Commodities No. 2. Import Surges in Developing Countries: the Case of Rice.
Some developing regions and countries are more prone to experiencing rice import surges. Rice import surges are most prevalent in Africa, the Near East and Central America and the Caribbean.
In the period since 1995, the main external factor responsible for rice import surges has been the low level of international prices during 2000-2003. The price depression reflected adjustments in the world rice market to bring supplies in line with world demand, and sharp competition among traditional exporters. The prevalence of state trading enterprises among major supplying countries is a unique feature of the rice market, and this factor exposes importers to sudden changes in the policies of those countries. During 2000-2003, decisions to reduce public stocks and trade the supply overhang on international markets were largely responsible for the particularly low prices. The use of WTO-disciplined export subsidies has been limited in global rice trade, as has food aid except in a few countries in some years.
