ASEAN Countries Nervous About Rice Amid Export Restrictions

[Asia Economy Jakarta Correspondent Choi Su-jin] Southeast Asian countries in the Association of Southeast Asian Nations (ASEAN), including Indonesia and the Philippines, are struggling due to neighboring countries' rice export restriction policies.

According to Nikkei Asia Review on the 21st, Budi Wasejo, CEO of Indonesia's state-owned logistics company Bulog, said, "Rice imports from Thailand and Vietnam have become impossible due to export restrictions imposed by those countries." Indonesia's rice demand is expected to reach 8.3 million tons by next month, but the amount that can be secured from domestic farms is only 950,000 tons. The Philippines' rice stockpile is projected to last only 67 days by the end of June if the current situation continues.

This phenomenon is due to major Southeast Asian rice-exporting countries, which these nations mainly import from, imposing export restrictions following the outbreak of the novel coronavirus disease (COVID-19). India, the world's largest rice exporter, has completely blocked exports due to border closures. India's rice exports last year reached 9.8 million tons. In Thailand, the world's second-largest rice exporter, a curfew was implemented earlier this month, leading to rice hoarding. Vietnam, the world's third-largest rice producer, has restricted rice exports to 800,000 tons until June. Vietnamese Prime Minister Nguyen Xuan Phuc issued a sudden rice export ban on the 24th of last month and extended it until June 15.

Cambodia is also following Vietnam's lead by restricting exports to prepare for the spread of COVID-19. Myanmar is likewise withholding government approval for rice exports. A trade official from Singapore expressed concern, saying, "Between 200,000 and 500,000 tons of rice are stuck at ports in Cambodia and Vietnam," adding, "Delays in cargo shipments will critically impact rice supplies in several countries."

Rice is not only a staple food for ASEAN countries but also a politically and emotionally significant food resource. Especially in the Philippines and Indonesia, stabilizing domestic consumption indices helps reduce inflation. The Philippines even sent a letter requesting Vietnam to reopen rice export routes. ASEAN convened an emergency meeting earlier this month to discuss measures to stabilize food supply among its 10 member countries. However, Nikkei Asia Review, through an interview with Oramon Sapthavitam, Director-General of Thailand's Trade Policy and Strategy Office, reported that "While the basic principle is to keep all trade open, ASEAN countries can take appropriate measures to preserve their own food resources," leaving the possibility of export restrictions open.

Philippine President Rodrigo Duterte expressed concerns about food security during an ASEAN video conference. He emphasized, "Ensuring sufficient rice supply for the people is the top priority," and stressed, "Trade routes must remain open; no country can survive alone." Not only rice but also the trade of sugar and buffalo meat, which are popular in Southeast Asia, has become practically difficult. Major sugar-producing countries such as Australia, India, and Thailand have suspended annual exports of 50,000 tons, and India has also restricted buffalo meat exports to secure its own food supply.

This content was produced with the assistance of AI translation services.