The Myanmarian Cyclone Nargis destroyed a significant share of rice production in Southeast Asia, further exacerbating the rice crisis. Meanwhile, Japan has 1.5 million tons of surplus rice, most of it imported from the U.S., that if released could substantially replenish the rice supply and prick a speculative bubble and bring rice prices down fast. CGD's research broke this story to the media and received attention from a number of mainstream publications.
Coverage includes
Rice and Baloney (Washington Post - 5/19/08)
From the article:
"Start with the lunatic story of rice stockpiles in Japan. A new paper from the Center for Global Development describes how Japan's government imports rice in order to comply with its global trade commitments but withholds most of that rice from consumers lest they decide they prefer it to the local sort. Japanese traditionalists view the consumption of sticky, short-grained rice as a patriotic duty. So rather than letting Mrs. Watanabe corrupt her children's dietary habits, Japan stores much of its imported rice until it has become unfit for human consumption, whereupon it is sold to feed livestock."
Japan's Silos Key to Relieving Rice Shortage (Times-UK - 5/17/08)
From the article:
"Researchers at the Washington-based Centre for Global Development (CGD) said that if that distortion were removed, and the 1.5 million tonnes of unwanted US rice were released from Japan's storage silos, the crisis that has sent the price of the crop that feeds half the world surging up would be solved instantly. The centre has suggested that rice prices could halve by the end of the month."
U.S., Japan Working to Ease Shortage of Food (Washington Times - 5/16/08)
From the article:
"'Releasing this rice to global markets would prick a speculative bubble and bring rice prices down fast, while also encouraging China and Thailand to release their surplus stocks,' said Tom Slayton of the Center for Global Development."
Rice Falls for Fourth Day on Eased Supply Concerns (Dow Jones: MarketWatch - 5/15/08)
From the article:
"Japan currently has more than 1.5 million tons of imported rice in storage; roughly 900,000 tons are from the United States and the rest are from Thailand and Vietnam, according to Center for Global Development, a Washington-based nongovernmental organization.
Those rice stockpiles usually end up in the hands of domestic livestock operators, as the Japanese government stores the rice until the quality deteriorates to the point that it's suitable only as livestock feed, CGD economists Tom Slayton and Peter Timmer wrote in a note."
U.S. Mulls Letting Japan Sell U.S. Rice to Cool Prices - Source (Thomson Financial News - 5/15/08)
From the article:
"On Wednesday, a non-governmental organisation called on the U.S. government to allow Japan to sell its 1.5 million tons of imported U.S. rice or give it to the World Food Programme to help cool runaway rice prices.
'An agreement by Washington and Tokyo for Japan to release its 1.5 million tons of unwanted rice stocks is the key to piercing this bubble,' the Washington-based Center for Global Development (CGD) said."
US Should let Japan Sell Its US Rice: NGO (Agence France-Presse - 5/15/08)
From the article:
"WASHINGTON (AFP) — The United States should allow Japan to sell its 1.5 million tons of imported US rice or give it to the World Food Program to help cool runaway rice prices, a nongovernmental organization said Wednesday.
'An agreement by Washington and Tokyo for Japan to release its 1.5 million tons of unwanted rice stocks is the key to piercing this bubble,' the Washington-based Center for Global Development (CGD) said."