the staple is high, thereby stabilising prices.
According to a report from the Domestic Trade Department, the government has stockpiled more than 30 tonnes of rice after finding that it is possible that the price of rice will increase at the end of this year.
Economists have issued a warning to the government that a rice reserve is essential as a report shows that rice production did not meet output targets due to floods at the end of last year. Transportation difficulties during the wet season will also put strong pressure on rice price management.
One of the main measures, which the government is applying to stabilise rice prices is to restrict exports of rice along border areas.
A number of rice mills in Laos told media that they have established their own rice stockpiles the rice and will be ready to release the rice to the market over the upcoming months. However, some of them have complained that rice price this year is very low.
They said that they wanted the government to repeal the ban on rice exports so the price of rice will recover and they will be able to sell their stock at higher prices.
vientiane times
