Japan, China and Thailand Can Solve the Rice Crisis—But U.S. Leadership Is Needed

The world rice market is in crisis, with export prices soaring to $1,100 per ton in April, from
$375 per ton in December.2 If action is not taken, prices may double again, returning them to
stratospheric real levels last seen during the crisis in 1973/74 (Fig. 1). The loss of rice
production in Myanmar due to Cyclone Nargis complicates the task of stabilizing the world rice
market. Fortunately, the release of rice stocks by Japan, China, and Thailand can bring rice
prices down now, possibly cutting them in half by the end of June. But the U.S. government must
take the lead in making this happen. To do so, it will need to get U.S. rice growers on board with
the plan, a potentially difficult roadblock.