Dining

RICE: Economic Boom or Bust? Part VIII

Bojoon.com and CIC has teamed up to review one of the most controversial debates of Sri Lanka - is rice as an industry worth the effort.

The discussion so far...

Rice as an industry comes under heavy fire as an unprofitable venture notes - Senior Consultant Researcher of CIC Agri Businesses Dr. Sumith Abeysiriwardena. Yet, he points out, instead of been abandoned as such, rice production over the last six decades has increased by 12 times!

He points out the tremendous demand for rice; ease of handling the grain and the only crop that can be grown in marshy lands. He continues that with our technology and our unique hydraulic systems our productivity is high and asserts that history has proven that rice is more than our staple, but also our stronghold against our many enemies.

He describes while countries like Australia has made a viable export and domestic industry, we have decreased our rice consumption for wheat, making us vulnerable to adverse foreign influences.

He feels that though buffer stock comes with its own set of problems, it provides a good solution to stabilise our staple, especially with agriculture being such a vicious cycle.

Our neighbors’ plans and actions certainly seem to be reciprocating his very thoughts. MD/CEO of Agri Businesses Keerthi Kotagama, calculates that even with the best estimates, rice shortage is imminent at least at the tail end of year 2008, and a buffer stock is the only solution to address this immediate problem.

The discussion continues:

Creating a buffer stock should only be a short term solution states Kotagama. These are interesting times, he says. Though global rice production continues unabated with 1.6 billion tonnes of grain production compared to last year’s 86 million tonnes, the world is experiencing severe rice shortages.

There are a number of reasons to result in this shortage, explains Kotagama. One is that the living standards in countries with huge populations like India and China are rising. As people begin to enjoy better living standards, their food also changes from a carbohydrate rich diet to one with protein.

Thus, while the cereal consumption in developing countries remains static since 1980, the meat consumption has doubled. This has resulted in manufacturing 250 million tonnes more animal feed than 20 years ago. For instance, 3 kg of cereals are required to produce 1 kg of pork and for 1 kg of beef, 8 kg of cereals is needed, he calculates.

Another main reason is the increasing demand for ethanol. In year 2000, US cars used ethanol produced from 15 million tonnes of maize. By year 2007, this figure has risen to 85 million tonnes. By year 2010, the European Union targets to replace five per cent of fuel by ethanol. Global ethanol production has tripled since year 2000 from 18 billion liters to 60 billion liters by year 2007 and now accounts for three per cent of the total global transport fuel supply.

With this increasing demand for ethanol, farmers are finding it more profitable to grow maize than Soya or wheat. US, a previous heavy maize exporter is now using it for ethanol. Therefore, land that was used for Soya and wheat are now being used for maize. In 2007, US maize production of 335 million tonnes is a 25 per cent increase at the expense of the other crops. Furthermore, US ethanol production is subsidised to compete against Brazil’s sugar-based ethanol.

When Soya and wheat production decreases, its prices increases and the demand shifts to rice, points out Kotagama.

Globalisation also has been a cause for these shortages to result, notes Kotagama. For instance, due to economic reforms, the Indian Government over the past 15 years had gradually eased their control over the rice trade, allowing farmers and traders to sell their rice to the highest bidder. Now, rice that was sold mostly in the domestic market is exported at a higher price, which increases domestic market prices as well.

Even though now the Indian Government has imposed a restriction on exporting non-Basmati rice, the Indian seller is not willing to sell at a lower price than he would have otherwise got. As they hold on to their rice, less rice comes into the domestic market at a higher price. These are the problems of intervention policies, says Kotagama - it has unintended consequences such as panic, which leads to more hording, lesser supply and higher prices.

Join Daily News next Friday as bojoon.com unravels with CIC many mysteries and misinterpretations surrounding rice cultivation in Sri Lanka. Share your own opinion by simply dropping an email to [email protected]. For more information of who we are, do visit www.bojoon.com.

Lanka to train Lao travel guides

Shirajiv Sirimane

Lao: For the first time Eco Foundation will be training Lao guides in adventure tourism in Sri Lanka.

Chairman Eco Foundation Sri Lanka Palitha Gurusinghe said that this step has been taken consequent to a to a MoU signed with Lao Tourist Board (LTB) and a ten-member batch for this programme would arrive in September 1.

He said that Sri Lankan eco and adventure tourism structure is very much organised in Sri Lanka than the Lao sector. “This was the reason for them to sign the MoU and request support from Sri Lanka,” he said. Gurusinghe said that while sending Sri Lankan groups to Lao they are also organising tours to Sri Lanka.

“The Lao tourists are keen on eco and adventure tourism and groups each comprising of 10 will visit Sri Lanka every month,” he said. In addition exchange of educational programmes too are orgnised between the two countries.

Gurusinghe who returned from Lao last week said they partronise the Thai airways for their tour. Airline has two daily frequencies to Lao capital Vientiane.

Many visitors also take the 10-hour train journey from Bangkok to Vientiane boarder and then take a Tuk Tuk (three wheeler) to the Capital.

Most Sri Lankan visitors to Vientiane take the train and fly back on Thai airways avoiding multiple visa.

Luan Prabhan is one of the most sought out destinations for its natural beauty while Vang Vieng the former Buddhist monastery turned war museum is another attraction.

The friendly and uncorrupted people and cheap shopping, food attracts more tourists to the country. Lao must be explored within the next two years before it gets corrupted, he said.

Ceylon Continental crab, prawn fiesta

Ceylon Continental Hotel Colombo will present a delicious crab and prawn fiesta at the Cafe Emerald from June 22 to 27.

The fiesta presents a tempting combination of crabs and prawns in a form of buffet during dinner 7 p.m. - 11 p.m.

One could enjoy a wide selection of crabs and prawns grilled, curried, baked or even devilled with tempting action stations during the fiesta. Chili crabs, baked crabs, curried crabs, sweet and sour prawns and fried prawns with savoury rice cooked to a fine taste to suit the taste buds will be on offer for all diners.

There will also be a wide selection of fresh green salads with hot and spicy soups and a delicious dessert buffet with chocolate mousse, cream caramel.