Income from Rice in Asia

Rice is a staple food in Asia. Nearly 90 per cent of rice in the world is produced and consumed in the region. The rice sector occupies a moderate share in national GDPs. As economies grow, the GDP share may decrease but the rice sector will always remain economically and socially significant. There are about 130 million rice farmers in the region. Their income from rice depends on several factors. Most of them are small holders with less than 1 ha of land. Analysis shows that farmers’ net income from rice farming varies greatly and is mostly below USD 1,000 per ha per crop. The average annual net income of a small holder from rice farming is USD 500–1,000. While strong political commitment to the sector’s development, technological progress, and improvement in infrastructure and services have a positive impact, adverse pressure from urbanisation and industrialisation, increased labour costs, and climate change create immense challenges. Continuous improvement in the incomes and livelihood of rice farmers is crucial to maintain incentives for further development of the rice sector. Policies must enable the improvement of rural infrastructure and services, especially irrigation. Policy reform should facilitate rice farmers’ access to land, effective management of conversion of rice land, application of a transparent trade policy, credit, and financial policies in favour of the rice sector.