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Can Indonesia Trust The World Rice Market?

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  • David Dawe

Abstract

Geography suggests that Indonesia will continue as a net rice importer for the foreseeable future, because it is an island nation without dominant river deltas providing abundant water and flat land suitable for rice growing. Yet policy makers remain reluctant to use the world rice market to achieve domestic food security goals for at least two reasons. First, there is concern that trade policies of other countries create a heavily distorted world market price. Second, there is fear of world market price volatility. It is argued here that distortions in the segment of the international market relevant to Indonesia are relatively small, and that world rice prices are considerably more stable now than during the 1970s world food crisis. Thus, the fear of price distortion and volatility appears unfounded, and engaging fully with the world market is a much more viable alternative than it was 30 years ago.

Suggested Citation

  • David Dawe, 2008. "Can Indonesia Trust The World Rice Market?," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 44(1), pages 115-132.
  • Handle: RePEc:taf:bindes:v:44:y:2008:i:1:p:115-132
    DOI: 10.1080/00074910802008053
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    References listed on IDEAS

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    1. Landes, Maurice R. & Jha, Shikha & Srinivasan, P.V., 2007. "Indian Wheat and Rice Sector Policies and the Implications of Reform," Economic Research Report 6386, United States Department of Agriculture, Economic Research Service.
    2. Siamwalla, Ammar & Haykin, Stephen, 1983. "The world rice market: structure, conduct, and performance," Research reports 39, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Baharom, A.H. & Radam, Alias & Habibullah, M.S. & Hirnissa, M.T, 2009. "The Volatility of Thai Rice Price," MPRA Paper 14113, University Library of Munich, Germany.
    2. Sumarto, Sudarno & Bazzi, Samuel, 2011. "Social Protection in Indonesia:Past Experiences and Lessons for the Future," MPRA Paper 57893, University Library of Munich, Germany.
    3. L. Christiaensen, 2009. "Revisiting the Global Food Architecture. Lessons from the 2008 Food Crisis," Review of Business and Economic Literature, Intersentia, vol. 54(3), pages 345-362, September.
    4. Marks, Daan, 2010. "Unity or diversity? On the integration and efficiency of rice markets in Indonesia, c. 1920-2006," Explorations in Economic History, Elsevier, vol. 47(3), pages 310-324, July.
    5. Hoang, Hoa K. & Meyers, William H., 2015. "Price stabilization and impacts of trade liberalization in the Southeast Asian rice market," Food Policy, Elsevier, vol. 57(C), pages 26-39.
    6. Samuel Bazzi, 2017. "Wealth Heterogeneity and the Income Elasticity of Migration," American Economic Journal: Applied Economics, American Economic Association, vol. 9(2), pages 219-255, April.

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