Quote:
Originally Posted by Shek
If I can export my rice, I will receive more money. If I receive more money, I can save to purchase irrigation and/or pumps. I am now less susceptible to the vagaries of nature. My ability to save is absolutely tied to government policy.
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If you believe farming options in the 3rd world are that flexible, here is a conundrum for you. India has banned only non-basmati varieties.
India bans export of rice move to have shockwaves | Articles | IndUS Business Journal
Basmati is an expensive variety, usually sold at a few dollars per pound over the other ones. So why don't the farmers simply change over to that, export lots of it and earn money? As per the new policy, they are even guaranteed to get a Minimum Export Price ($1200 per tonne). Simple reason - they cannot, also due to the factors that I mentioned above, chief of which is climatic.
I like free market economics as much as you do (ok, maybe not as much as
you do, but in general). The place to attack here is procurement and not production. The government(s) need to bring in policies that increase the options that the farmer has to sell his goods.
Quote:
Originally Posted by Shek
Also, faced with lower prices, my best option may be to decrease output. I get more free time and I can potentially increase prices as well. It is not just a choice between rice or something else.
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What would you do with the free time? There are hardly other means of income in some of these places, so alternative employment may not be an option. you best option is to continue working and get some money for the rice that you produce
Quote:
Originally Posted by Shek
It's seems to be working, doesn't it? Ask North Korea how self-sufficiency works in the extreme . . .
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Since you like sarcasm so much, can I ask you why the US government continues to provide such high subsidies to rice farmers in the USA, when free market economics would decry any kind of subsidy program? Maybe now the government should stop subsidies since prices are high enough for rice production to be economically viable on its own. The government can then use the funds saved to expand area of cultivation within the US.
Problem solved !!!