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| Thursday, 18 March 2004 |
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Lankan and Asian paddy cultivators exploited by WTO regulations by Shirajiv Sirimane Sri Lanka and Asian paddy cultivators are being exploited by rules and regulations introduced by the World Trade Organisation (WTO) said Policy Officer, Ms. Hanny Mass, Humanist Institute for Co-operation with Developing Countries, (HIVOS) She told the Asian Paddy Growers' conference in Polonnaruwa organised by a non-governmental organisation, Development of Indigenous Seed, that the main aim is to promote European and American wheat and paddy in Asia. Whenever paddy or rice is imported to the European Union or American countries there is an export duty. However, when rice is exported, to Asian countries it is tax-free. The US and European Union countries export over 30 percent of their produce. Rice is the main staple food for 3.3 billion people in Asia whilst it is estimated that 250 million farmers depend on rice cultivation for their main livelihood. This makes rice a very political product, characterised by extensive government involvement, where politicians have to balance the interests of poor consumers with the interest of poor producers. "In the WTO reciprocity is decreasing and protectionist measures have been agreed upon, but in reality the EU and US have not started, whereas the Asian countries are already reducing their import tariffs," she said. These protectionist measures create two categories of problems. Firstly, although the export of rice is very limited compared to the total production (approximately 5% is traded on international markets), the measures taken by governments to protect their producers and/or consumers have a great influence on reducing the price of rice in the country. This has a negative influence on the producers in the importing country. Secondly, the import tariffs (and non-tariff barriers) of the EU and US which are especially high for milled rice, create a major obstacle for the major Asian producers to export to the EU and the US. An international lobby is necessary to create access to export markets, especially to avoid unfair competition with Asian producers. In Asia, lobbying national governments (and regional bodies) on the effects of price policies on producers and consumers is necessary. The US government provides subsidies for farmers and tax incentives. It is very strange that the Sri Lankan government has even reduced the subsidy on fertilizer which cost the farmer 40 percent of production," she said. The WTO influence on paddy and the fertilizer subsidy has resulted in a retail price increase on rice. "The end result is that more and more people would buy bread and the demand for wheat flour would increase," she said. She said that organic paddy cultivation should be promoted as it would cut down the cost of manure and pesticides by almost half. A problem experienced by organic farmers is the scarcity of appropriate seeds for organic rice farming. The green revolution has reduced the biodiversity of paddy varieties to a handful of so-called high yielding varieties. The lack of seeds restricts the increase in the production of quality rice. Over 1.1 million acres of paddy are grown in Sri Lanka with over 10,000 families involved in the cultivation. Polonnaruwa, Ampara, Hambantota, Matara, Galle and the Mahaweli areas are the largest paddy growing areas. Last year Sri Lanka had an excess of paddy mainly due to the additional cultivation in the North East and the weather patterns. However, there would not be an excess of paddy this season. |
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