KBS Grand Project - Agricultural Powerhouse, Conditions of Hope Part 5 “The Price of Giving Up Rice” (Aired on November 15, 2008) ※ This video was aired in 2008 and may differ from the current situation. ■ The rice price shock that shook the world in 2008! Protect rice! In 2008, the world was in turmoil due to the sudden rice price shock. People even took up arms to protect rice. In the Philippines, the world’s largest rice importer, rice prices have doubled compared to last year, causing the poor to suffer. Haiti, which relies on rice imports, even had a riot. The international rice stock has been continuously decreasing since 2000. The sudden surge in international rice prices threw countries that depend on rice as their staple food and mostly on imports into chaos. We covered the scenes of the rice price surge in four countries: the Philippines, Haiti, Vietnam, and Japan. ■ Why did the international rice price skyrocket? Vietnam, a rice exporter, has experienced a surge in rice prices. Vietnam suffered a severe blow to its national economy last year, with inflation reaching 30%. The retail price of rice has soared by more than 50% compared to the end of last year. In addition, 30,000 cows died and crop yields decreased by 10% due to the worst cold wave in 10 years at the end of last year. The Vietnamese government has suspended new rice export contracts until June due to concerns about domestic rice prices and inflation. Countries that depend on rice imports, such as the Philippines, are bound to suffer. This reality is not so far from ours, whose rice self-sufficiency rate exceeds 90%. In 1980, when 4 million seok of rice were imported in April of the following year due to a cold wave, the price per ton in the international market rose from $367 the previous year to $541. Rice exports are limited to a few countries, including the United States, Thailand, India, and Vietnam, forming a monopoly. In addition, most countries that depend on rice as a staple food are self-sufficient in rice, so the trade volume is extremely limited to about 5% of total production, and the price fluctuations are greater than those of other grains. Let's find out the cause of the surge in international rice prices. ■ Reality of countries that failed to protect rice 1. The world's largest rice importer, the Philippines The Philippines achieved the Green Revolution in the 1960s. In the 1980s, it finally became self-sufficient in rice and even exported the surplus rice. However, after the mid-1980s, the Philippine government changed its policy from increasing rice production to keeping rice prices low and importing it. In the 1990s, it even reduced investment in the agricultural sector by half. The agricultural sector rapidly stagnated, and with industrialization, cultivated land began to decrease. The Philippines ended up becoming the world's largest rice importer. 2. Haiti, a victim of the WTO system Haiti was self-sufficient in rice until the early 1980s. However, in the late 1980s, due to the free trade policy led by international financial institutions, rice import tariffs were significantly reduced, and cheap American rice took over the market. After the rice market was opened in 1986, Haiti's rice tariff was lowered from 35% to 3%. As dependence on imported rice increased, rice import prices rose first, and domestic rice farming collapsed. Farmers left for the cities, and those who could not buy rice even ate mud cookies. ■ Rice self-sufficiency rate of 95%, are we safe? South Korea, with a rice self-sufficiency rate of over 90%, was not greatly affected by the rice price fluctuations. However, we cannot be at ease. This is because since the complete opening of the rice market in 2015, we have been inadequate in dealing with cheap imported rice. Unlike advanced countries that receive agricultural subsidies, we are losing competitiveness due to the severe lack of support for the agricultural sector. Another problem is that the land for rice cultivation is decreasing due to the cultivation of high-income crops. Japan, which is in a similar situation to ours, is preparing for a food crisis at the national level. From raising the basic awareness of the people about food issues to systematic research on how to increase self-sufficiency rates, food is the best strategic weapon of the 21st century. What kind of preparations should we make now that we are faced with a global food crisis? #Rice #Food security #Rice price surge #Grain price #Haiti #Philippines #WTO #Self-sufficiency rate