With the world rice prices hitting $1,000 per tonne, more than doubling over five months, Asian governments were forced to ban export of rice in order to meet domestic demands, and take a serious look at their neglected agriculture sectors. Before the Asian economic miracle of the 1980s and `90s, there was the green revolution of the 1960s. Asia's green revolution combined the introduction of high-yield seeds for staple crops such as maize, wheat and rice with massive public expenditures on rural infrastructure. Productivity soared and famine became a thing of the past.

Today most agricultural taxes have been dropped. Thailand ended its agriculture export taxes in 1986 and other south-east Asian countries eventually followed. China abolished all direct taxation on agriculture in 2006 and provided $5.6 billion to subsidise farmers in 2007, according to the World Bank. Consequently, other governments, such as Thailand, hav3e started subsidizing their farmers through price support schemes, notably for the country's rice industry, a highly competitive business that has won the kingdom the position as the world's leading rice exporter since the mid-1960s. While subsidies are one means of assisting Asian agriculture, economists argue that they are not necessarily the best. "Price support schemes are often preferred by politicians," noted the World Bank in its special report on Agriculture for Development, published in November.

The good thing that's come out of the food crisis is that governments are rethinking agriculture. The crisis has proven to be more than a blimp caused by an artificial shortage on the world market. In general, food prices will be on an upward trend as long as oil prices continue to skyrocket. Food production requires fuel for tractors and transport, and petroleum is an important ingredient for chemical fertilisers and pesticides. As long as oil prices continue to rise, so will commodity prices. To cap food prices, experts said governments should concentrate on improving Asia's agricultural productivity, which could increase farmers' incomes while still satisfying consumption.

India with two-thirds of the region's 600 million poor, arguably has the most to gain by improving its agricultural productivity. Partly in response to widespread criticism of the government's inability to prevent the suicides of an estimated 150,000 debt-ridden farmers since the early 1990s, the Indian government has launched multi-billion-dollar projects to boost yields in 600 districts identified as having low crop productivity and to promote investments in agriculture. More investments in rural infrastructure would also help. Global warming is another good reason to invest now in agricultural productivity and research and development (R&D).
-- DPA-Bangkok