New international platform to promote food and nutrition security
The Committee for World Food Security (CFS) of FAO - the top UN forum for food security - has been revamped to allow for a more focused, coordinated and inclusive approach to addressing hunger and malnutrition, inter alia through enhanced participation by a range of inter-governmental, international, civil society and private sector organizations. The new CFS includes the International Fund for Agricultural Development (IFAD), the World Food Programme (WFP), international agricultural research institutions, the World Bank, the International Monetary Fund (IMF), regional development banks, the World Trade Organization (WTO), as well as civil society organizations representing small farmers, fisherfolk, herders, landless, urban poor, women, youth and indigenous people. In addition, a high level expert panel will advise the CFS in promoting policy convergence through international strategies and voluntary guidelines on food security and nutrition based on best practices and lessons learned in reducing hunger.
World hunger at unprecedented high level
The global economic crisis has made an additional 105_million people food-insecure in 2009, latest FAO hunger estimates show. More than 1 billion people cannot meet their minimum dietary need, highlighting the need for urgent reform of the world food system, according to The State of Food Insecurity in the World (SOFI) 2009 (http://www.fao.org/docrep/012/i0876e/i0876e00.htm). These include an estimated 642 million people in Asia and the Pacific, 251.5 million of them in India, 127.4 million in China, 40.2 million in Bangladesh and 36.5 million in Pakistan. Twenty five percent of Cambodia's 14 million people, 29 percent of the 2.6 million people in Mongolia and 32 percent of the 23.6 million people in the Democratic People's Republic of Korea (DPRK) are undernourished. FAO has urged world leaders to reach a "broad consensus on the total and rapid elimination of hunger" during the World Summit on Food Security of Heads of State and Government to be held in Rome, Italy from 16 to 18 November 2009.
International rice prices remain weak
Benchmark Thai rice prices have continued to weaken in recent months with 100% B trading at an average of US$541 per tonne in the first three weeks of October, against US$560 per tonne in September. Thai A1 Super was US$306 per tonne, US$1 cheaper than in September (see Figure1). The government of Thailand recently announced a decision to purchase another 2 million tonnes from paddy farmers under the rice pledge scheme that was originally scheduled to end mid-October. The extended rice pledge will run parallel with the new price guarantee scheme that pays farmers the difference between market prices and the government's "guaranteed price" in case the former is lower, with a limit of 25 tonnes of white rice, 14 tonnes of jasmine rice and 16 tonnes of glutinous rice per farm household.
Traders and market analysts note that thin overseas demand and the 6 million tonnes rice in Thai government stocks are keeping prices down despite the anticipated increase in imports early next year from the Philippines and, possibly, India, following natural disasters in both countries. The Thai Commerce Minister has said that nearly 1 million tonnes from government stocks will be sold through bilateral deals in November and December 2009 and another 1.77 million tonnes early next year. Viet Nam's cheaper white rice exports have reduced Thailand's market share this year as has the banking crisis in Nigeria - a major Thai rice importer. The continuing decline in international wheat prices is expected to push world rice prices down.
The Philippines is reportedly seeking a government-to-government purchase of about 200 000 tonnes rice from Thailand. More than 185 000 ha of the Philippines' paddy crop were estimated damaged by typhoon Ketsana in late September and 74 343 ha paddy crop were affected by typhoon Parma in early October. Senior government officials in the country said more imports are likely early next year. Recognising that regional food security is highly vulnerable to natural disasters, leaders of Southeast and East Asia agreed at the Association of Southeast Asian Nations (ASEAN) Plus 3 Summit in Thailand in October 2009 to set up a permanent emergency regional rice reserve aid mechanism.
Southeast Asian nations are also preparing for the free trade regime that comes into effect early 2010 with the Philippines and Thailand discussing a compromise over rice import tariffs. Meanwhile, China has reportedly maintained the quota of 5.32 million tonnes for low-tariff rice imports in 2010, as part of its WTO joining commitment.
Increasing demand from natural disaster-affected Philippines has pushed up rice prices in Viet Nam where 25% broken rice traded at US$360 per tonne f.o.b. against US$340 per tonne in September. Strong demand from Africa and the Middle East has taken Viet Nam's rice exports to a record high of 6 million tonnes so far this year although typhoon Ketsana damaged about 70 000 ha of paddy in the country's central region in late September. Viet Nam is also assisting Cambodia through a joint venture to boost Cambodia's rice exports.