Agricultural Policy and Trade in Developing Nations

TO STUDY THE PRACTICES OF RICE EXPORTERS TO COUNTER TRADE
BARRIERS AND CURRENCY FLUCTUATION
1. Introduction
1.1 Objective
Rice is one of the most preferred stable foods in a global context. Most farmers
especially in Asia continent practice rice farming for purposes of commercial
purpose. Rice is also exported in various part of the world. Asia continent act as the
main producer and consumer of rice commodity. China and India are the main
exporters of rice commodity. Comparing the total annual production, only about 6-
7% of the rice commodity is traded annually in a global context. Rice exporters face
numerous challenges that incorporate trade barriers (Ha, Nguyen, Kompas, Che. and
Trinh, 2015). They include various government regulations, custom clearance and
product inspection. These problems act has extensively diminished the ability of
exporters to freely conduct their business activity at a global context. Many policies
are formulated in many parts of the world although they are irrelevant in many
countries. In order to accommodate an enhancing a fair trade, most exporters
accommodate various measures and enhance trade liberalization to cope up with
incidences of currency fluctuations. The research below will consider the exporter
practices that can be incorporated in order to avoid the existing barriers of rice in the
international trade.
1.2 problem statement

“TO STUDY THE PRECTICE OF RICE EXPORTER TO DIMINISH THE
EXISTING TRADE BARRIER AND CURRECNY FRUCTUATION IN THE
INTERNATIONAL TRADE”
1.3 BACKGROUND
There exist numerous trade barriers in many countries around the World. The
restrictions are incorporated by both developed and undeveloped countries. They
include the import tariffs, import quantity and customs taxes (Baldwin, 2016). Some
countries also formulate some restriction policies that include currency fluctuations,
deficiency in terms of payment and incorporation of input subsidies. Recent research
by World economic forum shows that protectionism policy is incorporated in most
developing nations. The forum uses the country average international tariff burden for
purposes of measuring the custom duties imposed to imports of various commodities.
Research conducted by USDA shows that Japan is one of the countries that impose
high trade restriction on rice commodity. The current structures of imports and
exports can be significantly affected by the global liberalization which leads to rapid
increase of rice commodity price.
1.4 Project Objective
The main purpose of the project is to look at the market sector of rice commodity and
the enacted policies of rice exporters. The research also incorporates the discussion of
variance of money that can accommodate fare price of rice commodity. The study
will give some significance the export of rice in the international trade and the
impacts arising as a result of various existing market barriers and trade restrictions.

The study will also incorporate the existing currency fluctuations that diminish the
ability of rice exporters to participate in a fair market structure.
1.5 Project scope
The study aims at enhancing the good relationship of the custom authorities of rice
exporters and the country of imports. Involvement of custom authorities should be
enhanced in both the country of imports and the exporting country. Rice traders should
also be enhanced with a comparative advantage.
2. Literature review
Rice is one of the most vast consumed food commodities in many continents with Asia
continent leading in terms of production and consumption. Research conducted shows
that out of the 76% of the rice exported are mainly consumed by Asia continent
(Adebayo Oluwakemi and Omodele, 2015) Constant rise of rice price has been observed
in recent times because most exporters fear incidences of rice commodity shortage. The
total production of the rice commodity in the global context does not favor the
international trade. The leading producers of rice commodity include China, India,
Thailand, Pakistan and Vietnam as they produce more than 50% of the total export.
Pakistan has a comparative advantage over other Asian countries as it is located in a
strategic place where it trades its rice and dominates over other competitors (Bishwajit,
Ghosh and Peneluppi, 2017). Pakistan economy is dominated by staple rice commodity
(Settle, 2016). The country is highly attributed in determining the foreign exchange
earnings. The country experience delays of data delivery because the rice production

incorporate manually generated statistics as well as its labor intensity. Due to
incorporation of extrapolating results from collected samples, the data obtained appear to
be anomalous after through cross examination. Existence of such hindrances poses a
great threat when it comes to designing strategic food security and a favoring rice
production system.
Rice is also the main subsistence food consumed in India making it secure in terms of
food security of over half of the total World population. The government of India has
established various protection measures in the agricultural sector in order to cater for
rapid food shortages that occur frequently (Singh, 2017). Inflation level has rapidly
increased as a result of unstable increase of prices of rice commodity. The Indian
authority banned the non- basmati rice in the year 2000 and also imposed the export
taxation of the rice variety with the aim of reducing the local rates and increase the
countries domestic supplies (Grover, 2017). This policy restricted the total amount of rice
exported out of the country. There occur various theoretical measures of price as a result
of imposition of export restrictions and trade tariffs in any given territory. Looking at the
India context, the fluctuations of the local paddy prices will affect the producers while the
high imposition of global prices will favor the rice producers. The monopoly power of
India economy had a high expectation of enhancing the national economy as a result of
enacting some of these trade policies. Thailand and Indonesia also incorporated the India
policy and these resulted in increased level of rice prices at the global level.
Bangladesh government has worked in a manner likely to suggest that it emphasis on
giving priority of price stability of the rice commodity. About 75% of the total arable
land is meant to produce the rice commodity (Barrow, 2016.). This enhances a total