An Analysis of the COVID-19 and rice-based food security in Asia

Balié, Jean and Valera, Harold Glenn and Pede, Valerien (2020): An Analysis of the COVID-19 and rice-based food security in Asia.

Abstract

This paper examines the main channels through which the COVID-19 health crisis could affect the rice-based food security in Asia. We highlight three major channels that require monitoring in the medium term: (i) shortage and/or rising labor cost, especially in low-mechanization countries, (ii) logistics, and (iii) capital flow or shortage of liquidity to the agricultural sector. We also document that the rice market fundamentals were robust, at least at the onset of the COVID-19 health crisis. However, we argue that the COVID-19 health crisis could impact food access, and more particularly rice demand, mainly because: the traditional distribution and logistics channels have been disrupted; employment has declined, and incomes have been suppressed; and food prices have already been negatively impacted in many countries.

• Item Type: MPRA Paper
• Language: English
• Keywords: COVID-19, food security, economic slowdown, rice export ban, rice prices, Asia
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q17 - Agriculture in International Trade; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy ; Food Policy

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