MADAGASCAR* (10 February)
Normal to above normal rains were received for planting of the main season crops, rice, maize and sorghum at the start of the 2004/05 agricultural season in October-November. Heavy rains were experienced in December and January. The area planted to paddy is reported to have increased in response to the current high rice prices. The official estimate of paddy production in 2004 is 3 million tonnes, some 8 percent higher than the year before. Maize production was estimated at an average level of 170 000 tonnes, an increase of about 10 percent on the previous year’s drought-reduced harvest. The impact of cyclones in 2004, rising cost of oil imports and depressed prices of its main exports such as vanilla and shrimp have caused serious food security problems for vulnerable groups. Since April 2004, rice prices have been on the rise. High prices are expected to benefit farmers with marketable surpluses.
The rapid rise in the price of rice (for example, from 2 400 Fmg or about US$0.25 per kg in April to about 7 000 Fmg or US$0.74 in December) primarily due to high world prices and devaluation of the local currency, has seriously affected the food security situation of the country. Rice imports have declined sharply this year causing the “rice crisis” in the country. In June the European Union committed 70 million euros to its biggest ever African project to rehabilitate the main north-south road. In October the IMF announced disbursement of US$16.6 million aimed at promoting economic growth and reducing poverty. Reportedly more than 75 percent of Madagascar's 16 million people live below the poverty line of US$1 a day.