A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Pierre Pagesse, President
of Limagrain. It brings together, managers from the agricultural world and important people from external
perspectives, such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

Rice: A Turbulent Market

31 March 2008

According to FAO economist Concepción Calpé, the global rice market is currently facing a particularly difficult situation with demand outstripping supply and substantial price increases. The FAO All Rice Price Index indicates a 20 percent increase in international rice prices starting in January 2008.

Calpé added that higher rice production in 2008 could reduce tension between supply and demand, but that price volatility would likely continue.

In this context, a sharp reduction in the global reserves that generally serve as shock absorbers will cause the market to react very strongly to any good or bad news about crops or policies.

The consequences for food security can already be seen, and are reflected across the globe. The main rice-producing countries (China, India, Egypt and Vietnam) have implemented export restrictions. Consequently, many importing countries, particularly in West Africa, are experiencing serious problems with their rice supply, and are forced to pay higher prices for this basic foodstuff that is the foundation of most diets.

This turbulence on the rice market clearly illustrates one of the main characteristics of international agricultural markets, namely that a slight difference between supply and demand can trigger high levels of price volatility.
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